1.08%
0.31%
-10.52%
-9.90%
-2.38%
-46.88%
-62.85%
AI Spotlight on RWT
Company Description
Redwood 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.
Market Data
| Last Price | 6.55 |
| Change Percentage | 1.08% |
| Open | 6.5 |
| Previous Close | 6.48 |
| Market Cap ( Millions) | 868 |
| Volume | 588915 |
| Year High | 8.15 |
| Year Low | 5.46 |
| M A 50 | 6.75 |
| M A 200 | 6.89 |
Financial Ratios
| FCF Yield | -671.19% |
| Dividend Yield | 10.23% |
| ROE | 6.71% |
| Debt / Equity | 1376.34% |
| Net Debt / EBIDTA | 2475.08% |
| Price To Book | 0.71 |
| Price Earnings Ratio | 10.6 |
| Price To FCF | -0.15 |
| Price To sales | 1.23 |
| EV / EBITDA | 26.05 |
News
- Jan -15 - Redwood Trust Prices $90.0 Million Senior Notes Offering
- Jan -13 - Redwood Trust: Mortgage REIT Baby Bond Offering 9% Yield
- Jan -08 - Redwood Trust: Lower Rates May Increase Capital Deployed
- Jan -07 - Redwood Trust Announces Key Updates to Residential Consumer Operating Platforms
- Dec -23 - 3 mREIT Stocks Worth Considering for a Turnaround in 2025
- Dec -20 - Redwood Trust (RWT) Upgraded to Buy: Here's What You Should Know
- Nov -08 - All You Need to Know About Redwood Trust (RWT) Rating Upgrade to Strong Buy
- Nov -05 - 3 mREIT Stock Picks to Navigate Volatile Industry Trends
- Oct -31 - Redwood Trust, Inc. (RWT) Q3 2024 Earnings Call Transcript
- Oct -31 - Redwood Trust (RWT) Q3 Earnings: How Key Metrics Compare to Wall Street Estimates
- Oct -31 - Redwood Trust (RWT) Surpasses Q3 Earnings Estimates
- Oct -30 - Redwood Trust Announces New Hires to Drive Advancements in Technology and Growing Non-Agency Opportunities
- Oct -30 - Redwood Trust Reports Third Quarter 2024 Financial Results
- Oct -16 - Redwood Trust Announces Date of Third Quarter 2024 Financial Results Webcast and Conference Call
- Oct -09 - Redwood Trust Prices Reopening of $40 Million of 7.75% Convertible Senior Notes Due 2027
- Sep -19 - Redwood Trust Series A Preferred: Harvesting A Progressively Scarce 10% Yield-To-Call
- Sep -17 - Redwood Trust Preferred A: Bonds Are More Attractive Than Preferred Shares For This REIT
- Aug -19 - Want $13,500? Check Out These High Dividend REIT Stocks
- Aug -01 - Redwood Trust, Inc. (RWT) Q2 2024 Earnings Call Transcript
- Aug -01 - Redwood Trust (RWT) Reports Q2 Earnings: What Key Metrics Have to Say
Business Breakdown
Expected Mid-Term Growth
Segment n°1 -> Investment Portfolio
Expected Growth : 7.03 %
What the company do ?
Redwood Trust, Inc.'s Investment Portfolio is a diversified pool of mortgage-backed securities, residential and commercial loans, and other real estate-related assets.
Why we expect these perspectives ?
Redwood Trust, Inc.'s 7.03% investment portfolio growth is driven by a strong demand for mortgage-backed securities, diversification into commercial real estate, and a disciplined capital allocation strategy. Additionally, the company's ability to navigate interest rate volatility and its focus on credit quality have contributed to its growth.
Segment n°2 -> Corporate / Other
Expected Growth : 4.77 %
What the company do ?
Corporate / Other from Redwood Trust, Inc. refers to the residual category of non-investment portfolio assets, including cash, prepaid expenses, and other miscellaneous items.
Why we expect these perspectives ?
Redwood Trust's Corporate/Other segment growth of 4.77% is driven by increasing mortgage banking activities, expansion of third-party servicing, and growth in mortgage-backed securities issuance. Additionally, the company's strategic investments in technology and digital platforms have improved operational efficiency, contributing to the segment's growth.
Segment n°3 -> Residential Investor Mortgage Banking
Expected Growth : 7.88 %
What the company do ?
Residential Investor Mortgage Banking from Redwood Trust, Inc. provides financing solutions for real estate investors, offering a range of loan products for rental properties.
Why we expect these perspectives ?
Redwood Trust's Residential Investor Mortgage Banking growth of 7.88% is driven by increasing demand for single-family rental properties, low interest rates, and a strong housing market. Additionally, the company's diversified investor base, efficient operations, and strategic partnerships contribute to its growth momentum.
Segment n°4 -> Residential Consumer Mortgage Banking
Expected Growth : 7.87 %
What the company do ?
Residential Consumer Mortgage Banking from Redwood Trust, Inc. provides financing for single-family residential mortgages, offering a range of loan products to borrowers.
Why we expect these perspectives ?
The 7.87% growth in Residential Consumer Mortgage Banking at Redwood Trust, Inc. is driven by increasing demand for housing, low interest rates, and government-backed mortgage programs. Additionally, the segment benefits from Redwood's diversified loan portfolio, strong origination capabilities, and efficient risk management practices, enabling the company to capitalize on market opportunities and expand its market share.
Redwood Trust, Inc. Products
| Product Range | What is it ? |
|---|---|
| Residential Mortgage-Backed Securities (RMBS) | Redwood Trust, Inc. originates, acquires, and securitizes residential mortgage-backed securities (RMBS) to provide financing for single-family and multifamily residential mortgages. |
| Commercial Mortgage-Backed Securities (CMBS) | Redwood Trust, Inc. originates, acquires, and securitizes commercial mortgage-backed securities (CMBS) to provide financing for commercial properties such as office buildings, shopping centers, and apartments. |
| Business Purpose Loans | Redwood Trust, Inc. originates and acquires business purpose loans, which are used for investment properties, fix-and-flip projects, and other business purposes. |
| Single-Family Rental (SFR) Loans | Redwood Trust, Inc. originates and acquires single-family rental loans, which are used to finance the purchase or refinance of single-family rental properties. |
| Multifamily Loans | Redwood Trust, Inc. originates and acquires multifamily loans, which are used to finance the purchase or refinance of apartment buildings and other multifamily properties. |
Redwood Trust, Inc.'s Porter Forces
Threat Of Substitutes
The threat of substitutes for Redwood Trust, Inc. is medium due to the presence of alternative investment options in the mortgage banking industry.
Bargaining Power Of Customers
The bargaining power of customers is low for Redwood Trust, Inc. as the company operates in a niche market with limited customer concentration.
Bargaining Power Of Suppliers
The bargaining power of suppliers is medium for Redwood Trust, Inc. as the company relies on a few large suppliers for its mortgage loan purchases.
Threat Of New Entrants
The threat of new entrants is high for Redwood Trust, Inc. due to the relatively low barriers to entry in the mortgage banking industry.
Intensity Of Rivalry
The intensity of rivalry is high for Redwood Trust, Inc. due to the competitive nature of the mortgage banking industry and the presence of several established players.
Capital Structure
| Value | |
|---|---|
| Debt Weight | 91.56% |
| Debt Cost | 3.95% |
| Equity Weight | 8.44% |
| Equity Cost | 11.60% |
| WACC | 4.59% |
| Leverage | 1085.54% |
Redwood Trust, Inc. : Quality Control
Redwood Trust, Inc. passed 3 out of 9 key points:
Historical Valuation
Price/Earnings Ratio
Margin Valuation
Peers Valuation
Competitors
| Company | Rational |
|---|---|
| EARN | Ellington Residential Mortgage REIT, a real estate investment trust, specializes in acquiring, investing in, and managing residential mortgage-and real estate-related assets. It acquires and manages residential mortgage-backed securities (RMBS), including … |
| CHMI | Cherry Hill Mortgage Investment Corporation, a residential real estate finance company, acquires, invests in, and manages residential mortgage assets in the United States. The company operates through Investments in RMBS … |
| ACR | ACRES Commercial Realty Corp., a real estate investment trust (REIT), focuses on the origination, holding, and management of commercial real estate mortgage loans and other commercial real estate-related debt investments … |
| TWO | Two Harbors Investment Corp. operates as a real estate investment trust (REIT) that focuses on investing in, financing, and managing residential mortgage-backed securities (RMBS), non-agency securities, mortgage servicing rights, and … |
| MFA | MFA Financial, Inc., together with its subsidiaries, operates as a real estate investment trust (REIT) in the United States. The company invests in residential mortgage assets, including non-agency mortgage-backed securities … |
Peers Metrics
DCF BETA
Expected Cash-Flows
Scoring Insights
Peers Group Analysis
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Ellington Residential Mortgage REIT
A-Score
1-Year Total Return ->
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Two Harbors Investment
A-Score
1-Year Total Return ->
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MFA Financial
A-Score
1-Year Total Return ->
4
Redwood Trust
A-Score
1-Year Total Return ->
5
Cherry Hill Mortgage
A-Score
1-Year Total Return ->
6
