Redwood Trust (RWT) Fundamental Analysis: Revenue, Earnings & Valuation

9.44 / 10

Outperform

Fundamental analysis rates Redwood Trust at 9.4/10 (Outperform). Asset‑MV, Cash‑MV and ROE scores are strong, indicating solid balance‑sheet quality. However, return on assets is negative (‑7.8%), earnings per share growth is sharply down (‑296%), and profit‑MV shows modest weakness, tempering optimism.

Analysis Checks(6/10)

Net assets per share (growth rate compared to beginning of year %)

Value-13.02

Score2/3

Weight61.98%

1M Return1.44%

Profit-MV

Value0.68

Score1/3

Weight-47.56%

1M Return-1.56%

Net income-Revenue

Value0.37

Score0/3

Weight-79.82%

1M Return-2.46%

Basic earnings per share (YoY growth rate %)

Value-296.88

Score1/3

Weight-29.65%

1M Return-0.84%

Rate of return on total assets (%)

Value-7.83

Score2/3

Weight16.61%

1M Return0.44%

Annualized return on total assets (%)

Value-7.83

Score2/3

Weight16.61%

1M Return0.44%

ROE (diluted) (%)

Value-7.84

Score2/3

Weight52.17%

1M Return1.25%

Diluted earnings per share (YoY growth rate %)

Value-296.88

Score1/3

Weight-27.90%

1M Return-0.78%

Asset-MV

Value0.04

Score2/3

Weight122.37%

1M Return2.68%

Cash-MV

Value0.03

Score2/3

Weight15.18%

1M Return0.43%

Is RWT fundamentally strong?

RWT scores 9.44/10 on fundamentals and holds a Discounted valuation at present. Backed by its -7.10% ROE, -39.48% net margin, -8.58 P/E ratio, 0.67 P/B ratio, and -296.88% earnings growth, these metrics solidify its Outperform investment rating.