REDWOOD TRUST INC - RWT 9 1/8 03/01/29 (RWTN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RWTN - US7580758818
24.9601 USD
+0.01 (+0.04%)
Taking everything into account, RWTN scores 3 out of 10 in our fundamental rating. RWTN was compared to 68 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. RWTN has a bad profitability rating. Also its financial health evaluation is rather negative. RWTN is valued quite expensive, but it does show an excellent growth.
1. Profitability
1.1 Basic Checks
In the past year RWTN was profitable.
RWTN had a negative operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: RWTN reported negative net income in multiple years.
RWTN had a negative operating cash flow in each of the past 5 years.
1.2 Ratios
RWTN has a worse Return On Assets (-0.48%) than 73.53% of its industry peers.
RWTN's Return On Equity of -10.92% is on the low side compared to the rest of the industry. RWTN is outperformed by 76.47% of its industry peers.
| Industry Rank | Sector 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
1.3 Margins
In the last couple of years the Profit Margin of RWTN has declined.
RWTN's Operating Margin has declined in the last couple of years.
RWTN has a Gross Margin of 6.58%. This is amonst the worse of the industry: RWTN underperforms 88.24% of its industry peers.
RWTN's Gross Margin has declined in the last couple of years.
The Profit Margin and Operating Margin are not available for RWTN so they could not be analyzed.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
RWTN does not have a ROIC to compare to the WACC, probably because it is not profitable.
RWTN has more shares outstanding than it did 1 year ago.
RWTN has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, RWTN has a worse debt to assets ratio.
2.2 Solvency
RWTN has an Altman-Z score of 0.07. This is a bad value and indicates that RWTN is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of RWTN (0.07) is better than 70.59% of its industry peers.
A Debt/Equity ratio of 21.20 is on the high side and indicates that RWTN has dependencies on debt financing.
The Debt to Equity ratio of RWTN (21.20) is worse than 97.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 21.2 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.07 |
ROIC/WACCN/A
WACC5.44%
2.3 Liquidity
A Current Ratio of 0.17 indicates that RWTN may have some problems paying its short term obligations.
The Current ratio of RWTN (0.17) is comparable to the rest of the industry.
A Quick Ratio of 0.17 indicates that RWTN may have some problems paying its short term obligations.
RWTN has a Quick ratio of 0.17. This is comparable to the rest of the industry: RWTN outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.17 | ||
| Quick Ratio | 0.17 |
3. Growth
3.1 Past
RWTN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 47.73%, which is quite impressive.
Measured over the past years, RWTN shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -19.83% on average per year.
RWTN shows a strong growth in Revenue. In the last year, the Revenue has grown by 21.58%.
Measured over the past years, RWTN shows a quite strong growth in Revenue. The Revenue has been growing by 9.67% on average per year.
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
Based on estimates for the next years, RWTN will show a very strong growth in Earnings Per Share. The EPS will grow by 21.24% on average per year.
Based on estimates for the next years, RWTN will show a quite strong growth in Revenue. The Revenue will grow by 12.80% on average per year.
EPS Next Y48.39%
EPS Next 2Y30.52%
EPS Next 3Y21.24%
EPS Next 5YN/A
Revenue Next Year-11.34%
Revenue Next 2Y13.85%
Revenue Next 3Y12.8%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 38.40 indicates a quite expensive valuation of RWTN.
69.12% of the companies in the same industry are cheaper than RWTN, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.60, RWTN is valued a bit more expensive.
Based on the Price/Forward Earnings ratio of 28.17, the valuation of RWTN can be described as expensive.
RWTN's Price/Forward Earnings ratio is rather expensive when compared to the industry. RWTN is more expensive than 82.35% of the companies in the same industry.
RWTN's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 23.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.4 | ||
| Fwd PE | 28.17 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
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.
RWTN's earnings are expected to grow with 21.24% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.79
PEG (5Y)N/A
EPS Next 2Y30.52%
EPS Next 3Y21.24%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 9.06%, RWTN is a good candidate for dividend investing.
RWTN's Dividend Yield is slightly below the industry average, which is at 11.16.
Compared to an average S&P500 Dividend Yield of 1.94, RWTN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.06% |
5.2 History
The dividend of RWTN decreases each year by -10.27%.
RWTN does not have a reliable dividend history as it only pays dividend since a couple or years.
Dividend Growth(5Y)-10.27%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
The earnings of RWTN are negative and hence is the payout ratio. RWTN will probably not be able to sustain this dividend level.
DP-98.1%
EPS Next 2Y30.52%
EPS Next 3Y21.24%
REDWOOD TRUST INC - RWT 9 1/8 03/01/29
NYSE:RWTN (1/5/2026, 1:55:47 PM)
24.9601
+0.01 (+0.04%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners80.69%
Inst Owner ChangeN/A
Ins Owners1.35%
Ins Owner ChangeN/A
Market Cap3.16B
Revenue(TTM)1.14B
Net Income(TTM)-109.14M
Analysts73.85
Price Target29.49 (18.15%)
Short Float %0%
Short Ratio0.33
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.06% |
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)-12.14%
PT rev (3m)-2.98%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.28%
EPS NY rev (1m)0%
EPS NY rev (3m)26.63%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.7%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-16.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.4 | ||
| Fwd PE | 28.17 | ||
| P/S | 2.77 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 3.17 | ||
| P/tB | 3.28 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.65
EY2.6%
EPS(NY)0.89
Fwd EY3.55%
FCF(TTM)-59.9
FCFYN/A
OCF(TTM)-59.9
OCFYN/A
SpS9.02
BVpS7.89
TBVpS7.6
PEG (NY)0.79
PEG (5Y)N/A
Graham Number10.74
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 0.07 |
F-Score1
WACC5.44%
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)47.73%
EPS 3Y-39.69%
EPS 5Y-19.83%
EPS Q2Q%11.11%
EPS Next Y48.39%
EPS Next 2Y30.52%
EPS Next 3Y21.24%
EPS Next 5YN/A
Revenue 1Y (TTM)21.58%
Revenue growth 3Y19.75%
Revenue growth 5Y9.67%
Sales Q2Q%-41.18%
Revenue Next Year-11.34%
Revenue Next 2Y13.85%
Revenue Next 3Y12.8%
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 9 1/8 03/01/29 / RWTN FAQ
Can you provide the ChartMill fundamental rating for REDWOOD TRUST INC - RWT 9 1/8 03/01/29?
ChartMill assigns a fundamental rating of 3 / 10 to RWTN.
What is the valuation status for RWTN stock?
ChartMill assigns a valuation rating of 2 / 10 to REDWOOD TRUST INC - RWT 9 1/8 03/01/29 (RWTN). This can be considered as Overvalued.
What is the profitability of RWTN stock?
REDWOOD TRUST INC - RWT 9 1/8 03/01/29 (RWTN) has a profitability rating of 1 / 10.
How financially healthy is REDWOOD TRUST INC - RWT 9 1/8 03/01/29?
The financial health rating of REDWOOD TRUST INC - RWT 9 1/8 03/01/29 (RWTN) is 1 / 10.
What is the earnings growth outlook for REDWOOD TRUST INC - RWT 9 1/8 03/01/29?
The Earnings per Share (EPS) of REDWOOD TRUST INC - RWT 9 1/8 03/01/29 (RWTN) is expected to grow by 48.39% in the next year.