REDWOOD TRUST INC - RWT 9 09/01/29 (RWTO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RWTO - US7580758735
24.86 USD
+0.16 (+0.65%)
RWTO gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 68 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. RWTO has a bad profitability rating. Also its financial health evaluation is rather negative. RWTO is valued quite expensively, but it does show have an excellent growth rating.
1. Profitability
1.1 Basic Checks
In the past year RWTO was profitable.
In the past year RWTO has reported a negative cash flow from operations.
The reported net income has been mixed in the past 5 years: RWTO reported negative net income in multiple years.
In the past 5 years RWTO always reported negative operating cash flow.
1.2 Ratios
RWTO has a worse Return On Assets (-0.48%) than 73.53% of its industry peers.
Looking at the Return On Equity, with a value of -10.92%, RWTO is doing worse than 76.47% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 0.22%, RWTO is doing worse than 73.53% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.48% | ||
| ROE | -10.92% | ||
| ROIC | 0.22% |
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
RWTO's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 5.73%, RWTO is doing worse than 72.06% of the companies in the same industry.
RWTO's Operating Margin has declined in the last couple of years.
RWTO has a worse Gross Margin (6.58%) than 88.24% of its industry peers.
RWTO's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.73% | ||
| PM (TTM) | N/A | ||
| GM | 6.58% |
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
RWTO has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for RWTO has been increased compared to 1 year ago.
Compared to 5 years ago, RWTO has more shares outstanding
RWTO has a worse debt/assets ratio than last year.
2.2 Solvency
RWTO has an Altman-Z score of 0.09. This is a bad value and indicates that RWTO is not financially healthy and even has some risk of bankruptcy.
RWTO has a better Altman-Z score (0.09) than 72.06% of its industry peers.
RWTO has a Debt/Equity ratio of 21.20. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 21.20, RWTO is doing worse than 97.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 21.2 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.09 |
ROIC/WACC0.04
WACC5.41%
2.3 Liquidity
RWTO has a Current Ratio of 0.17. This is a bad value and indicates that RWTO is not financially healthy enough and could expect problems in meeting its short term obligations.
RWTO's Current ratio of 0.17 is in line compared to the rest of the industry. RWTO outperforms 50.00% of its industry peers.
A Quick Ratio of 0.17 indicates that RWTO may have some problems paying its short term obligations.
RWTO's Quick ratio of 0.17 is in line compared to the rest of the industry. RWTO outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.17 | ||
| Quick Ratio | 0.17 |
3. Growth
3.1 Past
RWTO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 47.73%, which is quite impressive.
RWTO shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -19.83% yearly.
The Revenue has grown by 21.58% in the past year. This is a very strong growth!
The Revenue has been growing by 9.67% on average over the past years. This is quite good.
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
The Earnings Per Share is expected to grow by 22.00% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 8.39% on average over the next years. This is quite good.
EPS Next Y29.49%
EPS Next 2Y26.8%
EPS Next 3Y22%
EPS Next 5YN/A
Revenue Next Year2.49%
Revenue Next 2Y15.52%
Revenue Next 3Y8.39%
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 38.25, RWTO can be considered very expensive at the moment.
Based on the Price/Earnings ratio, RWTO is valued a bit more expensive than 69.12% of the companies in the same industry.
RWTO is valuated rather expensively when we compare the Price/Earnings ratio to 26.15, which is the current average of the S&P500 Index.
RWTO is valuated quite expensively with a Price/Forward Earnings ratio of 29.74.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RWTO indicates a rather expensive valuation: RWTO more expensive than 82.35% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of RWTO to the average of the S&P500 Index (36.12), we can say RWTO is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.25 | ||
| Fwd PE | 29.74 |
4.2 Price Multiples
64.71% of the companies in the same industry are more expensive than RWTO, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 283.3 |
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 RWTO's earnings are expected to grow with 22.00% in the coming years.
PEG (NY)1.3
PEG (5Y)N/A
EPS Next 2Y26.8%
EPS Next 3Y22%
5. Dividend
5.1 Amount
RWTO has a Yearly Dividend Yield of 14.37%, which is a nice return.
Compared to an average industry Dividend Yield of 12.91, RWTO pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.41, RWTO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 14.37% |
5.2 History
The dividend of RWTO decreases each year by -10.27%.
RWTO 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
RWTO has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-98.1%
EPS Next 2Y26.8%
EPS Next 3Y22%
REDWOOD TRUST INC - RWT 9 09/01/29
NYSE:RWTO (11/28/2025, 1:15:00 PM)
24.86
+0.16 (+0.65%)
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 Cap3.21B
Revenue(TTM)1.14B
Net Income(TTM)-109.14M
Analysts73.85
Price Target33.47 (34.63%)
Short Float %0%
Short Ratio0.58
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 14.37% |
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)5
Avg Revenue beat(12)121.67%
Revenue beat(16)9
Avg Revenue beat(16)167.07%
PT rev (1m)10.46%
PT rev (3m)18.78%
EPS NQ rev (1m)0.52%
EPS NQ rev (3m)-6.66%
EPS NY rev (1m)1.01%
EPS NY rev (3m)0.1%
Revenue NQ rev (1m)1.58%
Revenue NQ rev (3m)0.1%
Revenue NY rev (1m)-3.37%
Revenue NY rev (3m)-6.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.25 | ||
| Fwd PE | 29.74 | ||
| P/S | 2.81 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 3.22 | ||
| P/tB | 3.34 | ||
| EV/EBITDA | 283.3 |
EPS(TTM)0.65
EY2.61%
EPS(NY)0.84
Fwd EY3.36%
FCF(TTM)-58.72
FCFYN/A
OCF(TTM)-58.72
OCFYN/A
SpS8.84
BVpS7.73
TBVpS7.45
PEG (NY)1.3
PEG (5Y)N/A
Graham Number10.63
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.48% | ||
| ROE | -10.92% | ||
| ROCE | 0.33% | ||
| ROIC | 0.22% | ||
| ROICexc | 0.22% | ||
| ROICexgc | 0.22% | ||
| OM | 5.73% | ||
| 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)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 | 21.2 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 278.7 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 0.08 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.17 | ||
| Quick Ratio | 0.17 | ||
| Altman-Z | 0.09 |
F-Score1
WACC5.41%
ROIC/WACC0.04
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 Y29.49%
EPS Next 2Y26.8%
EPS Next 3Y22%
EPS Next 5YN/A
Revenue 1Y (TTM)21.58%
Revenue growth 3Y19.75%
Revenue growth 5Y9.67%
Sales Q2Q%-41.18%
Revenue Next Year2.49%
Revenue Next 2Y15.52%
Revenue Next 3Y8.39%
Revenue Next 5YN/A
EBIT growth 1Y-37.56%
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-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 09/01/29 / RWTO FAQ
What is the fundamental rating for RWTO stock?
ChartMill assigns a fundamental rating of 3 / 10 to RWTO.
What is the valuation status of REDWOOD TRUST INC - RWT 9 09/01/29 (RWTO) stock?
ChartMill assigns a valuation rating of 2 / 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 is the valuation of REDWOOD TRUST INC - RWT 9 09/01/29 based on its PE and PB ratios?
The Price/Earnings (PE) ratio for REDWOOD TRUST INC - RWT 9 09/01/29 (RWTO) is 38.25 and the Price/Book (PB) ratio is 3.22.
What is the earnings growth outlook for REDWOOD TRUST INC - RWT 9 09/01/29?
The Earnings per Share (EPS) of REDWOOD TRUST INC - RWT 9 09/01/29 (RWTO) is expected to grow by 29.49% in the next year.