REDWOOD TRUST INC

RWT
Country: United StatesPrice: $2.91Market Cap: $339.4M

Investment snapshot

6%positive consensus
Scored 1d ago

Positive

1

BUY / PASS

Neutral / negative

2 / 13

NEUTRAL / FAIL

Median fair value

$7.52

+158.4% vs price

Models with upside

3 / 17

Positive margin of safety

Strongest signal

Models split on RWT at $2.91 — fair values range $1.56–$53.65

Key risk

No clean pass — all 16 investors flag at least one profitability criterion

Framework analysis

VerdictMeaning
BUYPositive purchase signal: the framework's buy requirements are met.
PASSThe company clears the framework's checklist or screen, but the framework does not produce a buy signal. For valuation frameworks this often means margin of safety is missing, insufficient, or unavailable; some screen-only frameworks have no intrinsic-value BUY state.
NEUTRALNeither a positive nor negative conclusion. It does not mean to hold an existing position.
FAILThe company does not clear the framework's requirements.
RankedRanked strategies do not use PASS: selected cohort is BUY, outside the cohort is FAIL, and unranked is NEUTRAL.

Current investor scores use trailing 12-month flows and the latest balance sheet where supported. Multi-year and EPS tests retain annual history; each framework shows its financial basis below. Intrinsic values use annual financials.

MetricGraham

Defensive Value

Buffett

Quality Compounder

Lynch

GARP

Greenblatt

Magic Formula

Piotroski

F-Score

Dreman

Contrarian Value

Munger

Quality Focus

Pabrai

Dhandho Framework

Akre

Three-Legged Stool

Marks

Risk-Aware Value

Ackman

Activist Value

Templeton

Global Bargain Hunter

Sleep

Scale Economies Shared

Asness

Systematic Factors

Neff

Low-P/E Total Return

Schloss

Asset-Value Discipline

O'Shaughnessy

Systematic Factor Composite

VerdictFAILFAILFAILNot rankedFAILFAILFAILFAILFAILFAILFAILPASSFAILNEUTRALFAILFAILNEUTRAL
Score
AnalysisChecking access…Checking access…Checking access…Checking access…Checking access…Checking access…Checking access…Checking access…Checking access…Checking access…Checking access…Checking access…Checking access…Checking access…Checking access…Checking access…Checking access…
Intrinsic Value (annual)N/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/A
Margin of SafetyN/AN/AN/A+94.6%N/AN/AN/A+61.3%+66.6%-44.8%N/A-86.5%N/AN/AN/AN/AN/A
Financial Basis

Annual history · FY 2025

Latest source filing: 2026-02-27

Score computed: 2026-11-14

Annual history · FY 2025

Latest source filing: 2026-02-27

Score computed: 2026-11-14

Annual history · FY 2025 · Balance sheet at 2026-09-30 · TTM ended 2026-09-30

Latest source filing: 2026-11-09

Score computed: 2026-11-14

Annual history · FY 2025

Latest source filing: 2026-02-27

Score computed: 2026-11-14

Annual history · FY 2025

Latest source filing: 2026-02-27

Score computed: 2026-11-14

Annual history · FY 2025 · TTM ended 2026-09-30 · Balance sheet at 2026-09-30 · Market data at 2026-11-01

Latest source filing: 2026-11-09

Score computed: 2026-11-14

Qualitative assessment · Annual history · FY 2025 · Balance sheet at 2026-09-30

Latest source filing: 2026-11-09

Score computed: 2026-11-14

Qualitative assessment · Annual history · FY 2025

Latest source filing: 2026-02-27

Score computed: 2026-11-14

Annual history · FY 2025 · Qualitative assessment · Balance sheet at 2026-09-30

Latest source filing: 2026-11-09

Score computed: 2026-11-14

Annual history · FY 2025 · Qualitative assessment

Latest source filing: 2026-02-27

Score computed: 2026-11-14

Annual history · FY 2025 · TTM ended 2026-09-30 · Balance sheet at 2026-09-30 · Market data at 2026-11-01

Latest source filing: 2026-11-09

Score computed: 2026-11-14

Annual history · FY 2025 · Price history 2025-01-01–2026-11-01 · Balance sheet at 2026-09-30

Latest source filing: 2026-11-09

Score computed: 2026-11-14

Annual history · FY 2025 · Qualitative assessment

Latest source filing: 2026-02-27

Score computed: 2026-11-14

TTM ended 2026-09-30 · Balance sheet at 2026-09-30 · Price history 2025-01-01–2026-11-01 · Annual history · FY 2025

Latest source filing: 2026-11-09

Score computed: 2026-11-14

Annual history · FY 2025

Latest source filing: 2026-02-27

Score computed: 2026-11-14

Annual history · FY 2025 · Balance sheet at 2026-09-30

Latest source filing: 2026-11-09

Score computed: 2026-11-14

Annual history · FY 2025 · TTM ended 2026-09-30 · Price history 2025-01-01–2026-11-01

Latest source filing: 2026-11-09

Score computed: 2026-11-14

Where It Passes

  • Valuation models60% pass✓ 3✗ 2▾

    Models split on RWT at $2.91 — fair values range $1.56–$53.65

    Greenblatt fair value$53.65
    ✓Greenblatt+94.6% margin vs $2.91
    Pabrai fair value$7.52
    ✓Pabrai+61.3% margin vs $2.91
    Akre fair value$8.70
    ✓Akre+66.6% margin vs $2.91
    Marks fair value$2.01
    ✗Marks-44.8% margin vs $2.91
    Templeton fair value$1.56
    ✗Templeton-86.5% margin vs $2.91

Where It Falls Short

  • Profitability0% pass✓ 2✗ 33▾

    No clean pass — all 16 investors flag at least one profitability criterion

    Positive EPS (10 years)21/28 years positive
    ✗GrahamPositive EPS every year for 10 years
    EPS Growth (3-yr avg, 10-yr window)
    ✗Graham>= 33% growth
    Net Income Positive (10+ years)20/28 years positive
    ✗BuffettPositive every year for 10+ years
    ROE (up to 5-year arithmetic mean)1.0%
    ✗Buffett> 15% arithmetic mean (app rule)
    Operating Margin (10-yr trend)
    ✗BuffettStable or rising over 10 years
    Free Cash Flow Proxy
    ✗BuffettPositive and growing
    Earnings Variance (10-yr CoV)
    ✗BuffettCoV < 0.3
    Retained Earnings Effectiveness
    ✗Buffett$1 retained -> > $1 market value created
    Basic earnings-growth PEG (dividends excluded)
    ✗Lynch< 1.0 (ideally < 0.5)
    3-5 Year EPS CAGR
    ✗Lynch15-30% (Fast Grower); > 0% to pass
    ROE-3.9%
    ✗Lynch> 15%
    EBIT / Enterprise Value5.9%
    ✗Greenblatt> 10%
    Earnings Yield + ROC AssessmentEY=5.9%, ROC=None
    ✗GreenblattBoth EY > 10% and ROC > 25%
    Net Income / Total Assets-0.30%
    ✗PiotroskiROA > 0
    ROA Change YoY0.30% -> -0.30% (delta: -0.59%)
    ✗PiotroskiCurrent ROA > Prior ROA
    (CFO / Total Assets) vs ROACFO/Assets=-42.59%, ROA=-0.30%
    ✗PiotroskiCFO/Assets > ROA
    Gross Margin Change YoY
    ✗PiotroskiImproved YoY
    Pre-Tax Income / Revenue
    ✗Dreman>= 8%
    Net Income / Shareholders' Equity-3.9%
    ✗Dreman> 12%
    Margin of Safety
    ✗PabraiP/FFO < 15
    Return on Equity-0.9% (3-yr avg)
    ✗AkreROE > 20% (3-year avg)
    Discount to Intrinsic ValueN/A (negative normalized EPS)
    ✗Marks>= 20% below intrinsic value
    Positive Net Income Frequency20/25 years positive
    ✓MarksPositive net income in >= 7 of last 10 years
    Operating Income / Revenue
    ✗Ackman>= 15%
    Net Income / Shareholders Equity-3.9%
    ✗Ackman>= 15%
    5-Year EPS CAGR
    ✗Templeton> 0% (5-year EPS CAGR)
    Operating Margin Trend
    ✗TempletonNon-negative operating-margin trend over 3 years
    Revenue growth vs. gross and operating margin trend
    ✗SleepRevenue rising; gross margin flat or falling; operating margin holding
    Net income / market capitalization-9.45%; #4152/6340 (top 65.5%)
    ✗AsnessTop 30% of eligible cross-section✗OshaughnessyTop 10% of eligible cross-section
    Gross profit / total assets
    ✗AsnessTop 30% of eligible cross-section
    Net income / positive book equity-3.86%; #3148/5226 (top 60.2%)
    ✗AsnessTop 30% of eligible cross-section
    Negative 5-year standard deviation of ROA-0.0112; #906/5884 (top 15.4%)
    ✓AsnessTop 30% of eligible cross-section
    3-5 Year Diluted EPS CAGR-26.2% over 5 years
    ✗Neff7%-20% annualized
    Positive Diluted-EPS Years6/10 years positive
    ✗Schloss>= 70% positive over 5-10 observed years (app rule)
  • Valuation0% pass✓ 6✗ 19▾

    No clean pass — all 13 investors flag at least one valuation criterion

    Price / FFO per ShareN/A (non-positive FFO)
    ✗Graham<= 15x✗Dreman< 12x✗Ackman<= 25
    Basic earnings-growth PEG (dividends excluded)
    ✗Lynch< 1.0 (ideally < 0.5)
    EBIT / Enterprise Value5.9%
    ✗Greenblatt> 10%
    Earnings Yield + ROC AssessmentEY=5.9%, ROC=None
    ✗GreenblattBoth EY > 10% and ROC > 25%
    Price / (CFO / Shares)N/A (negative CFPS)
    ✗Dreman< 8x
    Valuation ReasonablenessOE Yield=-16.5%
    ✗MungerP/E < 25 or Owner Earnings Yield > 5%
    P/FFO or FFO YieldFFO Yield=-17.7%
    ✗PabraiP/FFO < 15 or FFO Yield > 10%
    P/B or P/E vs. Historical AverageP/B=0.4x
    ✓MarksP/E < 15 or P/B < 2.0
    Discount to Intrinsic ValueN/A (negative normalized EPS)
    ✗Marks>= 20% below intrinsic value
    Price / EPS
    ✗Templeton< 12x (fixed ceiling; proxy for the market's cheapest 40%)
    Price vs. Trailing Low100% of trailing low ($2.91)
    ✓Templeton<= 120% of trailing low (certified split-adjusted live window)
    Price / Book Value per Share0.4x
    ✓Templeton< 1.5x✓SchlossP/B <= 0.80x (app cutoff)
    Net income / market capitalization-9.45%; #4152/6340 (top 65.5%)
    ✗AsnessTop 30% of eligible cross-section✗OshaughnessyTop 10% of eligible cross-section
    Positive book equity / market capitalization+2.4486; #560/6449 (top 8.7%)
    ✓AsnessTop 30% of eligible cross-section
    Price / Diluted EPS
    ✗NeffP/E <= 15x (app proxy for a P/E 40%-60% below the market)
    (EPS CAGR % + Dividend Yield %) / P/E
    ✗Neff> 0.7 (Neff's published traditional edge)
    Price / Tangible Book Value per Share0.41x
    ✓SchlossP/TBV <= 1.00x (app cutoff)
    Book Value per Share Change-20.7%
    ✗SchlossLatest BVPS >= earliest BVPS over >= 3 years (app rule)
    Revenue / market capitalization
    ✗OshaughnessyTop 10% of eligible cross-section
    (Operating cash flow - capex) / market capitalization
    ✗OshaughnessyTop 10% of eligible cross-section
    Trailing six-month price return through the evaluation date-46.31%; #5026/6202 (top 81.0%)
    ✗OshaughnessyTop 10% of eligible cross-section
  • Cash Flow0% pass✗ 7▾

    All 6 investors flag RWT's cash flow

    Free Cash Flow Proxy
    ✗BuffettPositive and growing
    Operating Cash Flow$-10.1B
    ✗PiotroskiCFO > 0
    (CFO / Total Assets) vs ROACFO/Assets=-42.59%, ROA=-0.30%
    ✗PiotroskiCFO/Assets > ROA
    Price / (CFO / Shares)N/A (negative CFPS)
    ✗Dreman< 8x
    Positive Operating Cash Flow frequency9/23 years positive
    ✗SleepPositive OCF in >= 70% of available years
    Operating Cash Flow - Capital Expenditures
    ✗Neff> $0 (app proxy for a strong fundamental case)
    (Operating cash flow - capex) / market capitalization
    ✗OshaughnessyTop 10% of eligible cross-section
  • Efficiency0% pass✗ 11▾

    All 8 investors flag RWT's efficiency

    Current Ratio
    ✗Graham>= 2.0
    ROIC (3-5 yr avg)
    ✗Buffett> 10%
    ROIC - WACC
    ✗BuffettPositive (WACC = 10%)
    EBIT / (NWC + Net Fixed Assets)
    ✗Greenblatt> 25%
    Current Ratio Change YoY
    ✗PiotroskiIncreased YoY
    Revenue / Total Assets Change YoY
    ✗PiotroskiImproved YoY
    Current Assets / Current Liabilities
    ✗Dreman> 1.5
    Return on Invested Capital
    ✗Munger> 15%
    ROIC (high and growing)FY2023: ROIC=unavailable; FY2024: ROIC=unavailable; FY2025: ROIC=unavailable
    ✗AkreLatest 3 consecutive FYs: ROIC > 15% in each
    Reinvestment Rate x ROIC
    ✗AkreReinvestment Rate * ROIC > 10%
    ROIC (5-year)
    ✗SleepROIC > 12% in a majority of years
  • Verdicts7% pass✓ 1✗ 13▾

    Split decision: 13 FAIL · 2 NEUTRAL · 1 PASS

    Overall verdict
    ✗GrahamFAIL (1/7)✗BuffettFAIL (0/9)✗LynchFAIL (1/7)•GreenblattNot ranked✗PiotroskiFAIL (F-Score 2)✗DremanFAIL (1/10)✗MungerFAIL (1/4)✗PabraiFAIL (0/3)✗AkreFAIL (0/6)✗MarksFAIL (3/5)✗AckmanFAIL (1/9)✓TempletonPASS (4/8)✗SleepFAIL (1/6)•AsnessNEUTRAL (Not ranked)✗NeffFAIL (1/6)✗SchlossFAIL (3/7)•OshaughnessyNEUTRAL (Not ranked)
  • Debt & Leverage8% pass✓ 1✗ 14▾

    11 of 12 flag RWT's debt & leverage — Graham, Buffett, Lynch +8 more

    LT Debt vs Net Current Assets
    ✗GrahamLT Debt <= Net Current Assets
    Debt/Equity & Interest CoverageD/E: 17.80, IC: 1.0x
    ✗BuffettD/E < 0.5 AND Interest Coverage > 5x
    Total Debt / Equity29.07
    ✗Lynch< 0.33
    Cash - Long-term Debt
    ✗LynchPositive preferred
    LT Debt / Total Assets Change0.00% -> 0.00%
    ✓PiotroskiDecreased YoY
    Current Assets / Current Liabilities
    ✗Dreman> 1.5✗SchlossCurrent ratio >= 1.50x (app cutoff)
    Total Debt / Shareholders' Equity29.07
    ✗Dreman< 0.8✗Templeton< 1.0 (fixed cap; proxy for below-sector-median leverage)✗SchlossD/E < 1.00x
    Debt Levels29.07
    ✗MungerDebt/Equity < 0.5✗AkreDebt/Equity < 0.3
    Interest Coverage & Debt/EBITDAIC=1.0x, D/EBITDA=16.8x
    ✗MarksInterest Coverage > 3x; Debt/EBITDA < 4x
    Total Debt / Shareholders Equity29.07
    ✗Ackman<= 1.0
    Negative debt-to-equity (higher means less debt)-29.0660; #4195/4210 (top 99.6%)
    ✗AsnessTop 30% of eligible cross-section
  • Growth13% pass✓ 3✗ 10▾

    7 of 8 flag RWT's growth — Graham, Lynch, Dreman +4 more

    EPS Growth (3-yr avg, 10-yr window)
    ✗Graham>= 33% growth
    Basic earnings-growth PEG (dividends excluded)
    ✗Lynch< 1.0 (ideally < 0.5)
    3-5 Year EPS CAGR
    ✗Lynch15-30% (Fast Grower); > 0% to pass
    Inventory Growth vs Revenue GrowthN/A (no inventory)
    ✓LynchInventory growth < Revenue growth
    EPS Growth Direction
    ✗DremanPositive over recent years
    EPS CAGR
    ✗Dreman> 5% annualized
    Positive Net Income Frequency20/25 years positive
    ✓MarksPositive net income in >= 7 of last 10 years
    3yr Median Revenue Growth
    ✗Ackman>= 5%
    Positive EPS Growth Frequency3/5 years with positive EPS growth
    ✓AckmanPositive EPS growth in >= 3 of last 5 years
    5-Year EPS CAGR
    ✗Templeton> 0% (5-year EPS CAGR)
    Revenue growth vs. gross and operating margin trend
    ✗SleepRevenue rising; gross margin flat or falling; operating margin holding
    5-year Revenue CAGR
    ✗SleepCAGR > 7%
    3-5 Year Diluted EPS CAGR-26.2% over 5 years
    ✗Neff7%-20% annualized

Business & financials

Financial snapshot: annual FY 2025. Current investor scores may use newer quarterly data.

Company Profile

Industry: Trading
SIC Sector: Holding & Investment Offices
Size: Small Cap($339.4M)
Revenue: N/A
Net Income: $70.0M-229.7% YoY

Financial Snapshot

Operating Margin--
Return on Equity-7.1%
Debt / Equity17.80
Current Ratio--
EPS (Diluted)$-0.63
Buybacks (1y)$51.8M
Buybacks (2y)$51.8M
Shares Retired5.9% / 5.0% 2y

Similar Companies

OREALTY INCOME CORP
$56.1B
VTRVentas, Inc.
$47.0B
RJFRAYMOND JAMES FINANCIAL INC
$32.4B
RGLDROYAL GOLD INC
$21.7B
Sector-adjusted criteria: REIT

Depreciation distorts REIT earnings and book value, so FFO-based criteria replace P/E and free-cash-flow tests, and P/B tests are omitted.

Shareholder Return

Fiscal 2025

Retired 5.9% of shares last year, 5.0% over two.

Buybacks
$51.8M
Dividends
$99.0M

Company Financials

Latest TTM and quarters alongside annual years

TTM sums four consecutive quarters and uses the latest quarter-end balances. Quarter columns show three-month results; annual columns show full-year totals. Growth compares the same period a year earlier. EPS is not added for TTM; full-year ratios are blank for quarters.

The latest annual period end is unavailable. Showing the latest fiscal cycle’s quarters; quarter and annual columns may overlap. Quarterly shows the full quarter history.

MetricTTM · 2026-09-30

2025-10-01 – 2026-09-30

Sources · derived quarter values

Derived from cumulative filings: net income, pre tax income, operating cash flow, depreciation amortization, dividends paid, buybacks.

Q3 FY 2026

2026-07-01 – 2026-09-30

Sources · derived quarter values

Derived from cumulative filings: operating cash flow, depreciation amortization, dividends paid, buybacks.

Q2 FY 2026

2026-04-01 – 2026-06-30

Sources · derived quarter values

Derived from cumulative filings: operating cash flow, depreciation amortization, dividends paid, buybacks.

Q1 FY 2026

2026-01-01 – 2026-03-31

Sources
FY 2025
Sources
  • 10-K · 2026-02-27
FY 2024
Sources
  • 10-K · 2025-03-03
FY 2023
Sources
  • 10-K · 2024-02-29
FY 2022
Sources
  • 10-K · 2024-02-29
FY 2021
Sources
  • 10-K · 2022-02-25
Market Cap$339.4Mcurrent------$684.9Mest.$870.2Mest.$657.5Mest.$637.4Mest.$844.1Mest.
Revenue------------------
Operating Income------------------
Net Income-$32.1M↑67%-$45.5M↓491%-$1.1M↑99%-$5.5M↓134%-$70.0M↓230%$54.0M↑2475%-$2.3M↑99%-$163.5M↓151%$319.6M
EPS (Diluted)--$-0.39↓388%$-0.03↑96%$-0.07↓170%$-0.63↓297%$0.32↑391%$-0.11↑92%$-1.43↓160%$2.37
Gross Margin—————————
Operating Margin—————————
ROE-3.9%↑60%———-7.1%↓257%4.5%↑2504%-0.2%↑99%-15.1%↓165%23.1%
Total Debt$24.2B↑44%$24.2B↑44%$22.5B↑41%$20.4B↑41%$17.5B↑32%$13.3B↑689%$1.7B↓3%$1.7B↑6%$1.6B
Shareholders' Equity$831.0M↓17%$831.0M↓17%$933.8M↓11%$956.7M↓19%$982.6M↓17%$1.2B↓1%$1.2B↑11%$1.1B↓22%$1.4B
Current Ratio—————————
Debt / Equity29.07↑73%29.07↑73%24.11↑59%21.34↑75%17.80↑59%11.17↑699%1.40↓13%1.60↑35%1.18
Operating Cash Flow-$14.9B↓97%-$3.3B↓24%-$3.7B↓77%-$4.5B↓131%-$10.1B↓72%-$5.9B↓191%-$2.0B↓1349%-$139.1M↑98%-$5.7B
Free Cash Flow------------------

Score history

Historical Score Timeline

Industry peers

Industry Peers

Similar companies in Trading

RWT vs Peers — Financial Grading

RevenueN/A
Net Income$70.0MBottom 25%
ROE-7.1%Bottom 25%
D/E17.80Bottom 25%
Op. Margin—
Curr. Ratio—
CompanyMarket CapPriceRevenueNet IncomeROED/EOp. MarginCurr. RatioGrahamBuffettLynchGreenblattPiotroskiDreman
REALTY INCOME CORPO$56.1B$58.82$5.7B$1.1B2.7%0.6316.8%—2/71/93/70/3F-Score 64/10
Ventas, Inc.VTR$47.0B$88.92$5.8B$261.5M2.1%1.043.5%—2/71/92/70/3F-Score 62/10
RAYMOND JAMES FINANCIAL INCRJF$32.4B$168.64$15.9B$2.1B17.1%0.28——3/93/93/71/3F-Score 64/11
ROYAL GOLD INCRGLD$21.7B$256.89$1.0B$466.3M6.5%0.1361.9%3.124/92/94/70/3F-Score 44/11
iShares Ethereum Trust ETFETHA$19.4B$44.02—$2.3B——————————
KIMCO REALTY CORPKIM$17.0B$25.55$2.1B$584.7M5.6%0.7436.0%—3/72/94/70/3F-Score 75/10
LandBridge Co LLCLB$5.6B$73.15$199.1M$30.1M8.9%1.6559.5%4.872/93/92/70/3F-Score 63/11
Digital Turbine, Inc.APPS$927.6M$7.61$565.3M$37.7M-19.6%1.886.0%1.161/92/92/71/3F-Score 70/11