REDWOOD TRUST INC (RWT) Stock Fundamental Analysis
USA - NYSE:RWT - US7580754023 - REIT
5.08 USD
+0.01 (+0.2%)
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. RWT has a bad profitability rating. Also its financial health evaluation is rather negative. RWT is evaluated to be cheap and growing strongly. This does not happen too often!
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.
In the past 5 years RWT always reported negative operating cash flow.
1.2 Ratios
With a Return On Assets value of -0.40%, RWT is not doing good in the industry: 72.06% of the companies in the same industry are doing better.
Looking at the Return On Equity, with a value of -8.20%, RWT is doing worse than 75.00% of the companies in the same industry.
With a Return On Invested Capital value of 0.32%, RWT is not doing good in the industry: 60.29% of the companies in the same industry are doing better.
| 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 RWT has declined.
With a Operating Margin value of 8.37%, RWT perfoms like the industry average, outperforming 41.18% of the companies in the same industry.
In the last couple of years the Operating Margin of RWT has declined.
RWT's Gross Margin of 8.28% is on the low side compared to the rest of the industry. RWT is outperformed by 86.76% of its industry peers.
In the last couple of years the Gross Margin of RWT has declined.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), RWT is destroying value.
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.
Compared to 1 year ago, RWT has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.07, we must say that RWT is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of RWT (0.07) is better than 69.12% of its industry peers.
A Debt/Equity ratio of 18.73 is on the high side and indicates that RWT has dependencies on debt financing.
The Debt to Equity ratio of RWT (18.73) is worse than 95.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 18.73 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.07 |
ROIC/WACC0.07
WACC4.54%
2.3 Liquidity
A Current Ratio of 0.26 indicates that RWT may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.26, RWT is in line with its industry, outperforming 57.35% of the companies in the same industry.
A Quick Ratio of 0.26 indicates that RWT may have some problems paying its short term obligations.
RWT has a Quick ratio (0.26) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.26 | ||
| Quick Ratio | 0.26 |
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, 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 29.69%.
RWT 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)29.69%
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 22.00% yearly.
The Revenue is expected to grow by 8.39% on average over the next years. This is quite good.
EPS Next Y29.49%
EPS Next 2Y26.8%
EPS Next 3Y22%
EPS Next 5YN/A
Revenue Next Year2.49%
Revenue Next 2Y15.52%
Revenue Next 3Y8.39%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
RWT is valuated cheaply with a Price/Earnings ratio of 7.82.
Based on the Price/Earnings ratio, RWT is valued a bit cheaper than 79.41% of the companies in the same industry.
RWT's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.47.
RWT is valuated cheaply with a Price/Forward Earnings ratio of 6.08.
RWT's Price/Forward Earnings ratio is rather cheap when compared to the industry. RWT is cheaper than 88.24% of the companies in the same industry.
RWT's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 35.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.82 | ||
| Fwd PE | 6.08 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RWT is valued a bit cheaper than 69.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 176.98 |
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 22.00% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.27
PEG (5Y)N/A
EPS Next 2Y26.8%
EPS Next 3Y22%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 13.85%, RWT is a good candidate for dividend investing.
RWT's Dividend Yield is a higher than the industry average which is at 12.03.
RWT's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 13.85% |
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
RWT has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-123.16%
EPS Next 2Y26.8%
EPS Next 3Y22%
NYSE:RWT (11/19/2025, 2:58:30 PM)
5.08
+0.01 (+0.2%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners80.89%
Inst Owner Change-5.8%
Ins Owners1.36%
Ins Owner Change2.13%
Market Cap656.44M
Revenue(TTM)987.30M
Net Income(TTM)-86.34M
Analysts73.85
Price Target7.11 (39.96%)
Short Float %4.24%
Short Ratio5.18
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 13.85% |
Yearly Dividend0.76
Dividend Growth(5Y)-10.27%
DP-123.16%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-9.27%
Min EPS beat(2)-16.87%
Max EPS beat(2)-1.67%
EPS beat(4)1
Avg EPS beat(4)-3.59%
Min EPS beat(4)-21.87%
Max EPS beat(4)26.06%
EPS beat(8)1
Avg EPS beat(8)-17.2%
EPS beat(12)1
Avg EPS beat(12)-75.03%
EPS beat(16)3
Avg EPS beat(16)-59.39%
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)1
Avg Revenue beat(8)-18.86%
Revenue beat(12)3
Avg Revenue beat(12)39.43%
Revenue beat(16)7
Avg Revenue beat(16)109.95%
PT rev (1m)0%
PT rev (3m)0.91%
EPS NQ rev (1m)2.25%
EPS NQ rev (3m)-7.85%
EPS NY rev (1m)10.5%
EPS NY rev (3m)-5.1%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.9%
Revenue NY rev (1m)-3.37%
Revenue NY rev (3m)-17.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.82 | ||
| Fwd PE | 6.08 | ||
| P/S | 0.6 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.62 | ||
| P/tB | 0.65 | ||
| EV/EBITDA | 176.98 |
EPS(TTM)0.65
EY12.8%
EPS(NY)0.84
Fwd EY16.46%
FCF(TTM)-54.23
FCFYN/A
OCF(TTM)-54.23
OCFYN/A
SpS8.48
BVpS8.15
TBVpS7.86
PEG (NY)0.27
PEG (5Y)N/A
Graham Number10.92
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
ROICexgc growth 3Y-27.55%
ROICexgc 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 | 0.07 |
F-Score1
WACC4.54%
ROIC/WACC0.07
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 Y29.49%
EPS Next 2Y26.8%
EPS Next 3Y22%
EPS Next 5YN/A
Revenue 1Y (TTM)29.69%
Revenue growth 3Y19.75%
Revenue growth 5Y9.67%
Sales Q2Q%-41.18%
Revenue Next Year2.49%
Revenue Next 2Y15.52%
Revenue Next 3Y8.39%
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
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 7 / 10 to REDWOOD TRUST INC (RWT). This can be considered as Undervalued.
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 29.49% in the next year.
How sustainable is the dividend of REDWOOD TRUST INC (RWT) stock?
The dividend rating of REDWOOD TRUST INC (RWT) is 5 / 10 and the dividend payout ratio is -123.16%.