REDWOOD TRUST INC - RWT 9 09/01/29 (RWTO) Fundamental Analysis & Valuation

NYSE:RWTO • US7580758735

Current stock price

24.59 USD
-0.23 (-0.93%)
Last:

This RWTO fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

1

1. RWTO Profitability Analysis

1.1 Basic Checks

  • In the past year RWTO was profitable.
  • RWTO had a negative operating cash flow in the past year.
  • The reported net income has been mixed in the past 5 years: RWTO reported negative net income in multiple years.
  • RWTO had a negative operating cash flow in each of the past 5 years.
RWTO Yearly Net Income VS EBIT VS OCF VS FCFRWTO Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 -2B -4B -6B -8B -10B

1.2 Ratios

  • RWTO has a worse Return On Assets (-0.35%) than 77.94% of its industry peers.
  • RWTO has a Return On Equity of -8.41%. This is amonst the worse of the industry: RWTO underperforms 80.88% of its industry peers.
Industry RankSector Rank
ROA -0.35%
ROE -8.41%
ROIC N/A
ROA(3y)-0.07%
ROA(5y)0.12%
ROE(3y)-1.97%
ROE(5y)0.18%
ROIC(3y)N/A
ROIC(5y)N/A
RWTO Yearly ROA, ROE, ROICRWTO Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 -20 -40

1.3 Margins

  • RWTO has a Gross Margin of 6.27%. This is amonst the worse of the industry: RWTO underperforms 89.71% of its industry peers.
  • In the last couple of years the Gross Margin of RWTO has declined.
  • The Profit Margin and Operating Margin are not available for RWTO so they could not be analyzed.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM 6.27%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-32.99%
GM growth 5Y-21.96%
RWTO Yearly Profit, Operating, Gross MarginsRWTO Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 50 -50 -100

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2

2. RWTO Health Analysis

2.1 Basic Checks

  • RWTO does not have a ROIC to compare to the WACC, probably because it is not profitable.
  • Compared to 1 year ago, RWTO has less shares outstanding
  • The number of shares outstanding for RWTO has been increased compared to 5 years ago.
  • Compared to 1 year ago, RWTO has a worse debt to assets ratio.
RWTO Yearly Shares OutstandingRWTO Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20M 40M 60M 80M 100M
RWTO Yearly Total Debt VS Total AssetsRWTO Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B

2.2 Solvency

  • Based on the Altman-Z score of 0.12, we must say that RWTO is in the distress zone and has some risk of bankruptcy.
  • RWTO's Altman-Z score of 0.12 is amongst the best of the industry. RWTO outperforms 82.35% of its industry peers.
  • RWTO has a Debt/Equity ratio of 22.69. This is a high value indicating a heavy dependency on external financing.
  • Looking at the Debt to Equity ratio, with a value of 22.69, RWTO is doing worse than 98.53% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 22.69
Debt/FCF N/A
Altman-Z 0.12
ROIC/WACCN/A
WACC5.36%
RWTO Yearly LT Debt VS Equity VS FCFRWTO Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10B -10B 20B

2.3 Liquidity

  • A Current Ratio of 0.25 indicates that RWTO may have some problems paying its short term obligations.
  • RWTO's Current ratio of 0.25 is in line compared to the rest of the industry. RWTO outperforms 57.35% of its industry peers.
  • A Quick Ratio of 0.25 indicates that RWTO may have some problems paying its short term obligations.
  • RWTO has a Quick ratio (0.25) which is in line with its industry peers.
Industry RankSector Rank
Current Ratio 0.25
Quick Ratio 0.25
RWTO Yearly Current Assets VS Current LiabilitesRWTO Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

3. RWTO Growth Analysis

3.1 Past

  • RWTO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 63.46%, which is quite impressive.
  • Measured over the past years, RWTO shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -16.31% on average per year.
  • Looking at the last year, RWTO shows a very strong growth in Revenue. The Revenue has grown by 21.95%.
  • RWTO shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 16.05% yearly.
EPS 1Y (TTM)63.46%
EPS 3YN/A
EPS 5Y-16.31%
EPS Q2Q%153.85%
Revenue 1Y (TTM)21.95%
Revenue growth 3Y19.37%
Revenue growth 5Y16.05%
Sales Q2Q%-6.16%

3.2 Future

  • RWTO is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.39% yearly.
  • Based on estimates for the next years, RWTO will show a quite strong growth in Revenue. The Revenue will grow by 19.13% on average per year.
EPS Next Y11.93%
EPS Next 2Y10.49%
EPS Next 3Y3.39%
EPS Next 5YN/A
Revenue Next Year146.55%
Revenue Next 2Y73.58%
Revenue Next 3Y19.13%
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 stable: in the next years the growth will be about the same than in the last years.
RWTO Yearly Revenue VS EstimatesRWTO Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 200M 400M 600M 800M 1B
RWTO Yearly EPS VS EstimatesRWTO Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 0 2 -2 -4

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1

4. RWTO Valuation Analysis

4.1 Price/Earnings Ratio

  • RWTO is valuated quite expensively with a Price/Earnings ratio of 28.93.
  • RWTO's Price/Earnings ratio is a bit more expensive when compared to the industry. RWTO is more expensive than 79.41% of the companies in the same industry.
  • When comparing the Price/Earnings ratio of RWTO to the average of the S&P500 Index (26.11), we can say RWTO is valued inline with the index average.
  • Based on the Price/Forward Earnings ratio of 25.85, the valuation of RWTO can be described as expensive.
  • Based on the Price/Forward Earnings ratio, RWTO is valued a bit more expensive than the industry average as 77.94% of the companies are valued more cheaply.
  • RWTO's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.12.
Industry RankSector Rank
PE 28.93
Fwd PE 25.85
RWTO Price Earnings VS Forward Price EarningsRWTO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA N/A
RWTO Per share dataRWTO EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 -20 -40 -60 -80

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates RWTO does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)2.42
PEG (5Y)N/A
EPS Next 2Y10.49%
EPS Next 3Y3.39%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

5

5. RWTO Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 12.18%, RWTO is a good candidate for dividend investing.
  • Compared to an average industry Dividend Yield of 11.36, RWTO pays a bit more dividend than its industry peers.
  • RWTO's Dividend Yield is rather good when compared to the S&P500 average which is at 1.91.
Industry RankSector Rank
Dividend Yield 12.18%

5.2 History

  • The dividend of RWTO has a limited annual growth rate of 2.10%.
  • RWTO is new to the dividend game and has less than 3 years of track record.
Dividend Growth(5Y)2.1%
Div Incr Years0
Div Non Decr Years0

5.3 Sustainability

  • RWTO has negative earnings and hence a negative payout ratio. The dividend may be in danger.
  • RWTO's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-128.18%
EPS Next 2Y10.49%
EPS Next 3Y3.39%
RWTO Yearly Income VS Free CF VS DividendRWTO Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 -2B -4B -6B -8B -10B

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RWTO Fundamentals: All Metrics, Ratios and Statistics

REDWOOD TRUST INC - RWT 9 09/01/29

NYSE:RWTO (3/18/2026, 2:34:01 PM)

24.59

-0.23 (-0.93%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)02-11
Earnings (Next)04-28
Inst Owners81.79%
Inst Owner ChangeN/A
Ins Owners1.43%
Ins Owner ChangeN/A
Market Cap3.07B
Revenue(TTM)1.20B
Net Income(TTM)-82.68M
Analysts76.67
Price Target29.87 (21.47%)
Short Float %0.01%
Short Ratio2.21
Dividend
Industry RankSector Rank
Dividend Yield 12.18%
Yearly Dividend0.82
Dividend Growth(5Y)2.1%
DP-128.18%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)51.61%
Min EPS beat(2)14.21%
Max EPS beat(2)89.02%
EPS beat(4)2
Avg EPS beat(4)21.17%
Min EPS beat(4)-16.87%
Max EPS beat(4)89.02%
EPS beat(8)3
Avg EPS beat(8)9.02%
EPS beat(12)3
Avg EPS beat(12)-18.39%
EPS beat(16)4
Avg EPS beat(16)-56.36%
Revenue beat(2)0
Avg Revenue beat(2)-34.9%
Min Revenue beat(2)-51.98%
Max Revenue beat(2)-17.83%
Revenue beat(4)0
Avg Revenue beat(4)-30.76%
Min Revenue beat(4)-51.98%
Max Revenue beat(4)-2.38%
Revenue beat(8)1
Avg Revenue beat(8)-19.31%
Revenue beat(12)4
Avg Revenue beat(12)91.54%
Revenue beat(16)8
Avg Revenue beat(16)148.37%
PT rev (1m)-2.17%
PT rev (3m)-2.15%
EPS NQ rev (1m)32.98%
EPS NQ rev (3m)32.98%
EPS NY rev (1m)7.05%
EPS NY rev (3m)11.01%
Revenue NQ rev (1m)98.51%
Revenue NQ rev (3m)98.51%
Revenue NY rev (1m)65.39%
Revenue NY rev (3m)65.39%
Valuation
Industry RankSector Rank
PE 28.93
Fwd PE 25.85
P/S 2.55
P/FCF N/A
P/OCF N/A
P/B 3.13
P/tB 3.24
EV/EBITDA N/A
EPS(TTM)0.85
EY3.46%
EPS(NY)0.95
Fwd EY3.87%
FCF(TTM)-80.76
FCFYN/A
OCF(TTM)-80.76
OCFYN/A
SpS9.63
BVpS7.86
TBVpS7.59
PEG (NY)2.42
PEG (5Y)N/A
Graham Number12.26
Profitability
Industry RankSector Rank
ROA -0.35%
ROE -8.41%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 6.27%
FCFM N/A
ROA(3y)-0.07%
ROA(5y)0.12%
ROE(3y)-1.97%
ROE(5y)0.18%
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 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-32.99%
GM growth 5Y-21.96%
F-Score1
Asset Turnover0.05
Health
Industry RankSector Rank
Debt/Equity 22.69
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 0.25
Quick Ratio 0.25
Altman-Z 0.12
F-Score1
WACC5.36%
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)63.46%
EPS 3YN/A
EPS 5Y-16.31%
EPS Q2Q%153.85%
EPS Next Y11.93%
EPS Next 2Y10.49%
EPS Next 3Y3.39%
EPS Next 5YN/A
Revenue 1Y (TTM)21.95%
Revenue growth 3Y19.37%
Revenue growth 5Y16.05%
Sales Q2Q%-6.16%
Revenue Next Year146.55%
Revenue Next 2Y73.58%
Revenue Next 3Y19.13%
Revenue Next 5YN/A
EBIT growth 1Y-169.28%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year130.11%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-72.19%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-72.19%
OCF growth 3YN/A
OCF growth 5YN/A

REDWOOD TRUST INC - RWT 9 09/01/29 / RWTO Fundamental Analysis FAQ

What is the fundamental rating for RWTO stock?

ChartMill assigns a fundamental rating of 3 / 10 to RWTO.


What is the valuation status for RWTO stock?

ChartMill assigns a valuation rating of 1 / 10 to REDWOOD TRUST INC - RWT 9 09/01/29 (RWTO). This can be considered as Overvalued.


How profitable is REDWOOD TRUST INC - RWT 9 09/01/29 (RWTO) stock?

REDWOOD TRUST INC - RWT 9 09/01/29 (RWTO) has a profitability rating of 1 / 10.


What are the PE and PB ratios of REDWOOD TRUST INC - RWT 9 09/01/29 (RWTO) stock?

The Price/Earnings (PE) ratio for REDWOOD TRUST INC - RWT 9 09/01/29 (RWTO) is 28.93 and the Price/Book (PB) ratio is 3.13.


Can you provide the expected EPS growth for RWTO stock?

The Earnings per Share (EPS) of REDWOOD TRUST INC - RWT 9 09/01/29 (RWTO) is expected to grow by 11.93% in the next year.