A Business at a Glance
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Rithm Capital Corp.
RITM
$5.0B
Mkt Cap
$9.12
+1.56%
Rithm Capital Corp. (RITM) has a current P/E ratio of 8.8, compared to its historical median P/E of 4.8. The stock is currently considered Expensive based on its historical valuation range.
Rithm Capital Corp. (RITM) has a 5-year average return on invested capital (ROIC) of 6.5%. This is below average and may indicate limited pricing power.
Rithm Capital Corp. (RITM) has a market capitalization of $5.1B. It is classified as a mid-cap stock.
Yes, Rithm Capital Corp. (RITM) pays a dividend with a trailing twelve-month yield of 10.96%.
Based on historical P/E analysis, Rithm Capital Corp. (RITM) appears expensive. The current P/E of 8.8 is 83% above its historical median of 4.8. The estimated fair value CAGR (P/E method) is -5.8%.
Rithm Capital Corp. (RITM) operates in the Real Estate Investment Trusts industry, within the Real Estate sector.
Rithm Capital Corp. (RITM) reported annual revenue of $4.6 billion in its most recent fiscal year, based on SEC EDGAR filings.
ITEM 1. BUSINESS Company Overview Rithm Capital is a global asset manager focused on real estate, credit and financial services. We are a Delaware corporation formed in September 2011, commencing operations in December 2011 and becoming a publicly traded company on May 15, 2013. We have operated as a REIT for U.S. federal income tax purposes since inception and, since June 17, 2022, have been structured as an internally managed REIT. We seek to generate long-term value for our stockholders by leveraging our investment expertise and operating capabilities to identify, acquire, manage and enhance the value of real estate-related and other financial assets. Our platform integrates operating companies, investment portfolios and asset management capabilities across the residential mortgage, real estate and credit markets. Headquartered in New York City, Rithm Capital has a global presence with offices in London, Hong Kong, Tokyo, Toronto and Abu Dhabi.
| Segment | 2021 | 2022 | 2023 | 2024 | 2025 | % of Total |
|---|---|---|---|---|---|---|
Servicing fee revenue, net and interest income from MSRs and MSR financing receivables | $1.56B | $1.83B | $1.86B | $1.99B | $2.29B | 28% |
Operating Segments | $1.89B | $2.56B | $1.86B | $1.99B | $2.29B | 28% |
Interest income | $811M | $1.08B | $1.68B | $1.95B | $1.87B | 23% |
Servicing revenue, net | $982M | $2.56B | $1.29B | $1.83B | $1.12B | 14% |
Gain on originated residential mortgage loans, held-for-sale, net | $1.83B | $1.09B | $533M | $683M | $730M | 9% |
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 5.2B | 4.6B | 4.9B | 3.7B | 4.9B | 3.7B |
| Net Income | 599M | 567M | 835M | 533M | 865M | 705M |
| EPS | $1.10 | $1.04 | $1.67 | $1.10 | $1.80 | $1.51 |
| Free Cash Flow | 0 | -1.3B | -2.2B | 694M | 5.8B | 3.4B |
| ROIC | 0.0% | 6.9% | 7.6% | 6.8% | 5.5% | 5.5% |
| Gross Margin | - | 68.9% | 74.4% | 79.1% | 75.0% | 67.8% |
| Debt/Equity | 4.08 | 4.20 | 4.18 | 3.85 | 3.17 | 4.52 |
| Dividends/Share | $0.00 | $1.00 | $1.00 | $1.00 | $1.00 | $0.90 |
| Operating Income | 0 | 2.4B | 2.8B | 2.1B | 1.9B | 1.4B |
| Operating Margin | 0.0% | 52.7% | 57.8% | 55.6% | 39.3% | 36.5% |
| ROE | 7.0% | 7.0% | 11.3% | 7.6% | 12.8% | 11.8% |
| Shares Outstanding | 558M | 545M | 500M | 484M | 480M | 467M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 206M | 371M | 703M | 1.1B | 2.3B | 2.4B | 1.7B | 3.7B | 4.9B | 3.7B | 4.9B | 4.6B | 5.2B |
| Gross Margin | N/A | N/A | N/A | N/A | N/A | N/A | 65.7% | 67.8% | 75.0% | 79.1% | 74.4% | 68.9% | N/A |
| R&D | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A | 27M | 62M | 39M | 67M | 442M | 496M | 548M | 866M | 896M | 761M | 868M | 1.0B | 1.1B |
| EBIT | 517M | 532M | 917M | 1.6B | 1.5B | 1.5B | -863M | 1.4B | 1.9B | 2.1B | 2.8B | 2.4B | 0 |
| Op. Margin | N/A | N/A | N/A | N/A | 65.7% | 63.0% | -51.8% | 36.5% | 39.3% | 55.6% | 57.8% | 52.7% | 0.0% |
| Net Income | 353M | 269M | 504M | 958M | 964M | 550M | -1.5B | 705M | 865M | 533M | 835M | 567M | 599M |
| Net Margin | 171.2% | 72.4% | 71.7% | 90.4% | 42.3% | 22.7% | -87.8% | 18.9% | 17.6% | 14.3% | 17.0% | 12.4% | 11.5% |
| Non-Recurring | 1.4M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Returns on Capital | |||||||||||||
| ROIC | 5.7% | 4.7% | 7.7% | 11.7% | 10.4% | 7.2% | -4.0% | 5.5% | 5.5% | 6.8% | 7.6% | 6.9% | 0.0% |
| ROE | 24.7% | 12.2% | 16.7% | 24.1% | 18.0% | 8.4% | -23.5% | 11.8% | 12.8% | 7.6% | 11.3% | 7.0% | 7.0% |
| ROA | 5.0% | 2.3% | 3.0% | 4.7% | 3.6% | 1.4% | -3.7% | 1.9% | 2.3% | 1.4% | 1.9% | 1.1% | 1.1% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | -172M | 306M | 561M | -900M | -1.2B | -1.6B | 1.9B | 3.4B | 5.8B | 694M | -2.2B | -1.3B | -2.6B |
| Free Cash Flow | -172M | 306M | 561M | -900M | -1.2B | -1.6B | 1.9B | 3.4B | 5.8B | 694M | -2.2B | -1.3B | 0 |
| Owner Earnings | -451M | -219M | 560M | -900M | -1.2B | -1.6B | 1.9B | 3.4B | 5.7B | 599M | -2.4B | -1.5B | -2.9B |
| CapEx | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Maint. CapEx | 278M | 525M | 0 | 0 | 0 | 113K | 625K | 6.1M | 90M | 81M | 124M | 107M | 176M |
| Growth CapEx | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 0 |
| D&A | 278M | 525M | 0 | 0 | 0 | 113K | 625K | 6.1M | 90M | 81M | 124M | 107M | 176M |
| CapEx/OCF | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 0.0% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 228M | 303M | 433M | 570M | 662M | 808M | 332M | 376M | 0 | 0 | 0 | 0 | 0 |
| Dividend Yield | 44.8% | 31.9% | 37.1% | 26.6% | 23.4% | 23.3% | 14.5% | 12.0% | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | 0 | 0 | 0 | 0 | 0 | 0 | 7.5M | 0 | 5.2M | 0 | 0 | 50M | 0 |
| Buyback Yield | N/A | N/A | N/A | N/A | N/A | N/A | 0.3% | N/A | 0.2% | N/A | N/A | 0.8% | 0.0% |
| Stock-Based Comp | 453K | 450K | 300K | 699K | 1.0M | 1.1M | 1.2M | 1.1M | 1.3M | 14M | 49M | 72M | 72M |
| Debt Repayment | 4.9B | 8.8B | 29.9B | 54.3B | 85.9B | 196.1B | 122.5B | 69.2B | 0 | 0 | 0 | 0 | 0 |
| Balance Sheet | |||||||||||||
| Net Debt | 9.8B | 8.6B | 7.8B | 7.4B | 10.8B | 15.6B | 10.6B | 19.1B | 12.7B | 16.3B | 18.7B | 27.1B | 33.5B |
| Cash & Equiv. | 213M | 250M | 291M | 296M | 251M | 529M | 945M | 1.3B | 1.3B | 1.3B | 1.5B | 1.8B | 1.6B |
| Long-Term Debt | 6.1B | 11.3B | 13.2B | 15.8B | 22.7B | 35.7B | 25.8B | 29.8B | 22.0B | 27.0B | 32.6B | 35.4B | 35.2B |
| Debt/Equity | 7.82 | 4.04 | 4.05 | 3.36 | 3.78 | 4.98 | 4.84 | 4.52 | 3.17 | 3.85 | 4.18 | 4.20 | 4.08 |
| Interest Coverage | 3.7 | 1.9 | 2.5 | 3.4 | 2.5 | 1.6 | -1.5 | 2.7 | 2.4 | 1.5 | 1.6 | 1.4 | 1.4 |
| Equity | 1.6B | 2.8B | 3.3B | 4.7B | 6.0B | 7.2B | 5.3B | 6.6B | 6.9B | 7.0B | 7.8B | 8.4B | 8.6B |
| Total Assets | 8.1B | 15.2B | 18.4B | 22.2B | 31.7B | 44.9B | 33.3B | 39.7B | 34.6B | 39.7B | 46.0B | 53.1B | 53.4B |
| Total Liabilities | 6.2B | 12.2B | 14.9B | 17.4B | 25.6B | 37.6B | 27.8B | 33.1B | 27.6B | 32.6B | 38.2B | 43.8B | 43.9B |
| Intangibles | N/A | N/A | N/A | 0 | 19M | 41M | 34M | 143M | 141M | 388M | 332M | 370M | 368M |
| Retained Earnings | 238M | 149M | 211M | 559M | 831M | 550M | -1.1B | -813M | -419M | -373M | -47M | -20M | -100M |
| Working Capital | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Current Assets | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Current Liabilities | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 1.5B | 2.1B | 2.6B | 3.3B | 3.1B |
| Per Share Data | |||||||||||||
| EPS | 2.53 | 1.32 | 2.12 | 3.15 | 2.81 | 1.34 | -3.52 | 1.51 | 1.80 | 1.10 | 1.67 | 1.04 | 1.10 |
| Owner EPS | -3.23 | -1.08 | 2.36 | -2.96 | -3.59 | -3.90 | 4.50 | 7.34 | 11.79 | 1.24 | -4.72 | -2.70 | -5.13 |
| Book Value | 11.44 | 13.74 | 13.70 | 15.43 | 17.48 | 17.44 | 12.79 | 14.14 | 14.45 | 14.47 | 15.59 | 15.46 | 15.43 |
| Cash Flow/Share | -1.23 | 1.51 | 2.36 | -2.96 | -3.58 | -3.89 | 4.50 | 7.35 | 11.97 | 1.43 | -4.37 | -2.37 | 1.39 |
| Dividends/Share | 1.58 | 1.75 | 1.84 | 1.98 | 2.00 | 2.00 | 0.80 | 0.90 | 1.00 | 1.00 | 1.00 | 1.00 | 0.00 |
| Shares Out. | 139.5M | 203.5M | 237.9M | 304.0M | 343.0M | 410.5M | 416.1M | 467.2M | 480.4M | 484.3M | 500.0M | 545.4M | 557.9M |
| Valuation | |||||||||||||
| P/E Ratio | 1.6 | 3.2 | 3.0 | 2.6 | 2.6 | 7.0 | N/A | 4.8 | 3.3 | 8.2 | 5.8 | 10.5 | 8.3 |
| P/FCF | N/A | 2.8 | 2.7 | N/A | N/A | N/A | 1.4 | 1.0 | 0.5 | 6.3 | N/A | N/A | N/A |
| EV/EBIT | N/A | N/A | 144.6 | N/A | N/A | N/A | N/A | 7.1 | N/A | N/A | 214.1 | 209.9 | N/A |
| Price/Book | 0.4 | 0.3 | 0.5 | 0.5 | 0.4 | 0.5 | 0.5 | 0.5 | 0.4 | 0.6 | 0.6 | 0.7 | 0.6 |
| Price/Sales | 2.5 | 2.6 | 1.7 | 2.0 | 2.7 | 1.3 | 1.4 | 0.9 | 0.7 | 0.9 | 1.0 | 1.3 | 1.0 |
| FCF Yield | -30.7% | 35.2% | 37.6% | -36.2% | -48.5% | -41.6% | 73.5% | 101.8% | 199.7% | 15.8% | -44.8% | -21.7% | N/A |
| Market Cap | 561M | 871M | 1.5B | 2.5B | 2.5B | 3.8B | 2.6B | 3.4B | 2.9B | 4.4B | 4.9B | 5.9B | 5.1B |
| Avg. Price | 3.65 | 4.66 | 4.90 | 7.04 | 8.25 | 8.46 | 5.52 | 6.68 | 6.76 | 7.24 | 9.51 | 10.82 | 9.12 |
| Year-End Price | 4.02 | 4.28 | 6.27 | 8.17 | 7.39 | 9.35 | 6.13 | 7.22 | 6.00 | 9.04 | 9.76 | 10.91 | 9.12 |
Rithm Capital Corp. passes 3 of 9 quality checks, indicating weak fundamentals.
Rithm Capital Corp. trades at 8.8x trailing earnings, compared to its 15-year median P/E of 4.8x, suggesting it is currently Expensive relative to its historical range. The company's 5-year average ROIC is 6.5% with a gross margin of 73.0%. Total shareholder yield (dividends) is 11.0%. At current prices, the estimated annualized return to fair value is -1.8%.
Rithm Capital Corp. (RITM) has a net profit margin of 12.4%. This is a healthy margin.
Rithm Capital Corp. (RITM) generated $-1.3 billion in free cash flow in its most recent fiscal year. Negative free cash flow may indicate heavy investment or operational challenges.
Rithm Capital Corp. (RITM) has a debt-to-equity ratio of 4.20. This indicates higher leverage, which may increase financial risk.
Rithm Capital Corp. (RITM) reported earnings per share (EPS) of $1.04 in its most recent fiscal year.
Rithm Capital Corp. (RITM) has a return on equity (ROE) of 7.0%. This indicates moderate shareholder returns.
Rithm Capital Corp. (RITM) has a 5-year average gross margin of 73.0%. This high margin suggests strong pricing power and a potential competitive moat.
The Ledger Terminal provides 14 years of financial data for Rithm Capital Corp. (RITM), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
Rithm Capital Corp. (RITM) has a book value per share of $15.46, based on its most recent annual SEC filing.