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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Alexander's, 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 -19.11%, 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 -19.11% 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.

-8.41%

-0.32

32.50%

S&P 500

17.45%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

20.18%

EBIT Growth (5y)

45.75%

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

Pledged Shares

Institutional Holding

87.82%

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

NA (Loss Making)

Industry P/E

Price to Book Value

0.69

EV to EBIT

0.30

EV to EBITDA

0.30

EV to Capital Employed

0.46

EV to Sales

0.25

PEG Ratio

Dividend Yield

573.86%

ROCE (Latest)

152.64%

ROE (Latest)

-7.53%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bearish

Moving Averages

Bullish (Daily)

KST

Bullish

Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

No Trend

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

16What is working for the Company

INTEREST COVERAGE RATIO(Q)

The company hardly has any interest cost

DIVIDEND PAYOUT RATIO(Y)

Highest at 138.46%

PRE-TAX PROFIT(Q)

Highest at USD 28 MM

NET PROFIT(Q)

Highest at USD 20 MM

EPS(Q)

Highest at USD 0.13

-19What is not working for the Company

NET PROFIT(9M)

At USD -88.97 MM has Grown at -535.87%

OPERATING CASH FLOW(Y)

Lowest at USD -6,733.88 MM

DEBT-EQUITY RATIO (HY)

Highest at 2,241.61 %

CASH AND EQV(HY)

Lowest at USD 586.19 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 0 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 0 times

NET SALES(Q)

Lowest at USD 87.8 MM

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

Pre-Tax Profit

At USD 28 MM has Grown at 253.06%

over average net sales of the previous four periods of USD -18.29 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (USD MM)

Net Profit

At USD 20 MM has Grown at 178.35%

over average net sales of the previous four periods of USD -25.53 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (USD MM)

Pre-Tax Profit

Highest at USD 28 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Net Profit

Highest at USD 20 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

EPS

Highest at USD 0.13

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (USD)

Dividend Payout Ratio

Highest at 138.46%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

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

Net Sales

At USD 87.8 MM has Fallen at -70.51%

over average net sales of the previous four periods of USD 297.76 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (USD MM)

Operating Cash Flow

Lowest at USD -6,733.88 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)

Debt-Equity Ratio

Highest at 2,241.61 % 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

Net Sales

Lowest at USD 87.8 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (USD MM)

Cash and Eqv

Lowest at USD 586.19 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Inventory Turnover Ratio

Lowest at 0 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 0 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio