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Redwood Trust

NYSE:RWT
Snowflake Description

Reasonable growth potential average dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
RWT
NYSE
$2B
Market Cap
  1. Home
  2. US
  3. Diversified Financials
Company description

Redwood Trust, Inc., together with its subsidiaries, operates as a specialty finance company in the United States. The last earnings update was 48 days ago. More info.


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RWT Share Price and Events
7 Day Returns
-0.6%
NYSE:RWT
-0%
US Mortgage REITs
-0.4%
US Market
1 Year Returns
-1.2%
NYSE:RWT
-6.1%
US Mortgage REITs
4.3%
US Market
RWT Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Redwood Trust (RWT) -0.6% -0.4% -0.1% -1.2% 18.6% -19.7%
US Mortgage REITs -0% -0.8% -3.7% -6.1% 1.3% -12.1%
US Market -0.4% 2.8% 2.7% 4.3% 40.9% 38.2%
1 Year Return vs Industry and Market
  • RWT outperformed the Mortgage REITs industry which returned -6.1% over the past year.
  • RWT underperformed the Market in United States of America which returned 4.3% over the past year.
Price Volatility
RWT
Industry
5yr Volatility vs Market

Value

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

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Redwood Trust to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Redwood Trust.

NYSE:RWT Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Median Return on Equity from the past 5 years.
= Stable Book Value * Return on Equity
= $17.42 * 11.6%
$2.02
Book Value of Equity per Share Weighted future Book Value estimates from 3 analysts. $17.42
Discount Rate (Cost of Equity) See below 11.7%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:RWT
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Mortgage REITs Unlevered Beta Simply Wall St/ S&P Global 0.28
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.276 (1 + (1- 21%) (671.9%))
1.498
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.5
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.498 * 5.96%)
11.66%

Discounted Cash Flow Calculation for NYSE:RWT using Excess Returns Model Model

The calculations below outline how an intrinsic value for Redwood Trust is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

NYSE:RWT Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (11.6% – 11.66%) * $17.42)
$-0.01
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= $-0.01 / (11.66% - 2.73%)
$-0.08
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= $17.42 + $-0.08
$17.34
NYSE:RWT Discount to Share Price
Calculation Result
Value per share (USD) From above. $17.34
Current discount Discount to share price of $16.14
= -1 x ($16.14 - $17.34) / $17.34
6.9%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Redwood Trust is available for.
Intrinsic value
7%
Share price is $16.14 vs Future cash flow value of $17.34
Current Discount Checks
For Redwood Trust to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Redwood Trust's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Redwood Trust's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Redwood Trust's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Redwood Trust's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:RWT PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $1.49
NYSE:RWT Share Price ** NYSE (2019-06-26) in USD $16.14
United States of America Mortgage REITs Industry PE Ratio Median Figure of 23 Publicly-Listed Mortgage REITs Companies 12.83x
United States of America Market PE Ratio Median Figure of 3,094 Publicly-Listed Companies 17.77x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Redwood Trust.

NYSE:RWT PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:RWT Share Price ÷ EPS (both in USD)

= 16.14 ÷ 1.49

10.87x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Redwood Trust is good value based on earnings compared to the US Mortgage REITs industry average.
  • Redwood Trust is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does Redwood Trust's expected growth come at a high price?
Raw Data
NYSE:RWT PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 10.87x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts
22.5%per year
United States of America Mortgage REITs Industry PEG Ratio Median Figure of 21 Publicly-Listed Mortgage REITs Companies 1.17x
United States of America Market PEG Ratio Median Figure of 2,133 Publicly-Listed Companies 1.51x

*Line of best fit is calculated by linear regression .

NYSE:RWT PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 10.87x ÷ 22.5%

0.48x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Redwood Trust is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Redwood Trust's assets?
Raw Data
NYSE:RWT PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $16.00
NYSE:RWT Share Price * NYSE (2019-06-26) in USD $16.14
United States of America Mortgage REITs Industry PB Ratio Median Figure of 37 Publicly-Listed Mortgage REITs Companies 0.94x
United States of America Market PB Ratio Median Figure of 5,255 Publicly-Listed Companies 1.78x
NYSE:RWT PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:RWT Share Price ÷ Book Value per Share (both in USD)

= 16.14 ÷ 16.00

1.01x

* Primary Listing of Redwood Trust.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Redwood Trust is overvalued based on assets compared to the US Mortgage REITs industry average.
X
Value checks
We assess Redwood Trust's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Mortgage REITs industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Mortgage REITs industry average (and greater than 0)? (1 check)
  5. Redwood Trust has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Redwood Trust expected to perform in the next 1 to 3 years based on estimates from 6 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
22.5%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Redwood Trust expected to grow at an attractive rate?
  • Redwood Trust's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Redwood Trust's earnings growth is expected to exceed the United States of America market average.
  • Redwood Trust's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:RWT Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:RWT Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts 22.5%
NYSE:RWT Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 6 Analysts 14.5%
United States of America Mortgage REITs Industry Earnings Growth Rate Market Cap Weighted Average 37.2%
United States of America Mortgage REITs Industry Revenue Growth Rate Market Cap Weighted Average 26.3%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.9%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:RWT Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:RWT Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 271 325 2
2020-12-31 204 186 6
2019-12-31 170 184 6
NYSE:RWT Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 227 -1,675 123
2018-12-31 216 -1,612 116
2018-09-30 240 -2,447 147
2018-06-30 235 -2,121 142
2018-03-31 248 -2,110 146
2017-12-31 240 -1,713 137
2017-09-30 206 -419 131
2017-06-30 216 -452 147
2017-03-31 237 -398 152
2016-12-31 260 -546 128
2016-09-30 304 -956 143
2016-06-30 297 -1,325 111

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Redwood Trust's earnings are expected to grow significantly at over 20% yearly.
  • Redwood Trust's revenue is expected to grow by 14.5% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:RWT Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below

All data from Redwood Trust Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:RWT Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 2.30 2.30 2.30 1.00
2020-12-31 1.60 2.08 1.26 5.00
2019-12-31 1.52 1.70 1.41 4.00
NYSE:RWT Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 1.49
2018-12-31 1.47
2018-09-30 1.90
2018-06-30 1.87
2018-03-31 1.91
2017-12-31 1.78
2017-09-30 1.71
2017-06-30 1.92
2017-03-31 1.99
2016-12-31 1.66
2016-09-30 1.84
2016-06-30 1.39

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Redwood Trust is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Redwood Trust's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Redwood Trust has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Redwood Trust performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Redwood Trust's growth in the last year to its industry (Mortgage REITs).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Redwood Trust's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.
  • Redwood Trust's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Redwood Trust's 1-year earnings growth is negative, it can't be compared to the US Mortgage REITs industry average.
Earnings and Revenue History
Redwood Trust's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Redwood Trust Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:RWT Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 227.32 123.36 65.88
2018-12-31 215.59 115.85 66.37
2018-09-30 240.42 146.85 67.98
2018-06-30 234.99 142.39 67.32
2018-03-31 247.64 146.19 67.99
2017-12-31 240.18 136.77 63.73
2017-09-30 205.92 131.33 61.84
2017-06-30 215.70 147.10 62.57
2017-03-31 237.00 152.15 64.55
2016-12-31 259.55 127.51 66.01
2016-09-30 304.11 143.04 69.34
2016-06-30 296.59 110.64 72.35
2016-03-31 247.26 96.67 76.17
2015-12-31 214.26 99.28 80.39
2015-09-30 224.13 85.43 85.09
2015-06-30 229.20 111.34 84.70
2015-03-31 234.01 100.31 81.04
2014-12-31 213.23 97.96 76.27
2014-09-30 203.68 96.07 69.27
2014-06-30 172.50 73.09 66.87
2014-03-31 213.12 121.35 64.32
2013-12-31 270.81 168.35 69.10
2013-09-30 311.81 184.73 45.36
2013-06-30 316.31 201.75 41.98
2013-03-31 259.80 157.05 38.76
2012-12-31 178.71 127.88 51.52
2012-09-30 82.73 83.92 37.13
2012-06-30 64.46 45.72 4.99

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Redwood Trust has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Redwood Trust used its assets less efficiently than the US Mortgage REITs industry average last year based on Return on Assets.
  • Unable to establish if Redwood Trust improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.
X
Past performance checks
We assess Redwood Trust's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Mortgage REITs industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Redwood Trust has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Redwood Trust's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Redwood Trust's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Redwood Trust is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Redwood Trust's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Redwood Trust's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 1.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Redwood Trust Company Filings, last reported 2 months ago.

NYSE:RWT Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 1,549.93 10,492.67 237.34
2018-12-31 1,348.79 10,467.37 1,330.17
2018-09-30 1,361.33 7,644.95 571.98
2018-06-30 1,228.96 6,182.10 603.72
2018-03-31 1,219.98 5,678.34 606.54
2017-12-31 1,212.29 5,741.37 1,129.23
2017-09-30 1,208.64 4,822.16 654.69
2017-06-30 1,179.42 4,392.93 550.04
2017-03-31 1,165.77 3,980.53 648.59
2016-12-31 1,149.43 4,252.01 695.13
2016-09-30 1,130.13 4,657.26 473.52
2016-06-30 1,092.60 4,722.14 423.06
2016-03-31 1,085.75 4,543.44 416.66
2015-12-31 1,146.27 4,994.95 640.63
2015-09-30 1,206.58 4,961.51 388.20
2015-06-30 1,264.78 4,262.65 368.82
2015-03-31 1,257.21 4,474.12 441.20
2014-12-31 1,256.14 4,591.84 397.75
2014-09-30 1,266.68 4,279.06 266.12
2014-06-30 1,248.90 4,072.95 337.87
2014-03-31 1,250.89 3,683.53 274.53
2013-12-31 1,245.78 3,300.36 305.54
2013-09-30 1,207.17 3,404.27 340.35
2013-06-30 1,209.31 4,133.42 392.65
2013-03-31 1,187.79 3,574.05 159.91
2012-12-31 1,140.16 3,272.44 117.22
2012-09-30 1,049.85 4,199.28 315.73
2012-06-30 951.18 4,273.27 367.28
  • Redwood Trust's level of debt (677%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (294.8% vs 677% today).
  • Operating cash flow is negative therefore debt is not well covered.
  • Unable to confirm if the interest payments on Redwood Trust's debt are well covered by earnings due to lack of past financial data.
X
Financial health checks
We assess Redwood Trust's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Redwood Trust has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
7.43%
Current annual income from Redwood Trust dividends. Estimated to be 7.64% next year.
If you bought $2,000 of Redwood Trust shares you are expected to receive $149 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Redwood Trust's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).
  • Redwood Trust's dividend is above the markets top 25% of dividend payers in United States of America (3.73%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:RWT Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
United States of America Mortgage REITs Industry Average Dividend Yield Market Cap Weighted Average of 37 Stocks 10.4%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2012 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:RWT Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 1.26 2.00
2020-12-31 1.25 6.00
2019-12-31 1.20 5.00
NYSE:RWT Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-05-16 1.200 7.449
2019-02-27 1.200 7.475
2019-02-14 1.200 7.728
2018-11-08 1.200 7.510
2018-11-07 1.200 7.219
2018-05-22 1.200 7.291
2018-02-22 1.120 7.230
2017-08-03 1.120 7.179
2017-05-18 1.120 6.567
2017-02-23 1.120 6.752
2016-11-07 1.120 7.207
2016-08-08 1.120 7.939
2016-05-16 1.120 7.972
2016-02-25 1.120 8.820
2015-08-05 1.120 8.626
2015-05-19 1.120 6.959
2015-02-23 1.120 6.228
2014-11-06 1.120 5.659
2014-08-07 1.120 6.188
2014-05-20 1.120 5.761
2014-02-24 1.120 5.492
2013-11-25 1.120 5.968
2013-08-06 1.120 6.122
2013-05-16 1.120 6.272
2013-02-20 1.120 5.113
2012-11-13 1.000 5.681
2012-08-02 1.000 6.909
2012-05-17 1.000 8.065
2012-02-22 1.000 8.642
2011-11-14 1.000 9.179
2011-09-08 1.000 8.789
2011-05-17 1.000 7.132
2011-03-10 1.000 6.424
2010-11-15 1.000 6.582
2010-09-09 1.000 6.904
2010-05-18 1.000 6.745
2010-03-17 1.000 6.381
2009-11-16 1.000 6.926
2009-09-09 1.000 6.575
2009-05-19 1.000 6.351
2009-03-18 1.000 6.197
2009-02-26 1.000 7.460
2008-11-10 3.000 22.406
2008-08-21 5.000 30.302

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have fallen over the past 10 years.
Current Payout to shareholders
What portion of Redwood Trust's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.2x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.4x coverage).
X
Income/ dividend checks
We assess Redwood Trust's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Redwood Trust afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Redwood Trust has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Chris Abate
COMPENSATION $4,950,574
AGE 38
TENURE AS CEO 1.1 years
CEO Bio

Mr. Christopher J. Abate, also known as Chris, has been the Chief Executive Officer of Redwood Trust, Inc. from May 22, 2018 and serves as its Director since December 2017. Mr. Abate has been employed with Redwood since April 2006, previously serving as Redwood’s President from July 2016 to May 2018. Mr. Abate served as the Chief Financial Officer of Redwood Trust, Inc. from March 2012 to September 1, 2017 and as its Executive Vice President from January 1, 2015 to July 01, 2016. Mr. Abate served as a Controller of Redwood Trust Inc. since January 2009 until March 2013. He served as the Chief Financial Officer at Redwood Trust Inc. since March 9, 2012 and its Interim Chief Financial Officer. He served as Managing Director at Redwood Trust Inc. since December 2008 and Vice President since December 2007. He served as Principal Accounting Officer at Redwood Trust Inc. He served at PricewaterhouseCoopers LLP as an Auditor and Consultant. Mr. Abate holds a B.A. in Accounting and Finance from Western Michigan University and is a Certified Public Accountant. He holds a B.A. in accounting and finance from Western Michigan University, an M.B.A. from the University of California at Berkeley and Columbia University.

CEO Compensation
  • Chris's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
  • Chris's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Redwood Trust management team in years:

1.5
Average Tenure
43
Average Age
  • The average tenure for the Redwood Trust management team is less than 2 years, this suggests a new team.
Management Team

Chris Abate

TITLE
CEO & Director
COMPENSATION
$5M
AGE
38
TENURE
1.1 yrs

Dash Robinson

TITLE
President
COMPENSATION
$4M
AGE
38
TENURE
1.1 yrs

Collin Cochrane

TITLE
Chief Financial Officer
COMPENSATION
$2M
AGE
41
TENURE
1.8 yrs

Andrew Stone

TITLE
Executive VP
COMPENSATION
$2M
AGE
47
TENURE
10.5 yrs

Garnet Kanouse

TITLE
MD & Head of Residential
COMPENSATION
$2M
AGE
45

Marty Hughes

TITLE
COMPENSATION
$979K
AGE
60
TENURE
1.1 yrs

Bo Stern

TITLE
Chief Investment Officer
COMPENSATION
$2M
AGE
40
TENURE
2.8 yrs

J. Richardson

TITLE
Chief Technology Officer
TENURE
5 yrs

Lisa Hartman

TITLE
Senior VP & Head of Investor Relations

Sasha Macomber

TITLE
MD & Chief Human Resource Officer
AGE
49
TENURE
1.2 yrs
Board of Directors Tenure

Average tenure and age of the Redwood Trust board of directors in years:

6.8
Average Tenure
61
Average Age
  • The tenure for the Redwood Trust board of directors is about average.
Board of Directors

Rick Baum

TITLE
Chairman of the Board
COMPENSATION
$267K
AGE
71
TENURE
6.8 yrs

Chris Abate

TITLE
CEO & Director
COMPENSATION
$5M
AGE
38
TENURE
1.5 yrs

Doug Hansen

TITLE
Vice Chairman of the Board
COMPENSATION
$191K
AGE
60
TENURE
6.8 yrs

Greg Kubicek

TITLE
Director
COMPENSATION
$219K
AGE
61
TENURE
17.4 yrs

Georganne Proctor

TITLE
Director
COMPENSATION
$222K
AGE
62
TENURE
13.3 yrs

Jeff Pero

TITLE
Director
COMPENSATION
$222K
AGE
71
TENURE
9.6 yrs

Mariann Byerwalter

TITLE
Director
COMPENSATION
$197K
AGE
57
TENURE
21.4 yrs

Fred Matera

TITLE
Director
COMPENSATION
$1M
AGE
54
TENURE
0.3 yrs

Deb Horvath

TITLE
Independent Director
COMPENSATION
$203K
AGE
63
TENURE
3.3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
19. Nov 18 Buy Debora Horvath Individual 15. Nov 18 16. Nov 18 6,035 $16.64 $99,998
X
Management checks
We assess Redwood Trust's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Redwood Trust has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

If You Had Bought Redwood Trust (NYSE:RWT) Stock Five Years Ago, You'd Be Sitting On A 18% Loss, Today

Check out our latest analysis for Redwood Trust To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. … While the share price declined over five years, Redwood Trust actually managed to increase EPS by an average of 0.1% per year. … A Different Perspective It's good to see that Redwood Trust has rewarded shareholders with a total shareholder return of 5.0% in the last twelve months.

Simply Wall St -

What Kind Of Shareholders Own Redwood Trust, Inc. (NYSE:RWT)?

Every investor in Redwood Trust, Inc. … Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. … Companies that used to be publicly owned tend to have lower insider ownership.

Simply Wall St -

Will Redwood Trust, Inc.'s (NYSE:RWT) Earnings Grow In The Next Couple Of Years?

Redwood Trust, Inc.'s (NYSE:RWT) most recent earnings announcement in December 2018a … suggested

Simply Wall St -

Is Redwood Trust, Inc. (NYSE:RWT) Undervalued After Accounting For Its Future Growth?

(NYSE:RWT) closed yesterday at $16.14, which left some investors asking whether the high earnings potential can still be justified at this price. … Let’s look into this by assessing RWT's expected growth over the next few years. … One reason why investors are attracted to RWT is the high growth potential in the near future

Simply Wall St -

Investors Who Bought Redwood Trust (NYSE:RWT) Shares Three Years Ago Are Now Up 23%

(NYSE:RWT) share price return of 23% over three years lags the market return in the same period. … One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price. … Redwood Trust was able to grow its EPS at 7.1% per year over three years, sending the share price higher.

Simply Wall St -

Need To Know: Redwood Trust, Inc. (NYSE:RWT) Insiders Have Been Buying Shares

So we'll take a look at whether insiders have been buying or selling shares in Redwood Trust, Inc. … But logic dictates you should pay some attention to whether insiders are buying or selling shares. … Redwood Trust Insider Transactions Over The Last Year.

Simply Wall St -

Redwood Trust Inc (NYSE:RWT): Dividend Is Coming In 5 Days, Should You Buy?

Have you been keeping an eye on Redwood Trust Inc's (NYSE:RWT) upcoming dividend of $0.30 per share payable on the 29 June 2018? … Investors looking for higher income-generating stocks to add to their portfolio should keep reading, as I examine Redwood Trust's latest financial data to analyse its dividend characteristics. … When assessing a stock as a potential addition to my dividend Portfolio, I look at these five areas:

Simply Wall St -

3 Days Left Before Redwood Trust Inc (RWT) Will Start Trading Ex-Dividend, Should You Buy?

Check out our latest analysis for Redwood Trust 5 questions to ask before buying a dividend stock Whenever I am looking at a potential dividend stock investment, I always check these five metrics: Is it paying an annual yield above 75% of dividend payers? … With Redwood Trust producing strong dividend income for your portfolio over the past few years, you can take comfort in knowing that this stock will still continue to be a robust dividend generator moving forward. … With these dividend metrics in mind, I definitely rank Redwood Trust as a strong income stock, and is worth further research for anyone who considers dividends an important part of their portfolio strategy.

Simply Wall St -

Company Info

Description

Redwood Trust, Inc., together with its subsidiaries, operates as a specialty finance company in the United States. The company operates through two segments, Investment Portfolio and Residential Mortgage Banking. The Investment Portfolio segment offers a portfolio of investments in residential mortgage-backed securities retained from Sequoia securitizations, as well as issued by third parties and other credit risk-related investments; and invests directly in residential mortgage loans. The Residential Mortgage Banking segment operates a mortgage loan conduit, which acquires residential loans from third-party originators for sale, securitization, or transfer to investment portfolio. This segment also includes derivative financial instruments to manage risks associated with residential loans. The company qualifies as a real estate investment trust (REIT) for federal income tax purposes. As a REIT, it intends to distribute at least 90% of its taxable income as dividends to shareholders. Redwood Trust, Inc. was founded in 1994 and is headquartered in Mill Valley, California.

Details
Name: Redwood Trust, Inc.
RWT
Exchange: NYSE
Founded: 1994
$1,563,594,360
96,876,974
Website: http://www.redwoodtrust.com
Address: Redwood Trust, Inc.
One Belvedere Place,
Suite 300,
Mill Valley,
California, 94941,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE RWT Common Shares New York Stock Exchange US USD 04. Aug 1995
DB R2V Common Shares Deutsche Boerse AG DE EUR 04. Aug 1995
Number of employees
Current staff
Staff numbers
149
Redwood Trust employees.
Industry
Mortgage REITs
Diversified Financials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/26 23:48
End of day share price update: 2019/06/26 00:00
Last estimates confirmation: 2019/06/12
Last earnings filing: 2019/05/09
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.