REDWOOD TRUST INC (RWT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RWT - US7580754023 - REIT
5.53 USD
0 (0%)
5.53 USD
0 (0%)
RWT gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 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 growing strongly while it is still valued neutral. This is a good combination!
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
With a Return On Assets value of -0.48%, RWT is not doing good in the industry: 72.06% of the companies in the same industry are doing better.
With a Return On Equity value of -10.92%, RWT is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
| 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.
In the last couple of years the Operating Margin of RWT has declined.
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.
In the last couple of years the Gross Margin of RWT has declined.
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
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 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.
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
WACC4.57%
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.
RWT has a Quick 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.
The Quick ratio of RWT (0.17) is comparable to the rest of the industry.
| 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.
Measured over the past years, RWT 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, RWT shows a very strong growth in Revenue. 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.
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
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
A Price/Earnings ratio of 8.51 indicates a reasonable valuation of RWT.
76.47% of the companies in the same industry are more expensive than RWT, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.51. RWT is valued rather cheaply when compared to this.
RWT is valuated cheaply with a Price/Forward Earnings ratio of 6.24.
Based on the Price/Forward Earnings ratio, RWT is valued cheaper than 89.71% of the companies in the same industry.
RWT is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.13, 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
RWT has a Yearly Dividend Yield of 9.24%, which is a nice return.
Compared to an average industry Dividend Yield of 10.99, RWT is paying slightly less dividend.
RWT's Dividend Yield is rather good when compared to the S&P500 average which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.24% |
5.2 History
The dividend of RWT decreases each year by -10.27%.
RWT has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-10.27%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
The earnings of RWT are negative and hence is the payout ratio. RWT will probably not be able to sustain this dividend level.
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-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)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.
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.