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

USA • New York Stock Exchange • NYSE:RWTO • US7580758735

25.24 USD
+0.25 (+1%)
Last: Feb 6, 2026, 08:05 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

3

We assign a fundamental rating of 3 out of 10 to RWTO. RWTO was compared to 70 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 shows excellent growth, but is valued quite expensive already.


Dividend Valuation Growth Profitability Health

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.
  • 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 has a Return On Assets of -0.48%. This is in the lower half of the industry: RWTO underperforms 74.29% of its industry peers.
  • With a Return On Equity value of -10.92%, RWTO is not doing good in the industry: 77.14% of the companies in the same industry are doing better.
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

  • RWTO's Profit Margin has declined in the last couple of years.
  • RWTO's Operating Margin has declined in the last couple of years.
  • RWTO has a Gross Margin of 6.58%. This is amonst the worse of the industry: RWTO underperforms 88.57% 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 6.58%
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. Health

2.1 Basic Checks

  • RWTO does not have a ROIC to compare to the WACC, probably because it is not profitable.
  • RWTO has more shares outstanding than it did 1 year ago.
  • RWTO has more shares outstanding than it did 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 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

  • Based on the Altman-Z score of 0.08, we must say that RWTO is in the distress zone and has some risk of bankruptcy.
  • The Altman-Z score of RWTO (0.08) is better than 71.43% of its industry peers.
  • RWTO has a Debt/Equity ratio of 21.20. This is a high value indicating a heavy dependency on external financing.
  • Looking at the Debt to Equity ratio, with a value of 21.20, RWTO is doing worse than 97.14% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 21.2
Debt/FCF N/A
Altman-Z 0.08
ROIC/WACCN/A
WACC5.42%
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

  • RWTO has a Current Ratio of 0.17. 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's Current ratio of 0.17 is in line compared to the rest of the industry. RWTO outperforms 50.00% of its industry peers.
  • RWTO has a Quick Ratio of 0.17. This is a bad value and indicates that RWTO is not financially healthy enough and could expect problems in meeting 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

8

3. Growth

3.1 Past

  • The Earnings Per Share has grown by an impressive 47.73% 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 -19.83% on average per year.
  • RWTO shows a strong growth in Revenue. In the last year, the Revenue has grown by 21.58%.
  • 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)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

  • Based on estimates for the next years, RWTO will show a very strong growth in Earnings Per Share. The EPS will grow by 21.24% on average per year.
  • Based on estimates for the next years, RWTO will show a quite strong growth in Revenue. The Revenue will grow by 12.80% on average per year.
EPS Next Y48.39%
EPS Next 2Y30.74%
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

  • 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.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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 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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Find the best growth stocksShow best growing peers

2

4. Valuation

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 38.83, the valuation of RWTO can be described as expensive.
  • Based on the Price/Earnings ratio, RWTO is valued a bit more expensive than 70.00% of the companies in the same industry.
  • The average S&P500 Price/Earnings ratio is at 27.93. RWTO is valued slightly more expensive when compared to this.
  • The Price/Forward Earnings ratio is 28.40, which means the current valuation is very expensive for RWTO.
  • Based on the Price/Forward Earnings ratio, RWTO is valued expensively inside the industry as 82.86% of the companies are valued cheaper.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 27.77, RWTO is valued at the same level.
Industry RankSector Rank
PE 38.83
Fwd PE 28.4
RWTO Price Earnings VS Forward Price EarningsRWTO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

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

  • RWTO's 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)0.8
PEG (5Y)N/A
EPS Next 2Y30.74%
EPS Next 3Y21.24%

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

3

5. Dividend

5.1 Amount

  • With a Yearly Dividend Yield of 12.95%, RWTO is a good candidate for dividend investing.
  • Compared to an average industry Dividend Yield of 12.60, RWTO pays a bit more dividend than its industry peers.
  • Compared to an average S&P500 Dividend Yield of 1.81, RWTO pays a better dividend.
Industry RankSector Rank
Dividend Yield 12.95%

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 2Y30.74%
EPS Next 3Y21.24%
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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Find the best dividend stocksShow peers with best dividend

REDWOOD TRUST INC - RWT 9 09/01/29

NYSE:RWTO (2/6/2026, 8:05:07 PM)

25.24

+0.25 (+1%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)10-29
Earnings (Next)02-11
Inst Owners80.69%
Inst Owner ChangeN/A
Ins Owners1.35%
Ins Owner ChangeN/A
Market Cap3.20B
Revenue(TTM)1.14B
Net Income(TTM)-109.14M
Analysts73.85
Price Target30.53 (20.96%)
Short Float %0.01%
Short Ratio1.14
Dividend
Industry RankSector Rank
Dividend Yield 12.95%
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)2.64%
PT rev (3m)-4.48%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.87%
EPS NY rev (1m)0%
EPS NY rev (3m)14.6%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.22%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-13.5%
Valuation
Industry RankSector Rank
PE 38.83
Fwd PE 28.4
P/S 2.8
P/FCF N/A
P/OCF N/A
P/B 3.2
P/tB 3.32
EV/EBITDA N/A
EPS(TTM)0.65
EY2.58%
EPS(NY)0.89
Fwd EY3.52%
FCF(TTM)-59.9
FCFYN/A
OCF(TTM)-59.9
OCFYN/A
SpS9.02
BVpS7.89
TBVpS7.6
PEG (NY)0.8
PEG (5Y)N/A
Graham Number10.74
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 0.08
F-Score1
WACC5.42%
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 2Y30.74%
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 for 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 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 38.83 and the Price/Book (PB) ratio is 3.2.


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 48.39% in the next year.