Consider This Before Taking a Position in Rithm Capital (RITM)

Rithm Capital moved -3.1% this afternoon session, trading between a high of $9.24 and a low of $8.91 per share. Yesterday the stock finished at $9.29 per share, compared to an average analyst target price of $11.72.

Rithm Capital Corp. operates as an investment manager that operates a vertically integrated mortgage platform and invests in real estate and related properties in the United States and Europe. The Mid-Cap real estate investment trusts company is based in the United States, and over the last twelve months it has returned a dividend yield of 10.8%. Rithm Capital has trailing twelve months earnings per share (EPS) of 1.32, which at today's prices amounts to a price to earnings (P/E) ratio of 6.8.

Based on its expected future earnings growth, the company has a price to earnings growth (PEG) ratio of 0.38. Usually a PEG ratio between 0 and 1 indicates a potentially undervalued company.

Snapshot of Rithm Capital's Operating Margins:

Date Reported Total Revenue ($ k) Operating Expenses ($ k) Operating Margins (%) YoY Growth (%)
2023-02-17 2,564,714 -2,106,874 18 116.98
2022-02-17 984,201 -2,023,838 -106

Averaging out to -44.0% over the last 2 years, Rithm Capital's operating margins also have a high coefficient of variability, which stands at 199.3%. On the other hand, we note that the firm's margins are growing at a 8.1% compounded average yearly rate.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.

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