Redwood Trust, Inc., together with its subsidiaries, operates as a specialty finance company in the United States.
Established dividend payer and fair value.
Share Price & News
How has Redwood Trust's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: RWT has not had significant price volatility in the past 3 months.
7 Day Return
US Mortgage REITs
1 Year Return
US Mortgage REITs
Return vs Industry: RWT exceeded the US Mortgage REITs industry which returned 2.1% over the past year.
Return vs Market: RWT matched the US Market which returned 10.2% over the past year.
Price Volatility Vs. Market
How volatile is Redwood Trust's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall StCan You Imagine How Redwood Trust's (NYSE:RWT) Shareholders Feel About The 14% Share Price Increase?
3 months ago | Simply Wall StWho Has Been Buying Redwood Trust, Inc. (NYSE:RWT) Shares?
4 months ago | Simply Wall StIf You Had Bought Redwood Trust (NYSE:RWT) Stock Three Years Ago, You Could Pocket A 17% Gain Today
Is Redwood Trust 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: RWT ($16.76) is trading below our estimate of fair value ($37.65)
Significantly Below Fair Value: RWT is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: RWT is poor value based on its PE Ratio (13.6x) compared to the Mortgage REITs industry average (12.9x).
PE vs Market: RWT is good value based on its PE Ratio (13.6x) compared to the US market (17.1x).
Price to Earnings Growth Ratio
PEG Ratio: RWT is poor value based on its PEG Ratio (1x)
Price to Book Ratio
PB vs Industry: RWT is overvalued based on its PB Ratio (1.1x) compared to the US Mortgage REITs industry average (1x).
How is Redwood Trust forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: RWT's forecast earnings growth (13.5% per year) is above the savings rate (1.7%).
Earnings vs Market: RWT's earnings (13.5% per year) are forecast to grow faster than the US market (13.2% per year).
High Growth Earnings: RWT's earnings are forecast to grow, but not significantly.
Revenue vs Market: RWT's revenue (13.2% per year) is forecast to grow faster than the US market (7.6% per year).
High Growth Revenue: RWT's revenue (13.2% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: RWT's Return on Equity is forecast to be low in 3 years time (11.9%).
How has Redwood Trust performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: RWT has high quality earnings.
Growing Profit Margin: RWT's current net profit margins (47.2%) are lower than last year (61.1%).
Past Earnings Growth Analysis
Earnings Trend: RWT's earnings have grown by 6.4% per year over the past 5 years.
Accelerating Growth: RWT's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: RWT had negative earnings growth (-21.1%) over the past year, making it difficult to compare to the Mortgage REITs industry average (11.8%).
Return on Equity
High ROE: RWT's Return on Equity (6.7%) is considered low.
Return on Assets
Return on Capital Employed
How is Redwood Trust's financial position? (This company is analysed differently as a bank or financial institution)
Financial Position Analysis
Debt to Equity History and Analysis
Inventory Level: RWT has a low level of unsold assets or inventory.
Debt Coverage by Assets: RWT's debt is covered by short term assets (assets are 1.1x debt).
Financial Institutions Analysis
Asset Level: RWT's level of assets compared to its equity is low.
Allowance for Bad Loans: Insufficient data to determine if RWT has a sufficient allowance for bad loans.
Low Risk Liabilities: RWT reports no customer deposits, loans are made up entirely of externally borrowed funds.
Loan Level: Insufficient data to determine if RWT has an acceptable proportion of non-loan assets held.
Low Risk Deposits: RWT has advanced significantly more loans than the customer deposits it holds.
Level of Bad Loans: Insufficient data to determine if RWT has an appropriate level of bad loans.
What is Redwood Trust's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: RWT's dividend (7.16%) is higher than the bottom 25% of dividend payers in the US market (1.53%).
High Dividend: RWT's dividend (7.16%) is in the top 25% of dividend payers in the US market (3.96%)
Stability and Growth of Payments
Stable Dividend: RWT's dividends per share have been stable in the past 10 years.
Growing Dividend: RWT's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (97.1%), RWT's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: RWT's dividends in 3 years are forecast to be covered by earnings (71.8% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Chris Abate (39yo)
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 ...
CEO Compensation Analysis
Compensation vs Market: Chris's total compensation ($USD4.95M) is about average for companies of similar size in the US market ($USD3.92M).
Compensation vs Earnings: Chris's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
|CEO & Director||1.8yrs||US$4.95m||0.13% $2.4m|
|Chief Financial Officer||2.4yrs||US$1.58m||0.015% $290.1k|
|Executive VP||11.2yrs||US$1.89m||0.075% $1.4m|
|MD & Head of Residential||0yrs||US$2.14m||0.030% $568.5k|
|Chief Investment Officer||3.4yrs||US$2.25m||0.036% $686.0k|
|Chief Technology Officer||5.7yrs||no data||no data|
|Senior VP & Head of Investor Relations||0yrs||no data||no data|
|MD & Chief Human Resource Officer||1.8yrs||no data||no data|
Experienced Management: RWT's management team is considered experienced (2.1 years average tenure).
|CEO & Director||1.8yrs||US$4.95m||0.13% $2.4m|
|Independent Director||22.1yrs||US$197.04k||0.011% $200.6k|
|Independent Vice Chairman of the Board||7.4yrs||US$191.04k||0.31% $5.8m|
|Independent Director||18.1yrs||US$219.04k||0.096% $1.8m|
|Independent Chairman of the Board||7.4yrs||US$267.29k||0.037% $697.5k|
|Independent Director||13.9yrs||US$222.04k||0.0077% $144.9k|
|Independent Director||3.9yrs||US$203.04k||0.012% $223.6k|
|Independent Director||10.3yrs||US$222.04k||0.060% $1.1m|
Experienced Board: RWT's board of directors are considered experienced (7.4 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 been diluted in the past year, with total shares outstanding growing by 21.6%.
Redwood Trust, Inc.'s company bio, employee growth, exchange listings and data sources
- Name: Redwood Trust, Inc.
- Ticker: RWT
- Exchange: NYSE
- Founded: 1994
- Industry: Mortgage REITs
- Sector: Diversified Financials
- Market Cap: US$1.889b
- Shares outstanding: 112.69m
- Website: https://www.redwoodtrust.com
Number of Employees
- Redwood Trust, Inc.
- One Belvedere Place
- Suite 300
- Mill Valley
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|RWT||NYSE (New York Stock Exchange)||Yes||Common Shares||US||USD||Aug 1995|
|R2V||DB (Deutsche Boerse AG)||Yes||Common Shares||DE||EUR||Aug 1995|
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.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/02/27 00:34|
|End of Day Share Price||2020/02/26 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.