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Redwood TrustRWT -1.46%20 Net Margin % is -2.56% as of Jun. 2026. GuruFocus rates RWT with a GF Score™ of 20/100. The stock has 3 warning signs investors should review. Among 917 REITs companies, Redwood Trust ranks worse than 80.48% on this metric.
Net margin is calculated as Net Income divided by its Revenue. Redwood Trust's Net Income for the
three
months ended in Jun. 2026 was $-1.1 Mil. Redwood Trust's Revenue for the
three
months ended in Jun. 2026 was $43.0 Mil. Therefore, Redwood Trust's net margin for the quarter that ended in Jun. 2026 was -2.56%.
The historical rank and industry rank for Redwood Trust's Net Margin % or its related term are showing as below:
RWT'
s Net Margin % Range Over the Past 10 Years
Min: -53.47 Med: 59.38 Max: 606.93
Current: 2.7
RWT's Net Margin % is ranked worse than 80.48% of 917
companies
in the REITs industry
Industry Median: 45.84
vs RWT: 2.70
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
Redwood Trust Net Margin % Related Terms
Redwood Trust Net Margin % Historical Data
* Premium members only.
The historical data trend for Redwood Trust's Net Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the REIT - Mortgage subindustry, Redwood Trust's Net Margin %, along with its competitors' market caps and Net Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Redwood Trust Net Margin % vs REITs Industry
For the REITs industry and Real Estate sector, Redwood Trust's Net Margin % distribution charts can be found below:
* The bar in red indicates where Redwood Trust's Net Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Redwood Trust (RWT) has a Net Margin % of -2.56% as of Jun. 2026. Net margin is the ratio of total net income to net sales. View historical data on Redwood Trust and its competitors. According to the industry distribution chart, Redwood Trust ranks #738 out of 917 companies in the REITs industry, placing it in the top 80.5%.
Is Redwood Trust's Net Margin % too high?
Redwood Trust's current Net Margin % is -2.56%. Based on the distribution chart, Redwood Trust ranks #738 out of 917 companies in the REITs industry, which is in the bottom quartile relative to peers. Overall, Redwood Trust has a GF Score™ of 20/100, reflecting its overall financial health beyond just this single metric.
How does Redwood Trust's Net Margin % compare to FBRT and TRTX?
According to the REITs industry distribution chart, Redwood Trust ranks #738 out of 917 companies for Net Margin %. This places Redwood Trust in the lower half of its industry. The industry median Net Margin % is 45.84. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net Margin % for a REITs company?
The median Net Margin % among REITs companies is 45.84, based on 917 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Redwood Trust and its competitors. For the REITs industry, the median Net Margin % is 45.84 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Redwood Trust's current Net Margin % is -2.56%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Redwood Trust stock overvalued right now?
Redwood Trust (RWT) has a current Net Margin % of -2.56%. The current Net Margin % is -2.56%. Redwood Trust's overall GF Score™ is 20/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Redwood Trust (RWT), the current Net Margin % is -2.56% as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Redwood Trust Inc is a specialty finance company focused on several distinct areas of housing credit. The company delivers customized housing credit investments to a diverse mix of investors through securitization platforms, whole-loan distribution activities, and its publicly traded securities. The company has four reportable segments: Sequoia Mortgage Banking, CoreVest Mortgage Banking, Redwood Investments, and Legacy Investments. Maximum revenue is generated from the Sequoia Mortgage Banking segment, comprising a mortgage loan conduit that acquires residential consumer loans from third-party originators for subsequent sale to whole loan buyers, securitization through its SEMT private-label securitization program, or transfer into its Redwood Investments portfolio.
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