Rithm Capital

RITM

REIT - Mortgage · Financial Services

Price

$9.32

-0.11 (-1.17%)

Market Cap

$5.20B

Exchange

New York Stock Exchange

Winston Score

Winston is serious

Below-average fundamentals — multiple weak pillars.

Share count rising — dilution

+20.7% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 467.7M (2021) → 564.7M (2025)

Rithm Capital is a real estate finance company that lends money to homebuyers and manages mortgage-related investments. Its main businesses include originating and servicing home loans, meaning it helps people get mortgages and then collects their monthly payments on behalf of investors. It operates through well-known brands like Newrez, one of the larger mortgage servicers in the United States.

Rithm makes money from fees earned on servicing mortgages, gains from selling loans, and income from its portfolio of mortgage-backed securities. It operates primarily in the United States and has a servicing portfolio of over $600 billion in unpaid loan balances, which gives it significant scale. As a mortgage REIT, it is sensitive to interest rate changes — when rates rise, mortgage origination volumes tend to fall, which is the central risk the business faces going forward.

Winston Score History

Politician Trades

3 trades / 12mo

2 Congressional buys and 1 sell on RITM in the last 12 months.

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Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+4.4% YoY

YoY Growth Rate

Slow revenue growth

EPS Growth

+71.4% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

$0/ year

0.0% of revenue

Below sector average (7%)

Research and development spending

Insider Activity

0.4%ownership

Relatively low insider ownership

Cash Position

Cash flow positive

$28.9B cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Growth context

Rithm Capital is growing revenue at 4% year-over-year. The Winston Score measures business quality today — these growth metrics show what could matter tomorrow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Gross Margin

68.8%

Premium pricing power — 68.8% gross margin

Operating Margin

10.3%

Modest — 10.3% operating margin

ROCE

0.3%

Weak — 0.3% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY

+6.7%

Slow sales growth (6.7% YoY)

EPS YoY

-9.0%

Earnings shrinking (-9.0% YoY)

Slight earnings drop. Typical near a cyclical low.

EPS Consistency

6/8 quarters

Earnings grew in most of the last 8 quarters

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Cash Flow

Cash Conversion

-338%

Weak — only -338% of profit becomes cash

FCF Margin

-43.8%

Burning cash (-43.8%)

Free cash flow is negative. They are burning cash, not generating it.

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Stability

Debt / Equity

4.60

Heavy debt load (4.60)

Interest Cover

1.27x

Dangerous — barely covers interest (1.3x)

Interest coverage between 1 and 3. Profits cover interest, but with little room to spare.

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Valuation

P/E Ratio (TTM)

8.4x

Attractive valuation — P/E 8.4

P/E under 10. The price tag is small relative to last year's profit.

P/E vs Forward

+4.2

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (8.4 → 4.2)

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Dividends

Dividend Yield

10.65%

Healthy income — 10.65% yield

Yield above 6% — often a flag the market is pricing in a cut.

Dividend Growth

+0.0%

Dividend flat

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