RITHM CAPITAL CORP (RITM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RITM - US64828T2015 - REIT
11.07 USD
0 (0%)
11.1 USD
+0.03 (+0.27%)
Taking everything into account, RITM scores 5 out of 10 in our fundamental rating. RITM was compared to 68 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. RITM scores excellent on profitability, but there are concerns on its financial health. RITM is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
RITM had positive earnings in the past year.
RITM had a negative operating cash flow in the past year.
RITM had positive earnings in 4 of the past 5 years.
RITM had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
RITM has a better Return On Assets (1.65%) than 92.65% of its industry peers.
With an excellent Return On Equity value of 9.15%, RITM belongs to the best of the industry, outperforming 95.59% of the companies in the same industry.
The Return On Invested Capital of RITM (2.20%) is better than 89.71% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for RITM is above the industry average of 1.28%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.65% | ||
| ROE | 9.15% | ||
| ROIC | 2.2% |
ROA(3y)1.94%
ROA(5y)0.64%
ROE(3y)10.26%
ROE(5y)2.79%
ROIC(3y)4.23%
ROIC(5y)N/A
1.3 Margins
RITM has a better Profit Margin (15.21%) than 69.12% of its industry peers.
RITM's Profit Margin has declined in the last couple of years.
The Operating Margin of RITM (23.92%) is better than 86.76% of its industry peers.
RITM's Operating Margin has improved in the last couple of years.
The Gross Margin of RITM (66.94%) is better than 89.71% of its industry peers.
RITM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.92% | ||
| PM (TTM) | 15.21% | ||
| GM | 66.94% |
OM growth 3Y-5.32%
OM growth 5Y6.2%
PM growth 3Y-5.6%
PM growth 5Y-6.97%
GM growth 3Y-8.52%
GM growth 5Y8.93%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), RITM is destroying value.
RITM has more shares outstanding than it did 1 year ago.
RITM has more shares outstanding than it did 5 years ago.
The debt/assets ratio for RITM is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.09, we must say that RITM is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.09, RITM is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
RITM has a Debt/Equity ratio of 3.80. This is a high value indicating a heavy dependency on external financing.
RITM has a better Debt to Equity ratio (3.80) than 60.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.8 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.09 |
ROIC/WACC0.36
WACC6.08%
2.3 Liquidity
A Current Ratio of 0.22 indicates that RITM may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.22, RITM is in line with its industry, outperforming 58.82% of the companies in the same industry.
A Quick Ratio of 0.22 indicates that RITM may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.22, RITM is in line with its industry, outperforming 58.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.22 | ||
| Quick Ratio | 0.22 |
3. Growth
3.1 Past
RITM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.00%, which is quite good.
Measured over the past years, RITM shows a decrease in Earnings Per Share. The EPS has been decreasing by -0.75% on average per year.
RITM shows a strong growth in Revenue. In the last year, the Revenue has grown by 39.30%.
Measured over the past years, RITM shows a quite strong growth in Revenue. The Revenue has been growing by 16.85% on average per year.
EPS 1Y (TTM)10%
EPS 3Y11.94%
EPS 5Y-0.75%
EPS Q2Q%0%
Revenue 1Y (TTM)39.3%
Revenue growth 3Y12.06%
Revenue growth 5Y16.85%
Sales Q2Q%-17.6%
3.2 Future
Based on estimates for the next years, RITM will show a small growth in Earnings Per Share. The EPS will grow by 4.48% on average per year.
Based on estimates for the next years, RITM will show a small growth in Revenue. The Revenue will grow by 3.23% on average per year.
EPS Next Y5.9%
EPS Next 2Y5.95%
EPS Next 3Y4.48%
EPS Next 5YN/A
Revenue Next Year-3.65%
Revenue Next 2Y2.6%
Revenue Next 3Y3.23%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 5.03, the valuation of RITM can be described as very cheap.
RITM's Price/Earnings ratio is rather cheap when compared to the industry. RITM is cheaper than 97.06% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.77. RITM is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 4.72 indicates a rather cheap valuation of RITM.
RITM's Price/Forward Earnings ratio is rather cheap when compared to the industry. RITM is cheaper than 97.06% of the companies in the same industry.
RITM is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.35, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.03 | ||
| Fwd PE | 4.72 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
RITM's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
RITM has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.85
PEG (5Y)N/A
EPS Next 2Y5.95%
EPS Next 3Y4.48%
5. Dividend
5.1 Amount
RITM has a Yearly Dividend Yield of 8.96%, which is a nice return.
Compared to an average industry Dividend Yield of 10.99, RITM is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.00, RITM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.96% |
5.2 History
The dividend of RITM decreases each year by -10.86%.
RITM has paid a dividend for at least 10 years, which is a reliable track record.
RITM has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-10.86%
Div Incr Years0
Div Non Decr Years4
5.3 Sustainability
81.40% of the earnings are spent on dividend by RITM. This is not a sustainable payout ratio.
DP81.4%
EPS Next 2Y5.95%
EPS Next 3Y4.48%
11.07
0 (0%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners54.15%
Inst Owner ChangeN/A
Ins Owners0.39%
Ins Owner Change0.49%
Market Cap6.13B
Revenue(TTM)5.11B
Net Income(TTM)777.31M
Analysts86.25
Price Target14.79 (33.6%)
Short Float %1.74%
Short Ratio1.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.96% |
Yearly Dividend1.17
Dividend Growth(5Y)-10.86%
DP81.4%
Div Incr Years0
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.24%
Min EPS beat(2)1.16%
Max EPS beat(2)1.32%
EPS beat(4)4
Avg EPS beat(4)11.13%
Min EPS beat(4)1.16%
Max EPS beat(4)32.68%
EPS beat(8)8
Avg EPS beat(8)17.27%
EPS beat(12)12
Avg EPS beat(12)22.56%
EPS beat(16)15
Avg EPS beat(16)17.49%
Revenue beat(2)1
Avg Revenue beat(2)-2.89%
Min Revenue beat(2)-9.01%
Max Revenue beat(2)3.22%
Revenue beat(4)2
Avg Revenue beat(4)-5.44%
Min Revenue beat(4)-16.07%
Max Revenue beat(4)3.22%
Revenue beat(8)3
Avg Revenue beat(8)-1.79%
Revenue beat(12)6
Avg Revenue beat(12)33.44%
Revenue beat(16)10
Avg Revenue beat(16)162.25%
PT rev (1m)-0.49%
PT rev (3m)-0.76%
EPS NQ rev (1m)-1%
EPS NQ rev (3m)0.73%
EPS NY rev (1m)1.06%
EPS NY rev (3m)0.88%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)2.11%
Revenue NY rev (1m)-0.78%
Revenue NY rev (3m)-0.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.03 | ||
| Fwd PE | 4.72 | ||
| P/S | 1.2 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.72 | ||
| P/tB | 0.76 | ||
| EV/EBITDA | N/A |
EPS(TTM)2.2
EY19.87%
EPS(NY)2.35
Fwd EY21.19%
FCF(TTM)-5.86
FCFYN/A
OCF(TTM)-5.29
OCFYN/A
SpS9.22
BVpS15.33
TBVpS14.56
PEG (NY)0.85
PEG (5Y)N/A
Graham Number27.55
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.65% | ||
| ROE | 9.15% | ||
| ROCE | 3.29% | ||
| ROIC | 2.2% | ||
| ROICexc | 2.28% | ||
| ROICexgc | 2.42% | ||
| OM | 23.92% | ||
| PM (TTM) | 15.21% | ||
| GM | 66.94% | ||
| FCFM | N/A |
ROA(3y)1.94%
ROA(5y)0.64%
ROE(3y)10.26%
ROE(5y)2.79%
ROIC(3y)4.23%
ROIC(5y)N/A
ROICexc(3y)4.41%
ROICexc(5y)N/A
ROICexgc(3y)4.66%
ROICexgc(5y)N/A
ROCE(3y)7.86%
ROCE(5y)N/A
ROICexgc growth 3Y2.15%
ROICexgc growth 5Y24.98%
ROICexc growth 3Y1.4%
ROICexc growth 5Y23.9%
OM growth 3Y-5.32%
OM growth 5Y6.2%
PM growth 3Y-5.6%
PM growth 5Y-6.97%
GM growth 3Y-8.52%
GM growth 5Y8.93%
F-Score5
Asset Turnover0.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.8 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 6.19% | ||
| Interest Coverage | 0.72 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.22 | ||
| Quick Ratio | 0.22 | ||
| Altman-Z | 0.09 |
F-Score5
WACC6.08%
ROIC/WACC0.36
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)6.14%
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)10%
EPS 3Y11.94%
EPS 5Y-0.75%
EPS Q2Q%0%
EPS Next Y5.9%
EPS Next 2Y5.95%
EPS Next 3Y4.48%
EPS Next 5YN/A
Revenue 1Y (TTM)39.3%
Revenue growth 3Y12.06%
Revenue growth 5Y16.85%
Sales Q2Q%-17.6%
Revenue Next Year-3.65%
Revenue Next 2Y2.6%
Revenue Next 3Y3.23%
Revenue Next 5YN/A
EBIT growth 1Y1366.06%
EBIT growth 3Y6.09%
EBIT growth 5Y24.1%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-289%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-261.95%
OCF growth 3YN/A
OCF growth 5YN/A
RITHM CAPITAL CORP / RITM FAQ
What is the ChartMill fundamental rating of RITHM CAPITAL CORP (RITM) stock?
ChartMill assigns a fundamental rating of 5 / 10 to RITM.
Can you provide the valuation status for RITHM CAPITAL CORP?
ChartMill assigns a valuation rating of 6 / 10 to RITHM CAPITAL CORP (RITM). This can be considered as Fairly Valued.
How profitable is RITHM CAPITAL CORP (RITM) stock?
RITHM CAPITAL CORP (RITM) has a profitability rating of 7 / 10.
Can you provide the financial health for RITM stock?
The financial health rating of RITHM CAPITAL CORP (RITM) is 1 / 10.
Can you provide the dividend sustainability for RITM stock?
The dividend rating of RITHM CAPITAL CORP (RITM) is 5 / 10 and the dividend payout ratio is 81.4%.