Logo image of RWT

REDWOOD TRUST INC (RWT) Stock Fundamental Analysis

NYSE:RWT - New York Stock Exchange, Inc. - US7580754023 - REIT - Currency: USD

5.74  +0.02 (+0.35%)

After market: 5.72 -0.02 (-0.35%)

Fundamental Rating

3

Taking everything into account, RWT scores 3 out of 10 in our fundamental rating. RWT was compared to 67 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 has a correct valuation and a medium growth rate.


Dividend Valuation Growth Profitability Health

Quickly go to:

2

1. Profitability

1.1 Basic Checks

RWT had positive earnings in the past year.
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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 -2B -4B

1.2 Ratios

RWT has a Return On Assets of 0.14%. This is comparable to the rest of the industry: RWT outperforms 44.78% of its industry peers.
The Return On Equity of RWT (2.38%) is comparable to the rest of the industry.
With a decent Return On Invested Capital value of 0.45%, RWT is doing good in the industry, outperforming 61.19% of the companies in the same industry.
Industry RankSector Rank
ROA 0.14%
ROE 2.38%
ROIC 0.45%
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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 -40

1.3 Margins

With a Profit Margin value of 2.65%, RWT perfoms like the industry average, outperforming 46.27% of the companies in the same industry.
RWT's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 11.23%, RWT is in line with its industry, outperforming 59.70% of the companies in the same industry.
In the last couple of years the Operating Margin of RWT has declined.
The Gross Margin of RWT (12.41%) is worse than 70.15% of its industry peers.
RWT's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 11.23%
PM (TTM) 2.65%
GM 12.41%
OM growth 3Y-34.74%
OM growth 5Y-12.48%
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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50 -50 -100

More info and screens

1

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), RWT is destroying value.
The number of shares outstanding for RWT has been increased compared to 1 year ago.
The number of shares outstanding for RWT has been increased compared to 5 years ago.
Compared to 1 year ago, RWT has a worse debt to assets ratio.
RWT Yearly Shares OutstandingRWT Yearly Shares OutstandingYearly Shares Outstanding 2015 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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B

2.2 Solvency

RWT has an Altman-Z score of 0.08. 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 (0.08) than 68.66% of its industry peers.
A Debt/Equity ratio of 15.39 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 15.39, RWT is doing worse than 95.52% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 15.39
Debt/FCF N/A
Altman-Z 0.08
ROIC/WACC0.1
WACC4.62%
RWT Yearly LT Debt VS Equity VS FCFRWT Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5B -5B 10B 15B

2.3 Liquidity

A Current Ratio of 0.21 indicates that RWT may have some problems paying its short term obligations.
RWT has a Current ratio (0.21) which is in line with its industry peers.
RWT has a Quick Ratio of 0.21. This is a bad value and indicates that RWT is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of RWT (0.21) is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 0.21
Quick Ratio 0.21
RWT Yearly Current Assets VS Current LiabilitesRWT Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B

More info and screens

6

3. Growth

3.1 Past

The earnings per share for RWT have decreased strongly by -14.29% in the last year.
RWT shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -19.83% yearly.
RWT shows a strong growth in Revenue. In the last year, the Revenue has grown by 29.69%.
RWT shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.67% yearly.
EPS 1Y (TTM)-14.29%
EPS 3Y-39.69%
EPS 5Y-19.83%
EPS Q2Q%-215.38%
Revenue 1Y (TTM)29.69%
Revenue growth 3Y19.75%
Revenue growth 5Y9.67%
Sales Q2Q%-45.45%

3.2 Future

Based on estimates for the next years, RWT will show a quite strong growth in Earnings Per Share. The EPS will grow by 18.65% on average per year.
Based on estimates for the next years, RWT will show a quite strong growth in Revenue. The Revenue will grow by 9.46% on average per year.
EPS Next Y36.45%
EPS Next 2Y30.95%
EPS Next 3Y18.65%
EPS Next 5YN/A
Revenue Next Year23.85%
Revenue Next 2Y14.78%
Revenue Next 3Y9.46%
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 stable.
RWT Yearly Revenue VS EstimatesRWT Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 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 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 0 2 -2 -4

More info and screens

5

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 19.13, RWT is valued on the expensive side.
RWT's Price/Earnings ratio is in line with the industry average.
RWT's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.54.
With a Price/Forward Earnings ratio of 6.44, the valuation of RWT can be described as very cheap.
89.55% of the companies in the same industry are more expensive than RWT, based on the Price/Forward Earnings ratio.
RWT's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 35.28.
Industry RankSector Rank
PE 19.13
Fwd PE 6.44
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

Based on the Enterprise Value to EBITDA ratio, RWT is valued a bit cheaper than 77.61% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 129.39
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 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 18.65% in the coming years.
PEG (NY)0.52
PEG (5Y)N/A
EPS Next 2Y30.95%
EPS Next 3Y18.65%

More info and screens

4

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 9.24%, RWT is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 11.20, RWT has a dividend in line with its industry peers.
RWT's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
Industry RankSector Rank
Dividend Yield 9.24%

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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.2 0.4 0.6 0.8 1

5.3 Sustainability

366.90% of the earnings are spent on dividend by RWT. This is not a sustainable payout ratio.
DP366.9%
EPS Next 2Y30.95%
EPS Next 3Y18.65%
RWT Yearly Income VS Free CF VS DividendRWT Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 -2B -4B
RWT Dividend Payout.RWT Dividend Payout, showing the Payout Ratio.RWT Dividend Payout.PayoutRetained Earnings

More info and screens

REDWOOD TRUST INC

NYSE:RWT (8/8/2025, 5:29:05 PM)

After market: 5.72 -0.02 (-0.35%)

5.74

+0.02 (+0.35%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)07-30 2025-07-30/bmo
Earnings (Next)10-28 2025-10-28/amc
Inst Owners75.58%
Inst Owner Change-1.85%
Ins Owners1.32%
Ins Owner Change3.43%
Market Cap764.11M
Analysts73.85
Price Target7.04 (22.65%)
Short Float %3.32%
Short Ratio5
Dividend
Industry RankSector Rank
Dividend Yield 9.24%
Yearly Dividend0.76
Dividend Growth(5Y)-10.27%
DP366.9%
Div Incr Years0
Div Non Decr Years0
Ex-Date06-23 2025-06-23 (0.18)
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-19.37%
Min EPS beat(2)-21.87%
Max EPS beat(2)-16.87%
EPS beat(4)1
Avg EPS beat(4)-3.9%
Min EPS beat(4)-21.87%
Max EPS beat(4)26.06%
EPS beat(8)1
Avg EPS beat(8)-29.49%
EPS beat(12)1
Avg EPS beat(12)-88.33%
EPS beat(16)4
Avg EPS beat(16)-56.27%
Revenue beat(2)0
Avg Revenue beat(2)-3.56%
Min Revenue beat(2)-4.75%
Max Revenue beat(2)-2.38%
Revenue beat(4)0
Avg Revenue beat(4)-9.19%
Min Revenue beat(4)-15.25%
Max Revenue beat(4)-2.38%
Revenue beat(8)1
Avg Revenue beat(8)-14.45%
Revenue beat(12)4
Avg Revenue beat(12)66.19%
Revenue beat(16)8
Avg Revenue beat(16)168.39%
PT rev (1m)-0.85%
PT rev (3m)-2.09%
EPS NQ rev (1m)2.11%
EPS NQ rev (3m)-4.17%
EPS NY rev (1m)-0.88%
EPS NY rev (3m)-10.47%
Revenue NQ rev (1m)-0.06%
Revenue NQ rev (3m)-4.17%
Revenue NY rev (1m)0.34%
Revenue NY rev (3m)8.25%
Valuation
Industry RankSector Rank
PE 19.13
Fwd PE 6.44
P/S 0.72
P/FCF N/A
P/OCF N/A
P/B 0.65
P/tB 0.67
EV/EBITDA 129.39
EPS(TTM)0.3
EY5.23%
EPS(NY)0.89
Fwd EY15.53%
FCF(TTM)-51.54
FCFYN/A
OCF(TTM)-51.54
OCFYN/A
SpS7.98
BVpS8.89
TBVpS8.59
PEG (NY)0.52
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 0.14%
ROE 2.38%
ROCE 0.67%
ROIC 0.45%
ROICexc 0.46%
ROICexgc 0.46%
OM 11.23%
PM (TTM) 2.65%
GM 12.41%
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)N/A
ROCE(5y)N/A
ROICexcg growth 3Y-27.55%
ROICexcg growth 5Y-4.26%
ROICexc growth 3Y-27.68%
ROICexc growth 5Y-4.1%
OM growth 3Y-34.74%
OM growth 5Y-12.48%
PM growth 3Y-56.86%
PM growth 5Y-30.4%
GM growth 3Y-21.34%
GM growth 5Y-11.34%
F-Score3
Asset Turnover0.05
Health
Industry RankSector Rank
Debt/Equity 15.39
Debt/FCF N/A
Debt/EBITDA 139.66
Cap/Depr N/A
Cap/Sales N/A
Interest Coverage 0.14
Cash Conversion N/A
Profit Quality N/A
Current Ratio 0.21
Quick Ratio 0.21
Altman-Z 0.08
F-Score3
WACC4.62%
ROIC/WACC0.1
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)-14.29%
EPS 3Y-39.69%
EPS 5Y-19.83%
EPS Q2Q%-215.38%
EPS Next Y36.45%
EPS Next 2Y30.95%
EPS Next 3Y18.65%
EPS Next 5YN/A
Revenue 1Y (TTM)29.69%
Revenue growth 3Y19.75%
Revenue growth 5Y9.67%
Sales Q2Q%-45.45%
Revenue Next Year23.85%
Revenue Next 2Y14.78%
Revenue Next 3Y9.46%
Revenue Next 5YN/A
EBIT growth 1Y103.86%
EBIT growth 3Y-21.85%
EBIT growth 5Y-4.01%
EBIT Next Year14.37%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-2795.34%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-2795.34%
OCF growth 3YN/A
OCF growth 5YN/A