REDWOOD TRUST INC - RWT 9 09/01/29 (RWTO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RWTO - US7580758735
24.93 USD
-0.01 (-0.04%)
We assign a fundamental rating of 3 out of 10 to RWTO. RWTO was compared to 68 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. Both the profitability and financial health of RWTO have multiple concerns. 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.
In multiple years RWTO reported negative net income over the last 5 years.
RWTO had a negative operating cash flow in each of the past 5 years.
1.2 Ratios
RWTO's Return On Assets of -0.48% is on the low side compared to the rest of the industry. RWTO is outperformed by 75.00% of its industry peers.
With a Return On Equity value of -10.92%, RWTO is not doing good in the industry: 77.94% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.48% | ||
| ROE | -10.92% | ||
| ROIC | 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
1.3 Margins
In the last couple of years the Profit Margin of RWTO has declined.
RWTO's Operating Margin has declined in the last couple of years.
RWTO's Gross Margin of 6.58% is on the low side compared to the rest of the industry. RWTO is outperformed by 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 Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 6.58% |
OM growth 3Y-58.99%
OM growth 5Y-33.77%
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 does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, RWTO has more 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.
2.2 Solvency
Based on the Altman-Z score of 0.07, we must say that RWTO is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of RWTO (0.07) is better than 72.06% of its industry peers.
A Debt/Equity ratio of 21.20 is on the high side and indicates that RWTO has dependencies on debt financing.
With a Debt to Equity ratio value of 21.20, RWTO is not doing good in the industry: 98.53% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 21.2 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.07 |
ROIC/WACCN/A
WACC5.41%
2.3 Liquidity
A Current Ratio of 0.17 indicates that RWTO may have some problems paying its short term obligations.
The Current ratio of RWTO (0.17) is comparable to the rest of the industry.
A Quick Ratio of 0.17 indicates that RWTO may have some problems paying its short term obligations.
RWTO has a Quick ratio (0.17) which is in line with 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.
RWTO shows a strong growth in Revenue. In the last year, the Revenue has grown by 21.58%.
Measured over the past years, RWTO 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)21.58%
Revenue growth 3Y19.75%
Revenue growth 5Y9.67%
Sales Q2Q%-41.18%
3.2 Future
RWTO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.24% yearly.
The Revenue is expected to grow by 12.80% on average over the next years. This is quite good.
EPS Next Y48.39%
EPS Next 2Y30.52%
EPS Next 3Y21.24%
EPS Next 5YN/A
Revenue Next Year-11.34%
Revenue Next 2Y13.85%
Revenue Next 3Y12.8%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
RWTO is valuated quite expensively with a Price/Earnings ratio of 38.35.
70.59% of the companies in the same industry are cheaper than RWTO, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.84, RWTO is valued a bit more expensive.
RWTO is valuated quite expensively with a Price/Forward Earnings ratio of 28.14.
83.82% of the companies in the same industry are cheaper than RWTO, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.40, RWTO is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.35 | ||
| Fwd PE | 28.14 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as RWTO's earnings are expected to grow with 21.24% in the coming years.
PEG (NY)0.79
PEG (5Y)N/A
EPS Next 2Y30.52%
EPS Next 3Y21.24%
5. Dividend
5.1 Amount
RWTO has a Yearly Dividend Yield of 9.24%, which is a nice return.
Compared to an average industry Dividend Yield of 10.99, RWTO is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.00, RWTO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.24% |
5.2 History
The dividend of RWTO decreases each year by -10.27%.
RWTO 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
RWTO has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-98.1%
EPS Next 2Y30.52%
EPS Next 3Y21.24%
REDWOOD TRUST INC - RWT 9 09/01/29
NYSE:RWTO (12/29/2025, 7:17:18 PM)
24.93
-0.01 (-0.04%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners80.56%
Inst Owner ChangeN/A
Ins Owners1.33%
Ins Owner ChangeN/A
Market Cap3.16B
Revenue(TTM)1.14B
Net Income(TTM)-109.14M
Analysts73.85
Price Target29.74 (19.29%)
Short Float %0%
Short Ratio0.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.24% |
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)-11.13%
PT rev (3m)8%
EPS NQ rev (1m)7.89%
EPS NQ rev (3m)-5.38%
EPS NY rev (1m)14.6%
EPS NY rev (3m)26.63%
Revenue NQ rev (1m)-3.22%
Revenue NQ rev (3m)-1.7%
Revenue NY rev (1m)-13.5%
Revenue NY rev (3m)-16.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.35 | ||
| Fwd PE | 28.14 | ||
| P/S | 2.76 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 3.16 | ||
| P/tB | 3.28 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.65
EY2.61%
EPS(NY)0.89
Fwd EY3.55%
FCF(TTM)-59.9
FCFYN/A
OCF(TTM)-59.9
OCFYN/A
SpS9.02
BVpS7.89
TBVpS7.6
PEG (NY)0.79
PEG (5Y)N/A
Graham Number10.74
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.48% | ||
| ROE | -10.92% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| 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)0.25%
ROCE(5y)0.65%
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y-58.99%
OM growth 5Y-33.77%
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 | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.17 | ||
| Quick Ratio | 0.17 | ||
| Altman-Z | 0.07 |
F-Score1
WACC5.41%
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)47.73%
EPS 3Y-39.69%
EPS 5Y-19.83%
EPS Q2Q%11.11%
EPS Next Y48.39%
EPS Next 2Y30.52%
EPS Next 3Y21.24%
EPS Next 5YN/A
Revenue 1Y (TTM)21.58%
Revenue growth 3Y19.75%
Revenue growth 5Y9.67%
Sales Q2Q%-41.18%
Revenue Next Year-11.34%
Revenue Next 2Y13.85%
Revenue Next 3Y12.8%
Revenue Next 5YN/A
EBIT growth 1Y-125.55%
EBIT growth 3Y-50.89%
EBIT growth 5Y-27.37%
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 38.35 and the Price/Book (PB) ratio is 3.16.
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 48.39% in the next year.