Redwood Trust, Inc., together with its subsidiaries, operates as a specialty finance company in the United States. It operates through three segments: Sequoia Mortgage Banking, CoreVest Mortgage Banking, and Redwood Investments. The Residential Consumer Mortgage Banking segment operates a mortgage loan conduit that acquires residential loans from third-party originators for subsequent sale, securitization, or transfer to its investment portfolio. This segment also offers derivative financial instruments to manage risks associated with residential loans. Its CoreVest Mortgage Banking segment operates a platform that originates business purpose loans to investors in single-family and multifamily residential properties and bridge loans for subsequent securitization, sale, or transfer into its investment portfolio. The Redwood Investments segment invests in securities retained from residential consumer and investor securitization activities, and business purpose lending bridge loans, as well as residential mortgage-backed securities issued by third parties, Freddie Mac K-Series multifamily loan securitizations and reperforming loan securitizations, servicer advance investments, home equity investments, and other housing-related investments. The company is elected to be taxed as a real estate investment trust (REIT) for federal income tax purposes. Redwood Trust, Inc. was incorporated in 1994 and is headquartered in Mill Valley, California.
Mortgage REIT Resilience | Redwood Trust's 31-year dividend streak and 13.2% yield showcase its resilience in the volatile mortgage market, backed by a robust 6.54 current ratio |
Strategic Expansion | Explore Redwood's growth in banking partnerships, rising from 0 to 118 since 2023, positioning it to capitalize on potential mortgage asset sales from banks |
Valuation Disconnect | Delve into Redwood's 0.65 price-to-book ratio, suggesting undervaluation and potential upside as the market recognizes its non-agency mortgage platform's value |
Analyst Outlook | Analyst price targets range from $7.50 to $9.00, reflecting varied perspectives on Redwood's ability to navigate interest rate challenges and capitalize on policy shifts |
Metrics to compare | RWT | Sector Sector - Average of metrics from a broad group of related Real Estate sector companies | Relationship RelationshipRWTPeersSector | |
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P/E Ratio | −9.1x | −2.3x | 9.7x | |
PEG Ratio | 0.02 | 0.01 | 0.03 | |
Price/Book | 0.8x | 0.8x | 1.0x | |
Price / LTM Sales | 5.8x | 4.0x | 2.9x | |
Upside (Analyst Target) | 14.6% | 21.6% | 9.5% | |
Fair Value Upside | Unlock | −0.6% | 0.7% | Unlock |