Redfin Corporation Is (Still) Troubled

Summary

• Redfin remains a troubled investment, with a 26.3% stock decline since my last review and no profits in its 10-year history.
• Despite revenue and gross profit increases, net income worsened by 20%, and the capital structure deteriorated with increased share count and reduced cash.
• The market's optimistic valuation of $1.12 per $1 of sales is excessive, especially given Redfin's lack of earnings and high growth expectations.
• Better investment alternatives, like low-risk Treasury Notes with 4.3% returns, make Redfin an unattractive choice until it turns a profit.

Jonathan Kitchen

It’s been about 42 days since I announced to the world that, in my opinion, Redfin Corporation (NASDAQ:RDFN) remains troubled in an article with the monumentally original title “Redfin Remains Troubled.” Since then, the company has announced earnings, and the

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.