REDWOOD TRUST INC - RWT 9 09/01/29 (RWTO) Stock Fundamental Analysis
USA - NYSE:RWTO - US7580758735
24.0615 USD
+0 (+0.01%)
Taking everything into account, RWTO scores 2 out of 10 in our fundamental rating. RWTO was compared to 62 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. RWTO may be in some trouble as it scores bad on both profitability and health. RWTO is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
RWTO had positive earnings in the past year.
RWTO had a negative operating cash flow in the past year.
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.
1.2 Ratios
RWTO has a Return On Assets of -0.40%. This is in the lower half of the industry: RWTO underperforms 68.66% of its industry peers.
RWTO has a Return On Equity of -8.20%. This is in the lower half of the industry: RWTO underperforms 76.12% of its industry peers.
Looking at the Return On Invested Capital, with a value of 0.32%, RWTO is in line with its industry, outperforming 53.73% of the companies in the same industry.
| Industry Rank | Sector 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
1.3 Margins
In the last couple of years the Profit Margin of RWTO has declined.
Looking at the Operating Margin, with a value of 8.37%, RWTO is in line with its industry, 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.
RWTO's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector 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%
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.
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 0.14, we must say that RWTO is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of RWTO (0.14) is better than 73.13% of its industry peers.
A Debt/Equity ratio of 18.73 is on the high side and indicates that RWTO has dependencies on debt financing.
RWTO has a Debt to Equity ratio of 18.73. This is amonst the worse of the industry: RWTO underperforms 97.01% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 18.73 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.14 |
ROIC/WACC0.06
WACC5.64%
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.
With a Current ratio value of 0.26, RWTO perfoms like the industry average, outperforming 56.72% of the companies in the same industry.
A Quick Ratio of 0.26 indicates that RWTO may have some problems paying its short term obligations.
With a Quick ratio value of 0.26, RWTO perfoms like the industry average, outperforming 56.72% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.26 | ||
| Quick Ratio | 0.26 |
3. Growth
3.1 Past
The earnings per share for RWTO have decreased strongly by -14.29% in the last year.
Measured over the past years, RWTO shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -19.83% on average per year.
Looking at the last year, RWTO shows a very strong growth in Revenue. The Revenue has grown by 27.85%.
RWTO shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.67% yearly.
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
Based on estimates for the next years, RWTO will show a quite strong growth in Earnings Per Share. The EPS will grow by 18.65% on average per year.
The Revenue is expected to grow by 7.38% on average over the next years.
EPS Next Y29.36%
EPS Next 2Y30.89%
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
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 80.20, the valuation of RWTO can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of RWTO indicates a slightly more expensive valuation: RWTO is more expensive than 68.66% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.30, RWTO is valued quite expensively.
Based on the Price/Forward Earnings ratio of 27.01, the valuation of RWTO can be described as expensive.
RWTO's Price/Forward Earnings ratio is rather expensive when compared to the industry. RWTO is more expensive than 80.60% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.73. RWTO is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 80.21 | ||
| Fwd PE | 27.01 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RWTO is valued a bit cheaper than the industry average as 70.15% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 200.82 |
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.
RWTO's earnings are expected to grow with 18.65% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.73
PEG (5Y)N/A
EPS Next 2Y30.89%
EPS Next 3Y18.65%
5. Dividend
5.1 Amount
RWTO has a Yearly Dividend Yield of 9.48%, which is a nice return.
RWTO's Dividend Yield is slightly below the industry average, which is at 11.50.
Compared to an average S&P500 Dividend Yield of 2.38, RWTO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.48% |
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
The earnings of RWTO are negative and hence is the payout ratio. RWTO will probably not be able to sustain this dividend level.
DP-123.16%
EPS Next 2Y30.89%
EPS Next 3Y18.65%
REDWOOD TRUST INC - RWT 9 09/01/29
NYSE:RWTO (9/12/2025, 8:15:21 PM)
24.0615
+0 (+0.01%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners82.1%
Inst Owner ChangeN/A
Ins Owners1.34%
Ins Owner ChangeN/A
Market Cap3.11B
Analysts73.85
Price Target27.54 (14.46%)
Short Float %0%
Short Ratio0.19
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.48% |
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)-7.05%
PT rev (3m)-13.28%
EPS NQ rev (1m)-9.87%
EPS NQ rev (3m)-13.98%
EPS NY rev (1m)-5.2%
EPS NY rev (3m)-6.03%
Revenue NQ rev (1m)-0.9%
Revenue NQ rev (3m)1.76%
Revenue NY rev (1m)-14.36%
Revenue NY rev (3m)-14.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 80.21 | ||
| Fwd PE | 27.01 | ||
| P/S | 2.84 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 2.95 | ||
| P/tB | 3.06 | ||
| EV/EBITDA | 200.82 |
EPS(TTM)0.3
EY1.25%
EPS(NY)0.89
Fwd EY3.7%
FCF(TTM)-54.23
FCFYN/A
OCF(TTM)-54.23
OCFYN/A
SpS8.48
BVpS8.15
TBVpS7.86
PEG (NY)2.73
PEG (5Y)N/A
Profitability
| Industry Rank | Sector 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 Rank | Sector 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
WACC5.64%
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 Y29.36%
EPS Next 2Y30.89%
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