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Redwood Trust NYSE:RWT Stock Report

Last Price


Market Cap







05 Oct, 2022


Company Financials +
RWT fundamental analysis
Snowflake Score
Future Growth3/6
Past Performance0/6
Financial Health2/6

RWT Stock Overview

Redwood Trust, Inc., together with its subsidiaries, operates as a specialty finance company in the United States.

Redwood Trust Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Redwood Trust
Historical stock prices
Current Share PriceUS$6.09
52 Week HighUS$14.17
52 Week LowUS$5.52
1 Month Change-17.03%
3 Month Change-23.40%
1 Year Change-53.90%
3 Year Change-63.09%
5 Year Change-63.36%
Change since IPO-64.44%

Recent News & Updates

Sep 13

Redwood Trust declares $0.23 dividend

Redwood Trust (NYSE:RWT) declares $0.23/share quarterly dividend, in line with previous. Forward yield 12.99% Payable Sept. 30; for shareholders of record Sept. 23; ex-div Sept. 22. See RWT Dividend Scorecard, Yield Chart, & Dividend Growth.

Aug 31

Redwood Trust downgraded to Neutral at BTIG on interest rate uncertainty

BTIG analyst Eric Hagen downgraded Redwood Trust (NYSE:RWT) to Neutral on Wednesday, in line with his ratings on most non-Agency mortgage REITs, due to uncertainty surrounding interest rates and mortgage spreads. Still, "we continue to like many of the key fundamentals supporting the single-family rental and transitional loan space," Hagen wrote in a note to clients. "On a relative basis we see somewhat stronger earnings visibility and less valuation sensitivity in some Agency REITs and mortgage orginator/servicers." More hawkish Federal Reserve policy and the yield curve inversion has dragged on the stock for much of this year, the analyst said. And "visibility appears particularly low right now for investors to capture very much capital appreciation or valuation improvement as a result of tighter spreads." He doesn't expect Redwood Trust (RWT) stock to fall to below $7 as it did in mid-June. BTIG doesn't provide price targets for Neutral-rated stocks. Hagen's Neutral rating broke from the average Wall Street rating of Buy The company announced a $125M stock buyback program in July. Take a look at Redwood's (RWT) dividend history here.

Shareholder Returns

RWTUS Mortgage REITsUS Market

Return vs Industry: RWT underperformed the US Mortgage REITs industry which returned -37.5% over the past year.

Return vs Market: RWT underperformed the US Market which returned -18.2% over the past year.

Price Volatility

Is RWT's price volatile compared to industry and market?
RWT volatility
RWT Average Weekly Movement6.7%
Mortgage REITs Industry Average Movement5.8%
Market Average Movement7.0%
10% most volatile stocks in US Market15.5%
10% least volatile stocks in US Market2.9%

Stable Share Price: RWT is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: RWT's weekly volatility (7%) has been stable over the past year.

About the Company

1994298Chris Abate

Redwood Trust, Inc., together with its subsidiaries, operates as a specialty finance company in the United States. The company operates through three segments: Residential Mortgage Banking, Business Purpose Mortgage Banking, and Investment Portfolio. The Residential 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 Fundamentals Summary

How do Redwood Trust's earnings and revenue compare to its market cap?
RWT fundamental statistics
Market CapUS$711.10m
Earnings (TTM)US$56.82m
Revenue (TTM)US$241.48m


P/E Ratio


P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
RWT income statement (TTM)
Cost of RevenueUS$16.97m
Gross ProfitUS$224.51m
Other ExpensesUS$167.69m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date


Earnings per share (EPS)0.49
Gross Margin92.97%
Net Profit Margin23.53%
Debt/Equity Ratio987.7%

How did RWT perform over the long term?

See historical performance and comparison



Current Dividend Yield


Payout Ratio
We’ve recently updated our valuation analysis.


Is RWT undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score


Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for RWT?

Other financial metrics that can be useful for relative valuation.

RWT key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenuen/a
Enterprise Value/EBITDAn/a
PEG Ratio0.1x

Price to Earnings Ratio vs Peers

How does RWT's PE Ratio compare to its peers?

RWT PE Ratio vs Peers
The above table shows the PE ratio for RWT vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average9.1x
BRMK Broadmark Realty Capital
RC Ready Capital
ACRE Ares Commercial Real Estate
KREF KKR Real Estate Finance Trust
RWT Redwood Trust

Price-To-Earnings vs Peers: RWT is expensive based on its Price-To-Earnings Ratio (12.5x) compared to the peer average (9.1x).

Price to Earnings Ratio vs Industry

How does RWT's PE Ratio compare vs other companies in the US Mortgage REITs Industry?

Price-To-Earnings vs Industry: RWT is expensive based on its Price-To-Earnings Ratio (12.5x) compared to the US Mortgage REITs industry average (10.6x)

Price to Earnings Ratio vs Fair Ratio

What is RWT's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

RWT PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio12.5x
Fair PE Ratio55.9x

Price-To-Earnings vs Fair Ratio: RWT is good value based on its Price-To-Earnings Ratio (12.5x) compared to the estimated Fair Price-To-Earnings Ratio (55.9x).

Share Price vs Fair Value

What is the Fair Price of RWT when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: RWT ($6.09) is trading below our estimate of fair value ($8.8)

Significantly Below Fair Value: RWT is trading below fair value by more than 20%.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.

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Future Growth

How is Redwood Trust forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

Future Growth Score


Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: RWT's forecast earnings growth (106.4% per year) is above the savings rate (1.9%).

Earnings vs Market: RWT's earnings (106.4% per year) are forecast to grow faster than the US market (14.8% per year).

High Growth Earnings: RWT's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: RWT's revenue is expected to decline over the next 3 years (-4.7% per year).

High Growth Revenue: RWT's revenue is forecast to decline over the next 3 years (-4.7% 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 (11.8%).

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Past Performance

How has Redwood Trust performed over the past 5 years?

Past Performance Score


Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: RWT has a high level of non-cash earnings.

Growing Profit Margin: RWT's current net profit margins (23.5%) are lower than last year (59.3%).

Past Earnings Growth Analysis

Earnings Trend: RWT's earnings have declined by 3.5% 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 (-84.7%) over the past year, making it difficult to compare to the Mortgage REITs industry average (-1.6%).

Return on Equity

High ROE: RWT's Return on Equity (5%) is considered low.

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Financial Health

How is Redwood Trust's financial position?

Financial Health Score


Financial Health Score 2/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: RWT's short term assets ($12.9B) exceed its short term liabilities ($2.0B).

Long Term Liabilities: RWT's short term assets ($12.9B) exceed its long term liabilities ($10.6B).

Debt to Equity History and Analysis

Debt Level: RWT's net debt to equity ratio (944.7%) is considered high.

Reducing Debt: RWT's debt to equity ratio has increased from 372.8% to 987.7% over the past 5 years.

Debt Coverage: RWT's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if RWT's interest payments on its debt are well covered by EBIT.

Balance Sheet

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

Dividend Score


Dividend Score 2/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


Current Dividend Yield

Dividend Yield vs Market

Redwood Trust Dividend Yield vs Market
How does Redwood Trust dividend yield compare to the market?
SegmentDividend Yield
Company (Redwood Trust)15.1%
Market Bottom 25% (US)1.6%
Market Top 25% (US)4.5%
Industry Average (Mortgage REITs)14.4%
Analyst forecast in 3 Years (Redwood Trust)15.2%

Notable Dividend: RWT's dividend (15.11%) is higher than the bottom 25% of dividend payers in the US market (1.6%).

High Dividend: RWT's dividend (15.11%) is in the top 25% of dividend payers in the US market (4.53%)

Stability and Growth of Payments

Stable Dividend: RWT's dividend payments have been volatile in the past 10 years.

Growing Dividend: RWT's dividend payments have fallen over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its high payout ratio (185.2%), RWT's dividend payments are not well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: RWT is paying a dividend but the company has no free cash flows.

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How experienced are the management team and are they aligned to shareholders interests?


Average management tenure


Chris Abate (42 yo)





Mr. Christopher J. Abate, also known as Chris, has been the Chief Executive Officer of Redwood Trust, Inc. since May 22, 2018 and its Director since December 2017. Mr. Abate has been employed with Redwood...

CEO Compensation Analysis

Chris Abate's Compensation vs Redwood Trust Earnings
How has Chris Abate's remuneration changed compared to Redwood Trust's earnings?
DateTotal Comp.SalaryCompany Earnings
Jun 30 2022n/an/a


Mar 31 2022n/an/a


Dec 31 2021US$14mUS$800k


Sep 30 2021n/an/a


Jun 30 2021n/an/a


Mar 31 2021n/an/a


Dec 31 2020US$6mUS$767k


Sep 30 2020n/an/a


Jun 30 2020n/an/a


Mar 31 2020n/an/a


Dec 31 2019US$7mUS$750k


Sep 30 2019n/an/a


Jun 30 2019n/an/a


Mar 31 2019n/an/a


Dec 31 2018US$5mUS$646k


Sep 30 2018n/an/a


Jun 30 2018n/an/a


Mar 31 2018n/an/a


Dec 31 2017US$4mUS$550k


Sep 30 2017n/an/a


Jun 30 2017n/an/a


Mar 31 2017n/an/a


Dec 31 2016US$4mUS$513k


Sep 30 2016n/an/a


Jun 30 2016n/an/a


Mar 31 2016n/an/a


Dec 31 2015US$2mUS$425k


Compensation vs Market: Chris's total compensation ($USD13.60M) is above average for companies of similar size in the US market ($USD3.98M).

Compensation vs Earnings: Chris's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.

Leadership Team

Experienced Management: RWT's management team is considered experienced (4.5 years average tenure).

Board Members

Experienced Board: RWT's board of directors are considered experienced (4.8 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.

Recent Insider Transactions

NYSE:RWT Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
05 Nov 21BuyUS$12,899Sasha MacomberIndividual933US$13.83

Ownership Breakdown

What is the ownership structure of RWT?
Owner TypeNumber of SharesOwnership Percentage
Individual Insiders1,202,4451.0%
General Public21,585,80218.5%

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.3%.

Top Shareholders

Top 25 shareholders own 64.57% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
BlackRock, Inc.
20,869,574$127.1m2.22%no data
The Vanguard Group, Inc.
12,868,373$78.4m5.08%no data
9,304,912$56.7m0%no data
State Street Global Advisors, Inc.
4,279,532$26.1m3.62%no data
Capital Research and Management Company
2,562,000$15.6m0%no data
LSV Asset Management
Geode Capital Management, LLC
2,064,357$12.6m3.92%no data
Adage Capital Management, L.P.
ClearBridge Investments, LLC
Charles Schwab Investment Management, Inc.
1,358,396$8.3m5.42%no data
BNY Mellon Asset Management
1,338,168$8.1m-1.02%no data
Invesco Capital Management LLC
Northern Trust Global Investments
1,289,577$7.9m1.23%no data
Balyasny Asset Management L.P.
Peregrine Capital Management, LLC
Boothbay Fund Management, LLC
Norges Bank Investment Management
1,136,704$6.9m0%no data
Wellington Management Group LLP
1,107,516$6.7m45.36%no data
Angel Oak Capital Advisors, LLC
J.P. Morgan Asset Management, Inc.
968,727$5.9m-10.77%no data
First Trust Advisors LP
Goldman Sachs Asset Management, L.P.
917,627$5.6m737.33%no data
Evergreen Capital Management LLC
Morgan Stanley, Investment Banking and Brokerage Investments
858,448$5.2m-31.05%no data
Raymond James Financial Inc., Asset Management Arm
762,498$4.6m21.8%no data

Company Information

Redwood Trust, Inc.'s employee growth, exchange listings and data sources

Key Information

  • Name: Redwood Trust, Inc.
  • Ticker: RWT
  • Exchange: NYSE
  • Founded: 1994
  • Industry: Mortgage REITs
  • Sector: Diversified Financials
  • Implied Market Cap: US$711.104m
  • Shares outstanding: 116.77m
  • Website:

Number of Employees


  • Redwood Trust, Inc.
  • One Belvedere Place
  • Suite 300
  • Mill Valley
  • California
  • 94941
  • United States


TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RWTNYSE (New York Stock Exchange)YesCommon SharesUSUSDAug 1995
R2VDB (Deutsche Boerse AG)YesCommon SharesDEEURAug 1995

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/10/05 00:00
End of Day Share Price2022/10/05 00:00
Annual Earnings2021/12/31

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.