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GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 6/10

vs
industry
vs
history
Cash to Debt 0.04
RWT's Cash to Debt is ranked higher than
63% of the 810 Companies
in the Global REIT - Diversified industry.

( Industry Median: 0.05 vs. RWT: 0.04 )
RWT' s 10-Year Cash to Debt Range
Min: 0   Max: No Debt
Current: 0.04

Equity to Asset 0.23
RWT's Equity to Asset is ranked higher than
50% of the 824 Companies
in the Global REIT - Diversified industry.

( Industry Median: 0.48 vs. RWT: 0.23 )
RWT' s 10-Year Equity to Asset Range
Min: -0.07   Max: 0.27
Current: 0.23

-0.07
0.27
Interest Coverage 0.93
RWT's Interest Coverage is ranked higher than
52% of the 689 Companies
in the Global REIT - Diversified industry.

( Industry Median: 2.61 vs. RWT: 0.93 )
RWT' s 10-Year Interest Coverage Range
Min: 0.01   Max: 1.32
Current: 0.93

0.01
1.32
F-Score: 2
Z-Score: 0.20
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 4/10

vs
industry
vs
history
Operating margin (%) 43.67
RWT's Operating margin (%) is ranked higher than
74% of the 840 Companies
in the Global REIT - Diversified industry.

( Industry Median: 41.50 vs. RWT: 43.67 )
RWT' s 10-Year Operating margin (%) Range
Min: -117.17   Max: 134.79
Current: 43.67

-117.17
134.79
Net-margin (%) 61.43
RWT's Net-margin (%) is ranked higher than
85% of the 841 Companies
in the Global REIT - Diversified industry.

( Industry Median: 33.29 vs. RWT: 61.43 )
RWT' s 10-Year Net-margin (%) Range
Min: -160.52   Max: 133.24
Current: 61.43

-160.52
133.24
ROE (%) 7.93
RWT's ROE (%) is ranked higher than
77% of the 850 Companies
in the Global REIT - Diversified industry.

( Industry Median: 6.61 vs. RWT: 7.93 )
RWT' s 10-Year ROE (%) Range
Min: -779.6   Max: 32.82
Current: 7.93

-779.6
32.82
ROA (%) 1.95
RWT's ROA (%) is ranked higher than
64% of the 855 Companies
in the Global REIT - Diversified industry.

( Industry Median: 2.95 vs. RWT: 1.95 )
RWT' s 10-Year ROA (%) Range
Min: -9.65   Max: 3.83
Current: 1.95

-9.65
3.83
ROC (Joel Greenblatt) (%) 6.08
RWT's ROC (Joel Greenblatt) (%) is ranked higher than
74% of the 762 Companies
in the Global REIT - Diversified industry.

( Industry Median: 6.20 vs. RWT: 6.08 )
RWT' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: -130.73   Max: 297.73
Current: 6.08

-130.73
297.73
Revenue Growth (3Y)(%) -11.80
RWT's Revenue Growth (3Y)(%) is ranked higher than
56% of the 660 Companies
in the Global REIT - Diversified industry.

( Industry Median: -0.70 vs. RWT: -11.80 )
RWT' s 10-Year Revenue Growth (3Y)(%) Range
Min: 0   Max: 116.3
Current: -11.8

0
116.3
EBITDA Growth (3Y)(%) -17.30
RWT's EBITDA Growth (3Y)(%) is ranked higher than
55% of the 586 Companies
in the Global REIT - Diversified industry.

( Industry Median: 1.90 vs. RWT: -17.30 )
RWT' s 10-Year EBITDA Growth (3Y)(%) Range
Min: 0   Max: 131
Current: -17.3

0
131
EPS Growth (3Y)(%) 9.70
RWT's EPS Growth (3Y)(%) is ranked higher than
82% of the 477 Companies
in the Global REIT - Diversified industry.

( Industry Median: -2.60 vs. RWT: 9.70 )
RWT' s 10-Year EPS Growth (3Y)(%) Range
Min: -51   Max: 108.4
Current: 9.7

-51
108.4
» RWT's 10-Y Financials

Financials


Revenue & Net Income
Equity & Asset
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q4 2013

RWT Guru Trades in Q4 2013

Wallace Weitz 6,123,169 sh (+2.74%)
Jim Simons Sold Out
Arnold Schneider 339,041 sh (-18.88%)
NWQ Managers 579,939 sh (-31.9%)
» More
Q1 2014

RWT Guru Trades in Q1 2014

Arnold Schneider 335,886 sh (-0.93%)
NWQ Managers 570,429 sh (-1.64%)
Wallace Weitz 5,918,530 sh (-3.34%)
» More
Q2 2014

RWT Guru Trades in Q2 2014

Jim Simons 123,800 sh (New)
Wallace Weitz 5,835,250 sh (-1.41%)
NWQ Managers 552,305 sh (-3.18%)
Arnold Schneider 317,936 sh (-5.34%)
» More
Q3 2014

RWT Guru Trades in Q3 2014

Jim Simons 226,600 sh (+83.04%)
Wallace Weitz 5,925,435 sh (+1.55%)
Arnold Schneider 301,851 sh (-5.06%)
NWQ Managers 517,299 sh (-6.34%)
» More
» Details

Insider Trades

Latest Guru Trades with RWT

(List those with share number changes of more than 20%, or impact to portfolio more than 0.1%)

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Wallace Weitz 2014-03-31 Reduce -3.34%0.13%$18.25 - $21.2 $ 19.832%5918530
Arnold Schneider 2013-12-31 Reduce -18.88%0.14%$17.1 - $19.6 $ 19.838%339041
Wallace Weitz 2013-12-31 Add 2.74%0.11%$17.1 - $19.6 $ 19.838%6123169
NWQ Managers 2013-12-31 Reduce -31.9%0.05%$17.1 - $19.6 $ 19.838%579939
Wallace Weitz 2013-09-30 Add 10.12%0.4%$16.32 - $20.07 $ 19.8312%5960149
NWQ Managers 2013-09-30 Reduce -28.9%0.05%$16.32 - $20.07 $ 19.8312%851645
Mario Gabelli 2013-09-30 Sold Out $16.32 - $20.07 $ 19.8312%0
Wallace Weitz 2013-06-30 Add 11.44%0.38%$16.44 - $23.32 $ 19.83-4%5412409
Mario Gabelli 2013-06-30 New Buy$16.44 - $23.32 $ 19.83-4%12000
Wallace Weitz 2013-03-31 Reduce -25.76%1.26%$16.89 - $23.59 $ 19.83-2%4856938
Arnold Schneider 2013-03-31 Reduce -22.45%0.18%$16.89 - $23.59 $ 19.83-2%382728
NWQ Managers 2013-03-31 Reduce -30.22%0.08%$16.89 - $23.59 $ 19.83-2%1321787
NWQ Managers 2012-12-31 Reduce -26.14%0.07%$14.11 - $16.9 $ 19.8326%1894122
NWQ Managers 2012-03-31 Add 26.5%0.05%$10.28 - $12.18 $ 19.8384%2933434
Wallace Weitz 2011-12-31 Add 10.19%0.32%$9.79 - $11.93 $ 19.8385%7483709
Arnold Schneider 2011-12-31 Reduce -22.29%0.13%$9.79 - $11.93 $ 19.8385%519034
Wallace Weitz 2011-09-30 Add 4.71%0.17%$11.56 - $15.34 $ 19.8350%6791350
Premium More recent guru trades are included for Premium Members only!!
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Guru Investment Theses on Redwood Trust Inc

Wallace Weitz Comments on Redwood Trust - Jul 15, 2013

Redwood Trust (RWT--$17)(RWT) We have owned Redwood shares since its founding in 1993. Redwood is a “value investor” in the residential and commercial mortgage markets. We know management well and trust their judgment. The mortgage market was rocked by the recent bond market commotion, but Redwood ought to be able to continue to build its business. Redwood’s current dividend yield is 7.5% and we would expect the company to raise its dividend over time.

From Wallace Weitz’s second quarter 2013 letter to shareholders.


Check out Wallace Weitz latest stock trades

Ratios

vs
industry
vs
history
P/E(ttm) 18.30
RWT's P/E(ttm) is ranked higher than
79% of the 921 Companies
in the Global REIT - Diversified industry.

( Industry Median: 27.30 vs. RWT: 18.30 )
RWT' s 10-Year P/E(ttm) Range
Min: 4.82   Max: 202.43
Current: 18.3

4.82
202.43
P/B 1.30
RWT's P/B is ranked higher than
71% of the 921 Companies
in the Global REIT - Diversified industry.

( Industry Median: 1.28 vs. RWT: 1.30 )
RWT' s 10-Year P/B Range
Min: 0.8   Max: 8.48
Current: 1.3

0.8
8.48
P/S 11.27
RWT's P/S is ranked higher than
58% of the 921 Companies
in the Global REIT - Diversified industry.

( Industry Median: 8.01 vs. RWT: 11.27 )
RWT' s 10-Year P/S Range
Min: 1.27   Max: 11.38
Current: 11.27

1.27
11.38
EV-to-EBIT 81.94
RWT's EV-to-EBIT is ranked higher than
58% of the 921 Companies
in the Global REIT - Diversified industry.

( Industry Median: 32.78 vs. RWT: 81.94 )
RWT' s 10-Year EV-to-EBIT Range
Min: 17.3   Max: 1032.2
Current: 81.94

17.3
1032.2
Shiller P/E 45.42
RWT's Shiller P/E is ranked higher than
86% of the 921 Companies
in the Global REIT - Diversified industry.

( Industry Median: 9999.00 vs. RWT: 45.42 )
RWT' s 10-Year Shiller P/E Range
Min: 1.69   Max: 45.52
Current: 45.42

1.69
45.52

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield 5.65
RWT's Dividend Yield is ranked higher than
67% of the 829 Companies
in the Global REIT - Diversified industry.

( Industry Median: 4.40 vs. RWT: 5.65 )
RWT' s 10-Year Dividend Yield Range
Min: 4.03   Max: 28.59
Current: 5.65

4.03
28.59
Dividend Payout 0.99
RWT's Dividend Payout is ranked higher than
72% of the 921 Companies
in the Global REIT - Diversified industry.

( Industry Median: 1.31 vs. RWT: 0.99 )
RWT' s 10-Year Dividend Payout Range
Min: 0.18   Max: 25
Current: 0.99

0.18
25
Dividend growth (3y) 3.80
RWT's Dividend growth (3y) is ranked higher than
71% of the 517 Companies
in the Global REIT - Diversified industry.

( Industry Median: 4.90 vs. RWT: 3.80 )
RWT' s 10-Year Dividend growth (3y) Range
Min: 0   Max: 99.4
Current: 3.8

0
99.4
Yield on cost (5-Year) 6.27
RWT's Yield on cost (5-Year) is ranked higher than
68% of the 832 Companies
in the Global REIT - Diversified industry.

( Industry Median: 4.80 vs. RWT: 6.27 )
RWT' s 10-Year Yield on cost (5-Year) Range
Min: 4.52   Max: 32.03
Current: 6.27

4.52
32.03
Share Buyback Rate -5.90
RWT's Share Buyback Rate is ranked higher than
77% of the 621 Companies
in the Global REIT - Diversified industry.

( Industry Median: -6.20 vs. RWT: -5.90 )
RWT' s 10-Year Share Buyback Rate Range
Min: 13.3   Max: -89.8
Current: -5.9

Valuation & Return

vs
industry
vs
history
Price/Tangible Book 1.46
RWT's Price/Tangible Book is ranked higher than
69% of the 921 Companies
in the Global REIT - Diversified industry.

( Industry Median: 1.35 vs. RWT: 1.46 )
RWT' s 10-Year Price/Tangible Book Range
Min: 0.62   Max: 6.27
Current: 1.46

0.62
6.27
Price/Median PS Value 2.17
RWT's Price/Median PS Value is ranked higher than
53% of the 921 Companies
in the Global REIT - Diversified industry.

( Industry Median: 1.22 vs. RWT: 2.17 )
RWT' s 10-Year Price/Median PS Value Range
Min: 0.46   Max: 6.29
Current: 2.17

0.46
6.29
Price/Graham Number 1.05
RWT's Price/Graham Number is ranked higher than
78% of the 921 Companies
in the Global REIT - Diversified industry.

( Industry Median: 1.49 vs. RWT: 1.05 )
RWT' s 10-Year Price/Graham Number Range
Min: 0.49   Max: 7.6
Current: 1.05

0.49
7.6
Earnings Yield (Greenblatt) 1.20
RWT's Earnings Yield (Greenblatt) is ranked higher than
54% of the 830 Companies
in the Global REIT - Diversified industry.

( Industry Median: 3.40 vs. RWT: 1.20 )
RWT' s 10-Year Earnings Yield (Greenblatt) Range
Min: 0.1   Max: 5.8
Current: 1.2

0.1
5.8
Forward Rate of Return (Yacktman) -16.62
RWT's Forward Rate of Return (Yacktman) is ranked higher than
59% of the 523 Companies
in the Global REIT - Diversified industry.

( Industry Median: 1.86 vs. RWT: -16.62 )
RWT' s 10-Year Forward Rate of Return (Yacktman) Range
Min: -18.9   Max: 81.2
Current: -16.62

-18.9
81.2

Business Description

Industry: REITs » REIT - Diversified
Compare:ARI, NLY, IVR, WSR, HRUFF » details
Traded in other countries:R2V.Germany,
Redwood Trust Inc was incorporated in the State of Maryland on April 11, 1994, and commenced operations on August 19, 1994. The Company, together with its subsidiaries, is an internally-managed specialty finance company focused on engaging in residential and commercial mortgage banking activities and investing in mortgage- and other real estate-related assets. It seeks to invest in real estate-related assets that have the potential to generate attractive cash flow returns over time and to generate income through mortgage banking activities. The Company operates business in three segments: residential mortgage banking, residential investments, and commercial mortgage banking and investments. The residential mortgage banking segment primarily consists of operating a mortgage loan platform. This platform is engaged in the business of acquiring residential loans from third-party originators and then selling, financing, or securitizing those loans with the intent of profiting from these activities. The residential investments segment includes a portfolio of investments in residential mortgage-backed securities retained from Sequoia securitizations, as well as residential mortgage-backed securities issued by third parties. This segment also includes mortgage servicing rights (MSRs) associated with residential loans securitized through Sequoia program and MSRs purchased from third parties. The commercial mortgage banking and investments segment consists of commercial mortgage banking operations as well as its portfolio of held-for-investment commercial real estate loans. It operates as a commercial real estate lender by originating mortgage loans and providing other forms of commercial real estate financing. The Company is subject to competition in seeking investments, originating commercial loans, acquiring residential loans for securitization, engaging in securitization transactions, selling loans, and in other aspects of its business.
» More Articles for RWT

Headlines

Articles On GuruFocus.com
Wallace Weitz Comments on Redwood Trust Jul 15 2013 
The Best-Performing Stocks from Wallace Weitz’s 4th Quarter Portfolio Jan 18 2013 
Wallace Weitz's 2012 Investor Letter Jan 18 2013 
Wallace Weitz Makes Little Reduction to Redwood Trust Stake Jan 10 2013 
RS Investments Second-Quarter Commentary Jul 27 2012 
Weitz Partners III Opportunity Fund-Institutional Class Commentary: SD, CSTR, CNA, ICON, APA, HPQ Nov 11 2011 
Weitz Partners Value Fund Commentary: CVS, TGT, BRK.A, BRK.B Nov 11 2011 
@@ dividend inside Oct 15 2011 
Wally Weitz Third Quarter Commentary: BRK.A, WFC, RWT, TYC, LINTB, SD Oct 15 2011 
Weekly CFO Buys Highlight: PRWT, ANCB, ACLS, OLBK, PXLW Feb 07 2011 

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