OTCPK:RWCB

Stock Analysis Report

Redwood Capital Bancorp

Executive Summary

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.

Snowflake

Fundamentals

Flawless balance sheet and fair value.

Risks

  • Redwood Capital Bancorp is not covered by any analysts.

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


Market Performance


7 Day Return

-1.4%

OTCPK:RWCB

-2.5%

US Banks

-0.7%

US Market


1 Year Return

-11.0%

OTCPK:RWCB

-14.2%

US Banks

-0.5%

US Market

RWCB outperformed the Banks industry which returned -14.2% over the past year.

RWCB underperformed the Market in United States of America which returned -0.4% over the past year.


Share holder returns

RWCBIndustryMarket
7 Day-1.4%-2.5%-0.7%
30 Day-1.4%-6.1%-3.0%
90 Day-2.0%-3.8%0.9%
1 Year-9.6%-11.0%-11.8%-14.2%1.7%-0.5%
3 Year50.3%43.6%42.1%32.4%39.5%30.4%
5 Year84.5%69.3%53.3%36.7%54.1%37.0%

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

Valuation

Is Redwood Capital Bancorp undervalued based on future cash flows and its price relative to the stock market?

31%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Redwood Capital Bancorp's share price is below the future cash flow value, and at a moderate discount (> 20%).

Redwood Capital Bancorp's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Redwood Capital Bancorp is good value based on earnings compared to the US Banks industry average.

Redwood Capital Bancorp is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Redwood Capital Bancorp, we can't assess if its growth is good value.


Price Based on Value of Assets

Redwood Capital Bancorp is overvalued based on assets compared to the US Banks industry average.


Next Steps

Future Growth

How is Redwood Capital Bancorp expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

-0.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Unable to determine if Redwood Capital Bancorp is high growth as no revenue estimate data is available.

Redwood Capital Bancorp's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

Unable to compare Redwood Capital Bancorp's revenue growth to the United States of America market average as no estimate data is available.

Redwood Capital Bancorp's earnings are expected to decrease over the next 1-3 years, this is below the United States of America market average.

Redwood Capital Bancorp's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Redwood Capital Bancorp will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Redwood Capital Bancorp performed over the past 5 years?

15.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Redwood Capital Bancorp's year on year earnings growth rate has been positive over the past 5 years.

Redwood Capital Bancorp's 1-year earnings growth exceeds its 5-year average (25.3% vs 15.6%)

Redwood Capital Bancorp's earnings growth has not exceeded the US Banks industry average in the past year (25.3% vs 33.3%).


Return on Equity

Redwood Capital Bancorp has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Redwood Capital Bancorp used its assets more efficiently than the US Banks industry average last year based on Return on Assets.


Return on Capital Employed

Unable to establish if Redwood Capital Bancorp improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.


Next Steps

Financial Health

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


Balance Sheet

Information is not available.

Information is not available.


Financial Institutions Analysis

Redwood Capital Bancorp has an acceptable proportion of non-loan assets held.

Redwood Capital Bancorp has a sufficient allowance for bad loans.

Redwood Capital Bancorp's liabilities are made up of primarily low risk sources of funding.

Redwood Capital Bancorp's level of assets compared to its equity is moderate (i.e. an appropriate level of borrowing to fund lending).

Loans at Redwood Capital Bancorp are broadly funded by customer deposits.

Redwood Capital Bancorp has an acceptable level of bad loans (less than 2%).


Next Steps

Dividend

What is Redwood Capital Bancorp's current dividend yield, its reliability and sustainability?

1.70%

Current Dividend Yield


Dividend Yield and Payments Analysis

Redwood Capital Bancorp's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).

Redwood Capital Bancorp's dividend is below the markets top 25% of dividend payers in United States of America (3.84%).

Whilst dividend payments have been stable, Redwood Capital Bancorp has been paying a dividend for less than 10 years.

Dividend payments have increased, but Redwood Capital Bancorp only paid a dividend in the past 7 years.


Current Payout to Shareholders

Dividends paid are thoroughly covered by earnings (7.6x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Redwood Capital Bancorp's salary, the management and board of directors tenure and is there insider trading?

3.0yrs

Average management tenure


CEO

John Dalby (60yo)

0.0yrs

Tenure

0

Mr. John E. Dalby serves as the Chief Executive Officer and President at Redwood Capital BanCorp and its subsidiary Redwood Capital Bank. Mr. Dalby served as the President and Chief Executive Officer of Hu ...


Management Age and Tenure

3.0yrs

Average Tenure

53yo

Average Age

The tenure for the Redwood Capital Bancorp management team is about average.


Board Age and Tenure

9.1yrs

Average Tenure

60yo

Average Age

The tenure for the Redwood Capital Bancorp board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • John Dalby (60yo)

    CEO, President

    • Tenure: 0.0yrs
  • Jennifer Budwig (53yo)

    Chief Lending Officer & Senior VP

    • Tenure: 0.0yrs
  • Tammy Brown (52yo)

    Chief Credit Officer & Senior VP

    • Tenure: 4.6yrs
  • Michael McCoy

    Senior VP & Risk Manager

    • Tenure: 0.8yrs
  • Renee Byers (47yo)

    CFO & Senior VP

    • Tenure: 1.4yrs
  • Cindy Conn

    Secretary

    • Tenure: 0.0yrs
  • Dave Tierney

    Senior VP & IT Director

    • Tenure: 0.0yrs
  • John Dalby (60yo)

    President

    • Tenure: 12.6yrs

Board Members

  • John Dalby (60yo)

    CEO, President

    • Tenure: 0.0yrs
  • Russ Britt (75yo)

    Director

    • Tenure: 12.6yrs
  • John Gierek (55yo)

    Chairman of the Board

    • Tenure: 3.1yrs
  • Bill McAuley (58yo)

    Vice Chairman of the Board

    • Tenure: 3.1yrs
  • Steve Strombeck (59yo)

    Director

    • Tenure: 12.6yrs
  • Jim Seiler (77yo)

    Director

    • Tenure: 10.2yrs
  • W. Needham (65yo)

    Director

    • Tenure: 8.1yrs
  • K. Nelson (64yo)

    Director

    • Tenure: 0.9yrs
  • John Dalby (60yo)

    President

    • Tenure: 12.6yrs
  • Michele Rieke (57yo)

    Director

    • Tenure: 1.6yrs

Company Information

Redwood Capital Bancorp's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Redwood Capital Bancorp
  • Ticker: RWCB
  • Exchange: OTCPK
  • Founded: 2006
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$31.831m
  • Shares outstanding: 1.93m
  • Website: https://www.redwoodcapitalbank.com

Location

  • Redwood Capital Bancorp
  • 402 G Street
  • Eureka
  • California
  • 95501
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RWCBOTCPK (Pink Sheets LLC)YesCommon StockUSUSDApr 2004

Biography

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 che ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/19 00:04
End of Day Share Price2019/08/16 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.