REDWOOD TRUST INC (RWT) Fundamental Analysis & Valuation

NYSE:RWT • US7580754023

6.12 USD
+0.12 (+2%)
At close: Mar 4, 2026
6.12 USD
0 (0%)
After Hours: 3/4/2026, 4:02:56 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Forecast Earnings Financials Ownership News

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

Fundamental Rating

2

Taking everything into account, RWT scores 2 out of 10 in our fundamental rating. RWT was compared to 68 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. RWT has a bad profitability rating. Also its financial health evaluation is rather negative. RWT has a correct valuation and a medium growth rate.


Dividend Valuation Growth Profitability Health

1

1. RWT Profitability Analysis

1.1 Basic Checks

  • In the past year RWT was profitable.
  • In the past year RWT has reported a negative cash flow from operations.
  • The reported net income has been mixed in the past 5 years: RWT reported negative net income in multiple 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

  • Looking at the Return On Assets, with a value of -0.48%, RWT is doing worse than 73.53% of the companies in the same industry.
  • RWT's Return On Equity of -10.92% is on the low side compared to the rest of the industry. RWT is outperformed by 76.47% of its industry peers.
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.
  • RWT has a worse Gross Margin (6.58%) than 85.29% of its industry peers.
  • 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 6.58%
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. RWT Health Analysis

2.1 Basic Checks

  • RWT does not have a ROIC to compare to the WACC, probably because it is not profitable.
  • RWT has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
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.
  • The Altman-Z score of RWT (0.01) is better than 69.12% of its industry peers.
  • A Debt/Equity ratio of 21.20 is on the high side and indicates that RWT has dependencies on debt financing.
  • Looking at the Debt to Equity ratio, with a value of 21.20, RWT is doing worse than 94.12% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 21.2
Debt/FCF N/A
Altman-Z 0.01
ROIC/WACCN/A
WACC4.6%
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

  • RWT has a Current 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 Current ratio of 0.17 is in line compared to the rest of the industry. RWT outperforms 54.41% of its industry peers.
  • A Quick Ratio of 0.17 indicates that RWT may have some problems paying its short term obligations.
  • RWT has a Quick ratio (0.17) which is in line with 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

4

3. RWT Growth Analysis

3.1 Past

  • RWT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 63.46%, which is quite impressive.
  • Measured over the past years, RWT shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -16.31% on average per year.
EPS 1Y (TTM)63.46%
EPS 3YN/A
EPS 5Y-16.31%
EPS Q2Q%153.85%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-6.16%

3.2 Future

  • RWT is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.41% yearly.
  • Based on estimates for the next years, RWT will show a quite strong growth in Revenue. The Revenue will grow by 19.13% on average per year.
EPS Next Y4.56%
EPS Next 2Y4.41%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year123.46%
Revenue Next 2Y73.58%
Revenue Next 3Y19.13%
Revenue Next 5YN/A

3.3 Evolution

  • When comparing the EPS 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 2028 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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5

4. RWT Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 7.20, which indicates a rather cheap valuation of RWT.
  • 89.71% of the companies in the same industry are more expensive than RWT, based on the Price/Earnings ratio.
  • The average S&P500 Price/Earnings ratio is at 26.83. RWT is valued rather cheaply when compared to this.
  • With a Price/Forward Earnings ratio of 6.89, 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 86.76% of the companies are valued more expensively.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 24.95, RWT is valued rather cheaply.
Industry RankSector Rank
PE 7.2
Fwd PE 6.89
RWT Price Earnings VS Forward Price EarningsRWT Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

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

  • RWT's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.58
PEG (5Y)N/A
EPS Next 2Y4.41%
EPS Next 3YN/A

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

4

5. RWT Dividend Analysis

5.1 Amount

  • RWT has a Yearly Dividend Yield of 11.96%, which is a nice return.
  • Compared to an average industry Dividend Yield of 11.21, RWT has a dividend in line with its industry peers.
  • Compared to an average S&P500 Dividend Yield of 1.82, RWT pays a better dividend.
Industry RankSector Rank
Dividend Yield 11.96%

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

  • The earnings of RWT are negative and hence is the payout ratio. RWT will probably not be able to sustain this dividend level.
DP-98.1%
EPS Next 2Y4.41%
EPS Next 3YN/A
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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RWT Fundamentals: All Metrics, Ratios and Statistics

REDWOOD TRUST INC

NYSE:RWT (3/4/2026, 4:02:56 PM)

After market: 6.12 0 (0%)

6.12

+0.12 (+2%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)02-11
Earnings (Next)04-28
Inst Owners80.69%
Inst Owner Change0.4%
Ins Owners1.35%
Ins Owner Change3.47%
Market Cap775.28M
Revenue(TTM)N/A
Net Income(TTM)-109.14M
Analysts76.67
Price Target7.18 (17.32%)
Short Float %4.34%
Short Ratio3.1
Dividend
Industry RankSector Rank
Dividend Yield 11.96%
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)4.23%
PT rev (3m)3.81%
EPS NQ rev (1m)-1.62%
EPS NQ rev (3m)6.14%
EPS NY rev (1m)0%
EPS NY rev (3m)14.6%
Revenue NQ rev (1m)-2.5%
Revenue NQ rev (3m)-5.64%
Revenue NY rev (1m)-1.91%
Revenue NY rev (3m)-15.15%
Valuation
Industry RankSector Rank
PE 7.2
Fwd PE 6.89
P/S 0.68
P/FCF N/A
P/OCF N/A
P/B 0.78
P/tB 0.81
EV/EBITDA N/A
EPS(TTM)0.85
EY13.89%
EPS(NY)0.89
Fwd EY14.52%
FCF(TTM)-59.9
FCFYN/A
OCF(TTM)-59.9
OCFYN/A
SpS9.02
BVpS7.89
TBVpS7.6
PEG (NY)1.58
PEG (5Y)N/A
Graham Number12.28
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
WACC4.6%
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 Y4.56%
EPS Next 2Y4.41%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-6.16%
Revenue Next Year123.46%
Revenue Next 2Y73.58%
Revenue Next 3Y19.13%
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 2 / 10 to RWT.


Can you provide the valuation status for REDWOOD TRUST INC?

ChartMill assigns a valuation rating of 5 / 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 4.56% in the next year.