RITHM CAPITAL CORP (RITM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RITM - US64828T2015 - REIT
11.145 USD
-0.01 (-0.04%)
Overall RITM gets a fundamental rating of 5 out of 10. We evaluated RITM against 68 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. While RITM has a great profitability rating, there are quite some 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
In the past year RITM was profitable.
RITM had a negative operating cash flow in the past year.
Of the past 5 years RITM 4 years were profitable.
RITM had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
The Return On Assets of RITM (1.65%) is better than 92.65% of its industry peers.
RITM has a Return On Equity of 9.15%. This is amongst the best in the industry. RITM outperforms 95.59% of its industry peers.
RITM has a Return On Invested Capital of 2.20%. This is amongst the best in the industry. RITM outperforms 89.71% of its industry peers.
The Average Return On Invested Capital over the past 3 years 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 Profit Margin of 15.21%. This is in the better half of the industry: RITM outperforms 69.12% of its industry peers.
RITM's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 23.92%, RITM belongs to the best of the industry, outperforming 86.76% of the companies in the same industry.
In the last couple of years the Operating Margin of RITM has grown nicely.
Looking at the Gross Margin, with a value of 66.94%, RITM belongs to the top of the industry, outperforming 89.71% 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 | 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so RITM is destroying value.
The number of shares outstanding for RITM has been increased compared to 1 year ago.
RITM has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, RITM has a worse debt to assets ratio.
2.2 Solvency
RITM has an Altman-Z score of 0.09. This is a bad value and indicates that RITM is not financially healthy and even 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.
A Debt/Equity ratio of 3.80 is on the high side and indicates that RITM has dependencies on debt financing.
With a decent Debt to Equity ratio value of 3.80, RITM is doing good in the industry, outperforming 60.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.8 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.09 |
ROIC/WACC0.36
WACC6.1%
2.3 Liquidity
RITM has a Current Ratio of 0.22. This is a bad value and indicates that RITM is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of RITM (0.22) is comparable to the rest of the industry.
A Quick Ratio of 0.22 indicates that RITM may have some problems paying its short term obligations.
The Quick ratio of RITM (0.22) is comparable to the rest of the 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.
RITM shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.75% yearly.
Looking at the last year, RITM shows a very strong growth in Revenue. 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
RITM is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.48% yearly.
RITM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.23% yearly.
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
A Price/Earnings ratio of 5.07 indicates a rather cheap valuation of RITM.
97.06% of the companies in the same industry are more expensive than RITM, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.17, RITM is valued rather cheaply.
RITM is valuated cheaply with a Price/Forward Earnings ratio of 4.75.
95.59% of the companies in the same industry are more expensive than RITM, based on the Price/Forward Earnings ratio.
RITM's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.79.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.07 | ||
| Fwd PE | 4.75 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of RITM may justify a higher PE ratio.
PEG (NY)0.86
PEG (5Y)N/A
EPS Next 2Y5.95%
EPS Next 3Y4.48%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 9.17%, RITM is a good candidate for dividend investing.
RITM's Dividend Yield is slightly below the industry average, which is at 11.16.
RITM's Dividend Yield is rather good when compared to the S&P500 average which is at 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.17% |
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%
NYSE:RITM (1/7/2026, 3:54:07 PM)
11.145
-0.01 (-0.04%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners54.49%
Inst Owner ChangeN/A
Ins Owners0.39%
Ins Owner Change0.49%
Market Cap6.18B
Revenue(TTM)5.11B
Net Income(TTM)777.31M
Analysts86.25
Price Target14.79 (32.71%)
Short Float %1.74%
Short Ratio1.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.17% |
Yearly Dividend1.17
Dividend Growth(5Y)-10.86%
DP81.4%
Div Incr Years0
Div Non Decr Years4
Ex-DateN/A
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)-0.23%
EPS NY rev (3m)0.88%
Revenue NQ rev (1m)-1.63%
Revenue NQ rev (3m)2.11%
Revenue NY rev (1m)-0.16%
Revenue NY rev (3m)-0.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.07 | ||
| Fwd PE | 4.75 | ||
| P/S | 1.21 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.73 | ||
| P/tB | 0.77 | ||
| EV/EBITDA | N/A |
EPS(TTM)2.2
EY19.74%
EPS(NY)2.35
Fwd EY21.05%
FCF(TTM)-5.86
FCFYN/A
OCF(TTM)-5.29
OCFYN/A
SpS9.22
BVpS15.33
TBVpS14.56
PEG (NY)0.86
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
WACC6.1%
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.
What is the valuation status for RITM stock?
ChartMill assigns a valuation rating of 6 / 10 to RITHM CAPITAL CORP (RITM). This can be considered as Fairly Valued.
What is the profitability of RITM stock?
RITHM CAPITAL CORP (RITM) has a profitability rating of 7 / 10.
Can you provide the expected EPS growth for RITM stock?
The Earnings per Share (EPS) of RITHM CAPITAL CORP (RITM) is expected to grow by 5.9% in the next year.
How sustainable is the dividend of RITHM CAPITAL CORP (RITM) stock?
The dividend rating of RITHM CAPITAL CORP (RITM) is 5 / 10 and the dividend payout ratio is 81.4%.