REDWOOD TRUST INC (RWT) Stock Fundamental Analysis

USA • New York Stock Exchange • NYSE:RWT • US7580754023

5.61 USD
-0.02 (-0.36%)
At close: Feb 5, 2026
5.56 USD
-0.05 (-0.89%)
After Hours: 2/5/2026, 4:01:27 PM
Fundamental Rating

3

RWT gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 70 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. RWT may be in some trouble as it scores bad on both profitability and health. RWT is growing strongly while it is still valued neutral. This is a good combination!


Dividend Valuation Growth Profitability Health

1

1. Profitability

1.1 Basic Checks

  • In the past year RWT was profitable.
  • RWT had a negative operating cash flow in the past year.
  • In multiple years RWT reported negative net income over the last 5 years.
  • RWT had a negative operating cash flow in each of the past 5 years.
RWT Yearly Net Income VS EBIT VS OCF VS FCFRWT Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 -2B -4B

1.2 Ratios

  • RWT has a worse Return On Assets (-0.48%) than 71.43% of its industry peers.
  • Looking at the Return On Equity, with a value of -10.92%, RWT is doing worse than 74.29% of the companies in the same industry.
Industry RankSector Rank
ROA -0.48%
ROE -10.92%
ROIC N/A
ROA(3y)-0.38%
ROA(5y)-0.94%
ROE(3y)-4.33%
ROE(5y)-8.65%
ROIC(3y)N/A
ROIC(5y)N/A
RWT Yearly ROA, ROE, ROICRWT Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 -40

1.3 Margins

  • RWT's Profit Margin has declined in the last couple of years.
  • In the last couple of years the Operating Margin of RWT has declined.
  • Looking at the Gross Margin, with a value of 6.58%, RWT is doing worse than 85.71% of the companies in the same industry.
  • RWT's Gross Margin has declined in the last couple of years.
  • The Profit Margin and Operating Margin are not available for RWT so they could not be analyzed.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM 6.58%
OM growth 3Y-58.99%
OM growth 5Y-33.77%
PM growth 3Y-56.86%
PM growth 5Y-30.4%
GM growth 3Y-21.34%
GM growth 5Y-11.34%
RWT Yearly Profit, Operating, Gross MarginsRWT Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50 -50 -100

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ROAROEROICOperating and Profit MarginShow most profitable peers

1

2. Health

2.1 Basic Checks

  • RWT does not have a ROIC to compare to the WACC, probably because it is not profitable.
  • RWT has more shares outstanding than it did 1 year ago.
  • Compared to 5 years ago, RWT has more shares outstanding
  • Compared to 1 year ago, RWT has a worse debt to assets ratio.
RWT Yearly Shares OutstandingRWT Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M 100M
RWT Yearly Total Debt VS Total AssetsRWT Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B

2.2 Solvency

  • Based on the Altman-Z score of 0.01, we must say that RWT is in the distress zone and has some risk of bankruptcy.
  • RWT's Altman-Z score of 0.01 is fine compared to the rest of the industry. RWT outperforms 61.43% of its industry peers.
  • RWT has a Debt/Equity ratio of 21.20. This is a high value indicating a heavy dependency on external financing.
  • RWT's Debt to Equity ratio of 21.20 is on the low side compared to the rest of the industry. RWT is outperformed by 94.29% of its industry peers.
Industry RankSector Rank
Debt/Equity 21.2
Debt/FCF N/A
Altman-Z 0.01
ROIC/WACCN/A
WACC4.58%
RWT Yearly LT Debt VS Equity VS FCFRWT Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5B -5B 10B 15B

2.3 Liquidity

  • A Current Ratio of 0.17 indicates that RWT may have some problems paying its short term obligations.
  • The Current ratio of RWT (0.17) is comparable to the rest of the industry.
  • RWT has a Quick Ratio of 0.17. This is a bad value and indicates that RWT is not financially healthy enough and could expect problems in meeting its short term obligations.
  • RWT's Quick ratio of 0.17 is in line compared to the rest of the industry. RWT outperforms 52.86% of its industry peers.
Industry RankSector Rank
Current Ratio 0.17
Quick Ratio 0.17
RWT Yearly Current Assets VS Current LiabilitesRWT Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

8

3. Growth

3.1 Past

  • The Earnings Per Share has grown by an impressive 47.73% over the past year.
  • Measured over the past years, RWT shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -19.83% on average per year.
  • The Revenue has grown by 21.58% in the past year. This is a very strong growth!
  • Measured over the past years, RWT shows a quite strong growth in Revenue. The Revenue has been growing by 9.67% on average per year.
EPS 1Y (TTM)47.73%
EPS 3Y-39.69%
EPS 5Y-19.83%
EPS Q2Q%11.11%
Revenue 1Y (TTM)21.58%
Revenue growth 3Y19.75%
Revenue growth 5Y9.67%
Sales Q2Q%-41.18%

3.2 Future

  • RWT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.24% yearly.
  • The Revenue is expected to grow by 12.80% on average over the next years. This is quite good.
EPS Next Y48.39%
EPS Next 2Y30.52%
EPS Next 3Y21.24%
EPS Next 5YN/A
Revenue Next Year-11.34%
Revenue Next 2Y13.85%
Revenue Next 3Y12.8%
Revenue Next 5YN/A

3.3 Evolution

  • The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
RWT Yearly Revenue VS EstimatesRWT Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 200M 400M 600M 800M
RWT Yearly EPS VS EstimatesRWT Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 0 2 -2 -4

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Find the best growth stocksShow best growing peers

6

4. Valuation

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 8.63, the valuation of RWT can be described as very reasonable.
  • Compared to the rest of the industry, the Price/Earnings ratio of RWT indicates a somewhat cheap valuation: RWT is cheaper than 77.14% of the companies listed in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 28.25, RWT is valued rather cheaply.
  • With a Price/Forward Earnings ratio of 6.33, the valuation of RWT can be described as very cheap.
  • RWT's Price/Forward Earnings ratio is rather cheap when compared to the industry. RWT is cheaper than 90.00% of the companies in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 27.50, RWT is valued rather cheaply.
Industry RankSector Rank
PE 8.63
Fwd PE 6.33
RWT Price Earnings VS Forward Price EarningsRWT Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA N/A
RWT Per share dataRWT EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 -20 -40

4.3 Compensation for Growth

  • The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • A more expensive valuation may be justified as RWT's earnings are expected to grow with 21.24% in the coming years.
PEG (NY)0.18
PEG (5Y)N/A
EPS Next 2Y30.52%
EPS Next 3Y21.24%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

4

5. Dividend

5.1 Amount

  • With a Yearly Dividend Yield of 12.27%, RWT is a good candidate for dividend investing.
  • RWT's Dividend Yield is comparable with the industry average which is at 11.85.
  • RWT's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
Industry RankSector Rank
Dividend Yield 12.27%

5.2 History

  • The dividend of RWT decreases each year by -10.27%.
  • RWT has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-10.27%
Div Incr Years0
Div Non Decr Years0
RWT Yearly Dividends per shareRWT Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.2 0.4 0.6 0.8 1

5.3 Sustainability

  • RWT has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-98.1%
EPS Next 2Y30.52%
EPS Next 3Y21.24%
RWT Yearly Income VS Free CF VS DividendRWT Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 -2B -4B

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Find the best dividend stocksShow peers with best dividend

REDWOOD TRUST INC

NYSE:RWT (2/5/2026, 4:01:27 PM)

After market: 5.56 -0.05 (-0.89%)

5.61

-0.02 (-0.36%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)10-29
Earnings (Next)02-11
Inst Owners80.69%
Inst Owner Change1.35%
Ins Owners1.35%
Ins Owner Change3.47%
Market Cap710.67M
Revenue(TTM)1.14B
Net Income(TTM)-109.14M
Analysts73.85
Price Target6.89 (22.82%)
Short Float %4.07%
Short Ratio3.42
Dividend
Industry RankSector Rank
Dividend Yield 12.27%
Yearly Dividend0.76
Dividend Growth(5Y)-10.27%
DP-98.1%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)6.27%
Min EPS beat(2)-1.67%
Max EPS beat(2)14.21%
EPS beat(4)1
Avg EPS beat(4)-6.55%
Min EPS beat(4)-21.87%
Max EPS beat(4)14.21%
EPS beat(8)2
Avg EPS beat(8)-10.05%
EPS beat(12)2
Avg EPS beat(12)-33.19%
EPS beat(16)3
Avg EPS beat(16)-62.63%
Revenue beat(2)0
Avg Revenue beat(2)-51.42%
Min Revenue beat(2)-51.98%
Max Revenue beat(2)-50.87%
Revenue beat(4)0
Avg Revenue beat(4)-27.49%
Min Revenue beat(4)-51.98%
Max Revenue beat(4)-2.38%
Revenue beat(8)1
Avg Revenue beat(8)-20.49%
Revenue beat(12)2
Avg Revenue beat(12)7.68%
Revenue beat(16)6
Avg Revenue beat(16)81.58%
PT rev (1m)-0.41%
PT rev (3m)-3.14%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.38%
EPS NY rev (1m)0%
EPS NY rev (3m)15.76%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.7%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-16.41%
Valuation
Industry RankSector Rank
PE 8.63
Fwd PE 6.33
P/S 0.62
P/FCF N/A
P/OCF N/A
P/B 0.71
P/tB 0.74
EV/EBITDA N/A
EPS(TTM)0.65
EY11.59%
EPS(NY)0.89
Fwd EY15.79%
FCF(TTM)-59.9
FCFYN/A
OCF(TTM)-59.9
OCFYN/A
SpS9.02
BVpS7.89
TBVpS7.6
PEG (NY)0.18
PEG (5Y)N/A
Graham Number10.74
Profitability
Industry RankSector Rank
ROA -0.48%
ROE -10.92%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 6.58%
FCFM N/A
ROA(3y)-0.38%
ROA(5y)-0.94%
ROE(3y)-4.33%
ROE(5y)-8.65%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)0.25%
ROCE(5y)0.65%
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y-58.99%
OM growth 5Y-33.77%
PM growth 3Y-56.86%
PM growth 5Y-30.4%
GM growth 3Y-21.34%
GM growth 5Y-11.34%
F-Score1
Asset Turnover0.05
Health
Industry RankSector Rank
Debt/Equity 21.2
Debt/FCF N/A
Debt/EBITDA N/A
Cap/Depr N/A
Cap/Sales N/A
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 0.17
Quick Ratio 0.17
Altman-Z 0.01
F-Score1
WACC4.58%
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)47.73%
EPS 3Y-39.69%
EPS 5Y-19.83%
EPS Q2Q%11.11%
EPS Next Y48.39%
EPS Next 2Y30.52%
EPS Next 3Y21.24%
EPS Next 5YN/A
Revenue 1Y (TTM)21.58%
Revenue growth 3Y19.75%
Revenue growth 5Y9.67%
Sales Q2Q%-41.18%
Revenue Next Year-11.34%
Revenue Next 2Y13.85%
Revenue Next 3Y12.8%
Revenue Next 5YN/A
EBIT growth 1Y-125.55%
EBIT growth 3Y-50.89%
EBIT growth 5Y-27.37%
EBIT Next Year14.37%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-765.04%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-765.04%
OCF growth 3YN/A
OCF growth 5YN/A

REDWOOD TRUST INC / RWT FAQ

What is the ChartMill fundamental rating of REDWOOD TRUST INC (RWT) stock?

ChartMill assigns a fundamental rating of 3 / 10 to RWT.


Can you provide the valuation status for REDWOOD TRUST INC?

ChartMill assigns a valuation rating of 6 / 10 to REDWOOD TRUST INC (RWT). This can be considered as Fairly Valued.


What is the profitability of RWT stock?

REDWOOD TRUST INC (RWT) has a profitability rating of 1 / 10.


What is the financial health of REDWOOD TRUST INC (RWT) stock?

The financial health rating of REDWOOD TRUST INC (RWT) is 1 / 10.


What is the earnings growth outlook for REDWOOD TRUST INC?

The Earnings per Share (EPS) of REDWOOD TRUST INC (RWT) is expected to grow by 48.39% in the next year.