Redfin Corporation
Redfin Corporation Fundamental Analysis
Redfin Corporation (RDFN) shows moderate financial fundamentals with a PE ratio of -8.75, profit margin of -21.88%, and ROE of 1.84%. The company generates $0.7B in annual revenue with moderate year-over-year growth of 6.79%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 101.2/100 based on profitability, valuation, growth, and balance sheet metrics. The A grade reflects excellent fundamentals and strong overall stability.
Fundamental Health Score
We analyze RDFN's fundamental strength across five key dimensions:
Efficiency Score
WeakRDFN struggles to generate sufficient returns from assets.
Valuation Score
ExcellentRDFN trades at attractive valuation levels.
Growth Score
ModerateRDFN shows steady but slowing expansion.
Financial Health Score
ExcellentRDFN maintains a strong and stable balance sheet.
Profitability Score
ModerateRDFN maintains healthy but balanced margins.
Key Financial Metrics
Is RDFN Expensive or Cheap?
P/E Ratio
RDFN trades at -8.75 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, RDFN's PEG of 0.69 indicates potential undervaluation.
Price to Book
The market values Redfin Corporation at -9.01 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -5.36 times EBITDA. This is generally considered low.
How Well Does RDFN Make Money?
Net Profit Margin
For every $100 in sales, Redfin Corporation keeps $-21.88 as profit after all expenses.
Operating Margin
Core operations generate -19.18 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $1.84 in profit for every $100 of shareholder equity.
ROA
Redfin Corporation generates $-15.12 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Redfin Corporation generates limited operating cash flow of $59.88M, signaling weaker underlying cash strength.
Free Cash Flow
Redfin Corporation produces free cash flow of $52.18M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.41 in free cash annually.
FCF Yield
RDFN converts 3.62% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-8.75
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.69
vs 25 benchmark
P/B Ratio
Price to book value ratio
-9.01
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.93
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-6.44
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.16
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
1.84
vs 25 benchmark
ROA
Return on assets percentage
-0.15
vs 25 benchmark
ROCE
Return on capital employed
-0.21
vs 25 benchmark
How RDFN Stacks Against Its Sector Peers
| Metric | RDFN Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -8.75 | 24.42 | Better (Cheaper) |
| ROE | 183.56% | 679.00% | Weak |
| Net Margin | -21.88% | 4598.00% | Weak |
| Debt/Equity | -6.44 | -22.07 (disorted) | Distorted |
| Current Ratio | 1.16 | 14.99 | Neutral |
| ROA | -15.12% | -1369.00% (disorted) | Weak |
RDFN outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Redfin Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
0.67%
Industry Style: Income, Inflation Hedge, REIT
GrowingEPS CAGR
-37.89%
Industry Style: Income, Inflation Hedge, REIT
DecliningFCF CAGR
77.40%
Industry Style: Income, Inflation Hedge, REIT
High Growth