Redwood Trust, Inc. 9.125% Seni (RWTN) 10-Year Financial Performance & Capital Metrics

RWTN • • 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 +163.6%
FFO/Share 0.50 +131.9%
FFO Payout 151.56% -59.5%
FFO per Share 0.50 +131.9%
NOI Margin 100%
FFO Margin 27.18% +72.4%
ROE 4.52% +2371.3%
ROA 0.33% +2098.2%
Debt/Assets 91.72% +15.8%
Net Debt/EBITDA 152.02 -56.2%
Book Value/Share 8.99 -13.2%

Technical Analysis

Key Insights

Based on financial data analysis

✓Strengths

✓High NOI margin of 100.0%
✓Healthy dividend yield of 3.0%
✓Trading near 52-week high

✗Weaknesses

✗High debt to equity ratio of 14.1x
✗Profits declining 20.4% over 5 years
✗Weak Piotroski F-Score: 3/9
✗FFO declining 90.4% TTM
✗Dividend exceeds FFO - may not be sustainable
✗Dividend payout exceeds 100% of earnings

Price & Volume

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Growth Metrics

Revenue CAGR

10Y1.29%

5Y-5.81%

3Y-23.4%

TTM72.43%

Profit (Net Income) CAGR

10Y-5.78%

5Y-20.42%

3Y-44.72%

TTM-103.52%

EPS CAGR

10Y-12.01%

5Y-23.23%

3Y-47.17%

TTM-117.54%

ROCE

10Y Avg0.91%

5Y Avg-0.04%

3Y Avg-0.08%

Latest0.66%

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	0	0	0	0	0	0	0	0	0	0
Net Operating Income (NOI)+	-	-	-	-	-	-	-	-	-	-
NOI Margin %	-	-	-	-	-	-	-	-	-	-
Operating Expenses+	122.52M	124.59M	87.02M	85.49M	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+	0	0	0	0	221.45M	-426.68M	378.2M	-156.01M	32.3M	108.1M
EBITDA Margin %	-	-	-	-	-	-	-	-	-	-
Depreciation & Amortization+	-91.74M	-145.06M	-152.16M	-130.69M	0	0	0	0	0	0
D&A / Revenue %	-	-	-	-	-	-	-	-	-	-
Operating Income+	91.74M	145.06M	152.16M	130.69M	221.45M	-426.68M	378.2M	-156.01M	32.3M	108.1M
Operating Margin %	-	-	-	-	-	-	-	-	-	-
Interest Expense+	0	0	0	0	0	0	0	0	0	-842.56M
Interest Coverage	-	-	-	-	-	-	-	-	-	-
Non-Operating Income	0	0	0	0	221.45M	-426.68M	378.2M	-156.01M	32.3M	108.1M
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+	99.28M	127.51M	136.77M	115.85M	169.18M	-581.85M	319.61M	-163.52M	-2.27M	54M
Net Margin %	-	-	-	-	-	-	-	-	-	-
Net Income Growth %	0.01%	0.28%	0.07%	-0.15%	0.46%	-4.44%	1.55%	-1.51%	0.99%	24.75%
Funds From Operations (FFO)+	-	-	-	-	-	-	-	-	-	-
FFO Margin %	-	-	-	-	-	-	-	-	-	-
FFO Growth %	3.25%	-3.33%	0.12%	0.04%	13.66%	-4.01%	1.62%	-1.38%	1.19%	1.64%
FFO per Share+	-	-	-	-	-	-	-	-	-	-
FFO Payout Ratio %	-	-	-	-	-	-	-	-	-	-
EPS (Diluted)+	1.17	1.30	1.34	1.05	1.20	-5.12	2.17	-1.43	-0.11	0.32
EPS Growth %	0.02%	0.11%	0.03%	-0.22%	0.14%	-5.27%	1.42%	-1.66%	0.92%	3.91%
EPS (Basic)	1.18	1.54	1.60	1.34	1.46	-5.12	2.37	-1.43	-0.11	0.32
Diluted Shares Outstanding	84.52M	97.91M	101.98M	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+	6.22B	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+	5.8B	5.15B	6.83B	11.7B	17.58B	9.81B	14.17B	12.65B	14.11B	-147.27M
PP&E (Net)	4.12M	2.75M	2.65M	5.11M	16.77M	19.21M	27.79M	28.79M	20.36M	13.84M
Investment Securities	0	0	0	0	0	0	0	0	0	0
Total Current Assets+	220.23M	212.84M	144.66M	175.76M	196.97M	461.26M	450.49M	258.89M	293.1M	0
Cash & Equivalents	220.23M	212.84M	144.66M	175.76M	196.97M	461.26M	450.49M	258.89M	293.1M	312.93M
Receivables	0	0	0	0	0	0	0	0	0	1000K
Other Current Assets	0	0	0	0	0	0	0	0	0	-526.87M
Intangible Assets	191.98M	118.53M	63.6M	60.28M	115.01M	65.68M	54M	66.31M	53.34M	0
Total Liabilities	5.07B	4.33B	5.83B	10.59B	16.17B	9.24B	13.32B	11.95B	13.3B	17.07B
Total Debt+	3.08B	3.39B	3.74B	7.98B	13.47B	8.53B	10.89B	9.72B	11.49B	16.75B
Net Debt	2.86B	3.18B	3.59B	7.81B	13.27B	8.06B	10.44B	9.46B	11.2B	16.43B
Long-Term Debt	3.08B	3.39B	3.74B	7.98B	13.47B	8.53B	10.89B	9.72B	11.49B	15.19B
Short-Term Borrowings	0	0	0	0	0	0	0	0	0	1000K
Capital Lease Obligations	0	0	0	0	0	0	0	0	0	0
Total Current Liabilities+	28.31M	32.93M	42.46M	62.3M	98.9M	64.76M	118.31M	83.28M	86.42M	0
Accounts Payable	0	0	0	0	0	0	0	0	0	0
Deferred Revenue	0	0	0	0	0	0	0	0	0	0
Other Liabilities	1.97B	906.97M	2.05B	2.54B	2.6B	653.26M	2.31B	2.14B	1.72B	-15.2B
Total Equity+	1.15B	1.15B	1.21B	1.35B	1.83B	1.11B	1.39B	1.08B	1.2B	1.19B
Equity Growth %	-0.09%	0%	0.05%	0.11%	0.35%	-0.39%	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	0	0	0	0	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	0	0	0	0	0	0	0	0	0	2.5B
Retained Earnings	-642.47M	-599.68M	-547.57M	-524.77M	-485.04M	-1.15B	-922.93M	-1.2B	-1.3B	-1.34B
Preferred Stock	0	0	0	0	0	0	0	0	68.43M	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%	0.11%	0.12%	0.09%	0.11%	-0.4%	0.26%	-0.13%	-0%	0.05%
Debt / Assets	0.49%	0.62%	0.53%	0.67%	0.75%	0.82%	0.74%	0.75%	0.79%	0.92%
Debt / Equity	2.68x	2.95x	3.08x	5.92x	7.37x	7.67x	7.86x	8.97x	9.54x	14.10x
Net Debt / EBITDA	-	-	-	-	59.93x	-	27.62x	-	346.71x	152.02x
Book Value per Share	13.56	11.74	11.89	12.26	13.36	9.75	9.76	9.25	10.36	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	164.39M	-583.84M	308.98M	-167.85M	-6.27M	54M
Depreciation & Amortization	824K	1.14M	1.21M	1.31M	18.64M	17.36M	32.09M	29.89M	27.28M	11.92M
Stock-Based Compensation	11.92M	12.65M	10.38M	13.74M	0	0	0	0	0	25.02M
Other Non-Cash Items	-1.28B	-733.26M	-1.85B	-1.7B	-1.27B	-171.87M	-6.01B	35.42M	-1.99B	-5.91B
Working Capital Changes	-88.17M	42.57M	-17.56M	-41.85M	-78.71M	232.87M	-22.87M	-36.59M	-51.49M	-40.71M
Cash from Investing+	863.25M	1.34B	280.38M	-12.75M	1.03B	4.07B	1.4B	213.89M	908.72M	2.54B
Acquisitions (Net)	0	0	0	-237.65M	-455.34M	0	0	-40.64M	0	0
Purchase of Investments	0	0	0	0	-707.45M	-292.05M	-330.54M	-15.01M	-9.86M	0
Sale of Investments	0	0	0	0	1000K	1000K	1000K	1000K	1000K	0
Other Investing	863.25M	1.34B	280.38M	224.9M	1.19B	3.39B	1.55B	134.47M	717.76M	2.54B
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	0	0	0	0	0	-99.91M
Debt Issuance (Net)	0	0	0	0	-1000K	-1000K	1000K	-1000K	1000K	1000K
Share Repurchases	-94.27M	-35.4M	-12.55M	-21.15M	0	-21.66M	0	-56.5M	0	-5.01M
Other Financing	432.33M	-706.93M	1.45B	1.78B	-7.58M	-84.68M	4.74M	-7.25M	-12.25M	-18.14M
Net Change in Cash+	-49.5M	1.24M	-74.66M	58.27M	85.76M	253.62M	-12.97M	-202.12M	39.42M	-55.86M
Exchange Rate Effect	0	0	0	0	0	0	1	0	0	0
Cash at Beginning	269.73M	220.23M	221.47M	146.81M	205.08M	290.83M	544.45M	531.48M	329.36M	368.79M
Cash at End	220.23M	221.47M	146.81M	205.08M	290.83M	544.45M	531.48M	329.36M	368.79M	312.93M
Free Cash Flow+	-1.25B	-545.65M	-1.71B	-1.61B	-1.17B	-505.47M	-5.69B	-139.14M	-2.02B	-5.86B
FCF Growth %	0.3%	0.56%	-2.14%	0.06%	0.28%	0.57%	-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	0.09	-0.18	-0.15	-0.13	1.37	-4.95	2.48	-1.14	0.22	0.5
FFO Payout Ratio	1258.24%	-504.05%	-573.97%	-652.22%	68.92%	0%	26.07%	0%	374.15%	151.56%
NOI Margin	100%	100%	100%	100%	100%	100%	100%	100%	100%	100%
Net Debt / EBITDA	-	-	-	-	59.93x	-	27.62x	-	346.71x	152.02x
Debt / Assets	49.47%	61.9%	53.12%	66.87%	74.85%	82.34%	74.08%	74.59%	79.24%	91.72%
Book Value / Share	13.56	11.74	11.89	12.26	13.36	9.75	9.76	9.25	10.36	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. 9.125% Seni (RWTN) has a price-to-earnings (P/E) ratio of 79.2x. This suggests investors expect higher future growth.

Growth & Financials

Redwood Trust, Inc. 9.125% Seni (RWTN) reported $463.4M in revenue for fiscal year 2024. This represents a 71% increase from $270.8M in 2013.

Redwood Trust, Inc. 9.125% Seni (RWTN) grew revenue by 52.9% over the past year. This is strong growth.

Redwood Trust, Inc. 9.125% Seni (RWTN) reported a net loss of $2.9M for fiscal year 2024.

Dividend & Returns

Yes, Redwood Trust, Inc. 9.125% Seni (RWTN) pays a dividend with a yield of 2.98%. This makes it attractive for income-focused investors.

Redwood Trust, Inc. 9.125% Seni (RWTN) has a return on equity (ROE) of 4.5%. This is below average, suggesting room for improvement.

Industry Metrics

Redwood Trust, Inc. 9.125% Seni (RWTN) generated Funds From Operations (FFO) of $9.6M in the trailing twelve months. FFO is the primary profitability metric for REITs.

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