REDWOOD TRUST INC - RWT 9 1/8 03/01/29 (RWTN) Stock Fundamental Analysis
NYSE:RWTN - New York Stock Exchange, Inc. - US7580758818 - Currency: USD
We assign a fundamental rating of 3 out of 10 to RWTN. RWTN was compared to 64 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. RWTN has a bad profitability rating. Also its financial health evaluation is rather negative. RWTN shows excellent growth, but is valued quite expensive already.
1. Profitability
1.1 Basic Checks
RWTN had positive earnings in the past year.
In the past year RWTN has reported a negative cash flow from operations.
The reported net income has been mixed in the past 5 years: RWTN reported negative net income in multiple years.
In the past 5 years RWTN always reported negative operating cash flow.
1.2 Ratios
RWTN's Return On Assets of 0.38% is in line compared to the rest of the industry. RWTN outperforms 43.75% of its industry peers.
Looking at the Return On Equity, with a value of 5.77%, RWTN is in line with its industry, outperforming 51.56% of the companies in the same industry.
With a Return On Invested Capital value of 0.46%, RWTN perfoms like the industry average, outperforming 51.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.38% | ||
| ROE | 5.77% | ||
| ROIC | 0.46% |
ROA(3y)0.24%
ROA(5y)-0.8%
ROE(3y)1.91%
ROE(5y)-7.56%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
RWTN has a Profit Margin (7.52%) which is comparable to the rest of the industry.
RWTN's Operating Margin of 11.30% is in line compared to the rest of the industry. RWTN outperforms 51.56% of its industry peers.
In the last couple of years the Operating Margin of RWTN has declined.
RWTN's Gross Margin of 15.60% is on the low side compared to the rest of the industry. RWTN is outperformed by 76.56% of its industry peers.
RWTN's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.3% | ||
| PM (TTM) | 7.52% | ||
| GM | 15.6% |
OM growth 3Y-20.37%
OM growth 5Y-28.64%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-11.65%
GM growth 5Y-16.54%
2. Health
2.1 Basic Checks
RWTN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for RWTN has been increased compared to 1 year ago.
Compared to 5 years ago, RWTN has more shares outstanding
Compared to 1 year ago, RWTN has an improved debt to assets ratio.
2.2 Solvency
RWTN has an Altman-Z score of 0.16. This is a bad value and indicates that RWTN is not financially healthy and even has some risk of bankruptcy.
RWTN has a better Altman-Z score (0.16) than 73.44% of its industry peers.
A Debt/Equity ratio of 13.75 is on the high side and indicates that RWTN has dependencies on debt financing.
RWTN has a Debt to Equity ratio of 13.75. This is amonst the worse of the industry: RWTN underperforms 98.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 13.75 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.16 |
ROIC/WACC0.09
WACC5.07%
2.3 Liquidity
RWTN has a Current Ratio of 0.20. This is a bad value and indicates that RWTN is not financially healthy enough and could expect problems in meeting its short term obligations.
RWTN has a Current ratio of 0.20. This is comparable to the rest of the industry: RWTN outperforms 51.56% of its industry peers.
A Quick Ratio of 0.20 indicates that RWTN may have some problems paying its short term obligations.
RWTN has a Quick ratio of 0.20. This is comparable to the rest of the industry: RWTN outperforms 51.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.2 | ||
| Quick Ratio | 0.2 |
3. Growth
3.1 Past
RWTN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 251.72%, which is quite impressive.
RWTN shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -38.30% yearly.
Looking at the last year, RWTN shows a very strong growth in Revenue. The Revenue has grown by 32.69%.
RWTN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.94% yearly.
EPS 1Y (TTM)251.72%
EPS 3Y-57.4%
EPS 5Y-38.3%
EPS Q2Q%100%
Revenue 1Y (TTM)32.69%
Revenue growth 3Y9.92%
Revenue growth 5Y14.94%
Sales Q2Q%27.5%
3.2 Future
The Earnings Per Share is expected to grow by 74.59% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 11.36% on average over the next years. This is quite good.
EPS Next Y252.87%
EPS Next 2Y128.33%
EPS Next 3Y74.59%
EPS Next 5YN/A
Revenue Next Year3.83%
Revenue Next 2Y10.63%
Revenue Next 3Y11.36%
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 estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 57.20, which means the current valuation is very expensive for RWTN.
Based on the Price/Earnings ratio, RWTN is valued a bit more expensive than 65.63% of the companies in the same industry.
RWTN's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 28.28.
RWTN is valuated quite expensively with a Price/Forward Earnings ratio of 30.17.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RWTN indicates a rather expensive valuation: RWTN more expensive than 82.81% of the companies listed in the same industry.
RWTN is valuated cheaply when we compare the Price/Forward Earnings ratio to 91.29, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 57.2 | ||
| Fwd PE | 30.17 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RWTN is valued a bit cheaper than the industry average as 73.44% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 149.98 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
RWTN's earnings are expected to grow with 74.59% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.23
PEG (5Y)N/A
EPS Next 2Y128.33%
EPS Next 3Y74.59%
5. Dividend
5.1 Amount
RWTN has a Yearly Dividend Yield of 10.60%, which is a nice return.
Compared to an average industry Dividend Yield of 13.38, RWTN is paying slightly less dividend.
RWTN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.6% |
5.2 History
The dividend of RWTN decreases each year by -8.56%.
RWTN does not have a reliable dividend history as it only pays dividend since a couple or years.
Dividend Growth(5Y)-8.56%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
RWTN pays out 137.02% of its income as dividend. This is not a sustainable payout ratio.
DP137.02%
EPS Next 2Y128.33%
EPS Next 3Y74.59%
REDWOOD TRUST INC - RWT 9 1/8 03/01/29
NYSE:RWTN (1/30/2025, 11:29:58 AM)
25.17
-0.02 (-0.08%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners79.44%
Inst Owner ChangeN/A
Ins Owners1.14%
Ins Owner ChangeN/A
Market Cap3.33B
Analysts77.14
Price Target31.64 (25.71%)
Short Float %0%
Short Ratio0.24
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.6% |
Yearly Dividend0.76
Dividend Growth(5Y)-8.56%
DP137.02%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)11.58%
Min EPS beat(2)-2.9%
Max EPS beat(2)26.06%
EPS beat(4)1
Avg EPS beat(4)-13.54%
Min EPS beat(4)-63.54%
Max EPS beat(4)26.06%
EPS beat(8)1
Avg EPS beat(8)-46.51%
EPS beat(12)2
Avg EPS beat(12)-81.33%
EPS beat(16)6
Avg EPS beat(16)-45.5%
Revenue beat(2)0
Avg Revenue beat(2)-14.82%
Min Revenue beat(2)-15.25%
Max Revenue beat(2)-14.39%
Revenue beat(4)1
Avg Revenue beat(4)-13.48%
Min Revenue beat(4)-27.22%
Max Revenue beat(4)2.94%
Revenue beat(8)2
Avg Revenue beat(8)25.27%
Revenue beat(12)6
Avg Revenue beat(12)117.94%
Revenue beat(16)10
Avg Revenue beat(16)214.23%
PT rev (1m)4.94%
PT rev (3m)10.93%
EPS NQ rev (1m)0%
EPS NQ rev (3m)11.22%
EPS NY rev (1m)0%
EPS NY rev (3m)2.19%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-5.62%
Revenue NY rev (1m)-0.61%
Revenue NY rev (3m)-4.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 57.2 | ||
| Fwd PE | 30.17 | ||
| P/S | 3.54 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 2.72 | ||
| P/tB | 2.83 | ||
| EV/EBITDA | 149.98 |
EPS(TTM)0.44
EY1.75%
EPS(NY)0.83
Fwd EY3.31%
FCF(TTM)-46.55
FCFYN/A
OCF(TTM)-46.55
OCFYN/A
SpS7.1
BVpS9.25
TBVpS8.91
PEG (NY)0.23
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.38% | ||
| ROE | 5.77% | ||
| ROCE | 0.66% | ||
| ROIC | 0.46% | ||
| ROICexc | 0.47% | ||
| ROICexgc | 0.47% | ||
| OM | 11.3% | ||
| PM (TTM) | 7.52% | ||
| GM | 15.6% | ||
| FCFM | N/A |
ROA(3y)0.24%
ROA(5y)-0.8%
ROE(3y)1.91%
ROE(5y)-7.56%
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
ROICexcg growth 3Y-22.41%
ROICexcg growth 5Y-20.96%
ROICexc growth 3Y-22.4%
ROICexc growth 5Y-20.92%
OM growth 3Y-20.37%
OM growth 5Y-28.64%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-11.65%
GM growth 5Y-16.54%
F-Score4
Asset Turnover0.05
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 13.75 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 141.28 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 0.12 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.2 | ||
| Quick Ratio | 0.2 | ||
| Altman-Z | 0.16 |
F-Score4
WACC5.07%
ROIC/WACC0.09
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)251.72%
EPS 3Y-57.4%
EPS 5Y-38.3%
EPS Q2Q%100%
EPS Next Y252.87%
EPS Next 2Y128.33%
EPS Next 3Y74.59%
EPS Next 5YN/A
Revenue 1Y (TTM)32.69%
Revenue growth 3Y9.92%
Revenue growth 5Y14.94%
Sales Q2Q%27.5%
Revenue Next Year3.83%
Revenue Next 2Y10.63%
Revenue Next 3Y11.36%
Revenue Next 5YN/A
EBIT growth 1Y977.66%
EBIT growth 3Y-12.47%
EBIT growth 5Y-17.98%
EBIT Next Year53.15%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-201.26%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-201.26%
OCF growth 3YN/A
OCF growth 5YN/A