Redwood Trust, Inc. (RWT) 10-Year Financial Performance & Capital Metrics

RWT • • REIT / Real Estate

Real EstateMortgage REITsHybrid Mortgage REITsMulti-Asset Mortgage Investors

AboutRedwood 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. This segment also offers derivative financial instruments to manage risks associated with residential loans. The Business Purpose Mortgage Banking segment operates a platform that originates and acquires business purpose loans, such as single-family rental and bridge loans for subsequent securitization, sale, or transfer into its investment portfolio. The Investment Portfolio segment invests in securities retained from residential and business purpose securitization activities, and residential and small-balance multifamily bridge loans, as well as residential mortgage-backed securities issued by third parties, Freddie Mac K-Series multifamily loan securitizations and reperforming loan securitizations, servicer advance investments, home equity investments, and other housing-related investments. 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 incorporated in 1994 and is headquartered in Mill Valley, California.Show more

Revenue $242M +52.9%
FFO $66M +424.0%
FFO/Share 0.50 +361.1%
FFO Payout 140.92% -79.9%
FFO per Share 0.50 +361.1%
NOI Margin 86.15% -0.2%
FFO Margin 27.18% +242.7%
ROE 4.52% +2371.5%
ROA 0.33% +2098.2%
Debt/Assets 89.79% +1.4%
Net Debt/EBITDA 216.73 -81.8%
Book Value/Share 8.99 -13.1%

Technical Analysis

Key Insights

Based on financial data analysis

✓Strengths

✓High NOI margin of 86.1%
✓Trading at only 0.6x book value

✗Weaknesses

✗High debt to equity ratio of 13.8x
✗Profits declining 20.4% over 5 years
✗Weak Piotroski F-Score: 3/9
✗FFO declining 187.0% TTM
✗Dividend exceeds FFO - may not be sustainable
✗Dividend payout exceeds 100% of earnings

Price & Volume

Loading chart...

Growth Metrics

Revenue CAGR

10Y1.29%

5Y-5.81%

3Y-23.4%

TTM-20.85%

Profit (Net Income) CAGR

10Y-6.03%

5Y-20.42%

3Y-44.72%

TTM-208.33%

EPS CAGR

10Y-12.01%

5Y-26.18%

3Y-48.7%

TTM-245.1%

ROCE

10Y Avg1.28%

5Y Avg-0.27%

3Y Avg-0.25%

Latest0.45%

Peer Comparison

Multi-Asset Mortgage Investors

Name	Market Cap	Current Price	P/E Ratio	Revenue Growth 1Y	Net Margin	ROE	FCF Yield	Debt/Equity
RWTNRedwood Trust, Inc. 9.125% Seni	3.36B	25.34	79.19	52.9%	-0.62%	-0.29%		14.10
MITNAG Mortgage Investment Trust, Inc. 9.500% Senior Notes due 2029	754.34M	25.45	20.69	5.49%	18.45%	8.87%	7.4%	11.65
EFC-PCEllington Financial Inc.	2.49B	25.42	18.97	-13.66%	46.15%	8.39%
RWTRedwood Trust, Inc.	734.76M	5.80	18.13	52.9%	-41.59%	-8.86%		13.80
EFC-PDEllington Financial Inc.	2.37B	24.18	17.65	12.07%	49.64%	8.39%
STWDStarwood Property Trust, Inc.	6.8B	18.35	16.38	-0.53%	19.99%	4.84%	9.1%	1.25
NLYAnnaly Capital Management, Inc.	16.28B	23.83	14.71	189.21%	31.62%	9.97%	15.04%	1.69
IVRInvesco Mortgage Capital Inc.	659.79M	9.30	14.31	17.98%	36.99%	6.93%	27.76%	6.70

Profit & Loss

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Revenue+	214.26M	259.55M	239.18M	216.17M	327.17M	-318.03M	539.6M	-22.1M	158.6M	242.5M
Revenue Growth %	0%	0.21%	-0.08%	-0.1%	0.51%	-1.97%	2.7%	-1.04%	8.18%	0.53%
Property Operating Expenses	11.92M	14.84M	0	7.48M	9.94M	12.73M	21.98M	19.72M	21.74M	33.59M
Net Operating Income (NOI)+	-	-	-	-	-	-	-	-	-	-
NOI Margin %	-	-	-	-	-	-	-	-	-	-
Operating Expenses+	80.39M	60.26M	77.16M	75.3M	105.73M	108.65M	161.41M	133.91M	126.3M	134.39M
G&A Expenses	80.39M	60.26M	77.16M	75.3M	105.73M	108.65M	161.41M	133.91M	126.3M	134.39M
EBITDA+	122.77M	185.59M	163.24M	134.7M	308.61M	-422.05M	388.31M	-159.81M	10.57M	74.51M
EBITDA Margin %	-	-	-	-	-	-	-	-	-	-
Depreciation & Amortization+	824K	1.14M	1.21M	1.31M	97.1M	17.36M	32.09M	15.92M	0	0
D&A / Revenue %	-	-	-	-	-	-	-	-	-	-
Operating Income+	121.94M	184.45M	162.02M	133.39M	211.51M	-439.41M	356.22M	-175.73M	10.57M	74.51M
Operating Margin %	-	-	-	-	-	-	-	-	-	-
Interest Expense+	95.88M	88.53M	109M	239M	480M	448M	427M	552M	631.52M	842.56M
Interest Coverage	1.27x	2.08x	1.49x	0.56x	0.44x	-0.98x	0.83x	-0.32x	0.02x	0.09x
Non-Operating Income	824K	1.14M	-109.78M	1.31M	192.98M	-475.57M	358.69M	15.92M	10.57M	74.51M
Pretax Income+	91.74M	134.96M	152.16M	130.69M	176.62M	-586.46M	338.09M	-183.44M	-639K	72.84M
Pretax Margin %	-	-	-	-	-	-	-	-	-	-
Income Tax+	-10.35M	3.71M	11.75M	11.09M	7.44M	-4.61M	18.48M	-19.92M	1.64M	18.84M
Effective Tax Rate %	-	-	-	-	-	-	-	-	-	-
Net Income+	102.09M	131.25M	140.41M	119.6M	169.18M	-581.85M	319.61M	-163.52M	-2.27M	54M
Net Margin %	-	-	-	-	-	-	-	-	-	-
Net Income Growth %	0.02%	0.29%	0.07%	-0.15%	0.41%	-4.44%	1.55%	-1.51%	0.99%	24.75%
Funds From Operations (FFO)+	-	-	-	-	-	-	-	-	-	-
FFO Margin %	-	-	-	-	-	-	-	-	-	-
FFO Growth %	0.02%	0.29%	0.07%	-0.15%	1.2%	-3.12%	1.62%	-1.42%	1.09%	4.24%
FFO per Share+	-	-	-	-	-	-	-	-	-	-
FFO Payout Ratio %	-	-	-	-	-	-	-	-	-	-
EPS (Diluted)+	1.18	1.54	1.60	1.09	1.46	-5.11	2.37	-1.43	-0.11	0.32
EPS Growth %	0.03%	0.31%	0.04%	-0.32%	0.34%	-4.5%	1.46%	-1.6%	0.92%	3.91%
EPS (Basic)	1.20	1.66	1.83	1.41	1.46	-5.19	2.73	-1.43	-0.11	0.32
Diluted Shares Outstanding	84.52M	97.91M	101.97M	110.03M	136.78M	113.94M	142.07M	117.23M	116.28M	132.14M

Balance Sheet

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Total Assets+	6.23B	5.48B	7.04B	11.94B	18B	10.36B	14.71B	13.03B	14.5B	18.26B
Asset Growth %	0.05%	-0.12%	0.28%	0.7%	0.51%	-0.42%	0.42%	-0.11%	0.11%	0.26%
Real Estate & Other Assets+	-1.42B	-1.13B	-1.47B	8.37B	-18B	254.31M	-895.99M	-724.47M	-543.92M	-837.62M
PP&E (Net)	4.12M	2.75M	2.65M	5.11M	16.77M	19.21M	27.79M	28.79M	20.36M	14.17M
Investment Securities	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K
Total Current Assets+	5.57M	212.84M	144.66M	175.76M	740.5M	0	0	0	0	0
Cash & Equivalents	220.23M	213M	145M	176M	197M	461.26M	450.49M	258.89M	293.1M	245.16M
Receivables	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K
Other Current Assets	0	0	0	0	0	0	-794.86M	-505.76M	-550.26M	-670.58M
Intangible Assets	191.98M	119M	64M	60.28M	72.79M	56.87M	41.56M	40.89M	28.46M	19.05M
Total Liabilities	5.08B	4.33B	5.83B	10.59B	16.17B	9.24B	13.32B	11.95B	13.3B	17.07B
Total Debt+	4.94B	4.19B	5.68B	10.38B	15.8B	8.85B	12.88B	11.5B	12.84B	16.39B
Net Debt	4.72B	3.97B	5.53B	10.21B	15.6B	8.39B	12.43B	11.25B	12.55B	16.15B
Long-Term Debt	3.08B	3.39B	3.74B	7.98B	13.33B	8.39B	10.76B	9.58B	11.48B	14.63B
Short-Term Borrowings	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K
Capital Lease Obligations	0	0	0	0	13.44M	16.69M	20.96M	18.56M	14.72M	11.03M
Total Current Liabilities+	2B	939.9M	2.09B	2.61B	2.39B	629.49M	0	0	0	0
Accounts Payable	13.7M	10.76M	18.43M	42.53M	66.12M	34.86M	47.57M	50.85M	57.75M	77.79M
Deferred Revenue	0	-306.46M	-649.06M	-988.61M	0	0	0	0	0	0
Other Liabilities	-3.08B	-3.4B	-3.75B	-7.99B	-13.35B	71.84M	-10.78B	-9.6B	-11.49B	-14.65B
Total Equity+	1.15B	5.11B	6.74B	11.53B	17.35B	1.11B	1.39B	1.08B	1.2B	1.19B
Equity Growth %	-0.09%	3.46%	0.32%	0.71%	0.51%	-0.94%	0.25%	-0.22%	0.11%	-0.01%
Shareholders Equity	1.15B	1.15B	1.21B	1.35B	1.83B	1.11B	1.39B	1.08B	1.2B	1.19B
Minority Interest	0	3.96B	5.53B	10.18B	15.52B	0	0	0	0	0
Common Stock	782K	768K	766K	849K	1.14M	1.12M	1.15M	1.14M	1.31M	1.32M
Additional Paid-in Capital	1.7B	1.68B	1.67B	1.81B	2.27B	2.26B	2.32B	2.35B	2.49B	2.5B
Retained Earnings	-642.47M	-599.68M	-547.57M	-524.77M	-485.04M	-1.15B	1.32B	1.15B	1.14B	1.19B
Preferred Stock	0	0	0	0	0	0	0	0	66.95M	66.95M
Return on Assets (ROA)	0.02%	0.02%	0.02%	0.01%	0.01%	-0.04%	0.03%	-0.01%	-0%	0%
Return on Equity (ROE)	0.08%	0.04%	0.02%	0.01%	0.01%	-0.06%	0.26%	-0.13%	-0%	0.05%
Debt / Assets	0.79%	0.76%	0.81%	0.87%	0.88%	0.85%	0.88%	0.88%	0.89%	0.9%
Debt / Equity	4.31x	0.82x	0.84x	0.90x	0.91x	7.97x	9.29x	10.61x	10.68x	13.80x
Net Debt / EBITDA	38.47x	21.41x	33.90x	75.77x	50.55x	-	32.01x	-	1187.88x	216.73x
Book Value per Share	13.56	52.22	66.13	104.76	126.83	9.75	9.76	9.25	10.34	8.99

Cash Flow

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Cash from Operations+	-1.25B	-545.65M	-1.71B	-1.61B	-1.17B	-505.47M	-5.69B	-139.14M	-2.02B	-5.86B
Operating CF Growth %	0.3%	0.56%	-2.14%	0.06%	0.28%	0.57%	-10.27%	0.98%	-13.49%	-1.91%
Operating CF / Revenue %	-	-	-	-	-	-	-	-	-	-
Net Income	102.09M	131.25M	140.41M	119.6M	169.18M	-581.85M	319.61M	-163.52M	-2.27M	54M
Depreciation & Amortization	824K	1.14M	1.21M	1.31M	10.13M	17.36M	16.78M	15.92M	14.85M	11.92M
Stock-Based Compensation	11.81M	12.65M	10.38M	13.74M	14.96M	15.3M	18.9M	23.94M	19.06M	20.74M
Other Non-Cash Items	-1.15B	-668M	-1.8B	-1.74B	-1.19B	-189.16M	-6.03B	21.11M	-2B	-5.93B
Working Capital Changes	-82.18M	46.2M	-22.38M	-20.77M	-78.71M	232.87M	-22.87M	-36.59M	-51.49M	-16.51M
Cash from Investing+	863.25M	1.33B	286.86M	-12.75M	1.03B	4.07B	1.4B	213.89M	908.72M	2.54B
Acquisitions (Net)	32.39M	15.34M	643K	25.49M	-451.63M	0	0	-40.64M	0	0
Purchase of Investments	-179.26M	-318.27M	-600.88M	-1.34B	-711.16M	-292.05M	-398.77M	-263.22M	-117.91M	-236.87M
Sale of Investments	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K
Other Investing	464.39M	1.07B	581.53M	566.22M	-67.68M	3.43B	1.62B	339.95M	782.86M	2.71B
Cash from Financing+	337.46M	-795.39M	1.36B	1.68B	225.47M	-3.31B	4.28B	-276.87M	1.15B	3.27B
Dividends Paid	-94.87M	-88.47M	-88.3M	-96.8M	-129.45M	-83.98M	-91.67M	-111.67M	-93.58M	-99.91M
Common Dividends	-94.87M	-88.47M	-88.3M	-96.8M	-129.45M	-83.98M	-91.67M	-111.67M	-88.38M	-92.9M
Debt Issuance (Net)	1000K	-1000K	1000K	1000K	-1000K	-1000K	1000K	-1000K	1000K	1000K
Share Repurchases	-85.82M	-28.07M	-8.42M	-16.32M	0	-21.66M	0	-56.5M	0	0
Other Financing	-8.52M	-7.49M	-11.65M	-10.11M	-14.6M	-94.92M	4.74M	-28.36M	-15.42M	-23.62M
Net Change in Cash+	-49.5M	-7.38M	-68.18M	58.27M	85.76M	253.62M	-12.97M	-202.12M	39.42M	-55.86M
Exchange Rate Effect	0	0	0	0	0	0	0	0	0	0
Cash at Beginning	269.73M	220.23M	212.84M	146.81M	205.08M	290.83M	544.45M	531.48M	329.36M	368.79M
Cash at End	220.23M	212.84M	144.66M	205.08M	290.83M	544.45M	531.48M	329.36M	368.79M	312.93M
Free Cash Flow+	-1.28B	-560.99M	-1.71B	-1.64B	95.21M	-505.47M	-5.69B	-139.14M	-2.02B	-5.86B
FCF Growth %	0.3%	0.56%	-2.05%	0.04%	1.06%	-6.31%	-10.27%	0.98%	-13.49%	-1.91%
FCF / Revenue %	-	-	-	-	-	-	-	-	-	-

Key Ratios

Metric	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
FFO per Share	1.22	1.35	1.39	1.1	1.95	-4.95	2.48	-1.26	0.11	0.5
FFO Payout Ratio	92.19%	66.82%	62.35%	80.06%	48.62%	-14.88%	26.07%	-75.66%	702.51%	140.92%
NOI Margin	94.44%	94.28%	100%	96.54%	96.96%	104%	95.93%	189.2%	86.29%	86.15%
Net Debt / EBITDA	38.47x	21.41x	33.90x	75.77x	50.55x	-	32.01x	-	1187.88x	216.73x
Debt / Assets	79.33%	76.35%	80.67%	86.97%	87.79%	85.46%	87.57%	88.29%	88.55%	89.79%
Interest Coverage	1.27x	2.08x	1.49x	0.56x	0.44x	-0.98x	0.83x	-0.32x	0.02x	0.09x
Book Value / Share	13.56	52.22	66.13	104.76	126.83	9.75	9.76	9.25	10.34	8.99
Revenue Growth	0.48%	21.14%	-7.85%	-9.62%	51.35%	-197.21%	269.67%	-104.1%	817.51%	52.9%

Frequently Asked Questions

Valuation & Price

Redwood Trust, Inc. (RWT) has a price-to-earnings (P/E) ratio of 18.1x. This is roughly in line with market averages.

Growth & Financials

Redwood Trust, Inc. (RWT) reported $212.7M in revenue for fiscal year 2024. This represents a 139% increase from $89.1M in 2011.

Redwood Trust, Inc. (RWT) grew revenue by 52.9% over the past year. This is strong growth.

Redwood Trust, Inc. (RWT) reported a net loss of $88.5M for fiscal year 2024.

Dividend & Returns

Yes, Redwood Trust, Inc. (RWT) pays a dividend with a yield of 12.12%. This makes it attractive for income-focused investors.

Redwood Trust, Inc. (RWT) has a return on equity (ROE) of 4.5%. This is below average, suggesting room for improvement.

Industry Metrics

Redwood Trust, Inc. (RWT) generated Funds From Operations (FFO) of $-76.0M in the trailing twelve months. FFO is the primary profitability metric for REITs.

Redwood Trust, Inc. (RWT) offers a 12.12% dividend yield, which is attractive for income investors. REITs are required to distribute at least 90% of taxable income to shareholders.

US Stock Screener

...