REDWOOD TRUST INC - RWT 9 1/8 03/01/29 (RWTN) Stock Fundamental Analysis
USA - NYSE:RWTN - US7580758818
25 USD
0 (0%)
24.8 USD
-0.2 (-0.8%)
Overall RWTN gets a fundamental rating of 2 out of 10. We evaluated RWTN against 66 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. RWTN may be in some trouble as it scores bad on both profitability and health. RWTN is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
RWTN had positive earnings in the past year.
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.
In the past 5 years RWTN always reported negative operating cash flow.
1.2 Ratios
RWTN has a worse Return On Assets (-0.40%) than 71.21% of its industry peers.
RWTN has a worse Return On Equity (-8.20%) than 78.79% of its industry peers.
RWTN has a Return On Invested Capital of 0.32%. This is comparable to the rest of the industry: RWTN outperforms 51.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.4% | ||
| ROE | -8.2% | ||
| ROIC | 0.32% |
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
RWTN's Profit Margin has declined in the last couple of years.
The Operating Margin of RWTN (8.37%) is comparable to the rest of the industry.
RWTN's Operating Margin has declined in the last couple of years.
The Gross Margin of RWTN (8.28%) is worse than 86.36% of its industry peers.
In the last couple of years the Gross Margin of RWTN has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.37% | ||
| PM (TTM) | N/A | ||
| GM | 8.28% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so RWTN is destroying value.
The number of shares outstanding for RWTN has been increased compared to 1 year ago.
The number of shares outstanding for RWTN has been increased compared to 5 years ago.
The debt/assets ratio for RWTN is higher compared to a year ago.
2.2 Solvency
RWTN has an Altman-Z score of 0.14. This is a bad value and indicates that RWTN is not financially healthy and even has some risk of bankruptcy.
RWTN's Altman-Z score of 0.14 is fine compared to the rest of the industry. RWTN outperforms 75.76% of its industry peers.
RWTN has a Debt/Equity ratio of 18.73. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 18.73, RWTN is not doing good in the industry: 98.48% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 18.73 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.14 |
ROIC/WACC0.06
WACC5.45%
2.3 Liquidity
RWTN has a Current Ratio of 0.26. This is a bad value and indicates that RWTN is not financially healthy enough and could expect problems in meeting its short term obligations.
RWTN has a Current ratio of 0.26. This is comparable to the rest of the industry: RWTN outperforms 56.06% of its industry peers.
A Quick Ratio of 0.26 indicates that RWTN may have some problems paying its short term obligations.
The Quick ratio of RWTN (0.26) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.26 | ||
| Quick Ratio | 0.26 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 80.00% over the past year.
RWTN shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -19.83% yearly.
RWTN shows a strong growth in Revenue. In the last year, the Revenue has grown by 27.85%.
RWTN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.67% yearly.
EPS 1Y (TTM)80%
EPS 3Y-39.69%
EPS 5Y-19.83%
EPS Q2Q%38.46%
Revenue 1Y (TTM)27.85%
Revenue growth 3Y19.75%
Revenue growth 5Y9.67%
Sales Q2Q%-45.45%
3.2 Future
The Earnings Per Share is expected to grow by 18.65% on average over the next years. This is quite good.
RWTN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.38% yearly.
EPS Next Y17.19%
EPS Next 2Y24.68%
EPS Next 3Y18.65%
EPS Next 5YN/A
Revenue Next Year6.06%
Revenue Next 2Y15.51%
Revenue Next 3Y7.38%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
RWTN is valuated quite expensively with a Price/Earnings ratio of 39.68.
69.70% 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 26.91, RWTN is valued a bit more expensive.
Based on the Price/Forward Earnings ratio of 30.93, the valuation of RWTN can be described as expensive.
Based on the Price/Forward Earnings ratio, RWTN is valued expensively inside the industry as 83.33% of the companies are valued cheaper.
The average S&P500 Price/Forward Earnings ratio is at 22.92. RWTN is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.68 | ||
| Fwd PE | 30.93 |
4.2 Price Multiples
68.18% of the companies in the same industry are more expensive than RWTN, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 202 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as RWTN's earnings are expected to grow with 18.65% in the coming years.
PEG (NY)2.31
PEG (5Y)N/A
EPS Next 2Y24.68%
EPS Next 3Y18.65%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 13.11%, RWTN is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 12.94, RWTN has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.34, RWTN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 13.11% |
5.2 History
The dividend of RWTN decreases each year by -10.27%.
RWTN is new to the dividend game and has less than 3 years of track record.
Dividend Growth(5Y)-10.27%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
RWTN has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-123.16%
EPS Next 2Y24.68%
EPS Next 3Y18.65%
REDWOOD TRUST INC - RWT 9 1/8 03/01/29
NYSE:RWTN (10/24/2025, 7:00:00 PM)
After market: 24.8 -0.2 (-0.8%)25
0 (0%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners80.89%
Inst Owner ChangeN/A
Ins Owners1.36%
Ins Owner ChangeN/A
Market Cap3.23B
Revenue(TTM)1.10B
Net Income(TTM)-86340000
Analysts73.85
Price Target30.4 (21.6%)
Short Float %0%
Short Ratio0.01
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 13.11% |
Yearly Dividend0.76
Dividend Growth(5Y)-10.27%
DP-123.16%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-9.27%
Min EPS beat(2)-16.87%
Max EPS beat(2)-1.67%
EPS beat(4)1
Avg EPS beat(4)-3.59%
Min EPS beat(4)-21.87%
Max EPS beat(4)26.06%
EPS beat(8)1
Avg EPS beat(8)-17.2%
EPS beat(12)1
Avg EPS beat(12)-75.03%
EPS beat(16)3
Avg EPS beat(16)-59.39%
Revenue beat(2)0
Avg Revenue beat(2)-26.63%
Min Revenue beat(2)-50.87%
Max Revenue beat(2)-2.38%
Revenue beat(4)0
Avg Revenue beat(4)-18.1%
Min Revenue beat(4)-50.87%
Max Revenue beat(4)-2.38%
Revenue beat(8)1
Avg Revenue beat(8)-18.86%
Revenue beat(12)3
Avg Revenue beat(12)39.43%
Revenue beat(16)7
Avg Revenue beat(16)109.95%
PT rev (1m)8.93%
PT rev (3m)-3.17%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-13.36%
EPS NY rev (1m)-9.41%
EPS NY rev (3m)-14.12%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.76%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-14.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.68 | ||
| Fwd PE | 30.93 | ||
| P/S | 2.95 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 3.07 | ||
| P/tB | 3.18 | ||
| EV/EBITDA | 202 |
EPS(TTM)0.63
EY2.52%
EPS(NY)0.81
Fwd EY3.23%
FCF(TTM)-54.23
FCFYN/A
OCF(TTM)-54.23
OCFYN/A
SpS8.48
BVpS8.15
TBVpS7.86
PEG (NY)2.31
PEG (5Y)N/A
Graham Number10.75
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.4% | ||
| ROE | -8.2% | ||
| ROCE | 0.48% | ||
| ROIC | 0.32% | ||
| ROICexc | 0.33% | ||
| ROICexgc | 0.33% | ||
| OM | 8.37% | ||
| PM (TTM) | N/A | ||
| GM | 8.28% | ||
| 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 | 18.73 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 191.84 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 0.1 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.26 | ||
| Quick Ratio | 0.26 | ||
| Altman-Z | 0.14 |
F-Score1
WACC5.45%
ROIC/WACC0.06
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)80%
EPS 3Y-39.69%
EPS 5Y-19.83%
EPS Q2Q%38.46%
EPS Next Y17.19%
EPS Next 2Y24.68%
EPS Next 3Y18.65%
EPS Next 5YN/A
Revenue 1Y (TTM)27.85%
Revenue growth 3Y19.75%
Revenue growth 5Y9.67%
Sales Q2Q%-45.45%
Revenue Next Year6.06%
Revenue Next 2Y15.51%
Revenue Next 3Y7.38%
Revenue Next 5YN/A
EBIT growth 1Y26.43%
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-1967.75%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-1967.75%
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 2 / 10 to RWTN.
Can you provide the valuation status for REDWOOD TRUST INC - RWT 9 1/8 03/01/29?
ChartMill assigns a valuation rating of 1 / 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.
Can you provide the financial health for RWTN stock?
The financial health rating of REDWOOD TRUST INC - RWT 9 1/8 03/01/29 (RWTN) is 1 / 10.
What is the expected EPS growth for REDWOOD TRUST INC - RWT 9 1/8 03/01/29 (RWTN) stock?
The Earnings per Share (EPS) of REDWOOD TRUST INC - RWT 9 1/8 03/01/29 (RWTN) is expected to grow by 17.19% in the next year.