Redwood Capital Bancorp operates as the bank holding company for Redwood Capital Bank that provides various banking products and services to individuals and businesses in California.
Flawless balance sheet and undervalued.
Share Price & News
How has Redwood Capital Bancorp's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: RWCB has not had significant price volatility in the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: RWCB exceeded the US Banks industry which returned -32.9% over the past year.
Return vs Market: RWCB underperformed the US Market which returned -13.3% over the past year.
Price Volatility Vs. Market
How volatile is Redwood Capital Bancorp's share price compared to the market and industry in the last 5 years?
Simply Wall St News
No news available
Is Redwood Capital Bancorp undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: RWCB ($11.6) is trading below our estimate of fair value ($34.22)
Significantly Below Fair Value: RWCB is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: RWCB is good value based on its PE Ratio (5.4x) compared to the Banks industry average (8.6x).
PE vs Market: RWCB is good value based on its PE Ratio (5.4x) compared to the US market (12.5x).
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate RWCB's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: RWCB is good value based on its PB Ratio (0.7x) compared to the US Banks industry average (0.8x).
How is Redwood Capital Bancorp forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?
Forecasted Banks industry annual growth in earnings
In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Redwood Capital Bancorp has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.
This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.
- Examine whether Redwood Capital Bancorp is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
- While we do not consider unaudited financials to be a reliable enough to include in our analysis, you can access them on the OTC Markets Website. If you are looking for more of a qualitative research into the company, you can access Redwood Capital Bancorp's filings and announcements here.
- Explore growth companies in the Banks industry.
How has Redwood Capital Bancorp performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: RWCB has high quality earnings.
Growing Profit Margin: RWCB's current net profit margins (24.8%) are lower than last year (26.4%).
Past Earnings Growth Analysis
Earnings Trend: RWCB's earnings have grown by 16.5% per year over the past 5 years.
Accelerating Growth: RWCB's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: RWCB had negative earnings growth (-0.6%) over the past year, making it difficult to compare to the Banks industry average (10.9%).
Return on Equity
High ROE: RWCB's Return on Equity (13.2%) is considered low.
How is Redwood Capital Bancorp's financial position? (This company is analysed differently as a bank or financial institution)
Financial Position Analysis
Debt to Equity History and Analysis
Financial Institutions Analysis
Asset Level: RWCB's level of assets compared to its equity is moderate.
Allowance for Bad Loans: RWCB has a sufficient allowance for bad loans.
Low Risk Liabilities: RWCB's liabilities are made up of primarily low risk sources of funding.
Loan Level: RWCB has an acceptable proportion of non-loan assets held.
Low Risk Deposits: RWCB's loans are broadly funded by customer deposits.
Level of Bad Loans: RWCB has an appropriate level of bad loans (0.06%)
What is Redwood Capital Bancorp's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: RWCB's dividend (2.41%) is higher than the bottom 25% of dividend payers in the US market (2.01%).
High Dividend: RWCB's dividend (2.41%) is low compared to the top 25% of dividend payers in the US market (5.66%).
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, RWCB has been paying a dividend for less than 10 years.
Growing Dividend: RWCB's dividend payments have increased, but the company has only paid a dividend for 8 years.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (13.1%), RWCB's dividend payments are thoroughly covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
John Dalby (60yo)
Mr. John E. Dalby serves as the President and Chief Executive Officer of Redwood Capital Bancorp since 2007 and its subsidiary Redwood Capital Bank since March 2004. Mr. Dalby began his nearly 30 year care ...
|President||13.25yrs||no data||no data|
|CFO & Senior VP||2.08yrs||no data||no data|
|Chief Credit Officer & Senior VP||5.25yrs||no data||no data|
|Senior VP & Risk Manager||1.5yrs||no data||no data|
|Senior VP & IT Director||no data||no data||no data|
|Secretary||no data||no data||no data|
|Chief Lending Officer & Senior VP||6.58yrs||no data||no data|
Experienced Management: RWCB's management team is seasoned and experienced (5.3 years average tenure).
|President||13.25yrs||no data||no data|
|Chairman of the Board||3.75yrs||no data||no data|
|Vice Chairman of the Board||3.75yrs||no data||no data|
|Director||13.25yrs||no data||no data|
|Director||10.83yrs||no data||no data|
|Director||8.75yrs||no data||no data|
|Director||1.58yrs||no data||no data|
|Director||2.25yrs||no data||no data|
|Director||0.25yr||no data||no data|
Experienced Board: RWCB's board of directors are considered experienced (3.8 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Redwood Capital Bancorp's company bio, employee growth, exchange listings and data sources
- Name: Redwood Capital Bancorp
- Ticker: RWCB
- Exchange: OTCPK
- Founded: 2006
- Industry: Regional Banks
- Sector: Banks
- Market Cap: US$22.277m
- Shares outstanding: 1.92m
- Website: https://www.redwoodcapitalbank.com
- Redwood Capital Bancorp
- 402 G Street
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|RWCB||OTCPK (Pink Sheets LLC)||Yes||Common Stock||US||USD||Apr 2004|
Redwood Capital Bancorp operates as the bank holding company for Redwood Capital Bank that provides various banking products and services to individuals and businesses in California. The company offers checking, savings, and money market accounts, as well as certificates of deposit. It also provides real estate loans, home equity lines of credit, construction and development loans, term loans for machinery and equipment, and lines of credit for working capital, as well as agricultural, industrial, and personal credits. In addition, the company offers debit and credit cards, re-order checks, and online and mobile banking services. It serves clients through its branches located in Eureka, Fortuna, and Arcata. Redwood Capital Bancorp was incorporated in 2006 and is based in Eureka, California.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/04/07 06:55|
|End of Day Share Price||2020/04/06 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.