Switch to:

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 598 Companies
in the Global REIT - Diversified industry.

( Industry Median: 0.06 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 633 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 513 Companies
in the Global REIT - Diversified industry.

( Industry Median: 2.22 vs. RWT: 0.93 )
RWT' s 10-Year Interest Coverage Range
Min: 0.01   Max: 1.55
Current: 0.93

0.01
1.55
F-Score: 3
Z-Score: 0.06
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 (%) 44.13
RWT's Operating margin (%) is ranked higher than
75% of the 636 Companies
in the Global REIT - Diversified industry.

( Industry Median: 41.01 vs. RWT: 44.13 )
RWT' s 10-Year Operating margin (%) Range
Min: -117.17   Max: 134.79
Current: 44.13

-117.17
134.79
Net-margin (%) 101.64
RWT's Net-margin (%) is ranked higher than
93% of the 637 Companies
in the Global REIT - Diversified industry.

( Industry Median: 35.70 vs. RWT: 101.64 )
RWT' s 10-Year Net-margin (%) Range
Min: -160.52   Max: 133.24
Current: 101.64

-160.52
133.24
ROE (%) 13.91
RWT's ROE (%) is ranked higher than
93% of the 638 Companies
in the Global REIT - Diversified industry.

( Industry Median: 6.56 vs. RWT: 13.91 )
RWT' s 10-Year ROE (%) Range
Min: -147.22   Max: 26.92
Current: 13.91

-147.22
26.92
ROA (%) 3.76
RWT's ROA (%) is ranked higher than
77% of the 641 Companies
in the Global REIT - Diversified industry.

( Industry Median: 3.17 vs. RWT: 3.76 )
RWT' s 10-Year ROA (%) Range
Min: -11.16   Max: 3.76
Current: 3.76

-11.16
3.76
ROC (Joel Greenblatt) (%) 10.91
RWT's ROC (Joel Greenblatt) (%) is ranked higher than
79% of the 543 Companies
in the Global REIT - Diversified industry.

( Industry Median: 5.19 vs. RWT: 10.91 )
RWT' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: -2.27   Max: 164.78
Current: 10.91

-2.27
164.78
Revenue Growth (%) -11.80
RWT's Revenue Growth (%) is ranked higher than
53% of the 537 Companies
in the Global REIT - Diversified industry.

( Industry Median: 0.40 vs. RWT: -11.80 )
RWT' s 10-Year Revenue Growth (%) Range
Min: -37.6   Max: 41.6
Current: -11.8

-37.6
41.6
EBITDA Growth (%) -21.40
RWT's EBITDA Growth (%) is ranked higher than
53% of the 493 Companies
in the Global REIT - Diversified industry.

( Industry Median: 2.60 vs. RWT: -21.40 )
RWT' s 10-Year EBITDA Growth (%) Range
Min: -59   Max: 131
Current: -21.4

-59
131
EPS Growth (%) 9.70
RWT's EPS Growth (%) is ranked higher than
81% of the 393 Companies
in the Global REIT - Diversified industry.

( Industry Median: -1.90 vs. RWT: 9.70 )
RWT' s 10-Year EPS Growth (%) Range
Min: -51   Max: 57
Current: 9.7

-51
57
» RWT's 10-Y Financials

Financials


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

» Details

Guru Trades

Q3 2013

RWT Guru Trades in Q3 2013

Wallace Weitz 5,960,149 sh (+10.12%)
Arnold Schneider 417,962 sh (+7.04%)
Mario Gabelli Sold Out
Steven Cohen Sold Out
NWQ Managers 851,645 sh (-28.9%)
Jim Simons 404,400 sh (-38.38%)
» More
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
» 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 $ 19.661%5918530
Wallace Weitz 2013-12-31 Add 2.74%0.11%$17.1 - $19.6 $ 19.667%6123169
Wallace Weitz 2013-09-30 Add 10.12%0.4%$16.32 - $20.07 $ 19.6610%5960149
Mario Gabelli 2013-09-30 Sold Out $16.32 - $20.07 $ 19.6610%0
Wallace Weitz 2013-06-30 Add 11.44%0.38%$16.44 - $23.32 $ 19.66-5%5412409
Mario Gabelli 2013-06-30 New Buy$16.44 - $23.32 $ 19.66-5%12000
Wallace Weitz 2013-03-31 Reduce -25.76%1.26%$16.89 - $23.59 $ 19.66-2%4856938
Wallace Weitz 2011-12-31 Add 10.19%0.32%$9.79 - $11.93 $ 19.6683%7483709
Wallace Weitz 2011-09-30 Add 4.71%0.17%$11.56 - $15.34 $ 19.6649%6791350
Wallace Weitz 2011-06-30 Add 3.1%0.13%$14.8 - $15.83 $ 19.6629%6485904
Premium More recent guru trades are included for Premium Members only!!
» Interactive Charts

Peter Lynch Chart ( What is Peter Lynch Charts )

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) 23.50
RWT's P/E(ttm) is ranked higher than
83% of the 692 Companies
in the Global REIT - Diversified industry.

( Industry Median: 27.50 vs. RWT: 23.50 )
RWT' s 10-Year P/E(ttm) Range
Min: 4.82   Max: 202.43
Current: 23.5

4.82
202.43
P/B 1.30
RWT's P/B is ranked higher than
72% of the 692 Companies
in the Global REIT - Diversified industry.

( Industry Median: 1.30 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 31.20
RWT's P/S is ranked higher than
50% of the 692 Companies
in the Global REIT - Diversified industry.

( Industry Median: 7.96 vs. RWT: 31.20 )
RWT' s 10-Year P/S Range
Min: 1.27   Max: 28.74
Current: 31.2

1.27
28.74
PEG 4.87
RWT's PEG is ranked higher than
62% of the 692 Companies
in the Global REIT - Diversified industry.

( Industry Median: 9999.00 vs. RWT: 4.87 )
RWT' s 10-Year PEG Range
Min: 0.06   Max: 112.86
Current: 4.87

0.06
112.86

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield 5.70
RWT's Dividend Yield is ranked higher than
73% of the 633 Companies
in the Global REIT - Diversified industry.

( Industry Median: 4.15 vs. RWT: 5.70 )
RWT' s 10-Year Dividend Yield Range
Min: 4.03   Max: 28.59
Current: 5.7

4.03
28.59
Dividend Payout 1.34
RWT's Dividend Payout is ranked higher than
62% of the 692 Companies
in the Global REIT - Diversified industry.

( Industry Median: 1.27 vs. RWT: 1.34 )
RWT' s 10-Year Dividend Payout Range
Min: 0.18   Max: 25
Current: 1.34

0.18
25
Dividend growth (3y) 3.80
RWT's Dividend growth (3y) is ranked higher than
68% of the 401 Companies
in the Global REIT - Diversified industry.

( Industry Median: 6.30 vs. RWT: 3.80 )
RWT' s 10-Year Dividend growth (3y) Range
Min: -37.9   Max: 99.4
Current: 3.8

-37.9
99.4
Yield on cost (5-Year) 6.39
RWT's Yield on cost (5-Year) is ranked higher than
72% of the 634 Companies
in the Global REIT - Diversified industry.

( Industry Median: 4.49 vs. RWT: 6.39 )
RWT' s 10-Year Yield on cost (5-Year) Range
Min: 4.52   Max: 32.03
Current: 6.39

4.52
32.03
Share Buyback Rate -5.90
RWT's Share Buyback Rate is ranked higher than
77% of the 513 Companies
in the Global REIT - Diversified industry.

( Industry Median: -7.00 vs. RWT: -5.90 )
RWT' s 10-Year Share Buyback Rate Range
Min: 13.3   Max: -51.9
Current: -5.9

Valuation & Return

vs
industry
vs
history
Price/Tangible Book 1.38
RWT's Price/Tangible Book is ranked higher than
72% of the 692 Companies
in the Global REIT - Diversified industry.

( Industry Median: 1.36 vs. RWT: 1.38 )
RWT' s 10-Year Price/Tangible Book Range
Min: 0.62   Max: 6.27
Current: 1.38

0.62
6.27
Price/Median PS Value 5.24
RWT's Price/Median PS Value is ranked higher than
50% of the 692 Companies
in the Global REIT - Diversified industry.

( Industry Median: 1.22 vs. RWT: 5.24 )
RWT' s 10-Year Price/Median PS Value Range
Min: 0.43   Max: 5.23
Current: 5.24

0.43
5.23
Price/Graham Number 1.15
RWT's Price/Graham Number is ranked higher than
82% of the 692 Companies
in the Global REIT - Diversified industry.

( Industry Median: 1.43 vs. RWT: 1.15 )
RWT' s 10-Year Price/Graham Number Range
Min: 0.49   Max: 7.6
Current: 1.15

0.49
7.6
Earnings Yield (Greenblatt) 0.30
RWT's Earnings Yield (Greenblatt) is ranked lower than
56% of the 626 Companies
in the Global REIT - Diversified industry.

( Industry Median: 3.60 vs. RWT: 0.30 )
RWT' s 10-Year Earnings Yield (Greenblatt) Range
Min: 0.1   Max: 5.7
Current: 0.3

0.1
5.7
Forward Rate of Return (Yacktman) -4.68
RWT's Forward Rate of Return (Yacktman) is ranked higher than
72% of the 519 Companies
in the Global REIT - Diversified industry.

( Industry Median: 1.88 vs. RWT: -4.68 )
RWT' s 10-Year Forward Rate of Return (Yacktman) Range
Min: -106.7   Max: 103.2
Current: -4.68

-106.7
103.2

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, invests in, finances, and manages real estate assets. The Company invests in residential and commercial real estate loans and in asset-backed securities backed by real estate loans. For tax purposes, it is structured as a real estate investment trust or REIT. Redwood's main real estate investments include investments in real estate loans and securities, investments in the securitization entities that it sponsors, and investments in a private fund that it sponsors. The Company's main source of income is net interest income, which consists of the interest income it earns from its investments in loans and securities less the interest expenses it incurs on its borrowed funds and other liabilities. Redwood's main real estate investments include investments in real estate loans and securities, an investment in a private fund that it sponsors - Redwood Opportunity Fund LP - and investments in the securitization entities that it sponsors - Sequoia and Acacia. Redwood's competitors include other mortgage REITS, Fannie Mae, Freddie Mac, financial institutions, securities dealers, insurance companies, investment funds, and other investors in real estate securities. 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 

More From Other Websites
REDWOOD TRUST INC Financials Aug 15 2014
REDWOOD TRUST INC Files SEC form 10-Q, Quarterly Report Aug 08 2014
Redwood Trust Reports Second Quarter 2014 Results Aug 07 2014
Redwood Trust Declares $0.28 Per Share Dividend For The Third Quarter Of 2014 Aug 07 2014
Redwood Trust Declares $0.28 Per Share Dividend For The Third Quarter Of 2014 Aug 07 2014
Redwood Trust Reports Second Quarter 2014 Results Aug 07 2014
REDWOOD TRUST INC Files SEC form 8-K, Results of Operations and Financial Condition, Financial... Aug 07 2014
Q2 2014 Redwood Trust, Inc. Earnings Release - 4:05 pm ET Aug 07 2014
Redwood Trust Announces Timing For Second Quarter 2014 Earnings Release And Call Aug 06 2014
Redwood Trust Announces Timing For Second Quarter 2014 Earnings Release And Call Aug 06 2014
Must-know: Why home prices are within 6.5% of their bubble highs Jul 23 2014
Conflicts Of Interest: The Manager Got Your Money, Part 3 Jul 21 2014
REDWOOD TRUST INC Files SEC form 8-K, Regulation FD Disclosure Jun 13 2014
Mortgage REIT Redwood Joins Home Lome Bank in Chicago Jun 12 2014
Redwood Trust to Acquire High-Balance Residential Mortgage Loans through the Mortgage Partnership... Jun 12 2014
REDWOOD TRUST INC Files SEC form 8-K, Submission of Matters to a Vote of Security Holders May 23 2014
Redwood Trust management to meet with Jefferies May 22 2014
REDWOOD TRUST INC Files SEC form 8-K, Regulation FD Disclosure May 20 2014
Redwood Trust Declares $0.28 Per Share Dividend For The Second Quarter Of 2014 May 20 2014
REDWOOD TRUST INC Files SEC form 10-Q, Quarterly Report May 06 2014

Personalized Checklist








Within your circle of competence?
Macro economic environment favorable?
High quality business?
Enough margin of safety with stocks?
Gurus are buying?
Insiders are buying?
Management capable and shareholder friendly?
Catalyst for stock price to appreciate?
Your level of confidence with the research?

Add Notes, Comments or Ask Questions

User Comments

No comment yet

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK