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Redwood Trust Inc (RWT.PA) stock analysis

RWT.PANYSEReal Estate Investment TrustsFiscal year ends December 31Also trades as RWT, RWTN, RWTO, RWTP, RWTQ, RWTS
Financials through Q2 FY2026, quarter ended Jun 30, 2026Last filing: 10-Q on Aug 5, 2026Score 8/30
$17.89−0.13 (-0.72%)

Close on Oct 30, 2026Market cap $393.17MP/E –Yield 23.00%

StockData Score

Prices as of Oct 30, 2026How the score works

Value1Growth0Performance0Health4Dividend3

Weak8 of 30 checks passed

Redwood Trust passes 8 of the 30 checks behind our score; 17 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.

Valuation
1/6
Growth
0/6
Past performance
0/6
Financial health
4/6
Dividend
3/6

What stands out

  • No debt

    Redwood Trust has no borrowings on its latest balance sheet.

  • Interest well covered

    No meaningful interest expense to cover.

  • Debt covered by cash flow

    There is no debt to cover.

  • P/B below the industry

    Redwood Trust's price-to-book of 0.42 is below the Miscellaneous Investing median of 1.20.

What to watch

  • Return on equity under 15%

    Return on equity was 0.6% over the last twelve months and averaged 2.0% over five years; we look for 15% on both.

  • Elevated bankruptcy risk

    The Altman Z-score is 0.06; above 3 is the safe zone and below 1.8 the distress zone.

  • Not covered by earnings

    Dividends take 1682% of net income, leaving little room.

  • Dividend was cut

    The dividend per share fell by more than 10% at least once in the last 10 fiscal years.

Valuation1/6

  • P/E against its history

    Not enough price and earnings history to compare.

  • P/E against the industry

    Needs positive earnings and enough profitable companies in the industry.

  • EV/EBITDA against its history

    Needs positive EBITDA and price history.

  • P/B below the industry

    Redwood Trust's price-to-book of 0.42 is below the Miscellaneous Investing median of 1.20.

  • Price against fair value

    We could not estimate a fair value: it needs at least two valuation methods with positive inputs.

  • Margin of safety

    Depends on the fair value estimate.

Growth0/6

  • Revenue growth over 3 years

    Needs three years of positive revenue.

  • EPS growth over 3 years

    Needs positive EPS three years ago and today.

  • Earnings acceleration

    Needs positive net income now, a year ago and five years ago.

  • Growth against the industry

    Needs revenue for this year and last.

  • Company guidance

    No outlook found in earnings releases from the last twelve months.

  • Gross margin trend

    This company does not report gross profit.

Past performance0/6

  • Return on equity under 15%

    Return on equity was 0.6% over the last twelve months and averaged 2.0% over five years; we look for 15% on both.

  • Return on invested capital

    Needs operating income and invested capital.

  • Return on equity below the industry

    Redwood Trust's return on equity of 0.6% is below the Miscellaneous Investing median of 3.4%.

  • Earnings over 5 years

    Needs positive net income five years ago and in the latest year.

  • Net margin against its history

    Needs five years of revenue and net income.

  • Net margin against the industry

    Needs revenue and net income.

Financial health4/6

  • No debt

    Redwood Trust has no borrowings on its latest balance sheet.

  • Debt not rising

    With no debt today, leverage cannot have risen.

  • Debt covered by cash flow

    There is no debt to cover.

  • Interest well covered

    No meaningful interest expense to cover.

  • Short-term liquidity

    The balance sheet is not split into current and non-current items.

  • Elevated bankruptcy risk

    The Altman Z-score is 0.06; above 3 is the safe zone and below 1.8 the distress zone.

Dividend3/6

  • Pays a dividend

    Redwood Trust paid dividends worth 23.0% of the share price over the last twelve months.

  • Yield above Treasuries

    The 23.0% yield is above the 4.4% on a 1-year Treasury.

  • Yield in the top quarter

    The top quarter of US dividend payers yield 4.0% or more; Redwood Trust yields 23.0%.

  • Dividend was cut

    The dividend per share fell by more than 10% at least once in the last 10 fiscal years.

  • Not covered by earnings

    Dividends take 1682% of net income, leaving little room.

  • Cash-flow cover

    Needs dividends paid and free cash flow.

Scores of similar companies

Fair value

How we estimate it

We don't publish a fair value for Redwood Trust. It needs a US-dollar share price, at least two valuation methods with positive inputs (earnings, EBITDA, book value or sales) and, for companies with several share classes, classes that trade at the same price.

Valuation over time

Using the earnings and balance sheet published at each date, not today's.

  • P/E at month end
  • Own 5-year median 15.9
  • Miscellaneous Investing median 25.0

An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.

Market risk

From the past year of daily prices.

Liquidity

Medium risk

Average value traded per day
$12.76M
Value traded per 1% price move
$4.64M

Downside

Medium risk

Typical loss in a bad month
23.7%
Volatility (annualized)
44%
Sharpe ratio, 1 year
-1.08
Beta to the S&P 500 (5Y)
1.14

Typical bad-month loss, week by week

25%: high

Margins

Share of revenue, fiscal years 2011 to 2025

Net margin

–