GICS Sector : Real Estate
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.
Rithm Capital reported a robust Q4 2025 earnings, with earnings available for distribution (EAD) of $0.74 per diluted share, surpassing estimates of $0.55. The company's EAD for the full year was $2.35 per diluted share, representing a 12% year-over-year growth. The strong performance was driven by its diverse platform, which includes asset management, mortgage origination, and servicing, with $100 billion in investable assets across the firm. The company's book value stood at $7 billion, or $12.66 per common share, despite paying out over $600 million in dividends.
Publication Date: Feb -16
The Genesis business had a record year with $4.8 billion in originations and earnings up 250% since its acquisition in 2022. NewRez, the company's mortgage business, reported $1.1 billion in pretax income for 2025, a 17% increase year-over-year. The company's origination platform delivered $63 billion in funded volume for 2025, positioning it as the fifth-largest mortgage lender.
Rithm Capital announced several strategic transactions, including the acquisition of Crestline Asset Management and Paramount, a real estate company with 13 large office buildings in New York and San Francisco. The company expects the yield curve to continue to steepen, leading to more mortgage production and higher levels of amortization, providing an opportunity for origination gains. The company's investment portfolio is diversified, with a focus on commercial real estate and mortgage finance.
Rithm Capital's valuation is considered low relative to its earnings potential, with a P/E Ratio of 9.19 and a P/B Ratio of 0.71. The company's Dividend Yield stands at 9.46%, making it an attractive option for income investors. The company is focused on growing its asset management business and exploring opportunities to raise capital, with $1.7 billion in cash and liquidity. Analysts estimate next year's revenue growth at 4.0%, indicating a stable outlook for the company.
The acquisition of Paramount Group is expected to be transformational for Rithm in the commercial real estate space. The company's mortgage business is well-positioned to benefit from the expected increase in mortgage production, and its focus on creating alpha and results for its clients is likely to drive long-term growth. With a strong track record of generating returns for shareholders and limited partners, Rithm Capital is poised for continued success.
RITM Stock Near 52-Week Low Despite $100 Billion in Assets and a Blowout Quarter
09:26
Algert Global LLC Increases Stock Position in Rithm Capital Corp. $RITM
Mar -15
KBRA Assigns Preliminary Ratings to New Residential Mortgage Loan Trust 2026-NQM4 (NRMLT 2026-NQM4)
Mar -10
Rithm (RITM) Laps the Stock Market: Here's Why
Mar -09
Rithm: This Time, I Agree With Wall Street
Mar -06
Rithm (RITM) Falls More Steeply Than Broader Market: What Investors Need to Know
Mar -03
Rithm Capital Corp. (NYSE:RITM) Receives Consensus Rating of “Moderate Buy” from Brokerages
Feb -23
Rithm Capital: 296% Coverage, Soaring Earnings, 16% BV Discount
Feb -19
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.
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.
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.
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.
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. provides mortgage servicing solutions to homeowners, offering loan servicing, subservicing, and special servicing.
Rithm Capital Corp. offers mortgage originations services, providing borrowers with a range of loan options, including conventional, FHA, VA, and USDA loans.
Rithm Capital Corp. provides capital markets services, including securitization, whole loan trading, and mortgage-backed securities.
Rithm Capital Corp. offers title and settlement services, providing title insurance, escrow services, and closing solutions.
Rithm Capital Corp. provides valuation services, including appraisal management, broker price opinions, and automated valuation models.
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.
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.
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.
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.
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.
| Value | |
|---|---|
| Debt Weight | 78.73% |
| Debt Cost | 7.03% |
| Equity Weight | 21.27% |
| Equity Cost | 12.77% |
| WACC | 8.25% |
| Leverage | 370.25% |
Value: 7.0
Growth: 6.1
Quality: 6.6
Yield: 10.0
Momentum: 4.5
Volatility: 9.7
1-Year Total Return ->
Value: 6.9
Growth: 3.9
Quality: 5.6
Yield: 10.0
Momentum: 7.0
Volatility: 9.7
1-Year Total Return ->
Value: 7.1
Growth: 3.9
Quality: 5.9
Yield: 10.0
Momentum: 6.0
Volatility: 10.0
1-Year Total Return ->
Value: 3.6
Growth: 4.4
Quality: 6.9
Yield: 10.0
Momentum: 6.0
Volatility: 8.7
1-Year Total Return ->
Value: 8.1
Growth: 4.4
Quality: 7.3
Yield: 10.0
Momentum: 1.5
Volatility: 5.7
1-Year Total Return ->
Value: 4.1
Growth: 3.1
Quality: 4.0
Yield: 9.0
Momentum: 6.0
Volatility: 10.0
1-Year Total Return ->