RITM

Rithm Capital is a diversified financial REIT spanning mortgage servicing rights (MSRs), origination, consumer/residential lending, real estate, and asset management (including Sculptor). The valuation is the headline: at $9.19 the $5.11B market cap sits well below the $8.43B of stockholders' equity — roughly 0.6x book value — and the stock trades at 8.8x trailing EPS and 1.1x revenue. For a profitable specialty-finance REIT, that is a meaningful discount, and the MSR-heavy model is actually a natural hedge that benefits when rates rise (servicing values increase as prepayments slow).

The FY2025 results were softer but still solidly profitable. Revenue declined 6.7% to $4.59B and net income fell 25.2% to $697M, with diluted EPS down 37.7% to $1.04 — the EPS decline amplified by a 6.8% increase in share count from equity issuance used to grow the balance sheet (total assets up 15.2% to $53.1B, equity up 8.2% to $8.43B). ROE was 8.3%. As is normal for the sector, operating cash flow is negative (-$1.29B) because of how loan/MSR activity flows through the statements, so it is not a reliable profitability gauge here.