Redwood Trust Stock Price and Value Analysis

Should you buy Redwood Trust stock? (NYSE:RWT). Let's see how it does in our automated value investing analysis system.

RWT Free Cash Flow Trend

Free Cash Flow trendline for RWT
Free Cash Flow trendline for Redwood Trust

Based on historical returns, we believe that Redwood Trust can grow its free cash at a rate of about 0%. That's positive!

AdvantagesDisadvantages
  • This company has a large dividend yield!
  • This company is solid.
  • This company is making money at a modest rate.
  • This stock looks overpriced.
  • This company has wild ups and downs.

Inside the RWT Numbers

RWT Price
(Redwood Trust stock price per share)
$10.12
[?] RWT Fair Price
(based on intrinsic value)
$-47.47
[?] RWT Safety Price (based on a variable margin of safety) $-30.86
[?] PE Ratio versus Sector 27% lower than other Real Estate stocks
[?] PE Ratio versus Industry 0% lower than other Unknown stocks
[?] Cash Yield -110.20%
[?] Free Cash Flow Jitter 229%
[?] Dividend Yield 6%
Shares Shorted 4,777,677

This stock has short interest! This means that people have shorted it.

Why does that matter? They've made a bet that price will decrease from where they bought it. Maybe there are financial problems, or maybe there's a value play.

As of the latest analysis, there are 4,777,677 shares shorted. With 111,043,079 shares available for purchase and an average trading volume over the past 10 trading days of 1,150,316, it would take at least 4.153 days for all of the short holders to cover their shorts.

Is Redwood Trust Stock on Sale?

We believe that Redwood Trust may be worth examining further. It's making money, which is a very positive sign. Is it on sale?

Redwood Trust looks overpriced right now. If you're looking for a bargain in the stock market, you should probably look elsewhere for a great deal. This might still be a great stock to own—but it's not on sale right now.

Should You Buy RWT Stock?

Does Redwood Trust have a coherent story? Does it have a plan to continue to make money? Is it worth your time? Only you can decide where to go from here. Our investment guide helps you ask the right questions, including how to buy stocks. Use these research links for more information.