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

USA - NYSE:RWTO - US7580758735

24.54 USD
+0.03 (+0.12%)
Last: 10/3/2025, 8:04:01 PM
Fundamental Rating

2

Overall RWTO gets a fundamental rating of 2 out of 10. We evaluated RWTO against 67 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

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1

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.
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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 -2B -4B

1.2 Ratios

The Return On Assets of RWTO (-0.40%) is worse than 68.66% of its industry peers.
The Return On Equity of RWTO (-8.20%) is worse than 76.12% of its industry peers.
RWTO has a Return On Invested Capital of 0.32%. This is comparable to the rest of the industry: RWTO outperforms 53.73% of its industry peers.
Industry RankSector Rank
ROA -0.4%
ROE -8.2%
ROIC 0.32%
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 2015 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.
With a Operating Margin value of 8.37%, RWTO perfoms like the industry average, outperforming 50.75% of the companies in the same industry.
RWTO's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 8.28%, RWTO is doing worse than 83.58% of the companies in the same industry.
In the last couple of years the Gross Margin of RWTO has declined.
Industry RankSector Rank
OM 8.37%
PM (TTM) N/A
GM 8.28%
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%
RWTO Yearly Profit, Operating, Gross MarginsRWTO Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50 -50 -100

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1

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so RWTO is destroying value.
Compared to 1 year ago, RWTO has more shares outstanding
Compared to 5 years ago, RWTO has more shares outstanding
Compared to 1 year ago, RWTO has a worse debt to assets ratio.
RWTO Yearly Shares OutstandingRWTO Yearly Shares OutstandingYearly Shares Outstanding 2015 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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B

2.2 Solvency

RWTO has an Altman-Z score of 0.14. This is a bad value and indicates that RWTO is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.14, RWTO is in the better half of the industry, outperforming 73.13% of the companies in the same industry.
A Debt/Equity ratio of 18.73 is on the high side and indicates that RWTO has dependencies on debt financing.
The Debt to Equity ratio of RWTO (18.73) is worse than 97.01% of its industry peers.
Industry RankSector Rank
Debt/Equity 18.73
Debt/FCF N/A
Altman-Z 0.14
ROIC/WACC0.06
WACC5.56%
RWTO Yearly LT Debt VS Equity VS FCFRWTO Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5B -5B 10B 15B

2.3 Liquidity

RWTO has a Current Ratio of 0.26. 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 has a Current ratio (0.26) which is comparable to the rest of the industry.
A Quick Ratio of 0.26 indicates that RWTO may have some problems paying its short term obligations.
The Quick ratio of RWTO (0.26) is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 0.26
Quick Ratio 0.26
RWTO Yearly Current Assets VS Current LiabilitesRWTO Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B

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5

3. Growth

3.1 Past

The earnings per share for RWTO have decreased strongly by -14.29% in the last year.
RWTO shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -19.83% yearly.
Looking at the last year, RWTO shows a very strong growth in Revenue. The Revenue has grown by 27.85%.
The Revenue has been growing by 9.67% on average over the past years. This is quite good.
EPS 1Y (TTM)-14.29%
EPS 3Y-39.69%
EPS 5Y-19.83%
EPS Q2Q%-215.38%
Revenue 1Y (TTM)27.85%
Revenue growth 3Y19.75%
Revenue growth 5Y9.67%
Sales Q2Q%-45.45%

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 18.65% yearly.
The Revenue is expected to grow by 7.38% on average over the next years.
EPS Next Y17.19%
EPS Next 2Y24.68%
EPS Next 3Y18.65%
EPS Next 5YN/A
Revenue Next Year6.06%
Revenue Next 2Y15.51%
Revenue Next 3Y7.38%
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 decreasing: in the next years the growth will be less than in the last years.
RWTO Yearly Revenue VS EstimatesRWTO Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 200M 400M 600M 800M
RWTO Yearly EPS VS EstimatesRWTO Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 0 2 -2 -4

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1

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 81.80, which means the current valuation is very expensive for RWTO.
Based on the Price/Earnings ratio, RWTO is valued a bit more expensive than the industry average as 68.66% of the companies are valued more cheaply.
The average S&P500 Price/Earnings ratio is at 27.86. RWTO is valued rather expensively when compared to this.
Based on the Price/Forward Earnings ratio of 30.36, the valuation of RWTO can be described as expensive.
Based on the Price/Forward Earnings ratio, RWTO is valued more expensive than 80.60% of the companies in the same industry.
RWTO is valuated rather expensively when we compare the Price/Forward Earnings ratio to 23.32, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 81.8
Fwd PE 30.36
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

70.15% of the companies in the same industry are more expensive than RWTO, based on the Enterprise Value to EBITDA ratio.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 201.43
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.
A more expensive valuation may be justified as RWTO's earnings are expected to grow with 18.65% in the coming years.
PEG (NY)4.76
PEG (5Y)N/A
EPS Next 2Y24.68%
EPS Next 3Y18.65%

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3

5. Dividend

5.1 Amount

RWTO has a Yearly Dividend Yield of 12.33%, which is a nice return.
RWTO's Dividend Yield is a higher than the industry average which is at 11.68.
Compared to an average S&P500 Dividend Yield of 2.44, RWTO pays a better dividend.
Industry RankSector Rank
Dividend Yield 12.33%

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-123.16%
EPS Next 2Y24.68%
EPS Next 3Y18.65%
RWTO Yearly Income VS Free CF VS DividendRWTO Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 -2B -4B

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REDWOOD TRUST INC - RWT 9 09/01/29

NYSE:RWTO (10/3/2025, 8:04:01 PM)

24.54

+0.03 (+0.12%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)07-30 2025-07-30/bmo
Earnings (Next)10-29 2025-10-29/amc
Inst Owners80.89%
Inst Owner ChangeN/A
Ins Owners1.36%
Ins Owner ChangeN/A
Market Cap3.17B
Analysts73.85
Price Target30.3 (23.47%)
Short Float %0%
Short Ratio0.07
Dividend
Industry RankSector Rank
Dividend Yield 12.33%
Yearly Dividend0.76
Dividend Growth(5Y)-10.27%
DP-123.16%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-99.41%
Min EPS beat(2)-181.94%
Max EPS beat(2)-16.87%
EPS beat(4)1
Avg EPS beat(4)-48.66%
Min EPS beat(4)-181.94%
Max EPS beat(4)26.06%
EPS beat(8)1
Avg EPS beat(8)-39.74%
EPS beat(12)1
Avg EPS beat(12)-90.06%
EPS beat(16)3
Avg EPS beat(16)-70.65%
Revenue beat(2)0
Avg Revenue beat(2)-26.63%
Min Revenue beat(2)-50.87%
Max Revenue beat(2)-2.38%
Revenue beat(4)0
Avg Revenue beat(4)-18.1%
Min Revenue beat(4)-50.87%
Max Revenue beat(4)-2.38%
Revenue beat(8)2
Avg Revenue beat(8)41.02%
Revenue beat(12)6
Avg Revenue beat(12)153.43%
Revenue beat(16)10
Avg Revenue beat(16)195.44%
PT rev (1m)7.53%
PT rev (3m)-7.96%
EPS NQ rev (1m)-2.01%
EPS NQ rev (3m)-15.71%
EPS NY rev (1m)-9.41%
EPS NY rev (3m)-14.87%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.76%
Revenue NY rev (1m)-3.08%
Revenue NY rev (3m)-14.07%
Valuation
Industry RankSector Rank
PE 81.8
Fwd PE 30.36
P/S 2.89
P/FCF N/A
P/OCF N/A
P/B 3.01
P/tB 3.12
EV/EBITDA 201.43
EPS(TTM)0.3
EY1.22%
EPS(NY)0.81
Fwd EY3.29%
FCF(TTM)-54.23
FCFYN/A
OCF(TTM)-54.23
OCFYN/A
SpS8.48
BVpS8.15
TBVpS7.86
PEG (NY)4.76
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -0.4%
ROE -8.2%
ROCE 0.48%
ROIC 0.32%
ROICexc 0.33%
ROICexgc 0.33%
OM 8.37%
PM (TTM) N/A
GM 8.28%
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
ROICexcg growth 3Y-27.55%
ROICexcg 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 RankSector Rank
Debt/Equity 18.73
Debt/FCF N/A
Debt/EBITDA 191.84
Cap/Depr N/A
Cap/Sales N/A
Interest Coverage 0.1
Cash Conversion N/A
Profit Quality N/A
Current Ratio 0.26
Quick Ratio 0.26
Altman-Z 0.14
F-Score1
WACC5.56%
ROIC/WACC0.06
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)-14.29%
EPS 3Y-39.69%
EPS 5Y-19.83%
EPS Q2Q%-215.38%
EPS Next Y17.19%
EPS Next 2Y24.68%
EPS Next 3Y18.65%
EPS Next 5YN/A
Revenue 1Y (TTM)27.85%
Revenue growth 3Y19.75%
Revenue growth 5Y9.67%
Sales Q2Q%-45.45%
Revenue Next Year6.06%
Revenue Next 2Y15.51%
Revenue Next 3Y7.38%
Revenue Next 5YN/A
EBIT growth 1Y26.43%
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-1967.75%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-1967.75%
OCF growth 3YN/A
OCF growth 5YN/A