Redwood Trust Inc.
Find Ratings ReportsREDWOOD TRUST INC's gross profit margin for the fourth quarter of its fiscal year 2023 is essentially unchanged when compared to the same period a year ago. The company has grown sales and net income during the past quarter when compared with the same quarter a year ago, however, it was unable to keep up with the growth of the average competitor within its subsector.
During the same period, stockholders' equity ("net worth") has increased by 10.97% from the same quarter last year.
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Income Statement | Q4 FY23 | Q4 FY22 |
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Net Sales ($mil) | 190.0 | 173.34 |
EBITDA ($mil) | 0.0 | 0.0 |
EBIT ($mil) | 151.0 | 133.01 |
Net Income ($mil) | 21.0 | -44.06 |
Balance Sheet | Q4 FY23 | Q4 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 293.0 | 437.69 |
Total Assets ($mil) | 14504.0 | 13030.9 |
Total Debt ($mil) | 11370.0 | 11768.42 |
Equity ($mil) | 1203.0 | 1083.99 |
Profitability | Q4 FY23 | Q4 FY22 |
---|---|---|
Gross Profit Margin | 79.47 | 76.73 |
EBITDA Margin | 0.0 | 0.0 |
Operating Margin | 79.47 | 76.73 |
Sales Turnover | 0.05 | 0.05 |
Return on Assets | -0.01 | -1.25 |
Return on Equity | -0.77 | -15.09 |
Debt | Q4 FY23 | Q4 FY22 |
---|---|---|
Current Ratio | 0.0 | 0.0 |
Debt/Capital | 0.9 | 0.92 |
Interest Expense | 170.0 | 146.41 |
Interest Coverage | 0.89 | 0.91 |
Share Data | Q4 FY23 | Q4 FY22 |
---|---|---|
Shares outstanding (mil) | 131.49 | 113.49 |
Div / share | 0.16 | 0.23 |
EPS | 0.15 | -0.4 |
Book value / share | 9.15 | 9.55 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 1312096.0 | 1474456.0 |
SELL. This stock’s P/E ratio is negative, making its value useless in the assessment of premium or discount valuation, only displaying that the company has negative earnings per share. Conducting a second comparison, its price-to-book ratio of 0.66 indicates a significant discount versus the S&P 500 average of 4.68 and a discount versus the subsector average of 0.75. The price-to-sales ratio is well below both the S&P 500 average and the subsector average, indicating a discount. After reviewing these and other key valuation criteria, REDWOOD TRUST INC proves to trade at a discount to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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RWT NM | Peers 210.66 | RWT NA | Peers 8.06 | |||||||||||||||||||||
Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings. RWT's P/E is negative making this valuation measure meaningless. |
Neutral. The P/CF ratio is the stock’s price divided by the sum of the company's cash flow from operations. It is useful for comparing companies with different capital requirements or financing structures. Ratio not available. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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RWT 8.74 | Peers 7.39 | RWT NA | Peers 0.27 | |||||||||||||||||||||
Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations. RWT is trading at a significant premium to its peers. |
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. Ratio not available. |
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Price/Book |
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Earnings Growth |
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RWT 0.66 | Peers 0.75 | RWT 91.73 | Peers -12.52 | |||||||||||||||||||||
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. RWT is trading at a discount to its peers. |
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. RWT is expected to have an earnings growth rate that significantly exceeds its peers. |
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Price/Sales |
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Sales Growth |
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RWT 1.10 | Peers 4.58 | RWT 2.36 | Peers 280.60 | |||||||||||||||||||||
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. RWT is trading at a significant discount to its subsector on this measurement. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. RWT significantly trails its peers on the basis of sales growth. |
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