REDWOOD TRUST INC - RWT 9 1/8 03/01/29 (RWTN) Stock Fundamental Analysis
NYSE:RWTN - New York Stock Exchange, Inc. - US7580758818 - Currency: USD
RWTN gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 65 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. RWTN may be in some trouble as it scores bad on both profitability and health. 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.
RWTN had a negative operating cash flow in each of the past 5 years.
1.2 Ratios
RWTN has a Return On Assets of 0.23%. This is in the lower half of the industry: RWTN underperforms 60.00% of its industry peers.
RWTN's Return On Equity of 3.59% is in line compared to the rest of the industry. RWTN outperforms 44.62% of its industry peers.
Looking at the Return On Invested Capital, with a value of 0.42%, RWTN is in line with its industry, outperforming 44.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.23% | ||
| ROE | 3.59% | ||
| ROIC | 0.42% |
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
RWTN has a Profit Margin (4.31%) which is in line with its industry peers.
RWTN's Profit Margin has declined in the last couple of years.
RWTN's Operating Margin of 10.26% is in line compared to the rest of the industry. RWTN outperforms 47.69% of its industry peers.
In the last couple of years the Operating Margin of RWTN has declined.
RWTN's Gross Margin of 12.54% is on the low side compared to the rest of the industry. RWTN is outperformed by 80.00% of its industry peers.
RWTN's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.26% | ||
| PM (TTM) | 4.31% | ||
| GM | 12.54% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so RWTN is destroying value.
The number of shares outstanding for RWTN has been increased compared to 1 year ago.
The number of shares outstanding for RWTN has been increased compared to 5 years ago.
Compared to 1 year ago, RWTN has a worse debt to assets ratio.
2.2 Solvency
RWTN has an Altman-Z score of 0.19. This is a bad value and indicates that RWTN is not financially healthy and even has some risk of bankruptcy.
RWTN has a Altman-Z score of 0.19. This is in the better half of the industry: RWTN outperforms 80.00% of its industry peers.
RWTN has a Debt/Equity ratio of 14.09. This is a high value indicating a heavy dependency on external financing.
RWTN has a Debt to Equity ratio of 14.09. This is amonst the worse of the industry: RWTN underperforms 96.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 14.09 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.19 |
ROIC/WACC0.07
WACC5.6%
2.3 Liquidity
RWTN has a Current Ratio of 0.25. 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 0.25. This is in the better half of the industry: RWTN outperforms 61.54% of its industry peers.
A Quick Ratio of 0.25 indicates that RWTN may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.25, RWTN is in the better half of the industry, outperforming 61.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.25 | ||
| Quick Ratio | 0.25 |
3. Growth
3.1 Past
RWTN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 225.00%, which is quite impressive.
Measured over the past years, RWTN shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -19.83% on average per year.
The Revenue has grown by 29.98% in the past year. This is a very strong growth!
Measured over the past years, RWTN shows a quite strong growth in Revenue. The Revenue has been growing by 9.67% on average per year.
EPS 1Y (TTM)225%
EPS 3Y-39.69%
EPS 5Y-19.83%
EPS Q2Q%160%
Revenue 1Y (TTM)29.98%
Revenue growth 3Y19.75%
Revenue growth 5Y9.67%
Sales Q2Q%38%
3.2 Future
RWTN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 18.19% yearly.
RWTN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.53% yearly.
EPS Next Y52.4%
EPS Next 2Y34.89%
EPS Next 3Y18.19%
EPS Next 5YN/A
Revenue Next Year12.95%
Revenue Next 2Y12.38%
Revenue Next 3Y11.53%
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.
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
Based on the Price/Earnings ratio of 47.69, the valuation of RWTN can be described as expensive.
RWTN's Price/Earnings ratio is a bit more expensive when compared to the industry. RWTN is more expensive than 63.08% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.64. RWTN is valued rather expensively when compared to this.
A Price/Forward Earnings ratio of 31.29 indicates a quite expensive valuation of RWTN.
Based on the Price/Forward Earnings ratio, RWTN is valued a bit more expensive than the industry average as 72.31% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.44, RWTN is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.69 | ||
| Fwd PE | 31.29 |
4.2 Price Multiples
76.92% of the companies in the same industry are more expensive than RWTN, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 160.97 |
4.3 Compensation for Growth
RWTN's 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 18.19% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.91
PEG (5Y)N/A
EPS Next 2Y34.89%
EPS Next 3Y18.19%
5. Dividend
5.1 Amount
RWTN has a Yearly Dividend Yield of 12.45%, which is a nice return.
Compared to an average industry Dividend Yield of 14.95, RWTN is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.52, RWTN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 12.45% |
5.2 History
The dividend of RWTN decreases each year by -10.27%.
RWTN is new to the dividend game and has less than 3 years of track record.
Dividend Growth(5Y)-10.27%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
234.54% of the earnings are spent on dividend by RWTN. This is not a sustainable payout ratio.
DP234.54%
EPS Next 2Y34.89%
EPS Next 3Y18.19%
REDWOOD TRUST INC - RWT 9 1/8 03/01/29
NYSE:RWTN (4/23/2025, 8:04:01 PM)
24.8
+0.14 (+0.59%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners79.96%
Inst Owner ChangeN/A
Ins Owners1.17%
Ins Owner ChangeN/A
Market Cap3.30B
Analysts77.14
Price Target33.44 (34.84%)
Short Float %0%
Short Ratio0.01
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 12.45% |
Yearly Dividend0.76
Dividend Growth(5Y)-10.27%
DP234.54%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.09%
Min EPS beat(2)-21.87%
Max EPS beat(2)26.06%
EPS beat(4)1
Avg EPS beat(4)-3.13%
Min EPS beat(4)-21.87%
Max EPS beat(4)26.06%
EPS beat(8)1
Avg EPS beat(8)-38.17%
EPS beat(12)2
Avg EPS beat(12)-82.2%
EPS beat(16)5
Avg EPS beat(16)-48.18%
Revenue beat(2)0
Avg Revenue beat(2)-9.57%
Min Revenue beat(2)-14.39%
Max Revenue beat(2)-4.75%
Revenue beat(4)1
Avg Revenue beat(4)-7.86%
Min Revenue beat(4)-15.25%
Max Revenue beat(4)2.94%
Revenue beat(8)1
Avg Revenue beat(8)-18.3%
Revenue beat(12)5
Avg Revenue beat(12)94.09%
Revenue beat(16)9
Avg Revenue beat(16)194.63%
PT rev (1m)9.72%
PT rev (3m)5.69%
EPS NQ rev (1m)4.78%
EPS NQ rev (3m)-10.19%
EPS NY rev (1m)1.45%
EPS NY rev (3m)-4.99%
Revenue NQ rev (1m)-1.16%
Revenue NQ rev (3m)-12.03%
Revenue NY rev (1m)-1.29%
Revenue NY rev (3m)-5.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.69 | ||
| Fwd PE | 31.29 | ||
| P/S | 3.34 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 2.78 | ||
| P/tB | 2.88 | ||
| EV/EBITDA | 160.97 |
EPS(TTM)0.52
EY2.1%
EPS(NY)0.79
Fwd EY3.2%
FCF(TTM)-44.09
FCFYN/A
OCF(TTM)-44.09
OCFYN/A
SpS7.42
BVpS8.93
TBVpS8.61
PEG (NY)0.91
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.23% | ||
| ROE | 3.59% | ||
| ROCE | 0.62% | ||
| ROIC | 0.42% | ||
| ROICexc | 0.42% | ||
| ROICexgc | 0.43% | ||
| OM | 10.26% | ||
| PM (TTM) | 4.31% | ||
| GM | 12.54% | ||
| 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
ROICexcg growth 3Y-27.55%
ROICexcg 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-Score3
Asset Turnover0.05
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 14.09 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 147.83 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 0.12 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.25 | ||
| Quick Ratio | 0.25 | ||
| Altman-Z | 0.19 |
F-Score3
WACC5.6%
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)225%
EPS 3Y-39.69%
EPS 5Y-19.83%
EPS Q2Q%160%
EPS Next Y52.4%
EPS Next 2Y34.89%
EPS Next 3Y18.19%
EPS Next 5YN/A
Revenue 1Y (TTM)29.98%
Revenue growth 3Y19.75%
Revenue growth 5Y9.67%
Sales Q2Q%38%
Revenue Next Year12.95%
Revenue Next 2Y12.38%
Revenue Next 3Y11.53%
Revenue Next 5YN/A
EBIT growth 1Y97.69%
EBIT growth 3Y-21.85%
EBIT growth 5Y-4.01%
EBIT Next Year-2.46%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-190.82%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-190.82%
OCF growth 3YN/A
OCF growth 5YN/A