Rithm Capital Corp. Common Stock (RITM)

FairStock Score: 53/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I start with the business, not the ticker. Rithm is an asset manager in real estate, credit, and financial services, with mortgage origination and servicing, transitional lending, and an investment portfolio. That can be a decent fee-and-spread business, but it is rate- and credit-sensitive and I see no obvious durable moat. The filed numbers show the problem: in fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $1.3B and net income was only $56.3M, or $0.04 diluted EPS, versus fiscal Q2 2025 net income of $311.7M and $0.53 diluted EPS. For FY2025, ended 2025-12-31, net income was $697.1M and EPS $1.04, down from FY2024 net income of $931.5M and EPS $1.67. FairStock's P/E of 14.17 and P/B of 0.69 at the 2026-10-13 close of $8.50 look undemanding, and the 10.70% dividend yield is tempting, but ROE of 5.59%, ROCE of 1.01%, D/E of 3.88, a Piotroski F-Score of 3/9, and a FairStock score of 53/100 tell me quality and balance-sheet risk are not on my side. The Lynch category is SLOW GROWER — Shrinking, with profit down 3.6% a year over four years and revenue up 5.3%. CET1, NIM, and combined ratio are not in the data. A discount to book can be a value opportunity, but here it may also be the market pricing credit, leverage, and earnings inconsistency. I would require a much clearer margin of safety.

In plain English: Rithm Capital manages real estate and credit investments and earns money from mortgage servicing, lending, and asset management. Profit has been falling sharply and the company uses a lot of borrowed money, so the business looks weaker than its low stock price might suggest. At $8.50, the price looks cheap compared with the company's stated assets, but the weak earnings make that cheapness uncertain.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K/A (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer