Redwood Trust, Inc. (RWT) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Centerspace

Ellington Financial, Inc.

UMH Properties, Inc.

MFA Financial, Inc.

Alexander's, Inc.

Redwood Trust, Inc.

Saul Centers, Inc.

Plymouth Industrial REIT, Inc.

NexPoint Residential Trust, Inc.

Hudson Pacific Properties, Inc.

RPT Realty

Why is Redwood Trust, Inc. ?

Negative results in Jun 25

OPERATING CASH FLOW(Y) Lowest at USD -7,008.09 MM
DEBT-EQUITY RATIO (HY) Highest at 1,831.7 %
INTEREST COVERAGE RATIO(Q) Lowest at 66.28

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -21.43%, its profits have risen by 81.5% ; the PEG ratio of the company is 0.3
At the current price, the company has a high dividend yield of 1048

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -21.43% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Realty)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Redwood Trust, Inc. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Redwood Trust, Inc.

-21.43%

-0.33

32.56%

S&P 500

13.22%

0.65

20.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

15.16%

EBIT Growth (5y)

46.18%

EBIT to Interest (avg)

1.29

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

38.15%

Dividend Payout Ratio

207.82%

Pledged Shares

Institutional Holding

85.23%

ROCE (avg)

89.70%

ROE (avg)

11.74%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.64

EV to EBIT

0.42

EV to EBITDA

0.41

EV to Capital Employed

0.48

EV to Sales

0.39

PEG Ratio

0.27

Dividend Yield

1048.00%

ROCE (Latest)

115.63%

ROE (Latest)

2.97%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

3What is working for the Company

NET SALES(9M)

At USD 878.03 MM has Grown at 34.49%

RAW MATERIAL COST(Y)

Fallen by 0.14% (YoY

-30What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD -7,008.09 MM

DEBT-EQUITY RATIO (HY)

Highest at 1,831.7 %

INTEREST COVERAGE RATIO(Q)

Lowest at 66.28

DEBTORS TURNOVER RATIO(HY)

Lowest at 5.07 times

INTEREST(Q)

Highest at USD 270.5 MM

PRE-TAX PROFIT(Q)

Lowest at USD -93.93 MM

NET PROFIT(Q)

Lowest at USD -99.91 MM

EPS(Q)

Lowest at USD -0.76

Here's what is working for Redwood Trust, Inc.

Net Sales

At USD 878.03 MM has Grown at 34.49%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Raw Material Cost

Fallen by 0.14% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Redwood Trust, Inc.

Pre-Tax Profit

At USD -93.93 MM has Fallen at -682.32%

over average net sales of the previous four periods of USD 16.13 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

At USD -99.91 MM has Fallen at -1,237%

over average net sales of the previous four periods of USD 8.79 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Operating Cash Flow

Lowest at USD -7,008.09 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Interest Coverage Ratio

Lowest at 66.28

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Debt-Equity Ratio

Highest at 1,831.7 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Interest

Highest at USD 270.5 MM

in the last five periods and Increased by 10.79% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Pre-Tax Profit

Lowest at USD -93.93 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Net Profit

Lowest at USD -99.91 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

EPS

Lowest at USD -0.76

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)

Debtors Turnover Ratio

Lowest at 5.07 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio