RITHM CAPITAL CORP (RITM) Stock Fundamental Analysis
USA - NYSE:RITM - US64828T2015 - REIT
11.17 USD
-0.05 (-0.45%)
11.22 USD
+0.05 (+0.45%)
RITM gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 67 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. While RITM belongs to the best of the industry regarding profitability, there are concerns on its financial health. RITM has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
RITM had positive earnings in the past year.
In the past year RITM has reported a negative cash flow from operations.
Of the past 5 years RITM 4 years were profitable.
Of the past 5 years RITM 4 years had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.54%, RITM belongs to the top of the industry, outperforming 92.54% of the companies in the same industry.
RITM has a Return On Equity of 8.56%. This is amongst the best in the industry. RITM outperforms 94.03% of its industry peers.
RITM has a Return On Invested Capital of 1.27%. This is amongst the best in the industry. RITM outperforms 83.58% 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 | 1.54% | ||
| ROE | 8.56% | ||
| ROIC | 1.27% |
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
Looking at the Profit Margin, with a value of 14.78%, RITM belongs to the top of the industry, outperforming 82.09% of the companies in the same industry.
RITM's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 14.61%, RITM is doing good in the industry, outperforming 73.13% of the companies in the same industry.
In the last couple of years the Operating Margin of RITM has grown nicely.
With an excellent Gross Margin value of 60.99%, RITM belongs to the best of the industry, outperforming 89.55% of the companies in the same industry.
In the last couple of years the Gross Margin of RITM has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.61% | ||
| PM (TTM) | 14.78% | ||
| GM | 60.99% |
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.
The number of shares outstanding for RITM has been increased compared to 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 -0.01, we must say that RITM is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of -0.01, RITM perfoms like the industry average, outperforming 59.70% of the companies in the same industry.
RITM has a Debt/Equity ratio of 3.93. This is a high value indicating a heavy dependency on external financing.
RITM has a Debt to Equity ratio of 3.93. This is comparable to the rest of the industry: RITM outperforms 58.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.93 | ||
| Debt/FCF | N/A | ||
| Altman-Z | -0.01 |
ROIC/WACC0.2
WACC6.24%
2.3 Liquidity
RITM has a Current Ratio of 0.19. This is a bad value and indicates that RITM is not financially healthy enough and could expect problems in meeting its short term obligations.
RITM has a Current ratio (0.19) which is in line with its industry peers.
RITM has a Quick Ratio of 0.19. This is a bad value and indicates that RITM is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.19, RITM perfoms like the industry average, outperforming 53.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.19 | ||
| Quick Ratio | 0.19 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.84% over the past year.
The Earnings Per Share has been decreasing by -0.75% on average over the past years.
The Revenue has been growing slightly by 5.72% in the past year.
The Revenue has been growing by 16.85% on average over the past years. This is quite good.
EPS 1Y (TTM)7.84%
EPS 3Y11.94%
EPS 5Y-0.75%
EPS Q2Q%14.89%
Revenue 1Y (TTM)5.72%
Revenue growth 3Y12.06%
Revenue growth 5Y16.85%
Sales Q2Q%-0.04%
3.2 Future
The Earnings Per Share is expected to grow by 4.23% on average over the next years.
RITM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.92% yearly.
EPS Next Y4.98%
EPS Next 2Y4.24%
EPS Next 3Y4.23%
EPS Next 5YN/A
Revenue Next Year-3.04%
Revenue Next 2Y0.46%
Revenue Next 3Y3.92%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
RITM is valuated cheaply with a Price/Earnings ratio of 5.08.
Based on the Price/Earnings ratio, RITM is valued cheaper than 95.52% of the companies in the same industry.
RITM is valuated cheaply when we compare the Price/Earnings ratio to 27.79, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 4.92, which indicates a rather cheap valuation of RITM.
94.03% of the companies in the same industry are more expensive than RITM, based on the Price/Forward Earnings ratio.
RITM is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.21, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.08 | ||
| Fwd PE | 4.92 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
RITM's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of RITM may justify a higher PE ratio.
PEG (NY)1.02
PEG (5Y)N/A
EPS Next 2Y4.24%
EPS Next 3Y4.23%
5. Dividend
5.1 Amount
RITM has a Yearly Dividend Yield of 8.56%, which is a nice return.
RITM's Dividend Yield is slightly below the industry average, which is at 11.22.
RITM's Dividend Yield is rather good when compared to the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.56% |
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
RITM pays out 90.74% of its income as dividend. This is not a sustainable payout ratio.
DP90.74%
EPS Next 2Y4.24%
EPS Next 3Y4.23%
11.17
-0.05 (-0.45%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners51.52%
Inst Owner ChangeN/A
Ins Owners0.41%
Ins Owner Change-0.72%
Market Cap5.92B
Analysts85.88
Price Target14.9 (33.39%)
Short Float %2.5%
Short Ratio2.5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.56% |
Yearly Dividend1.17
Dividend Growth(5Y)-10.86%
DP90.74%
Div Incr Years0
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.33%
Min EPS beat(2)1.32%
Max EPS beat(2)9.34%
EPS beat(4)4
Avg EPS beat(4)17.44%
Min EPS beat(4)1.32%
Max EPS beat(4)32.68%
EPS beat(8)8
Avg EPS beat(8)23.02%
EPS beat(12)12
Avg EPS beat(12)23.08%
EPS beat(16)15
Avg EPS beat(16)18.94%
Revenue beat(2)1
Avg Revenue beat(2)-6.42%
Min Revenue beat(2)-16.07%
Max Revenue beat(2)3.22%
Revenue beat(4)3
Avg Revenue beat(4)0.59%
Min Revenue beat(4)-16.07%
Max Revenue beat(4)15.11%
Revenue beat(8)4
Avg Revenue beat(8)1.88%
Revenue beat(12)7
Avg Revenue beat(12)93.36%
Revenue beat(16)11
Avg Revenue beat(16)178.87%
PT rev (1m)1.54%
PT rev (3m)6.26%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.78%
EPS NY rev (1m)0%
EPS NY rev (3m)2.56%
Revenue NQ rev (1m)0.17%
Revenue NQ rev (3m)4.93%
Revenue NY rev (1m)0.26%
Revenue NY rev (3m)2.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.08 | ||
| Fwd PE | 4.92 | ||
| P/S | 1.29 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.75 | ||
| P/tB | 0.79 | ||
| EV/EBITDA | N/A |
EPS(TTM)2.2
EY19.7%
EPS(NY)2.27
Fwd EY20.33%
FCF(TTM)-1.16
FCFYN/A
OCF(TTM)-0.23
OCFYN/A
SpS8.68
BVpS14.99
TBVpS14.16
PEG (NY)1.02
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.54% | ||
| ROE | 8.56% | ||
| ROCE | 2.08% | ||
| ROIC | 1.27% | ||
| ROICexc | 1.32% | ||
| ROICexgc | 1.41% | ||
| OM | 14.61% | ||
| PM (TTM) | 14.78% | ||
| GM | 60.99% | ||
| 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
ROICexcg growth 3Y2.15%
ROICexcg 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-Score4
Asset Turnover0.1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.93 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 10.78% | ||
| Interest Coverage | 0.37 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.19 | ||
| Quick Ratio | 0.19 | ||
| Altman-Z | -0.01 |
F-Score4
WACC6.24%
ROIC/WACC0.2
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)7.84%
EPS 3Y11.94%
EPS 5Y-0.75%
EPS Q2Q%14.89%
EPS Next Y4.98%
EPS Next 2Y4.24%
EPS Next 3Y4.23%
EPS Next 5YN/A
Revenue 1Y (TTM)5.72%
Revenue growth 3Y12.06%
Revenue growth 5Y16.85%
Sales Q2Q%-0.04%
Revenue Next Year-3.04%
Revenue Next 2Y0.46%
Revenue Next 3Y3.92%
Revenue Next 5YN/A
EBIT growth 1Y-32.19%
EBIT growth 3Y6.09%
EBIT growth 5Y24.1%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-123.05%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-104.4%
OCF growth 3YN/A
OCF growth 5YN/A