0.83%
5.56%
8.00%
1.76%
10.66%
20.06%
-26.54%
AI Spotlight on RITM
Company Description
Rithm Capital Corp.provides capital and services to the real estate and financial services sectors in the United States.Its investment portfolio comprises mortgage servicing related assets, residential securities and loans, and consumer loans.
It qualifies as a real estate investment trust for federal income tax purposes.The company generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders.The company was formerly known as New Residential Investment Corp.
and changed its name to Rithm Capital Corp.in August 2022.Rithm Capital Corp.
was incorporated in 2011 and is headquartered in New York, New York.
Market Data
| Last Price | 12.15 |
| Change Percentage | 0.83% |
| Open | 12.05 |
| Previous Close | 12.05 |
| Market Cap ( Millions) | 6326 |
| Volume | 5094578 |
| Year High | 12.18 |
| Year Low | 10.38 |
| M A 50 | 11.38 |
| M A 200 | 11.19 |
Financial Ratios
| FCF Yield | -36.90% |
| Dividend Yield | 8.23% |
| ROE | 12.09% |
| Debt / Equity | 55.78% |
| Net Debt / EBIDTA | 108.58% |
| Price To Book | 0.76 |
| Price Earnings Ratio | 6.51 |
| Price To FCF | -2.71 |
| Price To sales | 2.51 |
| EV / EBITDA | 3.46 |
News
- Feb -27 - Dividend Harvesting Portfolio Week 208: $20,800 Allocated, $2,017.65 In Projected Dividends
- Feb -26 - Rithm Capital Corp. Class A: When Preferred Shares Actually Get Called
- Feb -22 - Rithm Capital: This Ultra-Safe 8% Yield Is Still On Sale
- Feb -17 - Rithm Capital: Discount To Book, Yielding Over 8% And Could Appreciate With Rate Cuts
- Feb -14 - Rithm Capital Q4 Earnings Beat on Robust Net Servicing Revenue
- Feb -13 - Stubbornly High Mortgage Rates Benefit This 8.5% Dividend Stock
- Feb -06 - Compared to Estimates, Rithm (RITM) Q4 Earnings: A Look at Key Metrics
- Feb -06 - Rithm Capital Corp. (RITM) Q4 2024 Earnings Call Transcript
- Feb -06 - Rithm (RITM) Surpasses Q4 Earnings and Revenue Estimates
- Feb -06 - Rithm Capital Corp. Announces Fourth Quarter and Full Year 2024 Results
- Feb -05 - Can Rithm Capital Navigate Rising Expenses in Q4 Earnings?
- Feb -05 - Best Income Stocks to Buy for February 5th
- Jan -31 - Best Income Stocks to Buy for January 31st
- Jan -31 - Best Value Stocks to Buy for January 31st
- Jan -30 - Rithm Capital Corp. Announces Treatment of 2024 Taxable Dividends
- Jan -30 - Rithm (RITM) Expected to Beat Earnings Estimates: Should You Buy?
- Jan -30 - Rithm Capital: Attractive Opportunity Under The Right Rate Environment
- Jan -29 - Rithm (RITM) Registers a Bigger Fall Than the Market: Important Facts to Note
- Jan -29 - Rithm (RITM) Upgraded to Strong Buy: Here's What You Should Know
- Jan -29 - Best Income Stocks to Buy for January 29th
Business Breakdown
Expected Mid-Term Growth
Segment n°1 -> Origination and Servicing
Expected Growth : 7.88 %
What the company do ?
Rithm Capital Corp's Origination and Servicing segment involves originating and servicing mortgage loans, providing title insurance and settlement services, and offering mortgage-related products.
Why we expect these perspectives ?
Rithm Capital Corp.'s 7.88% growth in Origination and Servicing is driven by increasing mortgage demand, expansion into new markets, and strategic partnerships. Additionally, the company's investment in digital platforms and process automation has improved operational efficiency, reducing costs and enhancing customer experience. Furthermore, the company's diversified product offerings and strong risk management practices have enabled it to capitalize on market opportunities while mitigating potential risks.
Segment n°2 -> Investment Portfolio
Expected Growth : 7.5 %
What the company do ?
Rithm Capital Corp.'s Investment Portfolio is a diversified portfolio of mortgage-backed securities, whole loans, and other investments, generating income through interest and principal payments.
Why we expect these perspectives ?
Rithm Capital Corp.'s 7.5% investment portfolio growth is driven by a combination of factors, including a strong housing market, increasing demand for mortgage loans, and effective risk management strategies. Additionally, the company's diversified investment portfolio, which includes mortgage-backed securities, whole loans, and other assets, has contributed to its growth. Furthermore, Rithm Capital's ability to leverage its scale and expertise to identify and capitalize on investment opportunities has also been a key driver of its growth.
Segment n°3 -> Mortgage Loans Receivable
Expected Growth : 7.9 %
What the company do ?
Mortgage Loans Receivable from Rithm Capital Corp. refers to the amount of money lent to borrowers for mortgages, now owed to Rithm Capital Corp. as a financial asset.
Why we expect these perspectives ?
The 7.9% growth in Mortgage Loans Receivable from Rithm Capital Corp. is driven by increasing demand for housing, low interest rates, and government-backed mortgage programs. Additionally, Rithm Capital's expansion into new markets, improved operational efficiency, and strategic partnerships have contributed to the growth.
Segment n°4 -> Asset Management
Expected Growth : 7.5 %
What the company do ?
Rithm Capital Corp.'s Asset Management segment provides investment management services to institutional clients, managing mortgage-backed securities and other asset classes.
Why we expect these perspectives ?
Rithm Capital Corp.'s 7.5% growth in Asset Management is driven by increasing demand for diversified investment products, expansion into new markets, and strategic partnerships. Additionally, the company's focus on ESG and sustainable investing, as well as its robust risk management framework, have contributed to its growth momentum.
Segment n°5 -> Corporate Segment
Expected Growth : 4.77 %
What the company do ?
Rithm Capital Corp.'s Corporate Segment includes corporate functions, investments, and other activities not attributed to specific business segments.
Why we expect these perspectives ?
Rithm Capital Corp.'s Corporate Segment growth of 4.77% is driven by increasing mortgage originations, expansion of its servicing portfolio, and strategic investments in digital platforms. Additionally, the segment benefits from a favorable interest rate environment, growing demand for mortgage products, and the company's ability to effectively manage risk and optimize capital allocation.
Rithm Capital Corp. Products
| Product Range | What is it ? |
|---|---|
| Mortgage Servicing | Rithm Capital Corp. provides mortgage servicing solutions to homeowners, offering loan servicing, subservicing, and special servicing. |
| Originations | Rithm Capital Corp. offers mortgage originations services, providing borrowers with a range of loan options, including conventional, FHA, VA, and USDA loans. |
| Capital Markets | Rithm Capital Corp. provides capital markets services, including securitization, whole loan trading, and mortgage-backed securities. |
| Title and Settlement Services | Rithm Capital Corp. offers title and settlement services, providing title insurance, escrow services, and closing solutions. |
| Valuations | Rithm Capital Corp. provides valuation services, including appraisal management, broker price opinions, and automated valuation models. |
Rithm Capital Corp.'s Porter Forces
Threat Of Substitutes
Rithm Capital Corp. operates in a highly competitive industry, but the threat of substitutes is mitigated by the company's diversified product offerings and strong brand recognition.
Bargaining Power Of Customers
Rithm Capital Corp.'s customers have limited bargaining power due to the company's strong market position and lack of dependence on a single customer.
Bargaining Power Of Suppliers
Rithm Capital Corp. has a moderate level of dependence on its suppliers, but the company's strong relationships and diversified supply chain mitigate the bargaining power of suppliers.
Threat Of New Entrants
The threat of new entrants is high in the industry, driven by low barriers to entry and the attractiveness of the market. However, Rithm Capital Corp.'s strong brand recognition and established market position provide a competitive advantage.
Intensity Of Rivalry
The industry is highly competitive, with many established players competing for market share. Rithm Capital Corp. must continue to innovate and differentiate itself to maintain its market position.
Capital Structure
| Value | |
|---|---|
| Debt Weight | 78.73% |
| Debt Cost | 7.03% |
| Equity Weight | 21.27% |
| Equity Cost | 12.77% |
| WACC | 8.25% |
| Leverage | 370.25% |
Rithm Capital Corp. : Quality Control
Rithm Capital Corp. passed 2 out of 9 key points:
Historical Valuation
Price/Earnings Ratio
Margin Valuation
Peers Valuation
Competitors
| Company | Rational |
|---|---|
| BXMT | Blackstone Mortgage Trust, Inc., a real estate finance company, originates senior loans collateralized by commercial properties in North America, Europe, and Australia. The company operates as a real estate investment … |
| AGNCN | AGNC Investment Corp. operates as a real estate investment trust (REIT) in the United States. The company invests in residential mortgage pass-through securities and collateralized mortgage obligations for which the … |
| NLY | Annaly Capital Management, Inc., a diversified capital manager, engages in mortgage finance and corporate middle market lending. The company invests in agency mortgage-backed securities, mortgage servicing rights, Agency commercial mortgage-backed … |
| ABR | Arbor Realty Trust, Inc. invests in a diversified portfolio of structured finance assets in the multifamily, single-family rental, and commercial real estate markets in the United States. The company operates … |
| STWD | Starwood Property Trust, Inc. operates as a real estate investment trust (REIT) in the United States, Europe, and Australia. It operates through four segments: Commercial and Residential Lending, Infrastructure Lending, … |
Peers Metrics
DCF BETA
Expected Cash-Flows
Scoring Insights
Peers Group Analysis
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Rithm Capital
A-Score
1-Year Total Return ->
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AGNC Investment
A-Score
1-Year Total Return ->
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Arbor Realty Trust
A-Score
1-Year Total Return ->
4
Annaly Capital Management
A-Score
1-Year Total Return ->
5
Starwood Property Trust
A-Score
1-Year Total Return ->
6
