
3-Minute Breakdowns
Should you buy Redfin stock? (January 2024)

3-Minute Breakdowns
•1-9-2024
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Redfin stock analysis. Ticker: $RDFN
Real estate brokerage Redfin has seen its stock collapse 90% over the last few years. But shares are up 22% over the past month raising hopes of a turnaround.
At the latest share price, Redfin has a market cap just over 1 billion dollars. With 174 million of cash and investments and 932 million of debt, the enterprise value is 1.8 billion.
The fundamentals of Redfin stock are not particularly impressive. Net income is negative 169 million and even on an adjusted basis, Redfin is unprofitable.
The one positive metric is free cash flow. But free cash flow is only in the black because Redfin last year ended its ‘iBuying’ business. The company liquidated its ibuying inventory for just over $300 million over the last 4 quarters. Excluding that benefit, free cash flow would also be negative. In that context, it’s not surprising that 17% of Redfin’s float is sold short — even with the stock down 90%.
#investing #stocks #stockstowatch #redfin
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