RITHM CAPITAL CORP (RITM) Stock Fundamental Analysis
NYSE:RITM - US64828T2015 - REIT
12.54 USD
+0.04 (+0.32%)
12.5492 USD
+0.01 (+0.07%)
Taking everything into account, RITM scores 4 out of 10 in our fundamental rating. RITM was compared to 67 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 has a decent growth rate and is not valued too expensively.
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.
Of the past 5 years RITM 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of RITM (1.54%) is better than 92.54% of its industry peers.
The Return On Equity of RITM (8.56%) is better than 94.03% of its industry peers.
The Return On Invested Capital of RITM (1.27%) is better than 83.58% of its industry peers.
RITM had an Average Return On Invested Capital over the past 3 years of 4.23%. This 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
RITM has a better Profit Margin (14.78%) than 82.09% of its industry peers.
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.
RITM's Operating Margin has improved in the last couple of years.
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
RITM has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, RITM has more shares outstanding
The number of shares outstanding for RITM has been increased compared to 5 years ago.
Compared to 1 year ago, RITM has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.00, we must say that RITM is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.00, 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 (3.93) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.93 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0 |
ROIC/WACC0.2
WACC6.29%
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.
Looking at the Current ratio, with a value of 0.19, RITM is in line with its industry, outperforming 53.73% of the companies in the same industry.
A Quick Ratio of 0.19 indicates that RITM may have some problems paying its short term obligations.
RITM's Quick ratio of 0.19 is in line compared to the rest of the industry. RITM outperforms 53.73% of its industry peers.
| 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.
Looking at the last year, RITM shows a small growth in Revenue. The Revenue has grown by 5.72% in the last year.
RITM shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 16.85% yearly.
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.
The Revenue is expected to grow by 3.92% on average over the next years.
EPS Next Y4.98%
EPS Next 2Y4.24%
EPS Next 3Y4.23%
EPS Next 5YN/A
Revenue Next Year-3.3%
Revenue Next 2Y0.28%
Revenue Next 3Y3.92%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 5.70 indicates a rather cheap valuation of RITM.
95.52% of the companies in the same industry are more expensive than RITM, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of RITM to the average of the S&P500 Index (27.43), we can say RITM is valued rather cheaply.
The Price/Forward Earnings ratio is 5.52, which 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 94.03% of the companies in the same industry.
RITM is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.87, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.7 | ||
| Fwd PE | 5.52 |
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)1.14
PEG (5Y)N/A
EPS Next 2Y4.24%
EPS Next 3Y4.23%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 8.00%, RITM is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 11.13, RITM's dividend is way lower than its industry peers. On top of this 83.58% of the companies listed in the same industry pay a better dividend than RITM!
Compared to an average S&P500 Dividend Yield of 2.45, RITM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8% |
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
90.74% of the earnings are spent on dividend by RITM. This is not a sustainable payout ratio.
DP90.74%
EPS Next 2Y4.24%
EPS Next 3Y4.23%
12.54
+0.04 (+0.32%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners52.69%
Inst Owner ChangeN/A
Ins Owners0.41%
Ins Owner Change-0.72%
Market Cap6.65B
Analysts85.88
Price Target14.68 (17.07%)
Short Float %2.03%
Short Ratio2.29
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8% |
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)0%
PT rev (3m)4.65%
EPS NQ rev (1m)-1.41%
EPS NQ rev (3m)2.6%
EPS NY rev (1m)2.65%
EPS NY rev (3m)2.8%
Revenue NQ rev (1m)5.56%
Revenue NQ rev (3m)-6.49%
Revenue NY rev (1m)4.67%
Revenue NY rev (3m)0.74%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.7 | ||
| Fwd PE | 5.52 | ||
| P/S | 1.44 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.84 | ||
| P/tB | 0.89 | ||
| EV/EBITDA | N/A |
EPS(TTM)2.2
EY17.54%
EPS(NY)2.27
Fwd EY18.11%
FCF(TTM)-1.16
FCFYN/A
OCF(TTM)-0.23
OCFYN/A
SpS8.68
BVpS14.99
TBVpS14.16
PEG (NY)1.14
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 |
F-Score4
WACC6.29%
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-3.3%
Revenue Next 2Y0.28%
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