REDWOOD TRUST INC (RWT) Fundamental Analysis & Valuation

NYSE:RWT • US7580754023

Current stock price

5.72 USD
+0.06 (+1.06%)
At close:
5.7496 USD
+0.03 (+0.52%)
After Hours:

This RWT fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

1

1. RWT Profitability Analysis

1.1 Basic Checks

  • In the past year RWT was profitable.
  • RWT had a negative operating cash flow in the past year.
  • The reported net income has been mixed in the past 5 years: RWT reported negative net income in multiple years.
  • In the past 5 years RWT always reported negative operating cash flow.
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 2025 0 -2B -4B -6B -8B -10B

1.2 Ratios

  • With a Return On Assets value of -0.35%, RWT is not doing good in the industry: 79.41% of the companies in the same industry are doing better.
  • RWT's Return On Equity of -8.41% is on the low side compared to the rest of the industry. RWT is outperformed by 83.82% of its industry peers.
Industry RankSector Rank
ROA -0.35%
ROE -8.41%
ROIC N/A
ROA(3y)-0.07%
ROA(5y)0.12%
ROE(3y)-1.97%
ROE(5y)0.18%
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 2025 0 20 -20 -40

1.3 Margins

  • With a Gross Margin value of 6.27%, RWT is not doing good in the industry: 92.65% of the companies in the same industry are doing better.
  • RWT's Gross Margin has declined in the last couple of years.
  • RWT does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM 6.27%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-32.99%
GM growth 5Y-21.96%
RWT Yearly Profit, Operating, Gross MarginsRWT Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 50 -50 -100

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2

2. RWT Health Analysis

2.1 Basic Checks

  • RWT does not have a ROIC to compare to the WACC, probably because it is not profitable.
  • The number of shares outstanding for RWT has been reduced compared to 1 year ago.
  • The number of shares outstanding for RWT has been increased compared to 5 years ago.
  • RWT has a worse debt/assets ratio than last year.
RWT Yearly Shares OutstandingRWT Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 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 2025 5B 10B 15B 20B

2.2 Solvency

  • RWT has an Altman-Z score of 0.06. This is a bad value and indicates that RWT is not financially healthy and even has some risk of bankruptcy.
  • RWT has a better Altman-Z score (0.06) than 75.00% of its industry peers.
  • RWT has a Debt/Equity ratio of 22.69. This is a high value indicating a heavy dependency on external financing.
  • The Debt to Equity ratio of RWT (22.69) is worse than 94.12% of its industry peers.
Industry RankSector Rank
Debt/Equity 22.69
Debt/FCF N/A
Altman-Z 0.06
ROIC/WACCN/A
WACC4.5%
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 2025 0 10B -10B 20B

2.3 Liquidity

  • RWT has a Current Ratio of 0.25. 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 has a better Current ratio (0.25) than 70.59% of its industry peers.
  • RWT has a Quick Ratio of 0.25. This is a bad value and indicates that RWT is not financially healthy enough and could expect problems in meeting its short term obligations.
  • With a decent Quick ratio value of 0.25, RWT is doing good in the industry, outperforming 70.59% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 0.25
Quick Ratio 0.25
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 2025 500M 1B 1.5B 2B

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

6

3. RWT Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an impressive 63.46% over the past year.
  • RWT shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -16.31% yearly.
  • Looking at the last year, RWT shows a very strong growth in Revenue. The Revenue has grown by 21.95%.
  • The Revenue has been growing by 16.05% on average over the past years. This is quite good.
EPS 1Y (TTM)63.46%
EPS 3YN/A
EPS 5Y-16.31%
EPS Q2Q%153.85%
Revenue 1Y (TTM)21.95%
Revenue growth 3Y19.37%
Revenue growth 5Y16.05%
Sales Q2Q%-6.16%

3.2 Future

  • Based on estimates for the next years, RWT will show a small growth in Earnings Per Share. The EPS will grow by 3.39% on average per year.
  • The Revenue is expected to grow by 19.13% on average over the next years. This is quite good.
EPS Next Y11.93%
EPS Next 2Y10.49%
EPS Next 3Y3.39%
EPS Next 5YN/A
Revenue Next Year146.55%
Revenue Next 2Y73.58%
Revenue Next 3Y19.13%
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.
  • The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
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 2028 200M 400M 600M 800M 1B
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 2028 0 2 -2 -4

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6

4. RWT Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 6.73, the valuation of RWT can be described as very cheap.
  • Based on the Price/Earnings ratio, RWT is valued cheaply inside the industry as 89.71% of the companies are valued more expensively.
  • RWT's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.21.
  • With a Price/Forward Earnings ratio of 6.01, the valuation of RWT can be described as very cheap.
  • Based on the Price/Forward Earnings ratio, RWT is valued cheaply inside the industry as 91.18% of the companies are valued more expensively.
  • RWT is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.13, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 6.73
Fwd PE 6.01
RWT Price Earnings VS Forward Price EarningsRWT Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

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 -60 -80

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.
PEG (NY)0.56
PEG (5Y)N/A
EPS Next 2Y10.49%
EPS Next 3Y3.39%

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

5

5. RWT Dividend Analysis

5.1 Amount

  • RWT has a Yearly Dividend Yield of 13.61%, which is a nice return.
  • RWT's Dividend Yield is comparable with the industry average which is at 13.66.
  • Compared to an average S&P500 Dividend Yield of 1.89, RWT pays a better dividend.
Industry RankSector Rank
Dividend Yield 13.61%

5.2 History

  • The dividend of RWT has a limited annual growth rate of 2.10%.
  • RWT has paid a dividend for at least 10 years, which is a reliable track record.
  • The dividend of RWT decreased recently.
Dividend Growth(5Y)2.1%
Div Incr Years1
Div Non Decr Years1
RWT Yearly Dividends per shareRWT Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.2 0.4 0.6 0.8 1

5.3 Sustainability

  • The earnings of RWT are negative and hence is the payout ratio. RWT will probably not be able to sustain this dividend level.
  • RWT's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-128.18%
EPS Next 2Y10.49%
EPS Next 3Y3.39%
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 2025 0 -2B -4B -6B -8B -10B

More info and screens

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RWT Fundamentals: All Metrics, Ratios and Statistics

REDWOOD TRUST INC

NYSE:RWT (4/6/2026, 8:07:30 PM)

After market: 5.7496 +0.03 (+0.52%)

5.72

+0.06 (+1.06%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)02-11
Earnings (Next)04-23
Inst Owners81.79%
Inst Owner Change0%
Ins Owners1.43%
Ins Owner Change3.47%
Market Cap714.94M
Revenue(TTM)1.20B
Net Income(TTM)-82.68M
Analysts76.67
Price Target7.18 (25.52%)
Short Float %5.66%
Short Ratio4.08
Dividend
Industry RankSector Rank
Dividend Yield 13.61%
Yearly Dividend0.82
Dividend Growth(5Y)2.1%
DP-128.18%
Div Incr Years1
Div Non Decr Years1
Ex-Date03-24
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)51.61%
Min EPS beat(2)14.21%
Max EPS beat(2)89.02%
EPS beat(4)2
Avg EPS beat(4)21.17%
Min EPS beat(4)-16.87%
Max EPS beat(4)89.02%
EPS beat(8)3
Avg EPS beat(8)9.02%
EPS beat(12)3
Avg EPS beat(12)-18.39%
EPS beat(16)4
Avg EPS beat(16)-56.36%
Revenue beat(2)0
Avg Revenue beat(2)-34.9%
Min Revenue beat(2)-51.98%
Max Revenue beat(2)-17.83%
Revenue beat(4)0
Avg Revenue beat(4)-30.76%
Min Revenue beat(4)-51.98%
Max Revenue beat(4)-2.38%
Revenue beat(8)1
Avg Revenue beat(8)-19.31%
Revenue beat(12)1
Avg Revenue beat(12)-22.45%
Revenue beat(16)5
Avg Revenue beat(16)62.87%
PT rev (1m)0%
PT rev (3m)3.81%
EPS NQ rev (1m)0.91%
EPS NQ rev (3m)32.98%
EPS NY rev (1m)0%
EPS NY rev (3m)7.39%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)67.09%
Revenue NY rev (1m)0%
Revenue NY rev (3m)65.39%
Valuation
Industry RankSector Rank
PE 6.73
Fwd PE 6.01
P/S 0.59
P/FCF N/A
P/OCF N/A
P/B 0.73
P/tB 0.75
EV/EBITDA N/A
EPS(TTM)0.85
EY14.86%
EPS(NY)0.95
Fwd EY16.63%
FCF(TTM)-80.76
FCFYN/A
OCF(TTM)-80.76
OCFYN/A
SpS9.63
BVpS7.86
TBVpS7.59
PEG (NY)0.56
PEG (5Y)N/A
Graham Number12.26
Profitability
Industry RankSector Rank
ROA -0.35%
ROE -8.41%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 6.27%
FCFM N/A
ROA(3y)-0.07%
ROA(5y)0.12%
ROE(3y)-1.97%
ROE(5y)0.18%
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)N/A
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-32.99%
GM growth 5Y-21.96%
F-Score1
Asset Turnover0.05
Health
Industry RankSector Rank
Debt/Equity 22.69
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 0.25
Quick Ratio 0.25
Altman-Z 0.06
F-Score1
WACC4.5%
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)63.46%
EPS 3YN/A
EPS 5Y-16.31%
EPS Q2Q%153.85%
EPS Next Y11.93%
EPS Next 2Y10.49%
EPS Next 3Y3.39%
EPS Next 5YN/A
Revenue 1Y (TTM)21.95%
Revenue growth 3Y19.37%
Revenue growth 5Y16.05%
Sales Q2Q%-6.16%
Revenue Next Year146.55%
Revenue Next 2Y73.58%
Revenue Next 3Y19.13%
Revenue Next 5YN/A
EBIT growth 1Y-169.28%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year130.11%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-72.19%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-72.19%
OCF growth 3YN/A
OCF growth 5YN/A

REDWOOD TRUST INC / RWT Fundamental Analysis 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.


How profitable is REDWOOD TRUST INC (RWT) stock?

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


Can you provide the PE and PB ratios for RWT stock?

The Price/Earnings (PE) ratio for REDWOOD TRUST INC (RWT) is 6.73 and the Price/Book (PB) ratio is 0.73.


Can you provide the expected EPS growth for RWT stock?

The Earnings per Share (EPS) of REDWOOD TRUST INC (RWT) is expected to grow by 11.93% in the next year.