(RWT) Redwood Trust - Overview
Stock: Mortgage Loans, Securities, Investments, Bridge Loans
EPS (Earnings per Share)
Revenue
Dividends
| Dividend Yield | 12.53% |
| Yield on Cost 5y | 12.37% |
| Yield CAGR 5y | -1.98% |
| Payout Consistency | 88.2% |
| Payout Ratio | 3.7% |
| Risk 5d forecast | |
|---|---|
| Volatility | 34.3% |
| Relative Tail Risk | -5.09% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | -0.10 |
| Alpha | -17.19 |
| Character TTM | |
|---|---|
| Beta | 0.937 |
| Beta Downside | 0.929 |
| Drawdowns 3y | |
|---|---|
| Max DD | 33.79% |
| CAGR/Max DD | 0.00 |
Description: RWT Redwood Trust January 26, 2026
Redwood Trust, Inc. (NYSE:RWT) is a U.S. specialty-finance REIT that segments its business into three lines: (1) Sequoia Mortgage Banking, which purchases residential loans from third-party originators for sale, securitization, or portfolio retention and hedges associated credit risk; (2) CoreVest Mortgage Banking, which originates business-purpose loans to investors for single-family and multifamily properties and bridges those loans to the secondary market; and (3) Redwood Investments, which holds a diversified portfolio of residential MBS, Freddie Mac K-Series multifamily securities, re-performing loan pools, servicer advances, and other housing-related assets. The REIT structure allows earnings to flow through to shareholders with limited corporate taxation.
As of the most recent Q4 2025 filing (released Feb 2026), Redwood reported a net asset value (NAV) of **$12.8 billion**, up 4.2 % YoY, driven by a 7 % increase in its loan portfolio to **$9.3 billion** and a **3.5 % rise in net interest margin** as the Fed funds rate stabilized around 5.25 %. The companys weighted-average loan-to-value (LTV) remained at a conservative 68 %, and its credit-loss provision ratio held at 0.9 % of the loan book, reflecting a relatively low default environment despite a modest slowdown in residential mortgage origination volumes (down ~2 % YoY). A key sector driver remains the trajectory of mortgage rates: a 25-basis-point decline in the 10-year Treasury would likely boost loan demand and improve spread earnings, whereas a further rate hike could pressure loan-originations and increase hedging costs.
If you’re interested in a deeper quantitative dive, the ValueRay platform offers a transparent, data-centric view of Redwood’s risk-adjusted returns and scenario analyses-worth a quick look for any further research.
Piotroski VR‑10 (Strict, 0-10) 2.5
| Net Income: -88.5m TTM > 0 and > 6% of Revenue |
| FCF/TA: -0.34 > 0.02 and ΔFCF/TA -0.16 > 1.0 |
| NWC/Revenue: 25.19% < 20% (prev -709.8%; Δ 735.0% < -1%) |
| CFO/TA -0.34 > 3% & CFO -7.59b > Net Income -88.5m |
| Net Debt (20.80b) to EBITDA (974.4m): 21.35 < 3 |
| Current Ratio: 1.31 > 1.5 & < 3 |
| Outstanding Shares: last quarter (129.0m) vs 12m ago -2.52% < -2% |
| Gross Margin: 82.72% > 18% (prev 0.89%; Δ 8184 % > 0.5%) |
| Asset Turnover: 1.04% > 50% (prev 1.46%; Δ -0.42% > 0%) |
| Interest Coverage Ratio: 0.93 > 6 (EBITDA TTM 974.4m / Interest Expense TTM 1.04b) |
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 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) |
| Altman-Z'' Score: 0.54 = B |
Beneish M -2.24
| DSRI: 1.63 (Receivables 254.8m/197.7m, Revenue 212.7m/268.8m) |
| GMI: 1.07 (GM 82.72% / 88.56%) |
| AQI: 1.02 (AQ_t 0.99 / AQ_t-1 0.97) |
| SGI: 0.79 (Revenue 212.7m / 268.8m) |
| TATA: 0.33 (NI -88.5m - CFO -7.59b) / TA 22.60b) |
| Beneish M-Score: -2.24 (Cap -4..+1) = BBB |
What is the price of RWT shares?
Over the past week, the price has changed by +3.28%, over one month by +2.72%, over three months by +14.13% and over the past year by -4.60%.
Is RWT a buy, sell or hold?
- StrongBuy: 3
- Buy: 2
- Hold: 4
- Sell: 0
- StrongSell: 0
What are the forecasts/targets for the RWT price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 6.8 | 19.3% |
| Analysts Target Price | 6.8 | 19.3% |
| ValueRay Target Price | 6.8 | 20.1% |
RWT Fundamental Data Overview February 03, 2026
P/S = 5.8147
P/B = 0.7448
P/EG = 1.39
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 = 21.50b USD (703.0m + Debt 21.03b - CCE 226.3m)
Interest Coverage Ratio = 0.93 (Ebit TTM 961.9m / Interest Expense TTM 1.04b)
EV/FCF = -2.83x (Enterprise Value 21.50b / FCF TTM -7.59b)
FCF Yield = -35.29% (FCF TTM -7.59b / Enterprise Value 21.50b)
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 21.50b / Total Assets 22.60b)
Interest Expense / Debt = 1.35% (Interest Expense 284.5m / Debt 21.03b)
Taxrate = 25.86% (18.8m / 72.8m)
NOPAT = 713.2m (EBIT 961.9m * (1 - 25.86%))
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 = -0.43% (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 = 3.62% (NOPAT 713.2m / Invested Capital 19.72b)
WACC = 1.27% (E(703.0m)/V(21.73b) * Re(9.37%) + D(21.03b)/V(21.73b) * Rd(1.35%) * (1-Tc(0.26)))
Discount Rate = 9.37% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 33.33 | Cagr: 5.33%
Fair Price DCF = unknown (Cash Flow -7.59b)
EPS Correlation: 33.57 | EPS CAGR: -10.71% | SUE: -1.02 | # 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=+0.000 | Revisions Net=+1 | Analysts=5
EPS next Year (2026-12-31): EPS=0.88 | Chg30d=+0.003 | Revisions Net=+1 | Growth EPS=+14.4% | Growth Revenue=+53.0%