REDWOOD TRUST INC (RWT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RWT - US7580754023 - REIT
5.61 USD
-0.05 (-0.88%)
5.62 USD
+0.01 (+0.18%)
Overall RWT gets a fundamental rating of 3 out of 10. We evaluated RWT against 69 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!
1. Profitability
1.1 Basic Checks
In the past year RWT was profitable.
In the past year RWT has reported a negative cash flow from operations.
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.
1.2 Ratios
RWT's Return On Assets of -0.48% is on the low side compared to the rest of the industry. RWT is outperformed by 72.46% of its industry peers.
The Return On Equity of RWT (-10.92%) is worse than 75.36% of its industry peers.
Looking at the Return On Invested Capital, with a value of 0.22%, RWT is doing worse than 72.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.48% | ||
| ROE | -10.92% | ||
| ROIC | 0.22% |
ROA(3y)-0.38%
ROA(5y)-0.94%
ROE(3y)-4.33%
ROE(5y)-8.65%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
RWT's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 5.73%, RWT is doing worse than 71.01% of the companies in the same industry.
RWT's Operating Margin has declined in the last couple of years.
The Gross Margin of RWT (6.58%) is worse than 86.96% of its industry peers.
RWT's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.73% | ||
| PM (TTM) | N/A | ||
| GM | 6.58% |
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%
2. Health
2.1 Basic Checks
RWT has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, RWT has more shares outstanding
RWT has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, RWT has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.02, we must say that RWT is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of RWT (0.02) is better than 60.87% 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.
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 95.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 21.2 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.02 |
ROIC/WACC0.05
WACC4.57%
2.3 Liquidity
A Current Ratio of 0.17 indicates that RWT may have some problems paying its short term obligations.
RWT's Current ratio of 0.17 is in line compared to the rest of the industry. RWT outperforms 50.72% of its industry peers.
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 has a Quick ratio (0.17) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.17 | ||
| Quick Ratio | 0.17 |
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!
The Revenue has been growing by 9.67% on average over the past years. This is quite good.
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
The Earnings Per Share is expected to grow by 22.00% on average over the next years. This is a very strong growth
RWT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.39% yearly.
EPS Next Y29.49%
EPS Next 2Y26.8%
EPS Next 3Y22%
EPS Next 5YN/A
Revenue Next Year2.49%
Revenue Next 2Y15.52%
Revenue Next 3Y8.39%
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.
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.
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.
Based on the Price/Earnings ratio, RWT is valued a bit cheaper than the industry average as 75.36% 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 26.41.
Based on the Price/Forward Earnings ratio of 6.71, the valuation of RWT can be described as very cheap.
Based on the Price/Forward Earnings ratio, RWT is valued cheaper than 84.06% of the companies in the same industry.
RWT's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 35.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.63 | ||
| Fwd PE | 6.71 |
4.2 Price Multiples
RWT's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. RWT is cheaper than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 250.74 |
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.
RWT's earnings are expected to grow with 22.00% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.29
PEG (5Y)N/A
EPS Next 2Y26.8%
EPS Next 3Y22%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 13.16%, RWT is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 13.00, RWT has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.32, RWT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 13.16% |
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
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 2Y26.8%
EPS Next 3Y22%
5.61
-0.05 (-0.88%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners80.89%
Inst Owner Change-5.8%
Ins Owners1.36%
Ins Owner Change0%
Market Cap710.67M
Revenue(TTM)1.14B
Net Income(TTM)-109.14M
Analysts73.85
Price Target6.91 (23.17%)
Short Float %4.88%
Short Ratio5.73
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 13.16% |
Yearly Dividend0.76
Dividend Growth(5Y)-10.27%
DP-98.1%
Div Incr Years0
Div Non Decr Years0
Ex-Date
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)-2.74%
PT rev (3m)-1.86%
EPS NQ rev (1m)-12.3%
EPS NQ rev (3m)-12.3%
EPS NY rev (1m)1.01%
EPS NY rev (3m)0.1%
Revenue NQ rev (1m)1.58%
Revenue NQ rev (3m)0.1%
Revenue NY rev (1m)-3.37%
Revenue NY rev (3m)-6.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.63 | ||
| Fwd PE | 6.71 | ||
| P/S | 0.62 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.71 | ||
| P/tB | 0.74 | ||
| EV/EBITDA | 250.74 |
EPS(TTM)0.65
EY11.59%
EPS(NY)0.84
Fwd EY14.9%
FCF(TTM)-59.9
FCFYN/A
OCF(TTM)-59.9
OCFYN/A
SpS9.02
BVpS7.89
TBVpS7.6
PEG (NY)0.29
PEG (5Y)N/A
Graham Number10.74
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.48% | ||
| ROE | -10.92% | ||
| ROCE | 0.33% | ||
| ROIC | 0.22% | ||
| ROICexc | 0.22% | ||
| ROICexgc | 0.22% | ||
| OM | 5.73% | ||
| 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)N/A
ROCE(5y)N/A
ROICexgc growth 3Y-27.55%
ROICexgc 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-Score1
Asset Turnover0.05
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 21.2 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 278.7 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 0.08 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.17 | ||
| Quick Ratio | 0.17 | ||
| Altman-Z | 0.02 |
F-Score1
WACC4.57%
ROIC/WACC0.05
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 Y29.49%
EPS Next 2Y26.8%
EPS Next 3Y22%
EPS Next 5YN/A
Revenue 1Y (TTM)21.58%
Revenue growth 3Y19.75%
Revenue growth 5Y9.67%
Sales Q2Q%-41.18%
Revenue Next Year2.49%
Revenue Next 2Y15.52%
Revenue Next 3Y8.39%
Revenue Next 5YN/A
EBIT growth 1Y-37.56%
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-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.
What is the valuation status for RWT stock?
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 expected EPS growth for REDWOOD TRUST INC (RWT) stock?
The Earnings per Share (EPS) of REDWOOD TRUST INC (RWT) is expected to grow by 29.49% in the next year.
How sustainable is the dividend of REDWOOD TRUST INC (RWT) stock?
The dividend rating of REDWOOD TRUST INC (RWT) is 4 / 10 and the dividend payout ratio is -98.1%.