REDWOOD TRUST INC - RWT 9 1/8 03/01/29 (RWTN) Stock Fundamental Analysis
USA - NYSE:RWTN - US7580758818
25.1048 USD
-0.05 (-0.18%)
24.8 USD
-0.3 (-1.21%)
RWTN gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 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 quite expensive at the moment. It does show a decent growth rate.
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.
In the past 5 years RWTN always reported negative operating cash flow.
1.2 Ratios
With a Return On Assets value of -0.40%, RWTN is not doing good in the industry: 72.06% of the companies in the same industry are doing better.
RWTN has a Return On Equity of -8.20%. This is in the lower half of the industry: RWTN underperforms 77.94% of its industry peers.
RWTN's Return On Invested Capital of 0.32% is in line compared to the rest of the industry. RWTN outperforms 52.94% 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
In the last couple of years the Profit Margin of RWTN has declined.
RWTN has a Operating Margin (8.37%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of RWTN has declined.
RWTN's Gross Margin of 8.28% is on the low side compared to the rest of the industry. RWTN is outperformed by 85.29% of its industry peers.
RWTN's Gross Margin has declined in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), RWTN is destroying value.
The number of shares outstanding for RWTN has been increased compared to 1 year ago.
Compared to 5 years ago, RWTN has more shares outstanding
Compared to 1 year ago, RWTN has a worse debt to assets ratio.
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 has a Altman-Z score of 0.14. This is in the better half of the industry: RWTN outperforms 75.00% of its industry peers.
A Debt/Equity ratio of 18.73 is on the high side and indicates that RWTN has dependencies on debt financing.
RWTN has a worse Debt to Equity ratio (18.73) than 97.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 18.73 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.14 |
ROIC/WACC0.06
WACC5.46%
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 (0.26) which is comparable to the rest of the industry.
RWTN has a Quick 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 Quick ratio (0.26) which 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 47.73% over the past year.
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 29.69%.
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)29.69%
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 21.64% on average per year.
The Revenue is expected to grow by 7.38% on average over the next years.
EPS Next Y28.19%
EPS Next 2Y27.21%
EPS Next 3Y21.64%
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
With a Price/Earnings ratio of 38.62, RWTN can be considered very expensive at the moment.
Based on the Price/Earnings ratio, RWTN is valued a bit more expensive than the industry average as 67.65% of the companies are valued more cheaply.
The average S&P500 Price/Earnings ratio is at 26.10. RWTN is valued slightly more expensive when compared to this.
A Price/Forward Earnings ratio of 29.83 indicates a quite expensive valuation of RWTN.
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.
The average S&P500 Price/Forward Earnings ratio is at 22.52. RWTN is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.62 | ||
| Fwd PE | 29.83 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RWTN is valued a bit cheaper than the industry average as 69.12% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 202.19 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as RWTN's earnings are expected to grow with 21.64% in the coming years.
PEG (NY)1.37
PEG (5Y)N/A
EPS Next 2Y27.21%
EPS Next 3Y21.64%
5. Dividend
5.1 Amount
RWTN has a Yearly Dividend Yield of 13.11%, which is a nice return.
RWTN's Dividend Yield is comparable with the industry average which is at 12.74.
Compared to an average S&P500 Dividend Yield of 2.35, 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 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
RWTN has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-123.16%
EPS Next 2Y27.21%
EPS Next 3Y21.64%
REDWOOD TRUST INC - RWT 9 1/8 03/01/29
NYSE:RWTN (10/31/2025, 7:13:13 PM)
After market: 24.8 -0.3 (-1.21%)25.1048
-0.05 (-0.18%)
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 Cap3.24B
Revenue(TTM)987.30M
Net Income(TTM)-86340000
Analysts73.85
Price Target32.11 (27.9%)
Short Float %0%
Short Ratio0
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)9.39%
EPS NY rev (3m)-6.05%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.09%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-14.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.62 | ||
| Fwd PE | 29.83 | ||
| P/S | 2.96 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 3.08 | ||
| P/tB | 3.19 | ||
| EV/EBITDA | 202.19 |
EPS(TTM)0.65
EY2.59%
EPS(NY)0.84
Fwd EY3.35%
FCF(TTM)-54.23
FCFYN/A
OCF(TTM)-54.23
OCFYN/A
SpS8.48
BVpS8.15
TBVpS7.86
PEG (NY)1.37
PEG (5Y)N/A
Graham Number10.92
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
WACC5.46%
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)47.73%
EPS 3Y-39.69%
EPS 5Y-19.83%
EPS Q2Q%11.11%
EPS Next Y28.19%
EPS Next 2Y27.21%
EPS Next 3Y21.64%
EPS Next 5YN/A
Revenue 1Y (TTM)29.69%
Revenue growth 3Y19.75%
Revenue growth 5Y9.67%
Sales Q2Q%-41.18%
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 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.
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 28.19% in the next year.