RITHM CAPITAL CORP (RITM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RITM - US64828T2015 - REIT
11.49 USD
-0.03 (-0.26%)
11.46 USD
-0.03 (-0.26%)
Overall RITM gets a fundamental rating of 5 out of 10. We evaluated RITM against 69 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 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.
In the past year RITM has reported a negative cash flow from operations.
RITM had positive earnings in 4 of the past 5 years.
Of the past 5 years RITM 4 years had a positive operating cash flow.
1.2 Ratios
RITM's Return On Assets of 1.65% is amongst the best of the industry. RITM outperforms 91.30% of its industry peers.
RITM has a Return On Equity of 9.15%. This is amongst the best in the industry. RITM outperforms 97.10% of its industry peers.
The Return On Invested Capital of RITM (2.20%) is better than 88.41% 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 1.22%.
| 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
The Profit Margin of RITM (15.21%) is better than 68.12% of its industry peers.
In the last couple of years the Profit Margin of RITM has declined.
The Operating Margin of RITM (23.92%) is better than 85.51% of its industry peers.
RITM's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 66.94%, RITM belongs to the top of the industry, outperforming 89.86% 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), RITM is destroying value.
Compared to 1 year ago, RITM has more shares outstanding
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
Based on the Altman-Z score of 0.10, we must say that RITM is in the distress zone and has some risk of bankruptcy.
With a decent Altman-Z score value of 0.10, RITM is doing good in the industry, outperforming 75.36% 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.
RITM has a Debt to Equity ratio (3.80) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.8 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.1 |
ROIC/WACC0.36
WACC6.09%
2.3 Liquidity
A Current Ratio of 0.22 indicates that RITM may have some problems paying its short term obligations.
RITM has a Current ratio of 0.22. This is comparable to the rest of the industry: RITM outperforms 57.97% of its industry peers.
A Quick Ratio of 0.22 indicates that RITM may have some problems paying its short term obligations.
With a Quick ratio value of 0.22, RITM perfoms like the industry average, outperforming 57.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.22 | ||
| Quick Ratio | 0.22 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 10.00% 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 very strong growth in Revenue. The Revenue has grown by 39.30%.
The Revenue has been growing by 16.85% on average over the past years. This is quite good.
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
The Earnings Per Share is expected to grow by 1.77% 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 Y4.79%
EPS Next 2Y4.29%
EPS Next 3Y1.77%
EPS Next 5YN/A
Revenue Next Year-2.89%
Revenue Next 2Y0.86%
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
A Price/Earnings ratio of 5.22 indicates a rather cheap valuation of RITM.
Based on the Price/Earnings ratio, RITM is valued cheaply inside the industry as 95.65% of the companies are valued more expensively.
RITM is valuated cheaply when we compare the Price/Earnings ratio to 26.31, which is the current average of the S&P500 Index.
RITM is valuated cheaply with a Price/Forward Earnings ratio of 5.05.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RITM indicates a rather cheap valuation: RITM is cheaper than 94.20% 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 36.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.22 | ||
| Fwd PE | 5.05 |
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.
RITM has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.09
PEG (5Y)N/A
EPS Next 2Y4.29%
EPS Next 3Y1.77%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 8.68%, RITM is a good candidate for dividend investing.
With a Dividend Yield of 8.68, RITM pays less dividend than the industry average, which is at 13.24. 88.41% of the companies listed in the same industry pay a better dividend than RITM!
RITM's Dividend Yield is rather good when compared to the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.68% |
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 81.40% of its income as dividend. This is not a sustainable payout ratio.
DP81.4%
EPS Next 2Y4.29%
EPS Next 3Y1.77%
11.49
-0.03 (-0.26%)
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-5.04%
Market Cap6.37B
Revenue(TTM)5.11B
Net Income(TTM)777.31M
Analysts86.25
Price Target14.86 (29.33%)
Short Float %2.15%
Short Ratio1.74
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.68% |
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)-0.27%
PT rev (3m)1.27%
EPS NQ rev (1m)1.89%
EPS NQ rev (3m)1.75%
EPS NY rev (1m)-0.2%
EPS NY rev (3m)-0.18%
Revenue NQ rev (1m)1.79%
Revenue NQ rev (3m)2.56%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.22 | ||
| Fwd PE | 5.05 | ||
| P/S | 1.25 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.75 | ||
| P/tB | 0.79 | ||
| EV/EBITDA | N/A |
EPS(TTM)2.2
EY19.15%
EPS(NY)2.27
Fwd EY19.78%
FCF(TTM)-5.86
FCFYN/A
OCF(TTM)-5.29
OCFYN/A
SpS9.22
BVpS15.33
TBVpS14.56
PEG (NY)1.09
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 | 0.1 |
F-Score5
WACC6.09%
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 Y4.79%
EPS Next 2Y4.29%
EPS Next 3Y1.77%
EPS Next 5YN/A
Revenue 1Y (TTM)39.3%
Revenue growth 3Y12.06%
Revenue growth 5Y16.85%
Sales Q2Q%-17.6%
Revenue Next Year-2.89%
Revenue Next 2Y0.86%
Revenue Next 3Y3.92%
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%.