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Rithm Capital Corp. (RITM) Stock Verdict & Ratings | Investment Bastion

Stock Verdict·Updated 1d ago

Rithm Capital Corp.

RITMMarket cap $4.84BPrice $8.7

Country🇺🇸United States

SectorFinancials

IndustryMortgage REITs

Buys, manages, and trades mortgage-related assets — servicing rights, loans, and real estate — turning America's home debt into steady cash flow. It's basically a landlord for mortgages, profiting whether homeowners refinance or just keep paying.

In Bastion Portfolios?

52W Return-16%Global Market +16%?

01Key Ratings

How does this stock score across Bastion factors?

Growth

Historical Revenue

Rev CAGR (3y)-5%2

Revenue Forecast

Rev CAGR (1y)+55%10

Rev CAGR (3y)+23%9

Rev CAGR (5y)+16%9

Earnings Forecast

EPS Growth Y+1+128%10

EPS Growth Y+2+3%4

EPS Growth Y+3+7%6

Quality

Margins

EBIT Marginna–

Net Income Margin11%6

Free Cash Flow Margin-44%1

Debt

Net Debt/EBITDAna–

Efficiency

ROE5%3

ROA1%3

Earnings Stability55

GEAR+STRONG71

Overall rating across all five factors

Value

Price Multiples

P/E Ratio (Forward)410

P/E Ratio (Forward 3y)310

P/BV0.710

EV Multiples

EV/EBITDA Fwd010

EV/EBIT Fwd010

Yield

Free Cash Flow Yield0.0%7

Dividend Yield11.5%10

Momentum

Short term

1 month return-12%2

3 month return-3%5

YTD return-14%3

Mid term

Price vs 52wHigh77%5

1 year return-12%3

Long term

3 year return+26%4

5 year return+31%5

Risk Shield

Price Risk

Beta0.76

Volatility24%9

Free Cash Flow

Free Cash Flow Margin-44%1

Free Cash Flow Yield0.0%7

Quality

ROCE2%3

Earnings Stability55

Net Debt/EBITDAna–

02Growth

Is it actually growing, and how fast?

RITMRithm Capital

Revenue FY25$3.1B

GROWTH RATING↗

STRONG82 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR-5%2

Revenue, next 1Y+55%10

Revenue, next 3Y, CAGR+23%9

Revenue, next 5Y, CAGR+16%9

EARNINGS FORECAST▾SCORE

EPS growth, FY26E+128%10

EPS growth, FY27E+3%4

EPS growth, FY28E+7%6

GROWTH ASSESSMENT

STRENGTHS

It out-grows 82% of companies worldwide.

Revenue is set to grow 23%/yr over the next 3 years, ahead of most of the market.9/10

After shrinking over the last 3 years, revenue is set to grow 23%/yr from here.

The runway holds up: revenue is set to grow 16%/yr over five years.9/10

WATCH

Earnings are set to grow slower than sales (EPS about 7%/yr vs revenue 23%/yr), so margins are under pressure.

WEAKNESSES

Revenue fell 5%/yr over the last 3 years, behind 80% of companies worldwide.2/10

BOTTOM LINE

Reaccelerating Grower

A top-tier grower that's turning around. The one thing to watch: revenue has shrunk over the past 3 years.

03Price Momentum

Is the market behind it right now?

MOMENTUM RATING↗

WEAK26 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-12%2

3-month return-3%5

YTD return-14%3

MID & LONG-TERM▾SCORE

% of 52-week high77%5

1-year return-12%3

3-year return+26%4

5-year return+31%5

MOMENTUM ASSESSMENT

STRENGTHS

None flagged.

WATCH

Average long-term results. Multi-year returns are middling (+26% over three years and +31% over five), roughly average for the market.

It's down 12% over the past year, now 23% below its 52-week high. That is a touch behind the market.

Returns sit at the market level over three months (-3%).

WEAKNESSES

The stock is underperforming over the past month (-12%) and so far this year (-14%).

BOTTOM LINE

Falling Knife

Returns rank poorly over both the short and long run, and the price is still falling. Momentum is firmly negative — catching this is a bet against the tape, not with it. Wait for a base to form. The one thing to watch: the stock is underperforming over the past month and so far this year.

04Value

Are you paying a fair price for it?

Stop guessing on Rithm Capital. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

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Loading charts…

02Growth

Is it actually growing, and how fast?

RITMRithm Capital

Revenue FY25$3.1B

GROWTH RATING↗

STRONG82 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR-5%2

Revenue, next 1Y+55%10

Revenue, next 3Y, CAGR+23%9

Revenue, next 5Y, CAGR+16%9

EARNINGS FORECAST▾SCORE

EPS growth, FY26E+128%10

EPS growth, FY27E+3%4

EPS growth, FY28E+7%6

GROWTH ASSESSMENT

STRENGTHS

It out-grows 82% of companies worldwide.

Revenue is set to grow 23%/yr over the next 3 years, ahead of most of the market.9/10

After shrinking over the last 3 years, revenue is set to grow 23%/yr from here.

The runway holds up: revenue is set to grow 16%/yr over five years.9/10

WATCH

Earnings are set to grow slower than sales (EPS about 7%/yr vs revenue 23%/yr), so margins are under pressure.

WEAKNESSES

Revenue fell 5%/yr over the last 3 years, behind 80% of companies worldwide.2/10

BOTTOM LINE

Reaccelerating Grower

A top-tier grower that's turning around. The one thing to watch: revenue has shrunk over the past 3 years.

03Price Momentum

Is the market behind it right now?

MOMENTUM RATING↗

WEAK26 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-12%2

3-month return-3%5

YTD return-14%3

MID & LONG-TERM▾SCORE

% of 52-week high77%5

1-year return-12%3

3-year return+26%4

5-year return+31%5

MOMENTUM ASSESSMENT

STRENGTHS

None flagged.

WATCH

Average long-term results. Multi-year returns are middling (+26% over three years and +31% over five), roughly average for the market.

It's down 12% over the past year, now 23% below its 52-week high. That is a touch behind the market.

Returns sit at the market level over three months (-3%).

WEAKNESSES

The stock is underperforming over the past month (-12%) and so far this year (-14%).

BOTTOM LINE

Falling Knife

04Value

Are you paying a fair price for it?

Stop guessing on Rithm Capital. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

✓
Stock VerdictValuation and investment strategy for 4,000+ stocks. Days of hedge fund analyst research, done in 2 minutes.
✓
RadarFind your next investment idea: top-ranked stocks across all 9 Bastion strategies.
✓
Portfolio ManagerCheck if Bastion algorithms added the stock you care about to their portfolios.

Secure via Stripe

Trusted by 1,000+ investors in our community