Redwood Trust, Inc. 9.125% Seni

RWTN

REIT - Mortgage · Real Estate

Exchange

New York Stock Exchange

Winston Score

Winston is worried

Weak fundamentals across most pillars.

Data as of Aug 23, 2026 · filings through Jun 30, 2026

How the score breaks down

Quality

Good

Growth

Weak

Cash Flow

Weak

Stability

Weak

Valuation

Data not available

Dividends

Good

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Winston Score History

The full picture

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.

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

-81.2% YoY

YoY Growth Rate

Revenue declining

EPS Growth

+97.0% YoY

YoY Growth Rate

EPS growth accelerating

Insider Activity

1.7%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Runway

~19 months

$28.2B 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

Profit per sale

Gross Margin

76.8%

Premium pricing power — 76.8% gross margin

Profit after running costs

Operating Margin

11.1%

Modest — 11.1% operating margin

Return on the money invested

ROCE

2.2%

Weak — 2.2% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales growth

Sales YoY

-1.5%

Shrinking sales (-1.5% YoY)

Profit growth

EPS YoY

N/A

Data not available

How steady the profit is

EPS Consistency

3/8 quarters

Earnings rarely grow — volatile business

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Cash Flow

Profit that turns into cash

Cash Conversion

-221186%

Weak — only -221186% of profit becomes cash

Spare cash per sale

FCF Margin

-1896.9%

Burning cash (-1896.9%)

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

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Stability

What it owes vs what it owns

Debt / Equity

29.51

Heavy debt load (29.51)

Covers its interest

Interest Cover

0.95x

Dangerous — barely covers interest (0.9x)

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

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Valuation

Price vs profit

P/E Ratio (TTM)

N/M

no trend

Negative earnings — P/E not meaningful

Cheaper or dearer next year

P/E vs Forward

N/A

not available

Data not available

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Dividends

Dividend

Dividend Yield

9.24%

no trend

Healthy income — 9.24% yield

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

Dividend record

Dividend Growth

-0.0%

no trend

Dividend cut (-0.0% YoY) — warning sign

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