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RITM-PD Stock Analysis 2026 - Rithm Capital Corp. AI Rating

RITM-PD NYSE Real Estate Investment Trusts CIK: 0001556593
Recently Updated • Analysis: Apr 9, 2026 • SEC Data: 2025-12-31
SELL
75% Conf
Pending
Analysis scheduled

📊 RITM-PD Key Takeaways

Revenue: $4.6B
Net Margin: 15.2%
Free Cash Flow: $-1.3B
Current Ratio: N/A
Debt/Equity: 4.20x
EPS: $1.04
AI Rating: SELL with 75% confidence

Is RITM-PD a Good Investment? Thesis Analysis

Claude

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.

Why Buy RITM-PD? Key Strengths

Claude
  • + 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

RITM-PD Investment Risks to Consider

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
  • ! Declining revenue (-6.7% YoY) and severely diluted earnings (-37.7% EPS YoY) signal deteriorating core mortgage portfolio performance

Key Metrics to Watch

Claude
  • * 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

RITM-PD Financial Metrics

Revenue
$4.6B
Net Income
$697.1M
EPS (Diluted)
$1.04
Free Cash Flow
$-1.3B
Total Assets
$53.1B
Cash Position
$1.8B

💡 AI Analyst Insight

The current ratio below 1.0x warrants monitoring of short-term liquidity.

RITM-PD Profitability Ratios

Gross Margin N/A
Operating Margin 17.6%
Net Margin 15.2%
ROE 8.3%
ROA 1.3%
FCF Margin -28.1%

RITM-PD vs Default Sector

How Rithm Capital Corp. compares to Default sector averages

Net Margin
RITM-PD 15.2%
vs
Sector Avg 12.0%
RITM-PD Sector
ROE
RITM-PD 8.3%
vs
Sector Avg 15.0%
RITM-PD Sector
Current Ratio
RITM-PD 0.0x
vs
Sector Avg 1.8x
RITM-PD Sector
Debt/Equity
RITM-PD 4.2x
vs
Sector Avg 0.7x
RITM-PD Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

Is RITM-PD Overvalued or Undervalued?

Based on fundamental analysis, Rithm Capital Corp. shows some fundamental concerns relative to the Default sector in 2026.

Return on Equity
8.3%
Sector avg: 15%
Net Profit Margin
15.2%
Sector avg: 12%
Revenue Growth
N/A
Year-over-year
Debt/Equity
4.20x
Sector avg: 0.7x

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.

RITM-PD Balance Sheet & Liquidity

Current Ratio
N/A
Quick Ratio
N/A
Debt/Equity
4.20x
Debt/Assets
82.6%
Interest Coverage
1.95x
Long-term Debt
$35.4B

RITM-PD 5-Year Financial Trend & Growth Analysis

RITM-PD 5-year financial data: Year 2023: Revenue $5.0B, Net Income N/A, EPS $1.51.
Revenue
Net Income
EPS (right axis)

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 Growth Metrics (YoY)

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
-28.1%
Free cash flow / Revenue

RITM-PD Quarterly Performance

Quarterly financial performance data for Rithm Capital Corp. including revenue, net income, and earnings per share.
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.

RITM-PD Capital Allocation

Operating Cash Flow
-$1.3B
Cash generated from operations
Stock Buybacks
$50.0M
Shares repurchased (TTM)
Dividends Paid
$427.6M
Returned to shareholders

RITM-PD SEC 10-K & 10-Q Filing Analysis

Access official SEC EDGAR filings for Rithm Capital Corp. (CIK: 0001556593)

📋 Recent SEC Filings

Date Form Document Action
Mar 9, 2026 4 xslF345X05/wk-form4_1773095148.xml View →
Mar 9, 2026 4 xslF345X05/wk-form4_1773095099.xml View →
Mar 9, 2026 4 xslF345X05/wk-form4_1773095058.xml View →
Mar 3, 2026 4 xslF345X05/wk-form4_1772576205.xml View →
Feb 25, 2026 4 xslF345X05/wk-form4_1772060251.xml View →

Frequently Asked Questions about RITM-PD

What is the AI rating for RITM-PD?

Rithm Capital Corp. (RITM-PD) has an AI rating of SELL with 75% 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.

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.

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 75% 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: 15%), net margin of 15.2% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.

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 above 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 Default stocks?

Vs Default sector averages: Net margin 15.2% (avg: 12%), ROE 8.3% (avg: 15%), current ratio N/A (avg: 1.8).

Disclaimer: This analysis is generated by Claude AI (Anthropic) and ChatGPT (OpenAI) based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: Apr 9, 2026 | Data as of: 2025-12-31 | Powered by Claude AI