Redwood Trust, Inc. cash flow to debt ratio of -45.55% indicates that the company cannot generate enough cash to cover its debt over time. This level indicates weak financial health.

Redwood Trust, Inc.'s free cash flow has decreased 72.19% from $-5.86B last year to $-10.09B, signaling decreasing performance

Redwood Trust, Inc.'s debt to equity ratio is 29.41, which means that the company's assets are unhealthy financed, signaling financial risk.

Redwood Trust, Inc.'s debt has increased relative to shareholder equity from 13.80 last year to 29.41 today, signaling weakened financials

Redwood Trust, Inc. has a net debt to EBITDA ratio of 20.16x, which exceeds the 3.00x threshold, indicating high leverage and potential financial risk

Redwood Trust, Inc. earns at least as much interest as it pays. Interest obligations are fully covered.

Redwood Trust, Inc.'s profit margin has decreased (91.30%) in the last year from 4.98% to 0.43%, signaling decreasing performance

Redwood Trust, Inc.'s short-term liabilities of $3.55B exceed its short-term assets of $1.00B, signaling financial risk

Redwood Trust, Inc.'s return on assets of 0.00% is lower than the 5.00% threshold, indicating inefficient asset utilization

Redwood Trust, Inc.'s return on equity of 0.59%, is lower than 15.00%, indicating bad performance

Redwood Trust, Inc.'s operating cash flow is lower than its net income, indicating that earnings may not be fully backed by cash generation

Redwood Trust, Inc. had positive net income in only 2 out of 5 years, indicating unstable earnings

Redwood Trust, Inc. has negative free cash flow, indicating the company is burning cash rather than generating it

Redwood Trust, Inc. has negative free cash flow, indicating cash burn

Redwood Trust, Inc.'s yearly earnings has decreased 229.67% since last year from $54.00M to $-70.03M, signaling decreasing performance

Redwood Trust, Inc.'s yearly revenue has decreased 82.24% since last year from $998.79M to $177.37M, signaling decreasing performance

ROIC 5.92% (Source: FMP key-metrics). In the 5–10% partial-credit band. Score: 1 of 2. This band sits within the typical US weighted-average cost of capital range. Methodology choice can change the conclusion: under FMP's invested-capital definition the company is at or near its cost of capital; under narrower operating-capital definitions the same company may score higher. Invested capital here includes equity, non-current liabilities, and short-term debt. Cash is not subtracted. See methodology.

Redwood Trust, Inc.'s 3-year revenue CAGR of 28.43% is positive, indicating growing revenue over the past 3 years

Redwood Trust, Inc. had revenue growth in 3 out of 5 years, indicating consistent revenue performance

Redwood Trust, Inc. had positive ROE in only 2 out of 5 years, indicating inconsistent returns on equity

Redwood Trust, Inc. has insufficient data to evaluate this check.

Redwood Trust, Inc. has an earnings yield of 1.00%, which is below the 4.00% threshold, indicating the stock may be expensive relative to its earnings

Redwood Trust, Inc. is overvalued relative to its fair value price of 0.00 based on EBITDA multiple model

Redwood Trust, Inc. has an EV/EBITDA ratio of 20.70x, which exceeds the 20.00x threshold, indicating the stock may be overvalued relative to its operating earnings

Redwood Trust, Inc. has insufficient data to evaluate this check.

Redwood Trust, Inc. has negative trailing-twelve-month earnings; this ratio is not meaningful and the check fails

Redwood Trust, Inc. has a price-to-book ratio of 0.61x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value

Redwood Trust, Inc. has a price-to-sales ratio of 0.43x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue