Is REDWOOD TRUST INC (RWT-PA) Halal?
Shariah Screening — 5 Standards
Based on financial data from December 2025
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | N/A | N/A | N/A | N/A | ? INSUFFICIENT DATA |
| DJIM | N/A | N/A | N/A | N/A | ? INSUFFICIENT DATA |
| MSCI | 89.8% / 33% | 1.3% / 33% | 1.2% / 33% | 367.89% / 5% | ✗ NOT HALAL |
| S&P | N/A | N/A | N/A | N/A | ? INSUFFICIENT DATA |
| FTSE | 89.8% / 33% | 1.3% / 33% | 1.2% / 50% | 367.89% / 5% | ✗ NOT HALAL |
Financial Highlights
Profitability
| Gross Margin | 73.8% | |
| Operating Margin | 32.1% | |
| Net Margin | -39.5% | |
| Return on Equity (ROE) | -6.4% | |
| Return on Assets (ROA) | -0.3% |
Cash Flow & Balance Sheet
| Operating Cash Flow | -$10.1B |
| Free Cash Flow | -$10.1B |
| Total Debt | $22.1B |
| Debt-to-Equity | 2269.1 |
| Current Ratio | 99.0 |
| Total Assets | $23.7B |
Price & Trading
| Last Close | $23.97 |
| 50-Day MA | $24.81 |
| 200-Day MA | $24.84 |
| Avg Volume | 7K |
| Beta | 1.6 |
|
52-Week Range
$20.77
| |
About REDWOOD TRUST INC (RWT-PA)
Redwood Trust, Inc., together with its subsidiaries, operates as a specialty finance company in the United States. It operates through four segments: Sequoia Mortgage Banking, CoreVest Mortgage Banking, Redwood Investments, and Legacy Investments. The Residential Consumer Mortgage Banking segment operates a mortgage loan conduit that acquires residential loans from third-party originators for subsequent sale, securitization, or transfer to its investment portfolio. The CoreVest Mortgage Banking segment operates a platform that originates residential investor loans for subsequent securitization, sale, or transfer into the Redwood Investments portfolio or into joint ventures. This segment also includes various derivative financial instruments that we utilize to manage certain risks associated with our inventory of loans held for sale. The Redwood Investments segment primarily targets investments with sensitivity to housing credit risk, sourced through our operating platforms where control the underwriting and collateral review. Going forward, the Redwood Investments portfolio will focus on retained interests from the company's own securitizations and other investment vehicles, rather than third-party securities, consistent with Redwood's strategic shift toward internally originated investments. The Legacy Investments segment consists of assets no longer aligned with our core strategic objectives, including legacy unsecuritized bridge and term loans, residential re-performing loan securities, and other non-core legacy assets that are in the active process of sale, runoff, or other disposition as part of the accelerated strategic repositioning of our business model. Redwood Trust, Inc. was incorporated in 1994 and is headquartered in Mill Valley, California.
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Frequently Asked Questions
Is REDWOOD TRUST INC (RWT-PA) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), REDWOOD TRUST INC is Not Halal. The company fails one or more screening criteria. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.
What is REDWOOD TRUST INC's debt ratio?
REDWOOD TRUST INC's debt ratio is not available under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 89.8%.
What are REDWOOD TRUST INC's key financial metrics?
REDWOOD TRUST INC has a market capitalization of N/A, and revenue of $177M. The company maintains a gross margin of 73.8% and a net margin of -39.5%. Return on equity stands at -6.4%.
How often is the screening data updated?
Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.
Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.