REDWOOD TRUST INC (RWT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RWT - US7580754023 - REIT
5.53 USD
0 (0%)
5.51 USD
-0.02 (-0.36%)
We assign a fundamental rating of 3 out of 10 to RWT. RWT was compared to 68 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. Both the profitability and financial health of RWT have multiple concerns. RWT is not priced too expensively while it is growing strongly. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
In the past year RWT was profitable.
In the past year RWT has reported a negative cash flow from operations.
In multiple years RWT reported negative net income over the last 5 years.
RWT had a negative operating cash flow in each of the past 5 years.
1.2 Ratios
RWT's Return On Assets of -0.48% is on the low side compared to the rest of the industry. RWT is outperformed by 72.06% of its industry peers.
RWT has a worse Return On Equity (-10.92%) than 75.00% of its industry peers.
| 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 RWT has declined.
RWT's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 6.58%, RWT is doing worse than 86.76% of the companies in the same industry.
RWT's Gross Margin has declined in the last couple of years.
The Profit Margin and Operating Margin are not available for RWT 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
RWT does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, RWT has more shares outstanding
RWT has more shares outstanding than it did 5 years ago.
RWT has a worse debt/assets ratio than last year.
2.2 Solvency
RWT has an Altman-Z score of 0.01. This is a bad value and indicates that RWT is not financially healthy and even has some risk of bankruptcy.
RWT has a Altman-Z score of 0.01. This is in the better half of the industry: RWT outperforms 60.29% of its industry peers.
RWT has a Debt/Equity ratio of 21.20. This is a high value indicating a heavy dependency on external financing.
RWT's Debt to Equity ratio of 21.20 is on the low side compared to the rest of the industry. RWT is outperformed by 95.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 21.2 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.01 |
ROIC/WACCN/A
WACC4.57%
2.3 Liquidity
A Current Ratio of 0.17 indicates that RWT may have some problems paying its short term obligations.
RWT has a Current ratio (0.17) which is in line with its industry peers.
A Quick Ratio of 0.17 indicates that RWT may have some problems paying its short term obligations.
RWT has a Quick ratio of 0.17. This is comparable to the rest of the industry: RWT outperforms 51.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.17 | ||
| Quick Ratio | 0.17 |
3. Growth
3.1 Past
RWT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 47.73%, which is quite impressive.
RWT shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -19.83% yearly.
RWT shows a strong growth in Revenue. In the last year, the Revenue has grown by 21.58%.
The Revenue has been growing by 9.67% on average over the past years. This is quite good.
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
RWT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.24% yearly.
Based on estimates for the next years, RWT 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 2Y30.52%
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
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 8.51, which indicates a very decent valuation of RWT.
Compared to the rest of the industry, the Price/Earnings ratio of RWT indicates a somewhat cheap valuation: RWT is cheaper than 77.94% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.77, RWT is valued rather cheaply.
The Price/Forward Earnings ratio is 6.24, which indicates a rather cheap valuation of RWT.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RWT indicates a rather cheap valuation: RWT is cheaper than 89.71% of the companies listed in the same industry.
RWT is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.35, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.51 | ||
| Fwd PE | 6.24 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
RWT's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
RWT's earnings are expected to grow with 21.24% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.18
PEG (5Y)N/A
EPS Next 2Y30.52%
EPS Next 3Y21.24%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 9.24%, RWT is a good candidate for dividend investing.
RWT's Dividend Yield is slightly below the industry average, which is at 10.99.
Compared to an average S&P500 Dividend Yield of 2.00, RWT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.24% |
5.2 History
The dividend of RWT decreases each year by -10.27%.
RWT has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-10.27%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
RWT 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%
5.53
0 (0%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners80.56%
Inst Owner Change-5.8%
Ins Owners1.33%
Ins Owner Change0%
Market Cap700.54M
Revenue(TTM)1.14B
Net Income(TTM)-109.14M
Analysts73.85
Price Target6.91 (24.95%)
Short Float %4.91%
Short Ratio4.55
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-Date
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)2
Avg Revenue beat(12)7.68%
Revenue beat(16)6
Avg Revenue beat(16)81.58%
PT rev (1m)0%
PT rev (3m)-2.74%
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 | 8.51 | ||
| Fwd PE | 6.24 | ||
| P/S | 0.61 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.7 | ||
| P/tB | 0.73 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.65
EY11.75%
EPS(NY)0.89
Fwd EY16.02%
FCF(TTM)-59.9
FCFYN/A
OCF(TTM)-59.9
OCFYN/A
SpS9.02
BVpS7.89
TBVpS7.6
PEG (NY)0.18
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 | 0.01 |
F-Score1
WACC4.57%
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 FAQ
What is the ChartMill fundamental rating of REDWOOD TRUST INC (RWT) stock?
ChartMill assigns a fundamental rating of 3 / 10 to RWT.
What is the valuation status for RWT stock?
ChartMill assigns a valuation rating of 6 / 10 to REDWOOD TRUST INC (RWT). This can be considered as Fairly Valued.
What is the profitability of RWT stock?
REDWOOD TRUST INC (RWT) has a profitability rating of 1 / 10.
What is the expected EPS growth for REDWOOD TRUST INC (RWT) stock?
The Earnings per Share (EPS) of REDWOOD TRUST INC (RWT) is expected to grow by 48.39% in the next year.
How sustainable is the dividend of REDWOOD TRUST INC (RWT) stock?
The dividend rating of REDWOOD TRUST INC (RWT) is 4 / 10 and the dividend payout ratio is -98.1%.