RITHM CAPITAL CORP (RITM) Stock Fundamental Analysis
NYSE:RITM - New York Stock Exchange, Inc. - US64828T2015 - REIT - Currency: USD
RITM gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 66 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 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 had a positive 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
The Return On Assets of RITM (1.35%) is better than 86.36% of its industry peers.
With an excellent Return On Equity value of 7.84%, RITM belongs to the best of the industry, outperforming 92.42% of the companies in the same industry.
The Return On Invested Capital of RITM (1.33%) is better than 80.30% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for RITM is above the industry average of 1.42%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.35% | ||
| ROE | 7.84% | ||
| ROIC | 1.33% |
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 (13.13%) than 77.27% of its industry peers.
In the last couple of years the Profit Margin of RITM has declined.
RITM has a better Operating Margin (15.52%) than 69.70% of its industry peers.
In the last couple of years the Operating Margin of RITM has grown nicely.
RITM has a Gross Margin of 60.29%. This is amongst the best in the industry. RITM outperforms 89.39% of its industry peers.
In the last couple of years the Gross Margin of RITM has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.52% | ||
| PM (TTM) | 13.13% | ||
| GM | 60.29% |
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.
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.
The debt/assets ratio for RITM is higher compared to a year ago.
2.2 Solvency
RITM has an Altman-Z score of -0.06. This is a bad value and indicates that RITM is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of RITM (-0.06) is comparable to the rest of the industry.
A Debt/Equity ratio of 4.15 is on the high side and indicates that RITM has dependencies on debt financing.
With a Debt to Equity ratio value of 4.15, RITM perfoms like the industry average, outperforming 54.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.15 | ||
| Debt/FCF | N/A | ||
| Altman-Z | -0.06 |
ROIC/WACC0.21
WACC6.3%
2.3 Liquidity
A Current Ratio of 0.15 indicates that RITM may have some problems paying its short term obligations.
RITM has a Current ratio of 0.15. This is comparable to the rest of the industry: RITM outperforms 40.91% of its industry peers.
A Quick Ratio of 0.15 indicates that RITM may have some problems paying its short term obligations.
RITM has a Quick ratio (0.15) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.15 | ||
| Quick Ratio | 0.15 |
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.
Looking at the last year, RITM shows a small growth in Revenue. The Revenue has grown by 7.17% 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)-2.74%
EPS 3Y11.94%
EPS 5Y-0.75%
EPS Q2Q%8.33%
Revenue 1Y (TTM)7.17%
Revenue growth 3Y12.06%
Revenue growth 5Y16.85%
Sales Q2Q%-1.54%
3.2 Future
The Earnings Per Share is expected to grow by 2.94% 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 3.94% yearly.
EPS Next Y2.27%
EPS Next 2Y3.16%
EPS Next 3Y2.94%
EPS Next 5YN/A
Revenue Next Year-5.73%
Revenue Next 2Y-1.64%
Revenue Next 3Y3.94%
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
Based on the Price/Earnings ratio of 5.59, the valuation of RITM can be described as very cheap.
92.42% of the companies in the same industry are more expensive than RITM, based on the Price/Earnings ratio.
RITM is valuated cheaply when we compare the Price/Earnings ratio to 27.48, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 5.35, the valuation of RITM can be described as very cheap.
RITM's Price/Forward Earnings ratio is rather cheap when compared to the industry. RITM is cheaper than 93.94% of the companies in the same industry.
RITM is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.52, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.59 | ||
| Fwd PE | 5.35 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
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)2.46
PEG (5Y)N/A
EPS Next 2Y3.16%
EPS Next 3Y2.94%
5. Dividend
5.1 Amount
RITM has a Yearly Dividend Yield of 8.51%, which is a nice return.
With a Dividend Yield of 8.51, RITM pays less dividend than the industry average, which is at 11.56. 81.82% of the companies listed in the same industry pay a better dividend than RITM!
Compared to an average S&P500 Dividend Yield of 2.34, RITM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.51% |
5.2 History
The dividend of RITM decreases each year by -10.86%.
RITM has been paying a dividend for at least 10 years, so it has 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 98.66% of its income as dividend. This is not a sustainable payout ratio.
DP98.66%
EPS Next 2Y3.16%
EPS Next 3Y2.94%
11.91
+0.01 (+0.08%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners52.38%
Inst Owner ChangeN/A
Ins Owners0.43%
Ins Owner Change-5.72%
Market Cap6.31B
Analysts85.88
Price Target14.03 (17.8%)
Short Float %1.17%
Short Ratio1.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.51% |
Yearly Dividend1.17
Dividend Growth(5Y)-10.86%
DP98.66%
Div Incr Years0
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)21.01%
Min EPS beat(2)9.34%
Max EPS beat(2)32.68%
EPS beat(4)4
Avg EPS beat(4)19.31%
Min EPS beat(4)8.8%
Max EPS beat(4)32.68%
EPS beat(8)8
Avg EPS beat(8)31.79%
EPS beat(12)12
Avg EPS beat(12)22.98%
EPS beat(16)14
Avg EPS beat(16)18.73%
Revenue beat(2)1
Avg Revenue beat(2)-7.98%
Min Revenue beat(2)-16.07%
Max Revenue beat(2)0.1%
Revenue beat(4)2
Avg Revenue beat(4)-1.35%
Min Revenue beat(4)-16.07%
Max Revenue beat(4)15.11%
Revenue beat(8)4
Avg Revenue beat(8)2.05%
Revenue beat(12)7
Avg Revenue beat(12)130.83%
Revenue beat(16)11
Avg Revenue beat(16)190.43%
PT rev (1m)0%
PT rev (3m)3.6%
EPS NQ rev (1m)-0.24%
EPS NQ rev (3m)5.17%
EPS NY rev (1m)0.14%
EPS NY rev (3m)3.72%
Revenue NQ rev (1m)-0.12%
Revenue NQ rev (3m)-15.71%
Revenue NY rev (1m)-1.8%
Revenue NY rev (3m)-15.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.59 | ||
| Fwd PE | 5.35 | ||
| P/S | 1.36 | ||
| P/FCF | N/A | ||
| P/OCF | 16.6 | ||
| P/B | 0.81 | ||
| P/tB | 0.86 | ||
| EV/EBITDA | N/A |
EPS(TTM)2.13
EY17.88%
EPS(NY)2.22
Fwd EY18.68%
FCF(TTM)-0.32
FCFYN/A
OCF(TTM)0.72
OCFY6.02%
SpS8.76
BVpS14.67
TBVpS13.81
PEG (NY)2.46
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.35% | ||
| ROE | 7.84% | ||
| ROCE | 2.3% | ||
| ROIC | 1.33% | ||
| ROICexc | 1.38% | ||
| ROICexgc | 1.46% | ||
| OM | 15.52% | ||
| PM (TTM) | 13.13% | ||
| GM | 60.29% | ||
| 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-Score3
Asset Turnover0.1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.15 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 11.85% | ||
| Interest Coverage | 0.41 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.15 | ||
| Quick Ratio | 0.15 | ||
| Altman-Z | -0.06 |
F-Score3
WACC6.3%
ROIC/WACC0.21
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 Y2.27%
EPS Next 2Y3.16%
EPS Next 3Y2.94%
EPS Next 5YN/A
Revenue 1Y (TTM)7.17%
Revenue growth 3Y12.06%
Revenue growth 5Y16.85%
Sales Q2Q%-1.54%
Revenue Next Year-5.73%
Revenue Next 2Y-1.64%
Revenue Next 3Y3.94%
Revenue Next 5YN/A
EBIT growth 1Y-40.33%
EBIT growth 3Y6.09%
EBIT growth 5Y24.1%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-104.26%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-90.87%
OCF growth 3YN/A
OCF growth 5YN/A