(RITM) Rithm Capital - Overview
Sector: Real Estate | Industry: REIT - Mortgage | Exchange: NYSE (USA) | Market Cap: 5.097m USD | Total Return: -15.2% in 12m
Industry Rotation: -10.0
Avg Turnover: 51.7M
EPS Trend: 72.7%
Qual. Beats: 0
Rev. Trend: 78.8%
Qual. Beats: 0
Warnings
No concerns identified
Tailwinds
No distinct edge detected
Rithm Capital Corp. (RITM) is a New York-based asset manager specializing in real estate, credit, and financial services. The firm operates across three primary segments: Origination and Servicing, Residential Transitional Lending, and Asset Management. Its diversified portfolio includes mortgage servicing rights (MSRs), single-family rental properties, residential mortgage loans, and consumer credit instruments.
As a Real Estate Investment Trust (REIT), Rithm Capital is required by law to distribute at least 90% of its taxable income to shareholders to maintain its tax-exempt status at the corporate level. This structure is common among high-yield financial entities that focus on capital-intensive assets like mortgage-backed securities and distressed debt. Formerly known as New Residential Investment Corp., the company rebranded in 2022 to reflect its broader evolution into a multi-strategy alternative asset manager.
Reviewing the historical dividend yield and book value trends on ValueRay can provide further clarity on the companys valuation. The firm’s business model relies on managing interest rate sensitivity, particularly regarding its MSR holdings, which typically increase in value when refinancing activity slows.
- Mortgage servicing rights valuation fluctuates based on prevailing interest rate volatility
- Transition to alternative asset manager model scales fee-based revenue streams
- Credit performance of residential transitional lending impacts net interest income
- REIT tax status mandates high dividend payout ratios for shareholder returns
- Strategic acquisitions and capital deployment efficiency drive book value growth
| Net Income: 727.7m TTM > 0 and > 6% of Revenue |
| FCF/TA: -0.05 > 0.02 and ΔFCF/TA -5.53 > 1.0 |
| NWC/Revenue: 57.28% < 20% (prev -52.02%; Δ 109.3% < -1%) |
| CFO/TA -0.05 > 3% & CFO -2.46b > Net Income 727.7m |
| Net Debt (38.13b) to EBITDA (1.91b): 19.92 < 3 |
| Current Ratio: 1.59 > 1.5 & < 3 |
| Outstanding Shares: last quarter (565.9m) vs 12m ago 6.66% < -2% |
| Gross Margin: 86.22% > 18% (prev 0.94%; Δ 8.53k% > 0.5%) |
| Asset Turnover: 11.37% > 50% (prev 11.61%; Δ -0.24% > 0%) |
| Interest Coverage Ratio: 1.02 > 6 (EBITDA TTM 1.91b / Interest Expense TTM 1.72b) |
| A: 0.06 (Total Current Assets 8.69b - Total Current Liabilities 5.47b) / Total Assets 53.37b |
| B: -0.00 (Retained Earnings -100.0m / Total Assets 53.37b) |
| C: 0.04 (EBIT TTM 1.76b / Avg Total Assets 49.35b) |
| D: -0.00 (Book Value of Equity -21.1m / Total Liabilities 43.87b) |
| Altman-Z'' Score: 0.63 = B |
| DSRI: 0.20 (Receivables 879.5m/4.04b, Revenue 5.61b/5.26b) |
| GMI: 1.09 (GM 86.22% / 93.90%) |
| AQI: 0.87 (AQ_t 0.83 / AQ_t-1 0.96) |
| SGI: 1.07 (Revenue 5.61b / 5.26b) |
| TATA: 0.06 (NI 727.7m - CFO -2.46b) / TA 53.37b) |
| Beneish M-Score: -3.57 (Cap -4..+1) = AAA |
Over the past week, the price has changed by -6.83%, over one month by -10.89%, over three months by -12.67% and over the past year by -15.18%.
- StrongBuy: 7
- Buy: 4
- Hold: 0
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 13.6 | 51.4% |
P/E Forward = 4.3725
P/S = 1.2021
P/B = 0.7874
Revenue TTM = 5.61b USD
EBIT TTM = 1.76b USD
EBITDA TTM = 1.91b USD
Long Term Debt = 35.18b USD (from longTermDebt, last quarter)
Short Term Debt = 4.43b USD (from shortTermDebt, last quarter)
Debt = 39.77b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 38.13b USD (from netDebt column, last quarter)
Enterprise Value = 38.18b USD (5.10b + Debt 39.77b - CCE 6.69b)
Interest Coverage Ratio = 1.02 (Ebit TTM 1.76b / Interest Expense TTM 1.72b)
EV/FCF = -15.53x (Enterprise Value 38.18b / FCF TTM -2.46b)
FCF Yield = -6.44% (FCF TTM -2.46b / Enterprise Value 38.18b)
FCF Margin = -43.83% (FCF TTM -2.46b / Revenue TTM 5.61b)
Net Margin = 12.97% (Net Income TTM 727.7m / Revenue TTM 5.61b)
Gross Margin = 86.22% ((Revenue TTM 5.61b - Cost of Revenue TTM 773.4m) / Revenue TTM)
Gross Margin QoQ = 68.80% (prev 90.95%)
Tobins Q-Ratio = 0.72 (Enterprise Value 38.18b / Total Assets 53.37b)
Interest Expense / Debt = 1.08% (Interest Expense 430.7m / Debt 39.77b)
Taxrate = 29.02% (44.8m / 154.2m)
NOPAT = 1.25b (EBIT 1.76b * (1 - 29.02%))
Current Ratio = 1.59 (Total Current Assets 8.69b / Total Current Liabilities 5.47b)
Debt / Equity = 4.62 (Debt 39.77b / totalStockholderEquity, last quarter 8.61b)
Debt / EBITDA = 19.92 (Net Debt 38.13b / EBITDA 1.91b)
Debt / FCF = -15.50 (negative FCF - burning cash) (Net Debt 38.13b / FCF TTM -2.46b)
Total Stockholder Equity = 8.37b (last 4 quarters mean from totalStockholderEquity)
RoA = 1.47% (Net Income 727.7m / Total Assets 53.37b)
RoE = 8.69% (Net Income TTM 727.7m / Total Stockholder Equity 8.37b)
RoCE = 4.03% (EBIT 1.76b / Capital Employed (Equity 8.37b + L.T.Debt 35.18b))
RoIC = 3.08% (NOPAT 1.25b / Invested Capital 40.52b)
WACC = 1.71% (E(5.10b)/V(44.87b) * Re(9.09%) + D(39.77b)/V(44.87b) * Rd(1.08%) * (1-Tc(0.29)))
Discount Rate = 9.09% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 100.00 | Cagr: 7.27%
[DCF] Fair Price = unknown (Cash Flow -2.46b)
EPS Correlation: 72.67 | EPS CAGR: 14.20% | SUE: 0.23 | # QB: 0
Revenue Correlation: 78.81 | Revenue CAGR: 51.98% | SUE: 0.23 | # QB: 0
EPS current Quarter (2026-06-30): EPS=0.52 | Chg30d=-3.00% | Revisions=-14% | Analysts=5
EPS next Quarter (2026-09-30): EPS=0.54 | Chg30d=+0.22% | Revisions=+20% | Analysts=5
EPS current Year (2026-12-31): EPS=2.25 | Chg30d=-0.94% | Revisions=+11% | GrowthEPS=-4.3% | GrowthRev=+30.7%
EPS next Year (2027-12-31): EPS=2.33 | Chg30d=+0.48% | Revisions=+0% | GrowthEPS=+3.6% | GrowthRev=+6.3%
[Analyst] Revisions Ratio: +20%