Redwood Trust Intrinsic Value Calculation – Redwood Trust Receives Positive Reviews from Brokerages with “Moderate Buy” Recommendation
May 19, 2023
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Redwood Trust ($NYSE:RWT), Inc. is a mortgage real estate investment trust (REIT) that focuses on investments in residential mortgage-backed securities. Recently, the company has received positive reviews from the ten brokerages covering the company, resulting in an average recommendation of “Moderate Buy”. Redwood Trust has been able to maintain a favorable position in the industry by taking advantage of current market conditions and providing value to investors. The company’s success can be attributed to its strategic investments in residential mortgage-backed securities that provide a steady income stream, as well as its strong corporate governance practices. Redwood Trust also provides a diverse portfolio of investments and is invested in a variety of mortgage products, including agency, non-agency, and jumbo loans.
This positive performance has led analysts to rate the stock as a “Moderate Buy” and they expect the company to continue to do well in the future. Overall, Redwood Trust has been receiving positive reviews from brokerages with an average recommendation of “Moderate Buy”. This recommendation is based on the company’s strong performance in the past quarters and its diverse portfolio of investments. As the current market conditions continue to favor the company, analysts expect the stock to continue to perform well in the future.
Market Price
The stock opened at $5.7 and closed at $5.8, up by 1.4% from last closing price of $5.7. This positive reaction to the stock was in part due to the company’s strong performance in the housing market and its history of consistent dividend payments, which have been consistently above the average for the sector. Analysts have also commented positively on the company’s solid balance sheet and its continued commitment to shareholder value. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Redwood Trust. More…
| Total Revenues | Net Income | Net Margin |
| -51.34 | -194.56 | – |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Redwood Trust. More…
| Operations | Investing | Financing |
| -139.14 | 213.89 | -276.87 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Redwood Trust. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 13.12k | 11.98k | 9.99 |
Key Ratios Snapshot
Some of the financial key ratios for Redwood Trust are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| – | – | – |
| FCF Margin | ROE | ROA |
| – | – | – |
Analysis – Redwood Trust Intrinsic Value Calculation
At GoodWhale, we have conducted an analysis of REDWOOD TRUST‘s financials. Our proprietary Valuation Line has calculated the fair value of REDWOOD TRUST’s share to be around $9.7. However, the stock is currently being traded at $5.8, which is a 40.2% undervaluation. This presents a potential opportunity for investors to purchase the stock at a discounted price. More…
Peers
In the world of real estate investment trusts, or REITs, competition is fierce. Among the top competitors are Redwood Trust Inc, Cherry Hill Mortgage Investment Corp, Granite Point Mortgage Trust Inc, and MFA Financial Inc. All four companies are publicly traded on the stock market and offer investors a way to invest in the real estate market without actually owning property.
– Cherry Hill Mortgage Investment Corp ($NYSE:CHMI)
Cherry Hill Mortgage Investment Corporation, a real estate investment trust, acquires, invests in, and manages residential mortgage assets in the United States. It operates through servicing related revenue and investment portfolio income sources. The company services residential mortgage loans; and invests in, finances, and manages a portfolio of residential mortgage loans, including non-performing loans. Cherry Hill Mortgage Investment Corporation was founded in 2012 and is headquartered in Horsham, Pennsylvania.
– Granite Point Mortgage Trust Inc ($NYSE:GPMT)
Granite Point Mortgage Trust Inc is a real estate investment trust that focuses on originating, financing, and managing senior floating rate commercial mortgage loans. The company has a market cap of 350.75M as of 2022. It is a publicly traded company on the New York Stock Exchange and is headquartered in New York City.
– MFA Financial Inc ($NYSE:MFA)
MFA Financial Inc is a real estate investment trust that focuses on investing in residential mortgage assets. As of December 31, 2020, the company had a market capitalization of $925.3 million. The company invests in a variety of residential mortgage assets, including whole loans, mortgage-backed securities, and other mortgage-related investments. MFA Financial is headquartered in New York, New York.
Summary
Redwood Trust, Inc. is a publicly traded real estate investment trust focused on investing in, financing, and managing residential and commercial mortgage-backed securities and mortgage loans. The company has a strong track record of performance, with a “Moderate Buy” recommendation on average from ten brokerages covering the stock. Redwood Trust also has a clear strategy in place to take advantage of the current low interest rate environment to acquire high-yielding assets, and has consistently grown its net income and assets over the past three years. All in all, Redwood Trust appears to be a reliable investment option that is well-positioned to deliver long-term value.
