REDWOOD TRUST INC (RWT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RWT - US7580754023 - REIT
5.635 USD
-0.02 (-0.27%)
Overall RWT gets a fundamental rating of 4 out of 10. We evaluated RWT against 68 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. RWT has a bad profitability rating. Also its financial health evaluation is rather negative. RWT is not priced too expensively while it is growing strongly. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
RWT had positive earnings in the past year.
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.
Looking at the Return On Equity, with a value of -10.92%, RWT is doing worse than 75.00% of the companies in the same industry.
| 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
RWT's Profit Margin has declined in the last couple of years.
RWT's Operating Margin has declined in the last couple of years.
RWT has a worse Gross Margin (6.58%) than 86.76% of its industry peers.
RWT's Gross Margin has declined in the last couple of years.
RWT does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
| 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.
The number of shares outstanding for RWT has been increased compared to 1 year ago.
The number of shares outstanding for RWT has been increased compared to 5 years ago.
The debt/assets ratio for RWT is higher compared to a year ago.
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's Altman-Z score of 0.01 is fine compared to the rest of the industry. RWT outperforms 61.76% of its industry peers.
A Debt/Equity ratio of 21.20 is on the high side and indicates that RWT has dependencies on debt financing.
With a Debt to Equity ratio value of 21.20, RWT is not doing good in the industry: 95.59% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 21.2 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.01 |
ROIC/WACCN/A
WACC4.58%
2.3 Liquidity
RWT has a Current Ratio of 0.17. This is a bad value and indicates that RWT is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.17, RWT is in line with its industry, outperforming 51.47% of the companies in the same industry.
A Quick Ratio of 0.17 indicates that RWT may have some problems paying its short term obligations.
RWT has a Quick ratio (0.17) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.17 | ||
| Quick Ratio | 0.17 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 47.73% over the past year.
The earnings per share for RWT have been decreasing by -19.83% on average. This is quite bad
The Revenue has grown by 21.58% in the past year. This is a very strong growth!
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
The Earnings Per Share is expected to grow by 21.24% on average over the next years. This is a very strong growth
RWT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.80% yearly.
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
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
RWT is valuated reasonably with a Price/Earnings ratio of 8.67.
75.00% of the companies in the same industry are more expensive than RWT, based on the Price/Earnings ratio.
RWT's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.25.
A Price/Forward Earnings ratio of 6.36 indicates a rather cheap valuation of RWT.
RWT's Price/Forward Earnings ratio is rather cheap when compared to the industry. RWT is cheaper than 89.71% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.98, RWT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.67 | ||
| Fwd PE | 6.36 |
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 13.04%, RWT is a good candidate for dividend investing.
RWT's Dividend Yield is a higher than the industry average which is at 10.90.
RWT's Dividend Yield is rather good when compared to the S&P500 average which is at 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 13.04% |
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%
NYSE:RWT (1/13/2026, 12:27:02 PM)
5.635
-0.02 (-0.27%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners80.69%
Inst Owner Change0.01%
Ins Owners1.35%
Ins Owner Change3.47%
Market Cap713.84M
Revenue(TTM)1.14B
Net Income(TTM)-109.14M
Analysts73.85
Price Target6.91 (22.63%)
Short Float %4.91%
Short Ratio4.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 13.04% |
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)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)0%
EPS NQ rev (3m)-3.28%
EPS NY rev (1m)0%
EPS NY rev (3m)26.63%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.7%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-16.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.67 | ||
| Fwd PE | 6.36 | ||
| P/S | 0.62 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.71 | ||
| P/tB | 0.74 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.65
EY11.54%
EPS(NY)0.89
Fwd EY15.72%
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
WACC4.58%
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 4 / 10 to RWT.
Can you provide the valuation status for REDWOOD TRUST INC?
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 financial health of REDWOOD TRUST INC (RWT) stock?
The financial health rating of REDWOOD TRUST INC (RWT) is 1 / 10.
What is the earnings growth outlook for REDWOOD TRUST INC?
The Earnings per Share (EPS) of REDWOOD TRUST INC (RWT) is expected to grow by 48.39% in the next year.