Redwood Trust Inc (RWT) Stock Analysis — PE Ratio, PS Ratio, Intrinsic Value & 2030 Price Target
Redwood Trust Inc stock (RWT) is currently trading at $5.46. Redwood Trust Inc PS ratio (Price-to-Sales) is 3.73. Analyst consensus price target for RWT is $6.97. WallStSmart rates RWT as Hold.
- RWT PE ratio analysis and historical PE chart
- RWT PS ratio (Price-to-Sales) history and trend
- RWT intrinsic value — DCF, Graham Number, EPV models
- RWT stock price prediction 2025 2026 2027 2028 2029 2030
- RWT fair value vs current price
- RWT insider transactions and insider buying
- Is RWT undervalued or overvalued?
- Redwood Trust Inc financial analysis — revenue, earnings, cash flow
- RWT Piotroski F-Score and Altman Z-Score
- RWT analyst price target and Smart Rating
Redwood Trust Inc
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Smart Analysis
Redwood Trust Inc (RWT) · 10 metrics scored
Smart Score
Category Performance
WallStSmart pulls financial metrics like revenue growth, profit margins, and valuation ratios and scores each one from 0 to 10 based on how strong or weak it is. Those 10 scores are grouped into 4 categories: Growth, Profitability, Valuation, and Quality — which form the 4 axes of the spider chart you see. The categories are then combined into a final score out of 100, but not equally. Growth and Profitability together count for 60% of the total, because a fast-growing profitable business matters more than just a cheap one. That final number maps to a rating (Strong Buy, Buy, Hold, Avoid) and a letter grade, giving you one clear Stock Rating.
Investment Thesis
Strong fundamentals in peg ratio, operating margin, price/book. Concerns around return on equity and eps growth. Fundamentals are solid but monitor weak areas for improvement.
Redwood Trust Inc (RWT) Key Strengths (5)
Keeps $32 of every $100 in revenue after operating costs
Trading below book value, meaning the market prices it less than net assets
Revenue surging 93.10% year-over-year
81.72% of shares held by major funds and institutions
Good growth relative to its price
Supporting Valuation Data
Redwood Trust Inc (RWT) Areas to Watch (5)
Company is destroying shareholder value
Earnings declining -52.60%, profits shrinking
Company is losing money with a negative profit margin
Small-cap company with higher risk but more growth potential
Revenue is fairly priced at 3.73x sales
Supporting Valuation Data
Redwood Trust Inc (RWT) Detailed Analysis Report
Overall Assessment
This company scores 59/100 in our Smart Analysis, earning a C grade. Out of 10 metrics analyzed, 5 register as strengths (avg 9.6/10) while 5 fall into concern territory (avg 2.2/10). The category breakdown reveals uneven performance, with some areas requiring attention.
The Bull Case
The strongest argument centers on Operating Margin, Price/Book, Revenue Growth. Valuation metrics including PEG Ratio (1.47), Price/Book (0.73) suggest the stock is attractively priced. Profitability is solid with Operating Margin at 32.10%. Growth metrics are encouraging with Revenue Growth at 93.10%.
The Bear Case
The primary concerns are Return on Equity, EPS Growth, Profit Margin. Some valuation metrics including Price/Sales (3.73) suggest expensive pricing. Growth concerns include EPS Growth at -52.60%, which may limit upside. Profitability pressure is visible in Return on Equity at -6.44%, Profit Margin at -39.50%.
Key Dynamics to Monitor
Three factors to monitor going forward. First, whether Return on Equity improves, as this is the primary drag on the overall score. Second, margin trajectory, with Return on Equity at -6.44% needing improvement to support the investment thesis. Third, growth sustainability, with Revenue Growth at 93.10% strong but requiring continuation.
Risk Considerations
Based on the metric profile, this is a moderate-to-high risk investment. Strengths and concerns are roughly balanced. Investors should size positions according to their risk tolerance and maintain diversification.
Bottom Line
Mixed fundamentals with both positives (Operating Margin, Price/Book) and negatives (Return on Equity, EPS Growth). A cautious approach is warranted. Monitor for improvement in weak areas before increasing conviction.
Disclaimer: Smart Analysis is a scoring system developed by WallStSmart Team. Scores update daily using multi-model valuation framework. Always conduct your own research and consult with financial advisors before making investment decisions.
RWT Price-to-Sales(PS) Ratio Chart
Historical valuation based on market cap ÷ trailing 12-month revenue
RWT's Price-to-Sales ratio of 3.73x trades at a deep discount to its historical average of 10.36x (1th percentile). The current valuation is 84% below its historical high of 23.78x set in Nov 2012, and 1% above its historical low of 3.69x in Oct 2007. Over the past 12 months, the PS ratio has compressed from ~4.3x as trailing revenue scaled faster than the stock price.
WallStSmart Analysis Synopsis
Data-driven financial summary for Redwood Trust Inc (RWT) · REAL ESTATE › REIT - MORTGAGE
The Big Picture
Redwood Trust Inc is in a high-growth phase, prioritizing rapid expansion over margins. Revenue reached 177M with 93% growth year-over-year. The company is currently unprofitable, posting a -39.5% profit margin.
Key Findings
Revenue growing at 93% YoY, reaching 177M. This pace significantly outperforms most REIT - MORTGAGE peers.
The company is unprofitable with a -39.5% profit margin. The path to breakeven will be the key catalyst.
Free cash flow is -3.4B, meaning the company is burning cash. This may be acceptable for high-growth companies investing heavily.
What to Watch Next
Growth sustainability: can Redwood Trust Inc maintain 93%+ revenue growth, or will competition slow it down?
Dividend sustainability with a current yield of 13.6%. Watch payout ratio and free cash flow coverage.
Volatility is elevated with a beta of 1.59, so expect amplified moves relative to the broader market.
Debt management: total debt of 22.3B is significantly higher than cash (256M). Monitor refinancing risk.
Bottom Line
Redwood Trust Inc is a high-conviction growth story with revenue accelerating at 93% while profitability is still developing. For growth-oriented investors, the trajectory is compelling. For value investors, the thin -39.5% margins and premium valuation suggest patience until the unit economics mature further.
This synopsis is generated from publicly available financial data. It is not financial advice. Always conduct your own research and consult a qualified financial advisor before making investment decisions.
Insider Transactions
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About Redwood Trust Inc(RWT)
NYSE
REAL ESTATE
REIT - MORTGAGE
USA
Redwood Trust, Inc., is a specialized finance company in the United States. The company is headquartered in Mill Valley, California.