Redwood Trust Inc

RWT

Not Compliant
Exchange
Sector
Headquarters
Group
NYSE
Real Estate
USA
Small Cap

Redwood Trust Inc is not Shariah Compliant because of its involvement in Mortgage REITs and related activities.

47.3%

Impure Income*

$1.512

Purification*

-

Zakat*

Financials

Market cap Group
Analysts' Rating
Price Target (Mean)
Total Analysts
Revenue Growth
Small Cap
BUY
$6.25
8
26.00%
Operating Margin
Net Profit Margin
Quick Ratio
Current Ratio
EPS Growth
5.03%
-5.21%
0.00
0.00
18.59%

Shariah Compliance

  • Updated on July 21, 2026
Debt
100%
✗
Non-Compliant Assets
100%
✗
Impure Income
47.3%
✗

AAOIFI Rulebook:

  • Non-compliant Liabilities (like Interest-based Debt) < 30% of Market cap
  • Non-compliant Assets (like Interest-based Investments) < 30% of Market cap
  • Impure Revenues (incl. Interest Income) < 5% of Total Revenues

Source: AAOIFI SS21

Debt
100%
✗
Impure Income
47.3%
✗

S&P Sharia Rulebook:

  • Interest-based Debt < 33% of 36-mo avg. Market cap
  • Impure Revenues (incl. Interest Income) < 5% of Total Revenues

Source: S&P Shariah Methodology

Debt
100%
✗
Impure Income
47.3%
✗

Dow Jones Islamic Market (DJIM) Rulebook:

  • Interest-based Debt < 33% of 24-mo avg. Market cap
  • Impure Revenues (incl. Interest Income) < 5% of Total Revenues

Source: DJIM Methodology

Debt
94.29%
✗
Cash
96.4%
✗
Cash & AR
96.4%
✗
Impure Income
47.3%
✗

FTSE Shariah Rulebook:

  • Interest-based Debt < 33.33% of Total Assets
  • Cash and interest-bearing items < 33.33% of Total Assets
  • Accounts receivable and cash < 50% of Total Assets
  • Impure Revenues (incl. Interest Income) < 5% of Total Revenues

Source: FTSE RUSSELL

Debt
94.29%
✗
Cash
96.4%
✗
Cash & AR
96.4%
✗
Impure Income
47.3%
✗

MSCI Islamic Rulebook:

  • Interest-based Debt < 33.33% of Total Assets
  • Cash and interest-bearing items < 33.33% of Total Assets
  • Accounts receivable and cash < 33.33% of Total Assets
  • Impure Revenues (incl. Interest Income) < 5% of Total Revenues

Source: MSCI Islamic Indexes

Impure Income Breakdown

-
-
Interest Income
47.3%

Note on Purification and Zakat:

  • Purification and Zakat (for long-term investing) calculations are in USD per share and based on AAOIFI methodology. AAOIFI requires purification every financial period (e.g. quarterly). 
  • If you follow S&P Shariah’s Dividend-only purification, then remove the impure income % from the dividends you receive. No purification required for non-dividend paying stocks, according to S&P Shariah.
  • For Zakat, if you did not invest in a company from a long term perspective, then consider the shares as trading goods and give 2.5% of the total value if a year has passed on them. 

Company Profile

Redwood Trust, Inc., together with its subsidiaries, is a specialty finance company focused on several distinct areas of housing credit. The Company operates through five segments, which include Sequoia Mortgage Banking, Aspire Mortgage Banking, CoreVest Mortgage Banking, Redwood Investments and Legacy Investments. The Sequoia Mortgage Banking segment consists of a mortgage loan conduit that acquires residential consumer loans from third-party originators for subsequent sale to whole loan buyers, securitization through its Sequoia Mortgage Trust (SEMT) private-label securitization program. Aspire Mortgage Banking includes its non-Qualified Mortgage (QM) loan conduit, which focuses on loans and investments under expanded underwriting criteria. The CoreVest Mortgage Banking segment consists of a platform that originates residential investor loans for subsequent securitization, sale, or transfer into its Redwood Investments portfolio.