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Upturn AI SWOT - About
Rithm Capital Corp. (RITM)
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Upturn Advisory Summary
04/01/2025: RITM (2-star) is currently NOT-A-BUY. Pass it for now.
Upturn Star Rating
Below Average Performance
These Stocks/ETFs, based on Upturn Advisory, often underperform the market, warranting careful consideration before investing.
AI Based Fundamental Rating
Moderate Performance
These Stocks/ETFs, based on Upturn Advisory, typically align with the market average, offering steady but unremarkable returns.
Analysis of Past Performance
Type Stock | Historic Profit -15.34% | Avg. Invested days 46 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  3.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 04/01/2025 |
Key Highlights
Company Size Mid-Cap Stock | Market Capitalization 5.96B USD | Price to earnings Ratio 6.86 | 1Y Target Price 13.27 |
Price to earnings Ratio 6.86 | 1Y Target Price 13.27 | ||
Volume (30-day avg) 4174386 | Beta 1.83 | 52 Weeks Range 9.48 - 11.93 | Updated Date 04/1/2025 |
52 Weeks Range 9.48 - 11.93 | Updated Date 04/1/2025 | ||
Dividends yield (FY) 8.73% | Basic EPS (TTM) 1.67 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 24.6% | Operating Margin (TTM) 39.54% |
Management Effectiveness
Return on Assets (TTM) 2.19% | Return on Equity (TTM) 12.56% |
Valuation
Trailing PE 6.86 | Forward PE 5.8 | Enterprise Value 38935859200 | Price to Sales(TTM) 1.57 |
Enterprise Value 38935859200 | Price to Sales(TTM) 1.57 | ||
Enterprise Value to Revenue 13.25 | Enterprise Value to EBITDA - | Shares Outstanding 520660000 | Shares Floating 517848519 |
Shares Outstanding 520660000 | Shares Floating 517848519 | ||
Percent Insiders 0.4 | Percent Institutions 50.71 |
Analyst Ratings
Rating 4.5 | Target Price 13 | Buy 4 | Strong Buy 7 |
Buy 4 | Strong Buy 7 | ||
Hold 1 | Sell - | Strong Sell - | |
Strong Sell - |
Upturn AI SWOT
Rithm Capital Corp.
Company Overview
History and Background
Rithm Capital Corp., formerly known as New Residential Investment Corp., was founded in 2013. It focuses on investing in and managing assets related to the residential housing market. The company has evolved through strategic acquisitions and portfolio adjustments to optimize returns.
Core Business Areas
- Residential Mortgage Loans: Invests in and manages a portfolio of residential mortgage loans, including servicing-related assets and origination platforms.
- MSRs: Manages Mortgage Servicing Rights, which represent the right to service mortgage loans.
- Single Family Rentals: Invests in and manages single-family rental properties.
- Consumer Loans: Engages in consumer lending activities.
- Other Investments: Includes investments in various financial assets and real estate related businesses.
Leadership and Structure
Michael Nierenberg serves as the Chairman, Chief Executive Officer, and President. The company operates with a structured management team overseeing various business segments.
Top Products and Market Share
Key Offerings
- Residential Mortgage Loans: Investments in residential mortgage loans generate income through interest payments and loan servicing fees. Market share is variable based on loan type and origination channel. Competitors include Annaly Capital Management (NLY) and AGNC Investment Corp. (AGNC).
- Mortgage Servicing Rights (MSRs): MSRs provide recurring servicing fees. Rithm is a significant player in this space, market share fluctuates with loan sales and portfolio acquisitions. Competitors include PennyMac Financial Services (PFSI).
- Single Family Rentals (SFR): Income generated from rental properties. The market share is fragmented across numerous owners, Rithm is a moderate-sized player. Competitors include Invitation Homes (INVH) and American Homes 4 Rent (AMH).
Market Dynamics
Industry Overview
The market is heavily influenced by interest rates, housing market trends, and macroeconomic conditions. Changes in these factors can significantly impact the value of mortgage-related assets.
Positioning
Rithm Capital Corp. positions itself as an opportunistic investor in the residential housing market, seeking to capitalize on undervalued assets and market inefficiencies.
Total Addressable Market (TAM)
The residential mortgage market is valued in the trillions of dollars. Rithm Capital Corp. aims to capture portions of this TAM by investing in diverse assets across the mortgage value chain. SFR and Consumer loan TAM's are large and growing.
Upturn SWOT Analysis
Strengths
- Diversified portfolio of mortgage-related assets
- Experienced management team
- Opportunistic investment strategy
- Access to capital markets
Weaknesses
- Sensitivity to interest rate fluctuations
- Dependence on housing market conditions
- Complex financial structure
- Reliance on external managers
Opportunities
- Expanding into new mortgage-related asset classes
- Acquiring distressed assets at attractive valuations
- Growing the single-family rental business
- Capitalizing on regulatory changes
Threats
- Rising interest rates
- Economic downturn
- Increased competition
- Regulatory risks
Competitors and Market Share
Key Competitors
- Annaly Capital Management (NLY)
- AGNC Investment Corp. (AGNC)
- PennyMac Financial Services (PFSI)
- Blackstone Mortgage Trust (BXMT)
- Starwood Property Trust (STWD)
Competitive Landscape
Rithm Capital Corp. differentiates itself through its diversified portfolio and opportunistic investment approach. It faces competition from larger REITs and specialized mortgage servicers.
Major Acquisitions
Genesis Capital
- Year: 2020
- Acquisition Price (USD millions): 262
- Strategic Rationale: Expansion into the business purpose lending market.
MSR Portfolio from Ditech
- Year: 2020
- Acquisition Price (USD millions): 672
- Strategic Rationale: Increased servicing portfolio and economies of scale.
Growth Trajectory and Initiatives
Historical Growth: Historical growth has been driven by strategic acquisitions and portfolio expansion.
Future Projections: Future growth is dependent on macroeconomic factors, housing market dynamics, and successful execution of strategic initiatives. Analyst estimates vary depending on market forecasts.
Recent Initiatives: Recent initiatives include acquisitions to expand the servicing business, the strategic shift into SFR and Consumer Loans and optimizing the asset allocation.
Summary
Rithm Capital Corp. is an investment vehicle focusing on mortgage-related assets. They have expanded into consumer loans and SFR. Their strength lies in diversified investments and access to capital. Dependence on interest rates and housing markets is a risk that they must address.
Similar Companies
AGNC
AGNC Investment Corp
AGNC
AGNC Investment Corp
ARR
ARMOUR Residential REIT Inc
ARR
ARMOUR Residential REIT Inc
BXMT
Blackstone Mortgage Trust Inc
BXMT
Blackstone Mortgage Trust Inc
NLY
Annaly Capital Management Inc
NLY
Annaly Capital Management Inc
STWD
Starwood Property Trust Inc
STWD
Starwood Property Trust Inc
Sources and Disclaimers
Data Sources:
- SEC Filings
- Company Presentations
- Analyst Reports
- Industry Publications
Disclaimers:
The information provided is for informational purposes only and should not be construed as investment advice. Market data and financial figures are subject to change.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Rithm Capital Corp.
Exchange NYSE | Headquaters New York, NY, United States | ||
IPO Launch date 2013-05-02 | Chairman, President & CEO Mr. Michael Nierenberg | ||
Sector Real Estate | Industry REIT - Mortgage | Full time employees 6045 | Website https://www.rithmcap.com |
Full time employees 6045 | Website https://www.rithmcap.com | ||
Rithm Capital Corp. operates as an asset manager focused on real estate, credit, and financial services in the United States. It operates through Origination and Servicing, Investment Portfolio, Residential Transitional Lending, and Asset Management segments. The company's investment portfolio primarily comprises of single-family rental properties, title, appraisal and property preservation and maintenance businesses; real estate securities, call rights, SFR properties, and residential mortgage loans; consumer and business purpose loans; and asset management related investments. The company qualifies as a real estate investment trust for federal income tax purposes. It 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 based in New York, New York.
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