Redfin needs an overhaul
The housing market will eventually recover, but is $Redfin (RDFN.US)$ ready to capitalize on it when it does? Let’s look into it.
Redfin is currently near its all time low (all time, not just 52 week), so this could mean its undervalued and ready to explode, or that there is some sort of underlying problem. Which is it?
Viewing the revenues for the past couple of years looks very promising, increase after increase after increase, not to mention having a low PS (market cap/revenues).
Then we turn to earnings, and here is where the pretty picture starts falling apart. Not in one single year has it made money. This can cause debt to rise, as shown below.
Redfin is currently near its all time low (all time, not just 52 week), so this could mean its undervalued and ready to explode, or that there is some sort of underlying problem. Which is it?
Viewing the revenues for the past couple of years looks very promising, increase after increase after increase, not to mention having a low PS (market cap/revenues).
Then we turn to earnings, and here is where the pretty picture starts falling apart. Not in one single year has it made money. This can cause debt to rise, as shown below.
See how the assets increase at a nice pace, but the debt increases even faster? This type of growth/taking on more debt/not making money is very unsustainable.
And that is the main reason why I feel like $Redfin (RDFN.US)$ is not currently a buy despite its current price (for the long run at least).
It needs to change before I consider to do so.
Hope this was of help, cheers!
$Redfin (RDFN.US)$ $Doma Holdings (DOMA.US)$ $LGI Homes (LGIH.US)$
And that is the main reason why I feel like $Redfin (RDFN.US)$ is not currently a buy despite its current price (for the long run at least).
It needs to change before I consider to do so.
Hope this was of help, cheers!
$Redfin (RDFN.US)$ $Doma Holdings (DOMA.US)$ $LGI Homes (LGIH.US)$
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Long-term investor here to ask questions and help others out. Cheers!
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