ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Redwood Trust's annualizedNet Income for the quarter that ended in Mar. 2026 was €-19.04 Mil.
Redwood Trust's average Total Assets over the quarter that ended in Mar. 2026 was €21,718.21 Mil. Therefore, Redwood Trust's annualized ROA % for the quarter that ended in Mar. 2026 was -0.09%.
The historical rank and industry rank for Redwood Trust's ROA % or its related term are showing as below:
STU:R2V'
s ROA % Range Over the Past 10 Years
Min: -4.1 Med: 0.73 Max: 2.55
Current: -0.4
During the past 13 years, Redwood Trust's highest ROA % was 2.55%. The lowest was -4.10%. And the median was 0.73%.
STU:R2V's ROA % is ranked worse than 82.06% of 942
companies
in the REITs industry
Industry Median: 3.2
vs STU:R2V: -0.40
Redwood Trust (STU:R2V) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data.
* 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.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
Redwood Trust ROA % Related Terms
Redwood Trust ROA % Historical Data
* Premium members only.
The historical data trend for Redwood Trust's ROA % 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 ROA %, along with its competitors' market caps and ROA % 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 ROA % vs REITs Industry
For the REITs industry and Real Estate sector, Redwood Trust's ROA % distribution charts can be found below:
* The bar in red indicates where Redwood Trust's ROA % 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.
In the calculation of annual ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
ROA % is displayed in the 30-year financial page.
Redwood Trust (STU:R2V) has a ROA % of -0.09% as of Mar. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Redwood Trust and its competitors. According to the industry distribution chart, Redwood Trust ranks #773 out of 942 companies in the REITs industry, placing it in the top 82.1%.
Is Redwood Trust's ROA % too high?
Redwood Trust's current ROA % is -0.09%. Based on the distribution chart, Redwood Trust ranks #773 out of 942 companies in the REITs industry, which is in the bottom quartile relative to peers. Overall, Redwood Trust has a GF Score™ of 49/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Redwood Trust's ROA % compare to FBRT and TRTX?
According to the REITs industry distribution chart, Redwood Trust ranks #773 out of 942 companies for ROA %. This places Redwood Trust in the lower half of its industry. The industry median ROA % is 3.20. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROA % for a REITs company?
The median ROA % among REITs companies is 3.20, based on 942 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % 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 ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Redwood Trust and its competitors. For the REITs industry, the median ROA % is 3.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Redwood Trust's current ROA % is -0.09%. 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?
Based on GuruFocus' analysis, Redwood Trust (STU:R2V) is currently considered Fairly Valued. The stock's GF Value™ is €4.25, compared to a current price of €4.19 — trading 1.4% below its estimated fair value. The current ROA % is -0.09%. Redwood Trust's overall GF Score™ is 49/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROA % calculated?
ROA % is calculated from a company's financial statements. For Redwood Trust (STU:R2V), the current ROA % is -0.09% as of Mar. 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.
Is Redwood Trust (STU:R2V) Overvalued in 2026?
Based on GuruFocus' analysis, Redwood Trust stock appears to be undervalued.
The current stock price of €4.19 is trading 1.4% below its estimated GF Value™ of €4.25.
GuruFocus considers Redwood Trust to be Fairly Valued.
Key valuation signals for STU:R2V:
ROA %: -0.09%
GF Value™: €4.25 vs. price of €4.19 (1.4% below fair value)
No single metric tells the full story. See the STU:R2V stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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.
49GF Score
Get the complete analysis for STU:R2V
ROA % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
STU:R2V has been successfully added to your 
