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RITHM CAPITAL CORP (RITM) Stock Fundamental Analysis

NYSE:RITM - New York Stock Exchange, Inc. - US64828T2015 - REIT - Currency: USD

11.04  -0.07 (-0.63%)

Fundamental Rating

4

RITM gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 65 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.


Dividend Valuation Growth Profitability Health

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7

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.
RITM had a positive operating cash flow in 4 of the past 5 years.
RITM Yearly Net Income VS EBIT VS OCF VS FCFRITM Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 2B -2B 4B 6B

1.2 Ratios

RITM has a better Return On Assets (1.81%) than 89.23% of its industry peers.
Looking at the Return On Equity, with a value of 10.71%, RITM belongs to the top of the industry, outperforming 93.85% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 2.30%, RITM belongs to the top of the industry, outperforming 89.23% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for RITM is above the industry average of 1.72%.
Industry RankSector Rank
ROA 1.81%
ROE 10.71%
ROIC 2.3%
ROA(3y)1.94%
ROA(5y)0.64%
ROE(3y)10.26%
ROE(5y)2.79%
ROIC(3y)4.23%
ROIC(5y)N/A
RITM Yearly ROA, ROE, ROICRITM Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 -10 20 -20

1.3 Margins

With a decent Profit Margin value of 16.37%, RITM is doing good in the industry, outperforming 72.31% of the companies in the same industry.
In the last couple of years the Profit Margin of RITM has declined.
RITM has a Operating Margin of 24.75%. This is amongst the best in the industry. RITM outperforms 84.62% of its industry peers.
In the last couple of years the Operating Margin of RITM has grown nicely.
RITM has a better Gross Margin (64.02%) than 90.77% of its industry peers.
RITM's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 24.75%
PM (TTM) 16.37%
GM 64.02%
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%
RITM Yearly Profit, Operating, Gross MarginsRITM Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50 -50 -100

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1

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.
The number of shares outstanding for RITM has been increased compared to 1 year ago.
Compared to 5 years ago, RITM has more shares outstanding
Compared to 1 year ago, RITM has a worse debt to assets ratio.
RITM Yearly Shares OutstandingRITM Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M 500M
RITM Yearly Total Debt VS Total AssetsRITM Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10B 20B 30B 40B

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.
RITM has a Altman-Z score of 0.01. This is comparable to the rest of the industry: RITM outperforms 60.00% of its industry peers.
A Debt/Equity ratio of 4.19 is on the high side and indicates that RITM has dependencies on debt financing.
RITM has a Debt to Equity ratio (4.19) which is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 4.19
Debt/FCF N/A
Altman-Z 0.01
ROIC/WACC0.37
WACC6.28%
RITM Yearly LT Debt VS Equity VS FCFRITM Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5B 10B 15B 20B

2.3 Liquidity

A Current Ratio of 0.16 indicates that RITM may have some problems paying its short term obligations.
RITM has a Current ratio of 0.16. This is comparable to the rest of the industry: RITM outperforms 44.62% of its industry peers.
RITM has a Quick Ratio of 0.16. 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 0.16, RITM perfoms like the industry average, outperforming 44.62% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 0.16
Quick Ratio 0.16
RITM Yearly Current Assets VS Current LiabilitesRITM Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B 20B 25B

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4

3. Growth

3.1 Past

RITM shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.74%.
The Earnings Per Share has been decreasing by -0.75% on average over the past years.
The Revenue has grown by 9.81% in the past year. This is quite good.
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)-2.74%
EPS 3Y11.94%
EPS 5Y-0.75%
EPS Q2Q%8.33%
Revenue 1Y (TTM)9.81%
Revenue growth 3Y12.06%
Revenue growth 5Y16.85%
Sales Q2Q%-1.54%

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 3.02% on average per year.
The Revenue is expected to grow by 6.98% on average over the next years.
EPS Next Y2.12%
EPS Next 2Y3.24%
EPS Next 3Y3.02%
EPS Next 5YN/A
Revenue Next Year-4.97%
Revenue Next 2Y-1.38%
Revenue Next 3Y6.98%
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.
RITM Yearly Revenue VS EstimatesRITM Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2B 4B 6B
RITM Yearly EPS VS EstimatesRITM Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 0.5 1 1.5 2 2.5

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5

4. Valuation

4.1 Price/Earnings Ratio

RITM is valuated cheaply with a Price/Earnings ratio of 5.18.
RITM's Price/Earnings ratio is rather cheap when compared to the industry. RITM is cheaper than 93.85% of the companies in the same industry.
RITM's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.03.
Based on the Price/Forward Earnings ratio of 4.96, the valuation of RITM can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RITM indicates a rather cheap valuation: RITM is cheaper than 93.85% of the companies listed in the same industry.
RITM's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.94.
Industry RankSector Rank
PE 5.18
Fwd PE 4.96
RITM Price Earnings VS Forward Price EarningsRITM Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA N/A
RITM Per share dataRITM EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 10

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of RITM may justify a higher PE ratio.
PEG (NY)2.44
PEG (5Y)N/A
EPS Next 2Y3.24%
EPS Next 3Y3.02%

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5

5. Dividend

5.1 Amount

RITM has a Yearly Dividend Yield of 8.60%, which is a nice return.
With a Dividend Yield of 8.60, RITM pays less dividend than the industry average, which is at 13.68. 95.38% of the companies listed in the same industry pay a better dividend than RITM!
Compared to an average S&P500 Dividend Yield of 2.36, RITM pays a better dividend.
Industry RankSector Rank
Dividend Yield 8.6%

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 Years3
RITM Yearly Dividends per shareRITM Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.5 1 1.5

5.3 Sustainability

70.42% of the earnings are spent on dividend by RITM. This is not a sustainable payout ratio.
DP70.42%
EPS Next 2Y3.24%
EPS Next 3Y3.02%
RITM Yearly Income VS Free CF VS DividendRITM Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 2B -2B 4B 6B
RITM Dividend Payout.RITM Dividend Payout, showing the Payout Ratio.RITM Dividend Payout.PayoutRetained Earnings

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RITHM CAPITAL CORP

NYSE:RITM (5/22/2025, 10:06:02 AM)

11.04

-0.07 (-0.63%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)04-25 2025-04-25/bmo
Earnings (Next)07-29 2025-07-29/bmo
Inst Owners50.69%
Inst Owner ChangeN/A
Ins Owners0.12%
Ins Owner Change-4.27%
Market Cap5.85B
Analysts85.88
Price Target14.03 (27.08%)
Short Float %0.99%
Short Ratio0.97
Dividend
Industry RankSector Rank
Dividend Yield 8.6%
Yearly Dividend1.17
Dividend Growth(5Y)-10.86%
DP70.42%
Div Incr Years0
Div Non Decr Years3
Ex-Date03-31 2025-03-31 (0.25)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)29.55%
Min EPS beat(2)26.42%
Max EPS beat(2)32.68%
EPS beat(4)4
Avg EPS beat(4)23.52%
Min EPS beat(4)8.8%
Max EPS beat(4)32.68%
EPS beat(8)8
Avg EPS beat(8)31.37%
EPS beat(12)12
Avg EPS beat(12)22.53%
EPS beat(16)13
Avg EPS beat(16)17.94%
Revenue beat(2)2
Avg Revenue beat(2)7.6%
Min Revenue beat(2)0.1%
Max Revenue beat(2)15.11%
Revenue beat(4)2
Avg Revenue beat(4)1.95%
Min Revenue beat(4)-4.53%
Max Revenue beat(4)15.11%
Revenue beat(8)4
Avg Revenue beat(8)2.9%
Revenue beat(12)8
Avg Revenue beat(12)186.65%
Revenue beat(16)12
Avg Revenue beat(16)207.64%
PT rev (1m)3.6%
PT rev (3m)5.03%
EPS NQ rev (1m)0.63%
EPS NQ rev (3m)0.57%
EPS NY rev (1m)3.88%
EPS NY rev (3m)6%
Revenue NQ rev (1m)-0.52%
Revenue NQ rev (3m)9.85%
Revenue NY rev (1m)-14.9%
Revenue NY rev (3m)-6.91%
Valuation
Industry RankSector Rank
PE 5.18
Fwd PE 4.96
P/S 1.15
P/FCF N/A
P/OCF N/A
P/B 0.75
P/tB 0.8
EV/EBITDA N/A
EPS(TTM)2.13
EY19.29%
EPS(NY)2.23
Fwd EY20.18%
FCF(TTM)-4.98
FCFYN/A
OCF(TTM)-4.12
OCFYN/A
SpS9.62
BVpS14.7
TBVpS13.82
PEG (NY)2.44
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 1.81%
ROE 10.71%
ROCE 3.83%
ROIC 2.3%
ROICexc 2.38%
ROICexgc 2.54%
OM 24.75%
PM (TTM) 16.37%
GM 64.02%
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-Score5
Asset Turnover0.11
Health
Industry RankSector Rank
Debt/Equity 4.19
Debt/FCF N/A
Debt/EBITDA N/A
Cap/Depr N/A
Cap/Sales 8.98%
Interest Coverage 0.73
Cash Conversion N/A
Profit Quality N/A
Current Ratio 0.16
Quick Ratio 0.16
Altman-Z 0.01
F-Score5
WACC6.28%
ROIC/WACC0.37
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)-2.74%
EPS 3Y11.94%
EPS 5Y-0.75%
EPS Q2Q%8.33%
EPS Next Y2.12%
EPS Next 2Y3.24%
EPS Next 3Y3.02%
EPS Next 5YN/A
Revenue 1Y (TTM)9.81%
Revenue growth 3Y12.06%
Revenue growth 5Y16.85%
Sales Q2Q%-1.54%
Revenue Next Year-4.97%
Revenue Next 2Y-1.38%
Revenue Next 3Y6.98%
Revenue Next 5YN/A
EBIT growth 1Y76.97%
EBIT growth 3Y6.09%
EBIT growth 5Y24.1%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-550.14%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-415.05%
OCF growth 3YN/A
OCF growth 5YN/A