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

NYSE:RWTO • US7580758735

Current stock price

24.56 USD
-0.14 (-0.57%)
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

  • RWTO had positive earnings in the past year.
  • 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.
  • In the past 5 years RWTO always reported negative operating cash flow.
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

  • With a Return On Assets value of -0.35%, RWTO is not doing good in the industry: 82.35% of the companies in the same industry are doing better.
  • RWTO's Return On Equity of -8.41% is on the low side compared to the rest of the industry. RWTO is outperformed by 86.76% 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 95.59% of its industry peers.
  • In the last couple of years the Gross Margin of RWTO has declined.
  • RWTO does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
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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ROAROEROICOperating and Profit MarginShow most profitable peers

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.
  • The number of shares outstanding for RWTO has been reduced compared to 1 year ago.
  • The number of shares outstanding for RWTO has been increased compared to 5 years ago.
  • RWTO has a worse debt/assets ratio than last year.
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

  • RWTO has an Altman-Z score of 0.12. This is a bad value and indicates that RWTO is not financially healthy and even has some risk of bankruptcy.
  • With an excellent Altman-Z score value of 0.12, RWTO belongs to the best of the industry, outperforming 82.35% of the companies in the same industry.
  • A Debt/Equity ratio of 22.69 is on the high side and indicates that RWTO has dependencies on debt financing.
  • RWTO's Debt to Equity ratio of 22.69 is on the low side compared to the rest of the industry. RWTO is outperformed by 97.06% of its industry peers.
Industry RankSector Rank
Debt/Equity 22.69
Debt/FCF N/A
Altman-Z 0.12
ROIC/WACCN/A
WACC5.4%
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.
  • Looking at the Current ratio, with a value of 0.25, RWTO is in the better half of the industry, outperforming 67.65% of the companies in the same industry.
  • A Quick Ratio of 0.25 indicates that RWTO may have some problems paying its short term obligations.
  • Looking at the Quick ratio, with a value of 0.25, RWTO is in the better half of the industry, outperforming 67.65% of the companies in the same industry.
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

7

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.
  • RWTO shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -16.31% yearly.
  • Looking at the last year, RWTO shows a very strong growth in Revenue. The Revenue has grown by 21.95%.
  • The Revenue has been growing by 16.05% on average over the past years. This is quite good.
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 quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.83% yearly.
  • The Revenue is expected to grow by 19.13% on average over the next years. This is quite good.
EPS Next Y11.89%
EPS Next 2Y9.73%
EPS Next 3Y9.83%
EPS Next 5YN/A
Revenue Next Year146.55%
Revenue Next 2Y73.58%
Revenue Next 3Y19.13%
Revenue Next 5YN/A

3.3 Evolution

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
  • 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

  • With a Price/Earnings ratio of 28.89, RWTO can be considered very expensive at the moment.
  • Based on the Price/Earnings ratio, RWTO is valued a bit more expensive than 77.94% of the companies in the same industry.
  • When comparing the Price/Earnings ratio of RWTO to the average of the S&P500 Index (27.33), we can say RWTO is valued inline with the index average.
  • With a Price/Forward Earnings ratio of 25.82, RWTO can be considered very expensive at the moment.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of RWTO indicates a slightly more expensive valuation: RWTO is more expensive than 79.41% of the companies listed in the same industry.
  • RWTO is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 38.16, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 28.89
Fwd PE 25.82
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 an expensive valuation of the company.
PEG (NY)2.43
PEG (5Y)N/A
EPS Next 2Y9.73%
EPS Next 3Y9.83%

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

4

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 12.92, RWTO is paying slightly less dividend.
  • RWTO's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
Industry RankSector Rank
Dividend Yield 12.18%

5.2 History

  • The dividend of RWTO has a limited annual growth rate of 2.10%.
  • RWTO does not have a reliable dividend history as it only pays dividend since a couple or years.
Dividend Growth(5Y)2.1%
Div Incr Years0
Div Non Decr Years0

5.3 Sustainability

  • The earnings of RWTO are negative and hence is the payout ratio. RWTO will probably not be able to sustain this dividend level.
  • RWTO's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-128.18%
EPS Next 2Y9.73%
EPS Next 3Y9.83%
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 (4/15/2026, 12:26:03 PM)

24.56

-0.14 (-0.57%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)02-11
Earnings (Next)04-23
Inst Owners81.67%
Inst Owner ChangeN/A
Ins Owners1.53%
Ins Owner ChangeN/A
Market Cap3.07B
Revenue(TTM)1.20B
Net Income(TTM)-82.68M
Analysts76.67
Price Target30.12 (22.64%)
Short Float %0.01%
Short Ratio1
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)0.86%
PT rev (3m)1.28%
EPS NQ rev (1m)0%
EPS NQ rev (3m)32.98%
EPS NY rev (1m)-0.04%
EPS NY rev (3m)7.36%
Revenue NQ rev (1m)-15.83%
Revenue NQ rev (3m)67.09%
Revenue NY rev (1m)0%
Revenue NY rev (3m)65.39%
Valuation
Industry RankSector Rank
PE 28.89
Fwd PE 25.82
P/S 2.55
P/FCF N/A
P/OCF N/A
P/B 3.12
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)2.43
PEG (5Y)N/A
Graham Number12.2618 (-50.07%)
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
WACC5.4%
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 Y11.89%
EPS Next 2Y9.73%
EPS Next 3Y9.83%
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.


Can you provide the valuation status for REDWOOD TRUST INC - RWT 9 09/01/29?

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


Can you provide the profitability details for REDWOOD TRUST INC - RWT 9 09/01/29?

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


Can you provide the PE and PB ratios for RWTO stock?

The Price/Earnings (PE) ratio for REDWOOD TRUST INC - RWT 9 09/01/29 (RWTO) is 28.89 and the Price/Book (PB) ratio is 3.12.


How sustainable is the dividend of REDWOOD TRUST INC - RWT 9 09/01/29 (RWTO) stock?

The dividend rating of REDWOOD TRUST INC - RWT 9 09/01/29 (RWTO) is 4 / 10 and the dividend payout ratio is -128.18%.