RWT.PRA Stock Overview

Operates as a specialty finance company in the United States. More details

RWT.PRA fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	3/6
Past Performance	2/6
Financial Health	2/6
Dividends	2/6

Rewards

Trading at 2.3% below our estimate of its fair value

Earnings are forecast to grow 20.19% per year

Became profitable this year

Risk Analysis

Dividend of 10.2% is not well covered by earnings or free cash flows

High level of non-cash earnings

Debt is not well covered by operating cash flow

Shareholders have been diluted in the past year

My Notes

Capture your thoughts, links and company narrative

Redwood Trust, Inc. Competitors

TPG RE Finance Trust

NYSE:TRTX

US$705.7m

Chimera Investment

NYSE:CIM

US$1.2b

Dynex Capital

NYSE:DX

US$1.4b

NexPoint Real Estate Finance

NYSE:NREF

US$351.4m

Price History & Performance

Summary of share price highs, lows and changes for Redwood Trust
Historical stock prices
Current Share Price	US$26.00
52 Week High	US$26.50
52 Week Low	US$23.70
Beta	1.61
1 Month Change	0.81%
3 Month Change	0.94%
1 Year Change	7.75%
3 Year Change	n/a
5 Year Change	n/a
Change since IPO	4.42%

Recent updates

Shareholder Returns

	RWT.PRA	US Mortgage REITs	US Market
7D	0.9%	1.7%	2.8%
1Y	7.7%	-11.3%	24.6%

Return vs Industry: RWT.PRA exceeded the US Mortgage REITs industry which returned -11.3% over the past year.

Return vs Market: RWT.PRA underperformed the US Market which returned 24.6% over the past year.

Price Volatility

Is RWT.PRA's price volatile compared to industry and market?
RWT.PRA volatility
RWT.PRA Average Weekly Movement	1.7%
Mortgage REITs Industry Average Movement	3.5%
Market Average Movement	6.3%
10% most volatile stocks in US Market	17.4%
10% least volatile stocks in US Market	3.1%

Stable Share Price: RWT.PRA has not had significant price volatility in the past 3 months compared to the US market.

Volatility Over Time: RWT.PRA's weekly volatility (2%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1994	289	Chris Abate	www.redwoodtrust.com

Redwood Trust, Inc., together with its subsidiaries, operates as a specialty finance company in the United States. The company operates through three segments: Residential Consumer Mortgage Banking, Residential Investor Mortgage Banking, and Investment Portfolio. The Residential Consumer Mortgage Banking segment operates a mortgage loan conduit that acquires residential loans from third-party originators for subsequent sale, securitization, or transfer to its investment portfolio.

Redwood Trust, Inc. Fundamentals Summary

How do Redwood Trust's earnings and revenue compare to its market cap?
RWT.PRA fundamental statistics
Market cap	US$875.61m
Earnings (TTM)	US$70.61m
Revenue (TTM)	US$268.36m

12.3x

P/E Ratio

3.2x

P/S Ratio

Is RWT.PRA overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report (TTM)
RWT.PRA income statement (TTM)
Revenue	US$268.36m
Cost of Revenue	US$30.75m
Gross Profit	US$237.61m
Other Expenses	US$167.00m
Earnings	US$70.61m

Last Reported Earnings

Sep 30, 2024

Next Earnings Date

n/a

Earnings per share (EPS)	0.53
Gross Margin	88.54%
Net Profit Margin	26.31%
Debt/Equity Ratio	1,374.4%

How did RWT.PRA perform over the long term?

See historical performance and comparison

Dividends

10.2%

Current Dividend Yield

119%

Payout Ratio

Does RWT.PRA pay a reliable dividends?

See RWT.PRA dividend history and benchmarks

When do you need to buy RWT.PRA by to receive an upcoming dividend?
Redwood Trust dividend dates
Ex Dividend Date	Dec 31 2024
Dividend Pay Date	Jan 15 2025
Days until Ex dividend	3 days
Days until Dividend pay date	18 days

Does RWT.PRA pay a reliable dividends?

See RWT.PRA dividend history and benchmarks

Company Analysis and Financial Data Status

Data	Last Updated (UTC time)
Company Analysis	2024/12/27 01:13
End of Day Share Price	2024/12/27 00:00
Earnings	2024/09/30
Annual Earnings	2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

Package	Data	Timeframe	Example US Source ^*
Company Financials	10 years	Income statement Cash flow statement Balance sheet	SEC Form 10-K SEC Form 10-Q
Analyst Consensus Estimates	+3 years	Forecast financials Analyst price targets	Analyst Research Reports Blue Matrix
Market Prices	30 years	Stock prices Dividends, Splits and Actions	ICE Market Data SEC Form S-1
Ownership	10 years	Top shareholders Insider trading	SEC Form 4 SEC Form 13D
Management	10 years	Leadership team Board of directors	SEC Form 10-K SEC Form DEF 14A
Key Developments	10 years	Company announcements	SEC Form 8-K

^* example for US securities, for non-US equivalent regulatory forms and sources are used.

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.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Redwood Trust, Inc. is covered by 22 analysts. 8 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

Analyst	Institution
Kenneth Bruce	BofA Global Research
Eric Hagen	BTIG
Michael Diana	Cantor Fitzgerald & Co.