Rithm Capital Corp
NYSE:RITM
Intrinsic Value
New Residential Investment Corp. is a real estate investment trust, which aims to generate long-term value for investors by investing in mortgage related assets, including operating companies, that of... [ Read More ]
The intrinsic value of one RITM stock under the Base Case scenario is 26.11 USD. Compared to the current market price of 11.32 USD, Rithm Capital Corp is Undervalued by 57%.
Valuation Backtest
Rithm Capital Corp
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Fundamental Analysis
Rithm's Steady Growth and Strategic Moves
2023-Q4 Earnings Call
Rithm Capital had a consistent year with solid earnings across all business lines and maintained earnings despite market volatility. They distributed almost $500 million to shareholders and transitioned to an alternative asset manager, closing on Sculptor and acquiring SLS from Computershare. Positioned to invest without the burden of legacy real estate or structured products, Rithm and Newrez have $850 billion in mortgage servicing rights, providing strong cash flow. Despite an $88 million GAAP net loss due to MSR asset write-downs, earnings available for distribution were $247 million ($0.51/share) with a common dividend of $0.25. Liquidity stood at $1.9 billion, and the total economic return was 7.2%. Strategic acquisitions, including $1.4 billion in consumer loans from Goldman Sachs, positioned Rithm well for 2024 and beyond, with a total shareholder return of 43% in 2023.
Balance Sheet Decomposition
Rithm Capital Corp
Current Assets | 1.6B |
Cash & Short-Term Investments | 1.3B |
Receivables | 228m |
Other Current Assets | 62.5m |
Non-Current Assets | 33.7B |
Long-Term Investments | 22.5B |
PP&E | 144.2m |
Intangibles | 519.8m |
Other Non-Current Assets | 10.6B |
Current Liabilities | 13.9B |
Accounts Payable | 165.1m |
Accrued Liabilities | 1B |
Short-Term Debt | 12.6B |
Other Current Liabilities | 135.9m |
Non-Current Liabilities | 14.4B |
Long-Term Debt | 11.4B |
Other Non-Current Liabilities | 3B |
Earnings Waterfall
Rithm Capital Corp
Revenue
|
3.7B
USD
|
Cost of Revenue
|
-1.4B
USD
|
Gross Profit
|
2.2B
USD
|
Operating Expenses
|
-1.5B
USD
|
Operating Income
|
713.5m
USD
|
Other Expenses
|
-180.8m
USD
|
Net Income
|
532.7m
USD
|
Free Cash Flow Analysis
Rithm Capital Corp
What is Free Cash Flow?
RITM Profitability Score
Profitability Due Diligence
Rithm Capital Corp's profitability score is 61/100. The higher the profitability score, the more profitable the company is.
Score
Rithm Capital Corp's profitability score is 61/100. The higher the profitability score, the more profitable the company is.
RITM Solvency Score
Solvency Due Diligence
Rithm Capital Corp's solvency score is 11/100. The higher the solvency score, the more solvent the company is.
Score
Rithm Capital Corp's solvency score is 11/100. The higher the solvency score, the more solvent the company is.
Wall St
Price Targets
RITM Price Targets Summary
Rithm Capital Corp
According to Wall Street analysts, the average 1-year price target for RITM is 12.38 USD with a low forecast of 10.61 USD and a high forecast of 13.65 USD.
Ownership
RITM Insider Trading
Buy and sell transactions by insiders
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Shareholder Return
RITM Price
Rithm Capital Corp
Average Annual Return | -4.8% |
Standard Deviation of Annual Returns | 27.82% |
Max Drawdown | -81% |
Market Capitalization | 5.5B USD |
Shares Outstanding | 483 214 458 |
Percentage of Shares Shorted | 1.44% |
Company Profile
Country
Industry
Market Cap
Dividend Yield
Description
New Residential Investment Corp. is a real estate investment trust, which aims to generate long-term value for investors by investing in mortgage related assets, including operating companies, that offer attractive risk-adjusted returns. The company is headquartered in New York City, New York and currently employs 12,296 full-time employees. The company went IPO on 2013-05-02. The firm is focused on a diverse, complementary, and adaptable portfolio of investments that includes its operating companies, mortgage servicing rights, real estate securities, and other related opportunistic investments. Its segments include Origination, Servicing, MSR Related Investments, Real Estate Securities, Properties & Residential Mortgage Loans and Mortgage Loans Receivable. Its Origination segment provides purchase and refinance loans to consumers across all channels, including direct-to-consumer, retail/joint-venture, wholesale, and correspondent lending. Its Servicing segment operates through its performing loan servicing division and a special servicing division, Shellpoint Mortgage Servicing (SMS). The performing loan servicing division services performing agency and government-insured loans.
Contact
IPO
Employees
Officers
The intrinsic value of one RITM stock under the Base Case scenario is 26.11 USD.
Compared to the current market price of 11.32 USD, Rithm Capital Corp is Undervalued by 57%.