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Redwood Capital Bancorp
(OTC:RWCB)
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Rating:78Outperform
Price Target:
$38.00
▲(12.16% Upside)
Action:Reiterated
Date:08/04/26
RWCB scores well primarily on financial strength—steady growth, solid profitability, and a significantly de-risked balance sheet with minimal debt—offset by margin compression and softer ROE versus prior peaks. Technicals are supportive with price above key moving averages and positive momentum indicators. Valuation appears reasonable with a low-to-moderate P/E, while the dividend yield is only modest.
Positive Factors
De-risked balance sheet
Material debt reduction and a near-zero debt load by 2025 indicate a stronger capital base and far lower financial risk. This durable improvement increases resilience to credit shocks, lowers interest expense sensitivity, and preserves capacity to fund organic growth or buffer losses over the next 2–6 months and beyond.
Negative Factors
Margin compression & lower ROE
A sustained drop in margin and ROE signals reduced profitability efficiency versus prior years, reflecting either pricing, funding, or cost pressures. Lower returns on equity constrain internal capital returns and investment capacity, making it harder to generate high shareholder returns over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
De-risked balance sheet
Material debt reduction and a near-zero debt load by 2025 indicate a stronger capital base and far lower financial risk. This durable improvement increases resilience to credit shocks, lowers interest expense sensitivity, and preserves capacity to fund organic growth or buffer losses 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
$63.28M
Dividend Yield1.15%
Average Volume (3M)671.00
Price to Earnings (P/E)10.9
Beta (1Y)0.06
Revenue Growth6.14%
EPS Growth26.25%
CountryUS
Employees26
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)2.83
Shares Outstanding1,867,559
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
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...
How the Company Makes Money
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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
33.88
Price Trends
32.68
Positive
32.35
Positive
30.63
Positive
Market Momentum
0.35
Positive
60.22
Neutral
50.22
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 33.88 is above the 20-day moving average (MA) of 33.67, above the 50-day MA of 32.68, and above the 200-day MA of 30.63, indicating a bullish trend. The MACD of 0.35 indicates Positive momentum. The RSI at 60.22 is Neutral, neither overbought nor oversold. The STOCH value of 50.22 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 |
|---|---|---|---|---|---|---|---|
78 Outperform | $63.28M | 10.87 | 9.89% | 1.17% | 6.14% | 26.25% | |
73 Outperform | $82.35M | 9.46 | 7.13% | 2.76% | 4.91% | 127.20% | |
68 Neutral | $70.15M | 30.70 | 2.47% | ― | 0.82% | -2.26% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
65 Neutral | $49.76M | 14.43 | 5.66% | 1.30% | 5.94% | 51.02% |
* Financial Sector Average
RWCB
Redwood Capital Bancorp
33.91
9.75
40.33%
ASRV
Ameriserv Financial
4.80
1.92
66.55%
FSEA
First Seacoast Bancorp
17.18
5.68
49.43%
TCBS
Texas Community
17.31
1.25
7.77%
CLST
Catalyst Bancorp
17.50
4.67
36.40%
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.