Redwood Trust, Inc. 9.125% Seni

RWTN

REIT - Mortgage · Real Estate

Price

$24.93

-0.05 (-0.20%)

Market Cap

$3.12B

Exchange

New York Stock Exchange

Winston Score

Winston is worried

Weak fundamentals across most pillars.

Share count falling — buybacks

−20.4% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 142.1M (2021) → 113.1M (2025)

Redwood Trust is a real estate finance company that buys and invests in home loans across the United States. It focuses mainly on "jumbo" mortgages — large home loans that are too big for government-backed programs like Fannie Mae or Freddie Mac. Its main customers are homebuyers with high-value properties and the banks or lenders that originate those loans.

Redwood makes money by purchasing mortgage loans, packaging them into securities, and earning income from the interest those loans generate. It operates entirely in the U.S. and had roughly $3.1 billion in market capitalization. The ticker listed here (RWTN) refers specifically to its 9.125% senior notes, which are a debt instrument rather than common stock. The main risk Redwood faces is interest rate sensitivity — when rates rise sharply, the value of its mortgage holdings can fall and borrowing costs increase, which squeezes the spread between what it earns and what it pays to fund its portfolio.

Winston Score History

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

-68.8% YoY

YoY Growth Rate

Revenue declining

EPS Growth

-159.8% YoY

YoY Growth Rate

Earnings declining

R&D Spend

$0/ year

0.0% of revenue

Below sector average (1%)

Research and development spending

Insider Activity

1.7%ownership

Relatively low insider ownership

Cash Runway

~17 months

$26.0B cash & investments

Adequate runway but may need to raise capital within 2 years

Revenue declining

Redwood Trust, Inc. 9.125% Seni's revenue is actually shrinking. In a growth stock, that removes the core investment thesis. The low Winston Score here may be warranted — unless there's a turnaround story.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Gross Margin

90.0%

Premium pricing power — 90.0% gross margin

Operating Margin

-1.5%

Losing money on operations — -1.5%

ROCE

-0.0%

Weak — -0.0% return on capital

Negative ROIC means the business is losing money on every dollar invested in it.

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Growth

Sales YoY

+75.6%

Fast-growing sales (75.6% YoY)

EPS YoY

-459.1%

Earnings shrinking (-459.1% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

EPS Consistency

2/8 quarters

Earnings rarely grow — volatile business

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Cash Flow

Cash Conversion

N/A

Data not available

FCF Margin

-1611.0%

Burning cash (-1611.0%)

Free cash flow is negative. They are burning cash, not generating it.

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Stability

Debt / Equity

26.43

Heavy debt load (26.43)

Interest Cover

0.87x

Dangerous — barely covers interest (0.9x)

Interest coverage below 1. Their profits don't cover the interest bill.

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Valuation

P/E Ratio (TTM)

N/M

Negative earnings — P/E not meaningful

P/E vs Forward

N/A

not available

Data not available

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Dividends

Dividend Yield

16.07%

Healthy income — 16.07% yield

Yield above 6% — often a flag the market is pricing in a cut.

Dividend Growth

-0.0%

Dividend cut (-0.0% YoY) — warning sign

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