REDWOOD TRUST INC - RWT 9 1/8 03/01/29 (RWTN) Stock Fundamental Analysis
NYSE:RWTN - New York Stock Exchange, Inc. - US7580758818 - Currency: USD
We assign a fundamental rating of 2 out of 10 to RWTN. RWTN was compared to 65 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. Both the profitability and financial health of RWTN have multiple concerns. RWTN is valued quite expensively, but it does show have an excellent growth rating.
1. Profitability
1.1 Basic Checks
In the past year RWTN was profitable.
In the past year RWTN has reported a negative cash flow from operations.
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 Return On Assets of 0.23%. This is in the lower half of the industry: RWTN underperforms 60.00% of its industry peers.
RWTN's Return On Equity of 3.59% is in line compared to the rest of the industry. RWTN outperforms 44.62% of its industry peers.
RWTN has a Return On Invested Capital of 0.42%. This is comparable to the rest of the industry: RWTN outperforms 46.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.23% | ||
| ROE | 3.59% | ||
| ROIC | 0.42% |
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
The Profit Margin of RWTN (4.31%) is worse than 60.00% of its industry peers.
RWTN's Profit Margin has declined in the last couple of years.
RWTN's Operating Margin of 10.26% is in line compared to the rest of the industry. RWTN outperforms 47.69% of its industry peers.
In the last couple of years the Operating Margin of RWTN has declined.
Looking at the Gross Margin, with a value of 12.54%, RWTN is doing worse than 80.00% of the companies in the same industry.
In the last couple of years the Gross Margin of RWTN has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.26% | ||
| PM (TTM) | 4.31% | ||
| GM | 12.54% |
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.
Compared to 1 year ago, RWTN has more shares outstanding
RWTN has more shares outstanding than it did 5 years ago.
RWTN has a worse debt/assets ratio than last year.
2.2 Solvency
RWTN has an Altman-Z score of 0.19. This is a bad value and indicates that RWTN is not financially healthy and even has some risk of bankruptcy.
With a decent Altman-Z score value of 0.19, RWTN is doing good in the industry, outperforming 80.00% of the companies in the same industry.
A Debt/Equity ratio of 14.09 is on the high side and indicates that RWTN has dependencies on debt financing.
RWTN has a worse Debt to Equity ratio (14.09) than 96.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 14.09 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.19 |
ROIC/WACC0.07
WACC5.59%
2.3 Liquidity
A Current Ratio of 0.25 indicates that RWTN may have some problems paying its short term obligations.
The Current ratio of RWTN (0.25) is better than 61.54% of its industry peers.
RWTN has a Quick Ratio of 0.25. 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 better Quick ratio (0.25) than 61.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.25 | ||
| Quick Ratio | 0.25 |
3. Growth
3.1 Past
RWTN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 163.64%, which is quite impressive.
The earnings per share for RWTN have been decreasing by -19.83% on average. This is quite bad
The Revenue has grown by 29.69% in the past year. This is a very strong growth!
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)163.64%
EPS 3Y-39.69%
EPS 5Y-19.83%
EPS Q2Q%75%
Revenue 1Y (TTM)29.69%
Revenue growth 3Y19.75%
Revenue growth 5Y9.67%
Sales Q2Q%16.25%
3.2 Future
Based on estimates for the next years, RWTN will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.34% 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 8.89% on average per year.
EPS Next Y37.66%
EPS Next 2Y30.74%
EPS Next 3Y15.34%
EPS Next 5YN/A
Revenue Next Year24.4%
Revenue Next 2Y10.83%
Revenue Next 3Y8.89%
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 41.93, the valuation of RWTN can be described as expensive.
Based on the Price/Earnings ratio, RWTN is valued a bit more expensive than 61.54% of the companies in the same industry.
When comparing the Price/Earnings ratio of RWTN to the average of the S&P500 Index (25.82), we can say RWTN is valued expensively.
The Price/Forward Earnings ratio is 27.36, which means the current valuation is very expensive for RWTN.
Based on the Price/Forward Earnings ratio, RWTN is valued expensively inside the industry as 80.00% of the companies are valued cheaper.
RWTN is valuated rather expensively when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.93 | ||
| Fwd PE | 27.36 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RWTN indicates a somewhat cheap valuation: RWTN is cheaper than 76.92% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 160.61 |
4.3 Compensation for Growth
RWTN's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
RWTN's earnings are expected to grow with 15.34% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.11
PEG (5Y)N/A
EPS Next 2Y30.74%
EPS Next 3Y15.34%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 12.50%, RWTN is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 14.23, RWTN has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.39, RWTN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 12.5% |
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 pays out 234.54% of its income as dividend. This is not a sustainable payout ratio.
DP234.54%
EPS Next 2Y30.74%
EPS Next 3Y15.34%
REDWOOD TRUST INC - RWT 9 1/8 03/01/29
NYSE:RWTN (5/23/2025, 8:54:07 PM)
24.32
-0.07 (-0.29%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners79.96%
Inst Owner ChangeN/A
Ins Owners1.17%
Ins Owner ChangeN/A
Market Cap3.24B
Analysts75.38
Price Target31.59 (29.89%)
Short Float %0%
Short Ratio0.2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 12.5% |
Yearly Dividend0.76
Dividend Growth(5Y)-10.27%
DP234.54%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.09%
Min EPS beat(2)-21.87%
Max EPS beat(2)26.06%
EPS beat(4)1
Avg EPS beat(4)-3.13%
Min EPS beat(4)-21.87%
Max EPS beat(4)26.06%
EPS beat(8)1
Avg EPS beat(8)-38.17%
EPS beat(12)2
Avg EPS beat(12)-82.2%
EPS beat(16)5
Avg EPS beat(16)-48.18%
Revenue beat(2)0
Avg Revenue beat(2)-9.57%
Min Revenue beat(2)-14.39%
Max Revenue beat(2)-4.75%
Revenue beat(4)1
Avg Revenue beat(4)-7.86%
Min Revenue beat(4)-15.25%
Max Revenue beat(4)2.94%
Revenue beat(8)1
Avg Revenue beat(8)-18.3%
Revenue beat(12)5
Avg Revenue beat(12)94.09%
Revenue beat(16)9
Avg Revenue beat(16)194.63%
PT rev (1m)-5.53%
PT rev (3m)-0.15%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-9.8%
EPS NY rev (1m)-9.67%
EPS NY rev (3m)-8.36%
Revenue NQ rev (1m)1.18%
Revenue NQ rev (3m)0.15%
Revenue NY rev (1m)8.72%
Revenue NY rev (3m)16.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.93 | ||
| Fwd PE | 27.36 | ||
| P/S | 3.28 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 2.73 | ||
| P/tB | 2.83 | ||
| EV/EBITDA | 160.61 |
EPS(TTM)0.58
EY2.38%
EPS(NY)0.89
Fwd EY3.65%
FCF(TTM)-44.04
FCFYN/A
OCF(TTM)-44.04
OCFYN/A
SpS7.42
BVpS8.92
TBVpS8.6
PEG (NY)1.11
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.23% | ||
| ROE | 3.59% | ||
| ROCE | 0.62% | ||
| ROIC | 0.42% | ||
| ROICexc | 0.42% | ||
| ROICexgc | 0.43% | ||
| OM | 10.26% | ||
| PM (TTM) | 4.31% | ||
| GM | 12.54% | ||
| 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 14.09 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 147.83 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 0.12 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.25 | ||
| Quick Ratio | 0.25 | ||
| Altman-Z | 0.19 |
F-Score3
WACC5.59%
ROIC/WACC0.07
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)163.64%
EPS 3Y-39.69%
EPS 5Y-19.83%
EPS Q2Q%75%
EPS Next Y37.66%
EPS Next 2Y30.74%
EPS Next 3Y15.34%
EPS Next 5YN/A
Revenue 1Y (TTM)29.69%
Revenue growth 3Y19.75%
Revenue growth 5Y9.67%
Sales Q2Q%16.25%
Revenue Next Year24.4%
Revenue Next 2Y10.83%
Revenue Next 3Y8.89%
Revenue Next 5YN/A
EBIT growth 1Y97.69%
EBIT growth 3Y-21.85%
EBIT growth 5Y-4.01%
EBIT Next Year-2.46%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-190.82%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-190.82%
OCF growth 3YN/A
OCF growth 5YN/A