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

NYSE:RWTO • US7580758735

24.86 USD
-0.04 (-0.16%)
Last: Mar 5, 2026, 08:19 PM
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This RWTO fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

Fundamental Rating

2

We assign a fundamental rating of 2 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 valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

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.
  • 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 0 -2B -4B

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 76.47% of its industry peers.
  • RWTO has a worse Return On Equity (-10.92%) than 79.41% of its industry peers.
Industry RankSector 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
RWTO Yearly ROA, ROE, ROICRWTO Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 -40

1.3 Margins

  • In the last couple of years the Profit Margin of RWTO has declined.
  • In the last couple of years the Operating Margin of RWTO has declined.
  • 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.
  • 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 6.58%
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%
RWTO Yearly Profit, Operating, Gross MarginsRWTO Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50 -50 -100

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ROAROEROICOperating and Profit MarginShow most profitable peers

1

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.
  • There is no outstanding debt for RWTO. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
RWTO Yearly Shares OutstandingRWTO Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 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 5B 10B 15B

2.2 Solvency

  • RWTO has an Altman-Z score of 0.07. 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 (0.07) than 76.47% 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: 97.06% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 21.2
Debt/FCF N/A
Altman-Z 0.07
ROIC/WACCN/A
WACC5.28%
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 0 5B -5B 10B 15B

2.3 Liquidity

  • A Current Ratio of 0.17 indicates that RWTO may have some problems paying its short term obligations.
  • Looking at the Current ratio, with a value of 0.17, RWTO is in line with its industry, outperforming 51.47% of the companies in the same industry.
  • A Quick Ratio of 0.17 indicates that RWTO may have some problems paying its short term obligations.
  • The Quick ratio of RWTO (0.17) is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 0.17
Quick Ratio 0.17
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 500M 1B 1.5B 2B

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

4

3. RWTO Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an impressive 63.46% over the past year.
  • 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.
EPS 1Y (TTM)63.46%
EPS 3YN/A
EPS 5Y-16.31%
EPS Q2Q%153.85%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-6.16%

3.2 Future

  • Based on estimates for the next years, RWTO will show a small growth in Earnings Per Share. The EPS will grow by 4.41% on average per year.
  • The Revenue is expected to grow by 19.13% on average over the next years. This is quite good.
EPS Next Y4.56%
EPS Next 2Y4.41%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year123.46%
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.
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
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 0 2 -2 -4

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1

4. RWTO Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 29.25, the valuation of RWTO can be described as expensive.
  • 77.94% of the companies in the same industry are cheaper than RWTO, based on the Price/Earnings ratio.
  • When comparing the Price/Earnings ratio of RWTO to the average of the S&P500 Index (26.74), we can say RWTO is valued inline with the index average.
  • RWTO is valuated quite expensively with a Price/Forward Earnings ratio of 27.97.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of RWTO indicates a rather expensive valuation: RWTO more expensive than 83.82% of the companies listed in the same industry.
  • RWTO's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.82.
Industry RankSector Rank
PE 29.25
Fwd PE 27.97
RWTO Price Earnings VS Forward Price EarningsRWTO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

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

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)6.41
PEG (5Y)N/A
EPS Next 2Y4.41%
EPS Next 3YN/A

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

3

5. RWTO Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 11.96%, RWTO is a good candidate for dividend investing.
  • Compared to an average industry Dividend Yield of 11.28, RWTO has a dividend in line with its industry peers.
  • Compared to an average S&P500 Dividend Yield of 1.82, RWTO pays a better dividend.
Industry RankSector Rank
Dividend Yield 11.96%

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

  • The earnings of RWTO are negative and hence is the payout ratio. RWTO will probably not be able to sustain this dividend level.
DP-98.1%
EPS Next 2Y4.41%
EPS Next 3YN/A
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 0 -2B -4B

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RWTO Fundamentals: All Metrics, Ratios and Statistics

REDWOOD TRUST INC - RWT 9 09/01/29

NYSE:RWTO (3/5/2026, 8:19:57 PM)

24.86

-0.04 (-0.16%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)02-11
Earnings (Next)04-28
Inst Owners80.69%
Inst Owner ChangeN/A
Ins Owners1.35%
Ins Owner ChangeN/A
Market Cap3.15B
Revenue(TTM)N/A
Net Income(TTM)-109.14M
Analysts76.67
Price Target29.87 (20.15%)
Short Float %0.01%
Short Ratio1.95
Dividend
Industry RankSector Rank
Dividend Yield 11.96%
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)-2.74%
PT rev (3m)-10.76%
EPS NQ rev (1m)-1.62%
EPS NQ rev (3m)6.14%
EPS NY rev (1m)0%
EPS NY rev (3m)14.6%
Revenue NQ rev (1m)-2.5%
Revenue NQ rev (3m)-5.64%
Revenue NY rev (1m)-1.91%
Revenue NY rev (3m)-15.15%
Valuation
Industry RankSector Rank
PE 29.25
Fwd PE 27.97
P/S 2.76
P/FCF N/A
P/OCF N/A
P/B 3.15
P/tB 3.27
EV/EBITDA N/A
EPS(TTM)0.85
EY3.42%
EPS(NY)0.89
Fwd EY3.58%
FCF(TTM)-59.9
FCFYN/A
OCF(TTM)-59.9
OCFYN/A
SpS9.02
BVpS7.89
TBVpS7.6
PEG (NY)6.41
PEG (5Y)N/A
Graham Number12.28
Profitability
Industry RankSector 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 RankSector 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
WACC5.28%
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 Y4.56%
EPS Next 2Y4.41%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-6.16%
Revenue Next Year123.46%
Revenue Next 2Y73.58%
Revenue Next 3Y19.13%
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 2 / 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 29.25 and the Price/Book (PB) ratio is 3.15.


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 4.56% in the next year.