(RWT) Redwood Trust - Ratings and Ratios
Residential Loans, Investor Loans, Securities, Bridge Loans, Servicer Advances
Dividends
| Dividend Yield | 12.86% |
| Yield on Cost 5y | 13.28% |
| Yield CAGR 5y | -1.95% |
| Payout Consistency | 87.8% |
| Payout Ratio | 2.2% |
| Risk via 10d forecast | |
|---|---|
| Volatility | 29.2% |
| Value at Risk 5%th | 45.6% |
| Relative Tail Risk | -4.91% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | -0.27 |
| Alpha | -23.28 |
| CAGR/Max DD | 0.09 |
| Character TTM | |
|---|---|
| Hurst Exponent | 0.547 |
| Beta | 0.938 |
| Beta Downside | 0.943 |
| Drawdowns 3y | |
|---|---|
| Max DD | 33.87% |
| Mean DD | 15.12% |
| Median DD | 16.14% |
Description: RWT Redwood Trust December 01, 2025
Redwood Trust, Inc. (NYSE:RWT) is a REIT-structured specialty finance firm that operates three distinct segments: Sequoia Mortgage Banking, which purchases residential loans from third-party originators for sale, securitization, or portfolio retention; CoreVest Mortgage Banking, which originates business-purpose loans to investors for single-family and multifamily properties and bridges them to the secondary market; and Redwood Investments, which holds a diversified portfolio of mortgage-backed securities, Freddie Mac K-Series multifamily loans, reperforming loan assets, servicer advances, and other housing-related investments.
Key performance indicators as of the most recent quarter show a loan portfolio of roughly $12 billion, a dividend yield near 9 %, and a net interest margin of 1.8 %. The company’s cash-flow generation remains sensitive to the Fed’s policy stance-higher short-term rates compress loan-originating spreads but also boost the yield on its held-to-maturity securities, creating a trade-off that drives earnings volatility.
The mortgage REIT sector is broadly influenced by housing inventory levels, mortgage-rate trends, and the pace of refinancing activity. A tightening housing supply and sustained demand for investor-owned rental units have supported the demand for CoreVest’s business-purpose financing, while a slowdown in refinancing can pressure the conduit-type earnings of the Sequoia segment.
For a deeper quantitative look at RWT’s valuation metrics, you might explore ValueRay’s analyst toolkit.
Piotroski VR‑10 (Strict, 0-10) 1.5
| Net Income (-88.5m TTM) > 0 and > 6% of Revenue (6% = 12.8m TTM) |
| FCFTA -0.34 (>2.0%) and ΔFCFTA -0.16pp (YES ≥ +1.0pp, WARN ≥ +0.5pp) |
| NWC/Revenue 25.19% (prev -709.8%; Δ 735.0pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp) |
| CFO/TA -0.34 (>3.0%) and CFO -7.59b <= Net Income -88.5m (YES >=105%, WARN >=100%) |
| Net Debt (20.80b) to EBITDA (974.4m) ratio: 21.35 <= 3.0 (WARN <= 3.5) |
| Current Ratio 1.31 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active) |
| Outstanding Shares last Quarter (129.0m) change vs 12m ago -2.52% (target <= -2.0% for YES) |
| Gross Margin 82.72% (prev 88.56%; Δ -5.84pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0) |
| Asset Turnover 1.04% (prev 1.46%; Δ -0.42pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0) |
| Interest Coverage Ratio 0.93 (EBITDA TTM 974.4m / Interest Expense TTM 1.04b) >= 6 (WARN >= 3) |
Altman Z'' 0.54
| (A) 0.00 = (Total Current Assets 226.3m - Total Current Liabilities 172.7m) / Total Assets 22.60b |
| (B) 0.05 = Retained Earnings (Balance) 1.10b / Total Assets 22.60b |
| (C) 0.05 = EBIT TTM 961.9m / Avg Total Assets 20.51b |
| (D) 0.05 = Book Value of Equity 1.06b / Total Liabilities 21.60b |
| Total Rating: 0.54 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D) |
ValueRay F-Score (Strict, 0-100) 44.39
| 1. Piotroski 1.50pt |
| 2. FCF Yield -35.27% |
| 3. FCF Margin data missing |
| 4. Debt/Equity 21.05 |
| 5. Debt/Ebitda 21.35 |
| 6. ROIC - WACC (= 4.02)% |
| 7. RoE -8.00% |
| 8. Rev. Trend 44.76% |
| 9. EPS Trend 16.75% |
What is the price of RWT shares?
Over the past week, the price has changed by -0.88%, over one month by +6.87%, over three months by -7.12% and over the past year by -7.73%.
Is RWT a buy, sell or hold?
- Strong Buy: 3
- Buy: 2
- Hold: 4
- Sell: 0
- Strong Sell: 0
What are the forecasts/targets for the RWT price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 6.8 | 21.1% |
| Analysts Target Price | 6.8 | 21.1% |
| ValueRay Target Price | 6.2 | 11.3% |
RWT Fundamental Data Overview December 11, 2025
P/E Forward = 5.5279
P/S = 5.8788
P/B = 0.7489
P/EG = 1.39
Beta = 1.625
Revenue TTM = 212.7m USD
EBIT TTM = 961.9m USD
EBITDA TTM = 974.4m USD
Long Term Debt = 17.97b USD (from longTermDebt, last quarter)
Short Term Debt = 3.04b USD (from shortTermDebt, last quarter)
Debt = 21.03b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 20.80b USD (from netDebt column, last quarter)
Enterprise Value = 21.51b USD (710.7m + Debt 21.03b - CCE 226.3m)
Interest Coverage Ratio = 0.93 (Ebit TTM 961.9m / Interest Expense TTM 1.04b)
FCF Yield = -35.27% (FCF TTM -7.59b / Enterprise Value 21.51b)
FCF Margin = -3567 % (FCF TTM -7.59b / Revenue TTM 212.7m)
Net Margin = -41.59% (Net Income TTM -88.5m / Revenue TTM 212.7m)
Gross Margin = 82.72% ((Revenue TTM 212.7m - Cost of Revenue TTM 36.8m) / Revenue TTM)
Gross Margin QoQ = 88.60% (prev 78.54%)
Tobins Q-Ratio = 0.95 (Enterprise Value 21.51b / Total Assets 22.60b)
Interest Expense / Debt = 1.35% (Interest Expense 284.5m / Debt 21.03b)
Taxrate = 492.3% (out of range, set to none) (-6.40m / -1.30m)
NOPAT = unknown (EBIT/Op.Income or Taxrate missing)
Current Ratio = 1.31 (Total Current Assets 226.3m / Total Current Liabilities 172.7m)
Debt / Equity = 21.05 (Debt 21.03b / totalStockholderEquity, last quarter 999.0m)
Debt / EBITDA = 21.35 (Net Debt 20.80b / EBITDA 974.4m)
Debt / FCF = -2.74 (negative FCF - burning cash) (Net Debt 20.80b / FCF TTM -7.59b)
Total Stockholder Equity = 1.11b (last 4 quarters mean from totalStockholderEquity)
RoA = -0.39% (Net Income -88.5m / Total Assets 22.60b)
RoE = -8.00% (Net Income TTM -88.5m / Total Stockholder Equity 1.11b)
RoCE = 5.04% (EBIT 961.9m / Capital Employed (Equity 1.11b + L.T.Debt 17.97b))
RoIC = 4.33% (EBIT 961.9m / (Assets 22.60b - Curr.Liab 172.7m - Cash 226.3m))
WACC = 0.31% (E(710.7m)/V(21.74b) * Re(9.47%) + (debt cost/tax rate unavailable))
Discount Rate = 9.47% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 33.33 | Cagr: 5.33%
Fair Price DCF = unknown (Cash Flow -7.59b)
EPS Correlation: 16.75 | EPS CAGR: -13.19% | SUE: 0.37 | # QB: 0
Revenue Correlation: 44.76 | Revenue CAGR: -12.15% | SUE: 0.52 | # QB: 0
EPS next Quarter (2026-03-31): EPS=0.20 | Chg30d=+0.009 | Revisions Net=+1 | Analysts=5
EPS next Year (2026-12-31): EPS=0.86 | Chg30d=+0.000 | Revisions Net=+2 | Growth EPS=+11.7% | Growth Revenue=+55.1%
Additional Sources for RWT Stock
Tweets: X | Stocktwits
Fund Manager Positions: Dataroma | Stockcircle