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Redfin

Nasdaq:RDFN
Snowflake Description

High growth potential with adequate balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
RDFN
Nasdaq
$2B
Market Cap
  1. Home
  2. US
  3. Real Estate
Company description

Redfin Corporation operates as a real estate brokerage company in the United States. The last earnings update was 17 days ago. More info.


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  • Redfin has significant price volatility in the past 3 months.
RDFN Share Price and Events
7 Day Returns
-0.6%
NasdaqGS:RDFN
-2.2%
US Real Estate
-2.1%
US Market
1 Year Returns
-20.6%
NasdaqGS:RDFN
-17.2%
US Real Estate
1.3%
US Market
RDFN Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Redfin (RDFN) -0.6% -19.4% -12.4% -20.6% - -
US Real Estate -2.2% -9.8% -12.3% -17.2% 13.7% -0.3%
US Market -2.1% -4.2% 0% 1.3% 33.5% 38%
1 Year Return vs Industry and Market
  • RDFN underperformed the Real Estate industry which returned -17.2% over the past year.
  • RDFN underperformed the Market in United States of America which returned 1.3% over the past year.
Price Volatility
Industry
5yr Volatility vs Market

RDFN Value

 Is Redfin undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Redfin to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Redfin.

NasdaqGS:RDFN Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 15 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.5%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:RDFN
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Real Estate Unlevered Beta Simply Wall St/ S&P Global 1.11
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.106 (1 + (1- 21%) (11.35%))
1.138
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.14
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.138 * 5.96%)
9.51%

Discounted Cash Flow Calculation for NasdaqGS:RDFN using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Redfin is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NasdaqGS:RDFN DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.51%)
2019 -67.86 Analyst x3 -61.96
2020 -49.34 Analyst x6 -41.14
2021 -6.67 Analyst x3 -5.08
2022 42.50 Analyst x2 29.55
2023 88.00 Analyst x2 55.87
2024 131.70 Est @ 49.66% 76.36
2025 178.57 Est @ 35.58% 94.54
2026 224.51 Est @ 25.73% 108.54
2027 266.78 Est @ 18.83% 117.77
2028 304.13 Est @ 14% 122.60
Present value of next 10 years cash flows $497.04
NasdaqGS:RDFN DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $304.13 × (1 + 2.73%) ÷ (9.51% – 2.73%)
$4,607.44
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $4,607.44 ÷ (1 + 9.51%)10
$1,857.30
NasdaqGS:RDFN Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $497.04 + $1,857.30
$2,354.34
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $2,354.34 / 90.99
$25.87
NasdaqGS:RDFN Discount to Share Price
Calculation Result
Value per share (USD) From above. $25.87
Current discount Discount to share price of $17.26
= -1 x ($17.26 - $25.87) / $25.87
33.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Redfin is available for.
Intrinsic value
33%
Share price is $17.26 vs Future cash flow value of $25.87
Current Discount Checks
For Redfin to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Redfin's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Redfin's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Redfin's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Redfin's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:RDFN PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $-0.83
NasdaqGS:RDFN Share Price ** NasdaqGS (2019-05-24) in USD $17.26
United States of America Real Estate Industry PE Ratio Median Figure of 26 Publicly-Listed Real Estate Companies 14.91x
United States of America Market PE Ratio Median Figure of 3,082 Publicly-Listed Companies 17.36x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Redfin.

NasdaqGS:RDFN PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:RDFN Share Price ÷ EPS (both in USD)

= 17.26 ÷ -0.83

-20.84x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Redfin is loss making, we can't compare its value to the US Real Estate industry average.
  • Redfin is loss making, we can't compare the value of its earnings to the United States of America market.
Price based on expected Growth
Does Redfin's expected growth come at a high price?
Raw Data
NasdaqGS:RDFN PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -20.84x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 15 Analysts
31.9%per year
United States of America Real Estate Industry PEG Ratio Median Figure of 12 Publicly-Listed Real Estate Companies 0.43x
United States of America Market PEG Ratio Median Figure of 2,120 Publicly-Listed Companies 1.5x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Redfin, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Redfin's assets?
Raw Data
NasdaqGS:RDFN PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $3.46
NasdaqGS:RDFN Share Price * NasdaqGS (2019-05-24) in USD $17.26
United States of America Real Estate Industry PB Ratio Median Figure of 51 Publicly-Listed Real Estate Companies 1.5x
United States of America Market PB Ratio Median Figure of 5,207 Publicly-Listed Companies 1.8x
NasdaqGS:RDFN PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:RDFN Share Price ÷ Book Value per Share (both in USD)

= 17.26 ÷ 3.46

4.99x

* Primary Listing of Redfin.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Redfin is overvalued based on assets compared to the US Real Estate industry average.
X
Value checks
We assess Redfin's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Real Estate industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Real Estate industry average (and greater than 0)? (1 check)
  5. Redfin has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

RDFN Future Performance

 How is Redfin expected to perform in the next 1 to 3 years based on estimates from 15 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
31.9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Redfin expected to grow at an attractive rate?
  • Redfin's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Redfin's earnings growth is expected to exceed the United States of America market average.
  • Redfin's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:RDFN Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:RDFN Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 15 Analysts 31.9%
NasdaqGS:RDFN Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 15 Analysts 22%
United States of America Real Estate Industry Earnings Growth Rate Market Cap Weighted Average 4%
United States of America Real Estate Industry Revenue Growth Rate Market Cap Weighted Average 4.7%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.7%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:RDFN Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 15 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:RDFN Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 1,614 68 2
2022-12-31 1,303 -38 3
2021-12-31 1,050 14 -62 8
2020-12-31 830 -27 -75 15
2019-12-31 662 -51 -92 15
NasdaqGS:RDFN Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 517 -63 -73
2018-12-31 487 -37 -42
2018-09-30 459 -26 -32
2018-06-30 428 -21 -65
2018-03-31 390 7 -175
2017-12-31 370 5 -191
2017-09-30 341 8 -275
2017-06-30 313 9 -245
2017-03-31 285 -12 -125
2016-12-31 267 -9 -78

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Redfin's earnings are expected to grow significantly at over 20% yearly.
  • Redfin's revenue is expected to grow significantly at over 20% yearly.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:RDFN Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 15 Analyst Estimates (S&P Global) See Below

All data from Redfin Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:RDFN Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 0.70 0.70 0.70 1.00
2022-12-31 -0.39 0.07 -0.84 2.00
2021-12-31 -0.63 -0.43 -1.00 7.00
2020-12-31 -0.79 -0.57 -1.21 14.00
2019-12-31 -1.00 -0.89 -1.15 14.00
NasdaqGS:RDFN Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 -0.83
2018-12-31 -0.49
2018-09-30 -0.38
2018-06-30 -0.84
2018-03-31 -2.93
2017-12-31 -4.47
2017-09-30 -10.63
2017-06-30 -16.70
2017-03-31 -8.59
2016-12-31 -5.42

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Redfin will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Redfin's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Redfin has a total score of 5/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

RDFN Past Performance

  How has Redfin performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Redfin's growth in the last year to its industry (Real Estate).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Redfin does not make a profit even though their year on year earnings growth rate was positive over the past 5 years.
  • Unable to compare Redfin's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Redfin's 1-year growth to the US Real Estate industry average as it is not currently profitable.
Earnings and Revenue History
Redfin's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Redfin Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:RDFN Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 517.17 -72.72 134.10 56.59
2018-12-31 486.92 -41.98 109.56 53.80
2018-09-30 458.55 -31.56 104.79 51.39
2018-06-30 427.77 -64.70 97.67 48.57
2018-03-31 390.06 -174.52 90.54 45.62
2017-12-31 370.04 -190.92 85.26 42.53
2017-09-30 341.06 -275.29 81.07 40.09
2017-06-30 312.65 -245.06 78.96 38.39
2017-03-31 285.43 -124.78 74.37 36.36
2016-12-31 267.20 -78.03 69.14 34.59
2015-12-31 187.34 -132.46 51.29 27.84
2014-12-31 125.36 -125.98 39.04 17.88

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if Redfin has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if Redfin has efficiently used its assets last year compared to the US Real Estate industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if Redfin improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess Redfin's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Real Estate industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Redfin has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

RDFN Health

 How is Redfin's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Redfin's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Redfin is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Redfin's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Redfin's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 2.7x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Redfin Company Filings, last reported 1 month ago.

NasdaqGS:RDFN Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 314.35 178.22 396.33
2018-12-31 371.94 118.32 432.86
2018-09-30 372.75 117.92 449.09
2018-06-30 225.61 3.49 194.36
2018-03-31 209.26 1.36 190.87
2017-12-31 235.43 2.02 208.37
2017-09-30 233.51 0.71 213.70
2017-06-30 74.39 0.53 55.72
2017-03-31 66.92 0.23 37.96
2016-12-31 91.68 0.00 65.78
2015-12-31 104.20 0.00 87.34
2014-12-31
  • Redfin's level of debt (56.7%) compared to net worth is high (greater than 40%).
  • Unable to establish if Redfin's debt level has increased without past 5-year debt data.
CASH RUNWAY ANALYSIS

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

  • Redfin has sufficient cash runway for more than 3 years based on current free cash flow.
  • Redfin has sufficient cash runway for more than 3 years if free cash flow continues to grow at historical rates of 65.9% each year.
X
Financial health checks
We assess Redfin's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Redfin has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

RDFN Dividends

 What is Redfin's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Redfin dividends. Estimated to be 0% next year.
If you bought $2,000 of Redfin shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Redfin's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Redfin's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:RDFN Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 15 Analyst Estimates (S&P Global) See Below
United States of America Real Estate Industry Average Dividend Yield Market Cap Weighted Average of 16 Stocks 2.8%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2008 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 3.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:RDFN Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 0.00 1.00
2020-12-31 0.00 2.00
2019-12-31 0.00 2.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Redfin has not reported any payouts.
  • Unable to verify if Redfin's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Redfin's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Redfin has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Redfin's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess Redfin's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Redfin afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Redfin has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

RDFN Management

 What is the CEO of Redfin's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Glenn Kelman
COMPENSATION $250,000
AGE 46
TENURE AS CEO 13.7 years
CEO Bio

Mr. Glenn Kelman has been the Chief Executive Officer and President of Redfin Corporation since September 2005. Mr. Kelman served as Vice President of Product Management and Marketing at Plumtree Software Inc. since March 1998. He co-founded San Francisco-based Plumtree Software, a Sequoia-backed, publicly traded company that created the enterprise portal software market. In his seven years at Plumtree, Mr. Kelman at different times led engineering, marketing, product management and business development; he also was responsible for financing and general operations in Plumtree's first two years. Mr. Kelman served as a senior product manager at Informix Software, a company he joined via the acquisition of Stanford Technology Group, from 1995 to 1997. As a product manager for On-Line Analytical Processing software following Informix Software's acquisition of Stanford Technology Group, Mr. Kelman was involved in designing and launching a major release of Informix Software's On-Line Analytical Processing product line. Mr. Kelman worked as one of the first employees at Stanford Technology Group, a Sequoia-backed start-up acquired by IBM. He has been a Director of Redfin Corporation since February 2014. Mr. Kelman was graduated summa cum laude from U.C. Berkeley and 1989 graduate of Interlake High School in Bellevue.

CEO Compensation
  • Glenn's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Glenn's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Redfin management team in years:

5.1
Average Tenure
46
Average Age
  • The average tenure for the Redfin management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Glenn Kelman

TITLE
President
COMPENSATION
$250K
AGE
46
TENURE
13.7 yrs

Chris Nielsen

TITLE
Chief Financial Officer
COMPENSATION
$2M
AGE
51
TENURE
5.9 yrs

Bridget Frey

TITLE
Chief Technology Officer
COMPENSATION
$1M
AGE
40
TENURE
4.3 yrs

Scott Nagel

TITLE
President of Real Estate Operations
COMPENSATION
$1M
AGE
53
TENURE
7 yrs

Adam Wiener

TITLE
Chief Growth Officer
COMPENSATION
$1M
AGE
39
TENURE
4 yrs

Elena Perron

TITLE
Head of Investor Relations

Anthony Kappus

TITLE
VP of Legal

Lisa Tayor

TITLE
Vice President of Marketing

Karen Krupsaw

TITLE
Senior Vice President of Real Estate Operations

Daryl Fairweather

TITLE
Chief Economist
TENURE
0.6 yrs
Board of Directors Tenure

Average tenure and age of the Redfin board of directors in years:

4
Average Tenure
50
Average Age
  • The tenure for the Redfin board of directors is about average.
Board of Directors

Bob Mylod

TITLE
Chairman
COMPENSATION
$149K
AGE
51
TENURE
2.8 yrs

Glenn Kelman

TITLE
President
COMPENSATION
$250K
AGE
46
TENURE
13.2 yrs

Jeff Slavet

TITLE
Independent Director
COMPENSATION
$139K
AGE
49
TENURE
10.3 yrs

Julie Bornstein

TITLE
Independent Director
COMPENSATION
$138K
AGE
48
TENURE
2.6 yrs

Selina Tobaccowala

TITLE
Independent Director
COMPENSATION
$136K
AGE
41
TENURE
5.3 yrs

W. Ligon

TITLE
Independent Director
COMPENSATION
$139K
AGE
67
TENURE
8.7 yrs

Bob Bass

TITLE
Independent Director
COMPENSATION
$146K
AGE
69
TENURE
2.6 yrs

Dave Lissy

TITLE
Independent Director
COMPENSATION
$161K
AGE
52
TENURE
1.3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
X
Management checks
We assess Redfin's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Redfin has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

RDFN News

Simply Wall St News

You Might Like Redfin Corporation (NASDAQ:RDFN) But Do You Like Its Debt?

Given that RDFN is not presently profitable, it’s vital to understand the current state of its operations and pathway to profitability. … Looking at RDFN’s US$104m in current liabilities, the company has been able to meet these obligations given the level of current assets of US$490m, with a current ratio of 4.73x. … Next Steps: RDFN’s high cash coverage means that, although its debt levels are high, the company is able to utilise its borrowings efficiently in order to generate cash flow.

Simply Wall St -

Should You Take Comfort From Insider Transactions At Redfin Corporation (NASDAQ:RDFN)?

Redfin Insider Transactions Over The Last Year. … In the last twelve months, the biggest single purchase by an insider was when Independent Director David Lissy bought US$219k worth of shares at a price of US$21.88 per share. … That means that even when the share price was higher, an insider wanted to purchase shares.

Simply Wall St -

Is Redfin Corporation's (NASDAQ:RDFN) Balance Sheet A Threat To Its Future?

Redfin Corporation (NASDAQ:RDFN) is a small-cap stock with a market capitalization of US$1.5b. … While investors primarily focus on the growth potential and competitive landscape of the small-cap companies, they end up ignoring a key aspect, which could be the biggest threat to its existence: its financial health.

Simply Wall St -

Is Redfin Corporation's (NASDAQ:RDFN) CEO Incentives Align With Yours?

Glenn Kelman took the helm as Redfin Corporation's (NASDAQ:RDFN) CEO and grew market cap to US$2.18b recently. … Recognizing whether CEO incentives are aligned with shareholders is a crucial part of investing. … This is because, if incentives are aligned, more value is created for shareholders which directly impacts your returns as an investor.

Simply Wall St -

Redfin Corporation (NASDAQ:RDFN): Should The Recent Earnings Drop Worry You?

Today I will assess RDFN's latest performance announced on 31 March 2018 and compare these figures to its longer term trend and industry movements. … Was RDFN's recent earnings decline worse than the long-term trend and the industry. … RDFN is loss-making, with the most recent trailing twelve-month earnings of -US$174.52m (from 31 March 2018), which compared to last year has become

Simply Wall St -

Why Redfin Corporation's (NASDAQ:RDFN) Ownership Structure Is Important

With this size of ownership, retail investors can collectively play a role in major company policies that affect shareholders returns, including executive remuneration and the appointment of directors. … This is a positive sign for potential investors as these firms play an important role in aligning company policy with shareholder returns. … Private Company Ownership Another important group of owners for potential investors in RDFN are private companies that hold a stake of 0.0068% in RDFN.

Simply Wall St -

Is Redfin Corporation (NASDAQ:RDFN) A Good Real Estate Bet?

Real estate analysts are forecasting for the entire industry, negative growth in the upcoming year , and an overall negative growth rate in the next couple of years. … Redfin lags the pack with its negative growth rate of -62.54% over the past year, which indicates the company will be growing at a slower pace than its real estate peers. … If Redfin has been on your watchlist for a while, now may be the time to enter into the stock, if you like its growth prospects and are not highly concentrated in the real estate industry.

Simply Wall St -

Does Zero-Debt Make Redfin Corporation (RDFN) A Financially Strong Company?

The direct benefit for Redfin Corporation (NASDAQ:RDFN), which sports a zero-debt capital structure, to include debt in its capital structure is the reduced cost of capital. … However, the trade-off is RDFN will have to adhere to stricter debt covenants and have less financial flexibility. … Check out our latest analysis for Redfin Does RDFN's growth rate justify its decision for financial flexibility over lower cost of capital?

Simply Wall St -

RDFN Company Info

Description

Redfin Corporation operates as a real estate brokerage company in the United States. The company operates an online real estate marketplace and provides real estate services, including assisting individuals in purchase or sell their residential property. It also provides title and settlement services; originates and sells mortgages; and buys and sells residential properties. The company was formerly known as Appliance Computing Inc. and changed its name to Redfin Corporation in May 2006. Redfin Corporation was incorporated in 2002 and is headquartered in Seattle, Washington.

Details
Name: Redfin Corporation
RDFN
Exchange: NasdaqGS
Founded: 2002
$1,570,467,706
90,988,859
Website: http://www.redfin.com
Address: Redfin Corporation
1099 Stewart Street,
Suite 600,
Seattle,
Washington, 98101,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS RDFN Common Stock Nasdaq Global Select US USD 28. Jul 2017
DB R6G Common Stock Deutsche Boerse AG DE EUR 28. Jul 2017
Number of employees
Current staff
Staff numbers
2,993
Redfin employees.
Industry
Real Estate Services
Real Estate
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/25 00:42
End of day share price update: 2019/05/24 00:00
Last estimates confirmation: 2019/05/22
Last earnings filing: 2019/05/08
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.