Redwood Trust Stock Probability Of Bankruptcy

RWT Stock

USD 6.41 0.13 1.99%

Redwood Trust's chance of distress is under 37% at this time. It has slight odds of undergoing some form of financial hardship in the near future. Probability of financial unrest prediction helps decision makers evaluate Redwood Trust's chance of financial distress in relation to its going-concern outlook and evaluation. All items used in analyzing the odds of distress are taken from the Redwood balance sheet, as well as cash flow and income statements available from the company's most recent filings. Check out Redwood Trust Piotroski F Score and Redwood Trust Altman Z Score analysis.

For more information on how to buy Redwood Stock please use our How to Invest in Redwood Trust guide.

Enterprise Value is likely to gain to about 17.9 B in 2025, whereas Market Cap is likely to drop slightly above 770.7 M in 2025.

Redwood Trust Company probability of financial unrest Analysis

Redwood Trust's Probability Of Bankruptcy is a relative measure of the likelihood of financial distress. For stocks, the Probability Of Bankruptcy is the normalized value of Z-Score. For funds and ETFs, it is derived from a multi-factor model developed by Macroaxis. The score is used to predict the probability of a firm or a fund experiencing financial distress within the next 24 months. Unlike Z-Score, Probability Of Bankruptcy is the value between 0 and 100, indicating the firm's actual probability it will be financially distressed in the next 2 fiscal years.

Probability Of Bankruptcy

Normalized

Z-Score

More About Probability Of Bankruptcy | All Equity Analysis

Current Redwood Trust Probability Of Bankruptcy

Less than 37%

Most of Redwood Trust's fundamental indicators, such as Probability Of Bankruptcy, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Redwood Trust is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.

Our calculation of Redwood Trust probability of bankruptcy is based on Altman Z-Score and Piotroski F-Score, but not limited to these measures. To be applied to a broader range of industries and markets, we use several other techniques to enhance the accuracy of predicting Redwood Trust odds of financial distress. These include financial statement analysis, different types of price predictions, earning estimates, analysis consensus, and basic intrinsic valuation. Please use the options below to get a better understanding of different measures that drive the calculation of Redwood Trust financial health.

Is Mortgage Real Estate Investment Trusts (REITs) space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Redwood Trust. If investors know Redwood will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Redwood Trust listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.

Quarterly Earnings Growth

45.372

Dividend Share

0.67

Earnings Share

0.32

Revenue Per Share

1.836

Quarterly Revenue Growth

(0.46)

The market value of Redwood Trust is measured differently than its book value, which is the value of Redwood that is recorded on the company's balance sheet. Investors also form their own opinion of Redwood Trust's value that differs from its market value or its book value, called intrinsic value, which is Redwood Trust's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Redwood Trust's market value can be influenced by many factors that don't directly affect Redwood Trust's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.

Please note, there is a significant difference between Redwood Trust's value and its price as these two are different measures arrived at by different means. Investors typically determine if Redwood Trust is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Redwood Trust's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Redwood Probability Of Bankruptcy Driver Correlations

Understanding the fundamental principles of building solid financial models for Redwood Trust is extremely important. It helps to project a fair market value of Redwood Stock properly, considering its historical fundamentals such as Probability Of Bankruptcy. Since Redwood Trust's main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of Redwood Trust's historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of Redwood Trust's interrelated accounts and indicators.

	Total Assets	Total Stockholder Equity	Net Debt	Net Receivables	Total Liab	Total Current Assets	Retained Earnings	Accounts Payable	Short Term Debt	Common Stock	Long Term Debt	Short Term Investments	Property Plant Equipment	Net Tangible Assets	Total Permanent Equity	Good Will	Long Term Debt Total	Capital Surpluse	Long Term Investments	Intangible Assets	Current Deferred Revenue	Short Long Term Debt	Cash And Equivalents	Net Invested Capital	Capital Stock
Total Assets		0.64	0.6	0.77	0.9	0.73	0.22	0.84	0.65	0.86	0.95	0.06	0.75	0.41	0.22	-0.11	0.9	0.87	0.01	-0.12	-0.03	-0.62	0.37	0.92	0.43
Total Stockholder Equity	0.64		0.63	0.79	0.45	0.44	-0.25	0.31	0.64	0.73	0.45	-0.04	0.12	0.6	0.19	0.38	0.4	0.31	0.36	0.36	-0.21	-0.37	0.03	0.39	-0.07
Net Debt	0.6	0.63		0.75	0.38	0.78	-0.38	0.27	0.54	0.57	0.52	0.0	0.24	0.33	0.29	0.06	0.63	0.37	0.33	0.09	-0.16	-0.43	0.19	0.4	-0.22
Net Receivables	0.77	0.79	0.75		0.63	0.61	-0.09	0.55	0.72	0.61	0.72	-0.15	0.34	0.7	0.16	0.26	0.74	0.47	0.44	0.2	-0.22	-0.54	-0.02	0.65	0.11
Total Liab	0.9	0.45	0.38	0.63		0.62	0.44	0.97	0.55	0.7	0.92	0.07	0.88	0.42	0.1	-0.2	0.82	0.84	-0.13	-0.22	0.03	-0.63	0.41	0.95	0.65
Total Current Assets	0.73	0.44	0.78	0.61	0.62		-0.05	0.57	0.34	0.68	0.76	-0.04	0.65	0.24	0.36	-0.26	0.82	0.74	0.07	-0.14	0.15	-0.66	0.65	0.66	0.06
Retained Earnings	0.22	-0.25	-0.38	-0.09	0.44	-0.05		0.53	0.18	-0.02	0.31	-0.05	0.52	0.04	-0.09	-0.22	0.23	0.37	-0.39	-0.26	0.11	-0.12	-0.02	0.41	0.45
Accounts Payable	0.84	0.31	0.27	0.55	0.97	0.57	0.53		0.46	0.63	0.9	0.01	0.9	0.32	0.09	-0.25	0.8	0.84	-0.16	-0.27	0.01	-0.65	0.38	0.94	0.73
Short Term Debt	0.65	0.64	0.54	0.72	0.55	0.34	0.18	0.46		0.45	0.59	-0.18	0.31	0.61	0.01	0.41	0.6	0.35	0.14	0.35	-0.46	-0.31	-0.08	0.49	0.03
Common Stock	0.86	0.73	0.57	0.61	0.7	0.68	-0.02	0.63	0.45		0.75	0.09	0.61	0.14	0.23	-0.06	0.65	0.79	-0.12	0.0	0.1	-0.5	0.43	0.69	0.36
Long Term Debt	0.95	0.45	0.52	0.72	0.92	0.76	0.31	0.9	0.59	0.75		-0.06	0.84	0.39	0.2	-0.14	0.97	0.91	-0.04	-0.13	-0.01	-0.7	0.44	0.96	0.52
Short Term Investments	0.06	-0.04	0.0	-0.15	0.07	-0.04	-0.05	0.01	-0.18	0.09	-0.06		0.03	-0.32	-0.47	-0.13	-0.11	0.01	0.04	-0.12	0.24	0.25	0.11	0.01	0.0
Property Plant Equipment	0.75	0.12	0.24	0.34	0.88	0.65	0.52	0.9	0.31	0.61	0.84	0.03		0.09	0.09	-0.41	0.76	0.9	-0.47	-0.34	0.29	-0.53	0.61	0.87	0.71
Net Tangible Assets	0.41	0.6	0.33	0.7	0.42	0.24	0.04	0.32	0.61	0.14	0.39	-0.32	0.09		0.15	0.34	0.42	0.14	0.5	0.23	-0.21	-0.26	-0.08	0.41	-0.05
Total Permanent Equity	0.22	0.19	0.29	0.16	0.1	0.36	-0.09	0.09	0.01	0.23	0.2	-0.47	0.09	0.15		-0.44	0.25	0.25	0.06	-0.45	0.03	-0.39	0.1	0.19	-0.06
Good Will	-0.11	0.38	0.06	0.26	-0.2	-0.26	-0.22	-0.25	0.41	-0.06	-0.14	-0.13	-0.41	0.34	-0.44		-0.14	-0.38	0.38	0.97	-0.38	0.12	-0.37	-0.28	-0.3
Long Term Debt Total	0.9	0.4	0.63	0.74	0.82	0.82	0.23	0.8	0.6	0.65	0.97	-0.11	0.76	0.42	0.25	-0.14		0.84	0.08	-0.12	-0.04	-0.68	0.44	0.89	0.33
Capital Surpluse	0.87	0.31	0.37	0.47	0.84	0.74	0.37	0.84	0.35	0.79	0.91	0.01	0.9	0.14	0.25	-0.38	0.84		-0.27	-0.31	0.31	-0.52	0.61	0.91	0.57
Long Term Investments	0.01	0.36	0.33	0.44	-0.13	0.07	-0.39	-0.16	0.14	-0.12	-0.04	0.04	-0.47	0.5	0.06	0.38	0.08	-0.27		0.3	-0.33	-0.12	-0.3	-0.1	-0.52
Intangible Assets	-0.12	0.36	0.09	0.2	-0.22	-0.14	-0.26	-0.27	0.35	0.0	-0.13	-0.12	-0.34	0.23	-0.45	0.97	-0.12	-0.31	0.3		-0.27	0.09	-0.19	-0.3	-0.33
Current Deferred Revenue	-0.03	-0.21	-0.16	-0.22	0.03	0.15	0.11	0.01	-0.46	0.1	-0.01	0.24	0.29	-0.21	0.03	-0.38	-0.04	0.31	-0.33	-0.27		0.33	0.38	0.12	0.2
Short Long Term Debt	-0.62	-0.37	-0.43	-0.54	-0.63	-0.66	-0.12	-0.65	-0.31	-0.5	-0.7	0.25	-0.53	-0.26	-0.39	0.12	-0.68	-0.52	-0.12	0.09	0.33		-0.31	-0.59	-0.31
Cash And Equivalents	0.37	0.03	0.19	-0.02	0.41	0.65	-0.02	0.38	-0.08	0.43	0.44	0.11	0.61	-0.08	0.1	-0.37	0.44	0.61	-0.3	-0.19	0.38	-0.31		0.4	0.19
Net Invested Capital	0.92	0.39	0.4	0.65	0.95	0.66	0.41	0.94	0.49	0.69	0.96	0.01	0.87	0.41	0.19	-0.28	0.89	0.91	-0.1	-0.3	0.12	-0.59	0.4		0.64
Capital Stock	0.43	-0.07	-0.22	0.11	0.65	0.06	0.45	0.73	0.03	0.36	0.52	0.0	0.71	-0.05	-0.06	-0.3	0.33	0.57	-0.52	-0.33	0.2	-0.31	0.19	0.64

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The Probability of Bankruptcy SHOULD NOT be confused with the actual chance of a company to file for chapter 7, 11, 12, or 13 bankruptcy protection. Macroaxis simply defines Financial Distress as an operational condition where a company is having difficulty meeting its current financial obligations towards its creditors or delivering on the expectations of its investors. Macroaxis derives these conditions daily from both public financial statements as well as analysis of stock prices reacting to market conditions or economic downturns, including short-term and long-term historical volatility. Other factors taken into account include analysis of liquidity, revenue patterns, R&D expenses, and commitments, as well as public headlines and social sentiment.

Competition

Predict Redwood Trust

Based on the latest financial disclosure, Redwood Trust has a Probability Of Bankruptcy of 37.0%. This is 13.49% lower than that of the Mortgage Real Estate Investment Trusts (REITs) sector and significantly higher than that of the Financials industry. The probability of bankruptcy for all United States stocks is 7.11% higher than that of the company.

Redwood Probability Of Bankruptcy Peer Comparison

Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Redwood Trust's direct or indirect competition against its Probability Of Bankruptcy to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Redwood Trust could also be used in its relative valuation, which is a method of valuing Redwood Trust by comparing valuation metrics of similar companies.

Redwood Trust is currently under evaluation in probability of bankruptcy category among its peers.

Redwood Trust Main Bankruptcy Drivers

	2020	2021	2022	2023	2024	2025 (projected)
Return On Assets	(0.0562)	0.0217	(0.0126)	(4.32E-4)	0.002958	0.003106
Asset Turnover	(0.0351)	0.0358	(0.002072)	0.0109	0.0518	0.0544
Gross Profit Margin	0.93	1.05	0.94	2.4	0.86	0.78
Net Debt	8.6B	12.6B	11.5B	12.6B	(245.2M)	(232.9M)
Total Current Liabilities	564.3M	2.2B	2.0B	1.6B	2.0B	1.3B
Non Current Liabilities Total	8.5B	10.9B	9.9B	11.6B	14.6B	7.6B
Total Assets	10.4B	14.7B	13.0B	14.5B	18.3B	9.3B
Total Current Assets	766.8M	794.4M	662M	540.7M	245.2M	187.3M
Total Cash From Operating Activities	(505.5M)	(5.7B)	(139.1M)	(2.0B)	(5.9B)	(5.6B)

Redwood Trust ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Redwood Trust's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Redwood Trust's managers, analysts, and investors.

Environmental

Governance

Social

Redwood Fundamentals

	Return On Equity	0.0451
	Return On Asset	0.0033
	Profit Margin	0.22 %
	Operating Margin	(0.01) %
	Current Valuation	17.22 B
	Shares Outstanding	132.86 M
	Shares Owned By Insiders	2.30 %
	Shares Owned By Institutions	79.77 %
	Number Of Shares Shorted	3.89 M
	Price To Earning	2.09 X
	Price To Book	0.78 X
	Price To Sales	3.58 X
	Revenue	945.16 M
	Gross Profit	208.91 M
	EBITDA	12.43 M
	Net Income	54 M
	Cash And Equivalents	258.89 M
	Cash Per Share	4.64 X
	Total Debt	16.39 B
	Debt To Equity	9.89 %
	Current Ratio	6.57 X
	Book Value Per Share	8.46 X
	Cash Flow From Operations	(5.86 B)
	Short Ratio	4.94 X
	Earnings Per Share	0.32 X
	Price To Earnings To Growth	1.39 X
	Target Price	7.88
	Number Of Employees	283
	Beta	1.69
	Market Capitalization	868.91 M
	Total Asset	18.26 B
	Retained Earnings	1.19 B
	Working Capital	(1.5 B)
	Current Asset	315.63 M
	Current Liabilities	1.82 B
	Annual Yield	0.11 %
	Five Year Return	8.82 %
	Net Asset	18.26 B
	Last Dividend Paid	0.67

About Redwood Trust Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Redwood Trust's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Redwood Trust using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Redwood Trust based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.

Please read more on our fundamental analysis page.

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Additional Tools for Redwood Stock Analysis

When running Redwood Trust's price analysis, check to measure Redwood Trust's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Redwood Trust is operating at the current time. Most of Redwood Trust's value examination focuses on studying past and present price action to predict the probability of Redwood Trust's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Redwood Trust's price. Additionally, you may evaluate how the addition of Redwood Trust to your portfolios can decrease your overall portfolio volatility.

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Redwood Trust Stock Probability Of Bankruptcy

Redwood Trust Company probability of financial unrest Analysis

Probability Of Bankruptcy

Normalized

Z-Score

Current Redwood Trust Probability Of Bankruptcy

Redwood Probability Of Bankruptcy Driver Correlations

Redwood Probability Of Bankruptcy Peer Comparison

Redwood Trust Main Bankruptcy Drivers

Redwood Trust ESG Sustainability

Redwood Fundamentals

About Redwood Trust Fundamental Analysis

Thematic Opportunities

Explore Investment Opportunities

Additional Tools for Redwood Stock Analysis

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