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Redwood Capital Bancorp
(OTC:RWCB)
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Rating:79Outperform
Price Target:
$35.00
▲(21.28% Upside)
Action:Reiterated
Date:03/28/26
The score is driven primarily by strong financial performance (steady growth, solid margins, and a sharply reduced debt profile) and supportive valuation (low P/E with a dividend). Technicals are positive but capped by overbought signals that increase near-term downside risk.
Positive Factors
De-risked balance sheet
Material reduction in leverage and a growing equity base materially improves solvency and financial flexibility. Near-zero debt lowers interest burden, increases lending and capital-deployment optionality, and strengthens the bank’s ability to withstand cyclical stress over the next 2–6 months and beyond.
Negative Factors
Margin compression & lower ROE
A persistent drop in margins and a halving of ROE versus peak reduces returns on shareholder capital and signals less efficient profit generation on a larger equity base. This pressures internal return targets, may constrain dividend increases, and limits capital-attractive deployment for several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
De-risked balance sheet
Material reduction in leverage and a growing equity base materially improves solvency and financial flexibility. Near-zero debt lowers interest burden, increases lending and capital-deployment optionality, and strengthens the bank’s ability to withstand cyclical stress over the next 2–6 months and beyond.
Read all positive factors
Redwood Capital Bancorp (RWCB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$60.42M
Dividend Yield1.2%
Average Volume (3M)671.00
Price to Earnings (P/E)11.3
Beta (1Y)0.06
Revenue Growth4.81%
EPS Growth9.68%
CountryUS
Employees26
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)2.83
Shares Outstanding1,904,000
10 Day Avg. Volume924
30 Day Avg. Volume671
Financial Highlights & Ratios
PEG Ratio3.97
Price to Book (P/B)1.00
Price to Sales (P/S)1.97
P/FCF Ratio9.30
Enterprise Value/Market Cap0.68
Enterprise Value/Revenue1.45
Enterprise Value/Gross Profit1.74
Enterprise Value/Ebitda5.50
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Redwood Capital Bancorp Business Overview & Revenue Model
Company Description
Redwood Capital Bancorp operates as the holding entity for Redwood Capital Bank, a financial institution dedicated to delivering a comprehensive suite of banking products and services to both individual and business customers across California. Th...
Redwood Capital Bancorp Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
86
Very Positive
Cash Flow
72
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 28.45M | 27.87M | 26.98M | 25.58M | 22.02M | 20.80M |
| Gross Profit | 23.62M | 23.02M | 21.58M | 23.42M | 20.76M | 19.38M |
| EBITDA | 7.49M | 7.17M | 7.23M | 10.29M | 8.99M | 8.68M |
| Net Income | 5.41M | 5.18M | 5.27M | 7.04M | 6.02M | 5.59M |
Balance Sheet | ||||||
| Total Assets | 540.59M | 531.75M | 531.80M | 521.44M | 525.15M | 596.07M |
| Cash, Cash Equivalents and Short-Term Investments | 19.98M | 34.06M | 0.00 | 24.47M | 107.72M | 163.91M |
| Total Debt | 0.00 | 175.51K | 5.20M | 11.00M | 11.00M | 11.00M |
| Total Liabilities | 484.51M | 476.64M | 481.23M | 475.73M | 486.51M | 555.90M |
| Stockholders Equity | 56.08M | 55.11M | 50.57M | 45.71M | 38.64M | 40.18M |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 5.91M | 6.50M | 4.42M | 7.28M | 11.32M |
| Operating Cash Flow | 0.00 | 6.17M | 6.69M | 7.72M | 7.49M | 11.96M |
| Investing Cash Flow | 0.00 | 1.73M | 5.23M | -10.49M | -64.36M | -11.74M |
| Financing Cash Flow | 0.00 | -8.60M | 4.46M | -12.78M | -70.83M | 94.56M |
Redwood Capital Bancorp Technical Analysis
Positive
28.86
Price Trends
32.08
Negative
31.26
Positive
29.62
Positive
Market Momentum
-0.07
Positive
48.78
Neutral
54.90
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RWCB, the sentiment is Positive. The current price of 28.86 is below the 20-day moving average (MA) of 31.77, below the 50-day MA of 32.08, and below the 200-day MA of 29.62, indicating a neutral trend. The MACD of -0.07 indicates Positive momentum. The RSI at 48.78 is Neutral, neither overbought nor oversold. The STOCH value of 54.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RWCB.
Redwood Capital Bancorp Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $60.42M | 11.29 | 9.89% | 1.20% | 4.81% | 9.68% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | $67.67M | 29.82 | 2.48% | ― | -0.66% | -1.32% | |
61 Neutral | $64.97M | 11.60 | 4.72% | 3.87% | 4.99% | 50.85% | |
58 Neutral | $50.57M | 16.24 | 5.34% | 1.10% | 3.83% | 59.54% |
* Financial Sector Average
RWCB
Redwood Capital Bancorp
31.74
8.45
36.26%
ASRV
Ameriserv Financial
3.83
0.75
24.19%
FSEA
First Seacoast Bancorp
16.85
5.54
48.98%
TCBS
Texas Community
17.53
1.75
11.09%
CLST
Catalyst Bancorp
16.70
4.24
34.03%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.