Stock fact sheet · data as of
Redwood Financial, Inc. (REDW): fair value, margin of safety and Wheel Score
Financial Services · Banks - Regional · United States · Speculative / Distressed
Is REDW undervalued?
REDW closed at 185.01 on 16 Oct 2026, which is 28% above the GLS average fair value of 144.55 from 8 models. 4 of them value the shares below today's price. Our screens read that as "no margin of safety": the stock is not a value candidate at this price, whatever the quality numbers say.
The 8 models disagree widely: DDM gives 34.43 while 10 Cap gives 278.72. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.
The nightly engine files REDW under Speculative / Distressed - negative earnings or a Piotroski score of 3 or less - which caps its Wheel Score at 45 and keeps it out of the Sunday Scan.
Nine valuation models for REDW
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | - | - | Present value of the projected free cash flows, discounted at the cost of capital; no value tonight |
| Graham Number | 189.70 | +3% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 211.74 | +14% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 52.50 | -72% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 55.84 | -70% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 278.72 | +51% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 187.63 | +1% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 34.43 | -81% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 145.83 | -21% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -1,484.14 | -902% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 0.0000 | -100% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Financial health is weak: REDW passes 0 of the nine Piotroski tests. Our screens drop the stock at the health rule; a low score is often the reason a stock looks cheap on the valuation models. The GLS Moat score is low at 4.2 out of 10, which says the ten-year record of revenue, earnings, margins and returns on capital has been inconsistent - growth and shocks rather than steady compounding.
Returns on capital are moderate - ROIC 6.4%, ROE 10.8%, ROA 0.8% - with debt at 0.68 times equity and a free-cash-flow yield of 5.0%.
The dividend yield is 1.26% with a payout ratio of 17% - a small yield that leaves most of the earnings in the business.
Institutional ownership scores 5/10, insider activity 5/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 0 / 9 | ROIC | 6.4% |
|---|---|---|---|
| GLS Moat | 4.2 / 10 | ROE | 10.8% |
| Debt / equity | 0.68 | ROA | 0.8% |
| Free-cash-flow yield | 5.0% | Payout ratio | 17% |
| Institutions | 5 / 10 | Insiders · Congress | 5 · 5 / 10 |
Wheel Score 13: No options
REDW has no listed options in the nightly snapshot, so there is nothing to sell and the stock cannot be wheeled however good the business; the Wheel Score is capped at 39 and shown as "No options" (13 here). The valuation and quality numbers still apply to owning the shares outright.
Volume runs at 0k shares a day on a market cap of $75M, with a beta of 0.26 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score gives that 6 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 1 / 25 | -28% margin of safety | |
| Health | 0 / 20 | Piotroski 0/9 | |
| Moat | 6 / 15 | moat 4.2/10 | |
| Premium | 0 / 20 | no option data | |
| Stability | 6 / 20 | 0k shares/day, $75M cap, beta 0.26 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
No upcoming earnings date is recorded for REDW in the nightly calendar.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Banks - Regional
The 12 companies below are the closest to Redwood Financial, Inc. by market cap within the Banks - Regional industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| NSTS NSTS Bancorp, Inc. | 14.26 | 58.62 | +76% | 39No options | $75M |
| LFGP Ledyard Financial Group, Inc. | 21.49 | 28.24 | +24% | 39No options | $75M |
| ASRV AmeriServ Financial, Inc. | 4.46 | 3.72 | -20% | 51Fair | $76M |
| HFBL Home Federal Bancorp, Inc. of Louisiana | 24.12 | 23.23 | -4% | 39No options | $73M |
| RVCB River Valley Community Bancorp | 24.56 | 22.39 | -10% | 31No options | $77M |
| MNMB Merchants & Marine Bancorp, Inc. | 58.50 | 156.84 | +63% | 39No options | $78M |
| CCBC Chino Commercial Bancorp | 18.75 | 26.19 | +28% | 39No options | $72M |
| GSBX Golden State Bancorp | 39.31 | 66.10 | +41% | 39No options | $72M |
| FRSB First Resource Bancorp Inc. | 25.99 | 73.68 | +65% | 39No options | $78M |
| JUVF Juniata Valley Financial Corp. | 15.60 | 26.65 | +41% | 39No options | $79M |
| MVLY Mission Valley Bancorp | 21.40 | 21.99 | +3% | 31No options | $72M |
| DWNX Delhi Bank Corp. | 21.15 | 10.59 | -100% | 23No options | $71M |
⚖ Compare REDW with 7 of them All Financial Services stocks →
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Start free See the Sunday ScanQuestions about REDW
Is REDW undervalued right now?
No: at 185.01 the stock trades 28% above the GLS average fair value of 144.55 (data as of 16 Oct 2026). The margin of safety is negative.
What is the Wheel Score of REDW and what does it mean?
REDW has no listed options in our nightly snapshot, so it cannot be wheeled; its Wheel Score is capped at 39 and shown as "No options".
What is the GLS fair value for REDW?
144.55 per share as of 16 Oct 2026 - the simple average of the 8 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Redwood Financial, Inc. report earnings next?
No upcoming earnings date is recorded for REDW in our calendar as of 16 Oct 2026; the Calendars page is refreshed every morning.
Does REDW have listed options, and how liquid are they?
No. The nightly options snapshot found no listed contracts on REDW, so the wheel strategy cannot be run on it and the Wheel Score is capped at 39.