Rithm Capital (NYSE:RITM) closed at $8.50 on October 13 and has returned -17.5% over the last six months, versus 14.0% for the State Street SPDR S&P 500 ETF Trust. The company calls itself a global asset manager, operating through Newrez in mortgage origination and servicing, lending to property developers, and managing money for outside investors through Sculptor. The stock trades at 0.76 times book value, but quarterly earnings fell 81.9% year over year, operating margin is 7.94%, and debt stands at 387.64% of equity. Shares are priced at 15.70 times trailing earnings and 4.06 times expected next-year earnings, a gap the article suggests may mean the market treats the recent profit drop as a one-off.
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