NasdaqGS:RDFN

Stock Analysis Report

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Executive Summary

Redfin Corporation operates as a real estate brokerage company in the United States and Canada.


Snowflake Analysis

Mediocre balance sheet with limited growth.


Similar Companies

Share Price & News

How has Redfin's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: RDFN's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

1.7%

RDFN

7.5%

US Real Estate

2.9%

US Market


1 Year Return

90.3%

RDFN

-17.4%

US Real Estate

9.5%

US Market

Return vs Industry: RDFN exceeded the US Real Estate industry which returned -17.4% over the past year.

Return vs Market: RDFN exceeded the US Market which returned 9.5% over the past year.


Shareholder returns

RDFNIndustryMarket
7 Day1.7%7.5%2.9%
30 Day55.5%2.4%5.1%
90 Day4.8%-25.9%2.5%
1 Year90.3%90.3%-16.9%-17.4%12.0%9.5%
3 Yearn/a-19.9%-21.7%30.8%22.1%
5 Yearn/a-26.6%-28.9%57.4%39.7%

Price Volatility Vs. Market

How volatile is Redfin's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Redfin undervalued compared to its fair value and its price relative to the market?

2.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RDFN ($29.99) is trading below our estimate of fair value ($30.8)

Significantly Below Fair Value: RDFN is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: RDFN is unprofitable, so we can't compare its PE Ratio to the Real Estate industry average.

PE vs Market: RDFN is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate RDFN's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: RDFN is overvalued based on its PB Ratio (10.1x) compared to the US Real Estate industry average (1.1x).


Next Steps

Future Growth

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

41.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RDFN is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: RDFN is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: RDFN is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: RDFN's revenue (25.8% per year) is forecast to grow faster than the US market (8.8% per year).

High Growth Revenue: RDFN's revenue (25.8% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if RDFN's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Redfin performed over the past 5 years?

23.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RDFN is currently unprofitable.

Growing Profit Margin: RDFN is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: RDFN is unprofitable, but has reduced losses over the past 5 years at a rate of 23.9% per year.

Accelerating Growth: Unable to compare RDFN's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: RDFN is unprofitable, making it difficult to compare its past year earnings growth to the Real Estate industry (-6.4%).


Return on Equity

High ROE: RDFN has a negative Return on Equity (-26.32%), as it is currently unprofitable.


Next Steps

Financial Health

How is Redfin's financial position?


Financial Position Analysis

Short Term Liabilities: RDFN's short term assets ($457.4M) exceed its short term liabilities ($136.1M).

Long Term Liabilities: RDFN's short term assets ($457.4M) exceed its long term liabilities ($178.5M).


Debt to Equity History and Analysis

Debt Level: RDFN's debt to equity ratio (61.7%) is considered high.

Reducing Debt: Insufficient data to determine if RDFN's debt to equity ratio has reduced over the past 5 years.


Balance Sheet


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.

Stable Cash Runway: RDFN has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if RDFN has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate RDFN's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate RDFN's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if RDFN's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if RDFN's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of RDFN's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.0yrs

Average management tenure


CEO

Glenn Kelman (47yo)

14.58yrs

Tenure

US$1,082,283

Compensation

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  ...


CEO Compensation Analysis

Compensation vs Market: Glenn's total compensation ($USD1.08M) is below average for companies of similar size in the US market ($USD5.91M).

Compensation vs Earnings: Glenn's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Glenn Kelman
President14.58yrsUS$1.08m1.83% $54.1m
Chris Nielsen
Chief Financial Officer6.83yrsUS$1.63m0.016% $482.3k
Bridget Frey
Chief Technology Officer5.17yrsUS$1.77m0.10% $3.1m
Adam Wiener
Chief Growth Officer5yrsUS$1.81m0.28% $8.3m
Christian Taubman
Chief Product Officer0.58yrUS$1.86mno data
Elena Perron
Head of Investor Relationsno datano datano data
Anthony Kappus
VP of Legalno datano datano data
Lisa Tayor
Vice President of Marketingno datano datano data
Scott Nagel
President of Real Estate Operations8yrsUS$1.35m0.16% $4.7m
Karen Krupsaw
Senior Vice President of Real Estate Operationsno datano datano data

6.0yrs

Average Tenure

44yo

Average Age

Experienced Management: RDFN's management team is seasoned and experienced (6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Glenn Kelman
President14.58yrsUS$1.08m1.83% $54.1m
David Lissy
Independent Directorno dataUS$121.47k0.016% $482.0k
W. Ligon
Independent Director9.58yrsUS$129.90k0.085% $2.5m
James Slavet
Independent Director11.33yrsUS$128.18k0.14% $4.2m
Robert Mylod
Independent Chairman3.75yrsUS$146.74k0.0046% $135.6k
Selina Tobaccowala
Independent Director6.33yrsUS$125.68k0.021% $620.2k
Julie Bornstein
Independent Director3.58yrsUS$126.16kno data
Robert Bass
Independent Director3.58yrsUS$140.45k0.0046% $135.6k

6.3yrs

Average Tenure

51yo

Average Age

Experienced Board: RDFN's board of directors are considered experienced (6.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 8.2%.


Top Shareholders

Company Information

Redfin Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Redfin Corporation
  • Ticker: RDFN
  • Exchange: NasdaqGS
  • Founded: 2002
  • Industry: Real Estate Services
  • Sector: Real Estate
  • Market Cap: US$2.953b
  • Shares outstanding: 98.48m
  • Website: https://www.redfin.com

Number of Employees


Location

  • Redfin Corporation
  • 1099 Stewart Street
  • Suite 600
  • Seattle
  • Washington
  • 98101
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RDFNNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJul 2017
R6GDB (Deutsche Boerse AG)YesCommon StockDEEURJul 2017

Biography

Redfin Corporation operates as a real estate brokerage company in the United States and Canada. The company operates an online real estate marketplace and provides real estate services, including assisting individuals in the purchase or sell of home. It also provides title and settlement services; originates and sells mortgages; and buys and sells homes. 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. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/31 06:39
End of Day Share Price2020/05/29 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.