REDWOOD TRUST INC (RWT)

US7580754023 - REIT

6.14  0 (0%)

After market: 6.31 +0.17 (+2.77%)

Fundamental Rating

2

Taking everything into account, RWT scores 2 out of 10 in our fundamental rating. RWT was compared to 64 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 is not valued too expensively and it also shows a decent growth rate.



0

1. Profitability

1.1 Basic Checks

In the past year RWT has reported negative net income.
RWT had a negative operating cash flow in the past year.
In multiple years RWT reported negative net income over the last 5 years.
In the past 5 years RWT always reported negative operating cash flow.

1.2 Ratios

With a Return On Assets value of -0.59%, RWT is not doing good in the industry: 73.44% of the companies in the same industry are doing better.
RWT has a worse Return On Equity (-6.90%) than 78.13% of its industry peers.
Industry RankSector Rank
ROA -0.59%
ROE -6.9%
ROIC N/A
ROA(3y)-1.61%
ROA(5y)-0.59%
ROE(3y)-15.25%
ROE(5y)-5.63%
ROIC(3y)N/A
ROIC(5y)N/A

1.3 Margins

Looking at the Gross Margin, with a value of 11.53%, RWT is doing worse than 82.81% of the companies in the same industry.
In the last couple of years the Gross Margin of RWT has declined.
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 11.53%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-3.09%
GM growth 5Y-17.97%

1

2. Health

2.1 Basic Checks

RWT does not have a ROIC to compare to the WACC, probably because it is not profitable.
There is no outstanding debt for RWT. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.

2.2 Solvency

Based on the Altman-Z score of 0.09, we must say that RWT is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.09, RWT is in line with its industry, outperforming 59.38% of the companies in the same industry.
RWT has a Debt/Equity ratio of 10.58. This is a high value indicating a heavy dependency on external financing.
RWT has a worse Debt to Equity ratio (10.58) than 95.31% of its industry peers.
Industry RankSector Rank
Debt/Equity 10.58
Debt/FCF N/A
Altman-Z 0.09
ROIC/WACCN/A
WACC4.07%

2.3 Liquidity

RWT has a Current Ratio of 0.19. 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 Current ratio of 0.19. This is comparable to the rest of the industry: RWT outperforms 46.88% of its industry peers.
RWT has a Quick Ratio of 0.19. 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 (0.19) which is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 0.19
Quick Ratio 0.19

4

3. Growth

3.1 Past

The earnings per share for RWT have decreased strongly by -1066.67% in the last year.
The Revenue has been growing slightly by 1.61% in the past year.
The Revenue has been growing by 23.33% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-1066.67%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q120.45%
Revenue 1Y (TTM)1.61%
Revenue growth 3Y4.39%
Revenue growth 5Y23.33%
Revenue growth Q2Q-0.33%

3.2 Future

Based on estimates for the next years, RWT will show a very strong growth in Earnings Per Share. The EPS will grow by 46.96% on average per year.
RWT is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -2.19% yearly.
EPS Next Y169.92%
EPS Next 2Y73.05%
EPS Next 3Y46.96%
EPS Next 5YN/A
Revenue Next Year-39.35%
Revenue Next 2Y-14.13%
Revenue Next 3Y-2.19%
Revenue Next 5YN/A

3.3 Evolution

When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.

4

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for RWT. In the last year negative earnings were reported.
A Price/Forward Earnings ratio of 8.69 indicates a reasonable valuation of RWT.
RWT's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of RWT to the average of the S&P500 Index (21.63), we can say RWT is valued rather cheaply.
Industry RankSector Rank
PE N/A
Fwd PE 8.69

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, RWT is valued a bit cheaper than 71.88% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 3875.9

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 46.96% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y73.05%
EPS Next 3Y46.96%

4

5. Dividend

5.1 Amount

RWT has a Yearly Dividend Yield of 10.91%, which is a nice return.
RWT's Dividend Yield is slightly below the industry average, which is at 12.71.
Compared to an average S&P500 Dividend Yield of 2.48, RWT pays a better dividend.
Industry RankSector Rank
Dividend Yield 10.91%

5.2 History

The dividend of RWT decreases each year by -3.13%.
RWT has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of RWT decreased in the last 3 years.
Dividend Growth(5Y)-3.13%
Div Incr Years2
Div Non Decr Years2

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-127%
EPS Next 2Y73.05%
EPS Next 3Y46.96%

REDWOOD TRUST INC

NYSE:RWT (2/22/2024, 5:10:58 PM)

After market: 6.31 +0.17 (+2.77%)

6.14

0 (0%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap807.41M
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 10.91%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 8.69
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -0.59%
ROE -6.9%
ROCE
ROIC
ROICexc
ROICexgc
OM N/A
PM (TTM) N/A
GM 11.53%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.05
Health
Industry RankSector Rank
Debt/Equity 10.58
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 0.19
Quick Ratio 0.19
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-1066.67%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y169.92%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)1.61%
Revenue growth 3Y4.39%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y