Rithm Capital Corp. (RITM) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+3459.4%

$337.25

vs $9.48 price

Levered DCF

$239.08

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

-0.07

Distress zone

Rating

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	10.38×	6.41×	9.62×	4.44×	6.87×	-3.04×	11.93×	5.04×
P/B	0.73×	0.69×	0.73×	0.55×	0.73×	0.78×	0.92×	0.81×
P/S	1.08×	1.13×	1.37×	2.3×	1.67×	2.84×	2.28×	2.05×
EV / EBITDA	32.41×	11.4×	14.12×	13.51×	24×	-51.11×	8.47×	7.19×
Gross margin	90.5%	94.4%	95.3%	61.6%	88.2%	79.0%	85.1%	84.0%
Operating margin	44.6%	65.3%	57.3%	122.3%	48.8%	-38.9%	56.3%	68.3%
Net margin	12.0%	19.7%	16.6%	57.2%	26.7%	-96.9%	19.5%	40.7%
Current ratio	1.79×	0×	0×	4.02×	4.65×	125,272.89×	33.57×	9.35×
Debt / equity	4.69×	4.21×	3.85×	3.65×	4.8×	4.84×	1.08×	1.18×
Interest coverage	5.76×	1.64×	1.54×	2.62×	2.85×	0×	0×	0×
Dividend yield	10.4%	11.0%	11.1%	14.6%	9.1%	9.3%	12.4%	13.6%
Payout ratio	94.4%	63.1%	91.7%	58.5%	56.8%	-27.2%	145.1%	68.7%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	8.1%	12.0%	8.9%	13.7%	11.7%	-26.5%	7.9%	16.1%
Return on invested capital	4.4%	0.0%	0.0%	4.8%	3.0%	-2.9%	2.9%	4.7%
Return on assets	1.3%	2.0%	1.6%	2.8%	1.9%	-4.2%	1.3%	3.0%
Free cash flow yield	-12.4%	-43.2%	13.5%	150.2%	59.2%	31.9%	-46.7%	-50.0%
Earnings yield	11.1%	17.4%	12.1%	24.9%	16.0%	-34.1%	8.6%	19.9%
Enterprise value	$43.9B	$36.7B	$30.8B	$27.8B	$35.2B	$28.9B	$13.8B	$11.7B
Net debt / EBITDA	27.87×	9.73×	11.77×	11.65×	20.71×	-43.81×	4.42×	4.21×
Cash conversion cycle (days)	-210	-179	-317	-87	-368	740	621	-503