Rithm Capital Corp. trades at a deep discount with a double-digit dividend yield, but its heavy debt load and mortgage exposure temper the value case. The stock trades at 4.02 times forward earnings, well below the industry average and near the low end of its five-year range, while its price-to-book ratio sits at 0.68. The company declared a quarterly cash dividend of 25 cents per share, translating to an annualized yield of roughly 10.9 percent, supported by 26 consecutive quarters of earnings available for distribution exceeding common dividends. However, as of March 31, 2026, Rithm Capital had total liquidity of 1.4 billion dollars against total debt of 39.5 billion dollars, and nearly 20 percent of total assets were tied to mortgage servicing rights and related financing receivables, which recorded a 204.2-million-dollar negative fair-value change in the first quarter of 2026. The stock carries a Zacks Rank of 3, or Hold, with a Value Score of C, a Growth Score of F, and a Momentum Score of D.
Rithm Capital Corp.Heavy debt load of $39.5B and negative fair-value change in mortgage servicing rights temper value case
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