📊 RITM-PD Key Takeaways
Is Rithm Capital Corp. (RITM-PD) a Good Investment?
Rithm Capital exhibits critical financial distress characterized by severe negative operating cash flow (-$1.3B) incompatible with REIT dividend sustainability, combined with extreme leverage (4.20x debt/equity) and dangerously thin interest coverage (1.9x). Declining revenue and diluted earnings alongside $35.4B in debt obligations create significant refinancing risk with minimal operational cushion.
Rithm shows resilient profitability with 15%+ net margins and a 22.9% YoY increase in net income despite a revenue decline, indicating disciplined cost and asset mix management. However, negative operating cash flow, high leverage, and thin interest coverage point to elevated refinancing and rate-sensitivity risks. A neutral stance is warranted until cash generation and coverage metrics improve sustainably.
Why Buy Rithm Capital Corp. Stock? RITM-PD Key Strengths
- Maintains profitability with 15.2% net margin despite headwinds
- Substantial asset base ($53.1B) provides enterprise scale and market presence
- Net income growth of 22.9% YoY demonstrates cost management
- Net income up 22.9% YoY with 15.2% net margin
- Solid operating margin of 17.6% on sizable revenue base
- Meaningful equity base ($8.43B) providing some loss-absorption capacity
RITM-PD Stock Risks: Rithm Capital Corp. Investment Risks
- Negative operating cash flow of -$1.3B is fundamentally incompatible with REIT dividend obligations and debt service capacity
- Extreme leverage ratio of 4.20x debt/equity with only 1.9x interest coverage leaves zero margin for earnings deterioration
- Declining revenue (-6.7% YoY) and severely diluted earnings (-37.7% EPS YoY) signal deteriorating core mortgage portfolio performance
- High leverage (Debt/Equity 4.20x) amplifies downside in stress
- Thin interest coverage (1.9x) limits rate shock cushion
- Negative operating cash flow and FCF margin indicate funding pressure
Key Metrics to Watch
- Operating cash flow stabilization and return to positive territory
- Interest coverage ratio trajectory - must exceed 2.5x threshold for safety
- Debt-to-equity ratio reduction below 3.5x and debt refinancing activity
- Interest coverage ratio
- Operating cash flow (and FFO/AFFO if reported)
Rithm Capital Corp. (RITM-PD) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
RITM-PD Profit Margin, ROE & Profitability Analysis
RITM-PD vs Real Estate Sector: How Rithm Capital Corp. Compares
How Rithm Capital Corp. compares to Real Estate sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Rithm Capital Corp. Stock Overvalued? RITM-PD Valuation Analysis 2026
Based on fundamental analysis, Rithm Capital Corp. has mixed fundamental signals relative to the Real Estate sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Rithm Capital Corp. Balance Sheet: RITM-PD Debt, Cash & Liquidity
RITM-PD Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Rithm Capital Corp.'s revenue has remained relatively flat over the 5-year period, with a 0% decline. The most recent EPS of $1.10 reflects profitable operations.
RITM-PD Revenue Growth, EPS Growth & YoY Performance
RITM-PD Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2024 | $841.6M | $89.9M | $0.14 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Rithm Capital Corp. Dividends, Buybacks & Capital Allocation
RITM-PD SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Rithm Capital Corp. (CIK: 0001556593)
📋 Recent SEC Filings
❓ Frequently Asked Questions about RITM-PD
What is the AI rating for RITM-PD?
Rithm Capital Corp. (RITM-PD) has a Combined AI Rating of SELL from Claude (SELL) and ChatGPT (HOLD) with 70% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are RITM-PD's key strengths?
Claude: Maintains profitability with 15.2% net margin despite headwinds. Substantial asset base ($53.1B) provides enterprise scale and market presence. ChatGPT: Net income up 22.9% YoY with 15.2% net margin. Solid operating margin of 17.6% on sizable revenue base.
What are the risks of investing in RITM-PD?
Claude: Negative operating cash flow of -$1.3B is fundamentally incompatible with REIT dividend obligations and debt service capacity. Extreme leverage ratio of 4.20x debt/equity with only 1.9x interest coverage leaves zero margin for earnings deterioration. ChatGPT: High leverage (Debt/Equity 4.20x) amplifies downside in stress. Thin interest coverage (1.9x) limits rate shock cushion.
What is RITM-PD's revenue and growth?
Rithm Capital Corp. reported revenue of $4.6B.
Does RITM-PD pay dividends?
Rithm Capital Corp. pays dividends, with $427.6M distributed to shareholders in the trailing twelve months.
Where can I find RITM-PD SEC filings?
Official SEC filings for Rithm Capital Corp. (CIK: 0001556593) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is RITM-PD's EPS?
Rithm Capital Corp. has a diluted EPS of $1.04.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is RITM-PD a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Rithm Capital Corp. has a SELL rating with 70% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is RITM-PD stock overvalued or undervalued?
Valuation metrics for RITM-PD: ROE of 8.3% (sector avg: 8%), net margin of 15.2% (sector avg: 20%). Higher ROE suggests strong returns relative to peers.
Should I buy RITM-PD stock in 2026?
Our dual AI analysis gives Rithm Capital Corp. a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is RITM-PD's free cash flow?
Rithm Capital Corp.'s operating cash flow is $-1.3B, with capital expenditures of N/A. FCF margin is -28.1%.
How does RITM-PD compare to other Real Estate stocks?
Vs Real Estate sector averages: Net margin 15.2% (avg: 20%), ROE 8.3% (avg: 8%), current ratio N/A (avg: 1.5).
Is Rithm Capital Corp. carrying too much debt?
RITM-PD has a debt-to-equity ratio of 4.20x, which is above the Real Estate sector average of 1.5x. Combined with a current ratio below 1, this warrants careful monitoring of the balance sheet.