Redwire Corporation (RDW): a likely value trap?

Avoid — a speculative, cash-burning space/defense stock unwinding from a momentum bubble, now facing dilution and an adverse audit opinion.

⚠ TRAP Fundamentals42/100

Down 66% from its all-time high of $24.57 — now $8.45

Why RDW dropped

RDW tripled early in 2026 on space-sector hype, then a Jefferies downgrade in June triggered a momentum unwind that snowballed after the company announced a $500 million dilutive stock sale to fund cash-burning operations, plus an "adverse internal controls opinion" from its auditor KPMG flagging unstable financial controls.

Fwd P/E -20.6Op margin -71.8%Rev growth 57.9%Debt/equity 11.3%Analyst upside 76.0%

How this scored 42/100 ❌ fails 2 hard checks

❌ Fails 2 hard checks — these are pass/fail and override the score entirely.

❌ Makes money not profitable (and no credible path to profit)

❌ Generates cash burns cash (free cash flow $-71M)

✅ Not drowning in debt Debt/equity 11.3% (limit 200%)

✅ Can pay its bills Current ratio 1.8 (needs 1+)

Bar length shows how much each metric is worth — a 10-point metric is twice as wide as a 5-point one. Hover any row for what it means.

Profitability Does it actually make money? 0/25

Operating margin -71.8% 0/9

Net profit margin -80.9% 0/8

Return on equity -48.7% 0/8

Growth Is it getting bigger, or dying? 19/25

Revenue growth 57.9% 9/9

Earnings growth unknown 2/8

Expected profit change 84.2% 8/8

Value Is it cheap right now? 9/25

Forward P/E -20.6 0/10

PEG ratio unknown 2/8

Analyst target upside 76.0% 7/7

Balance sheet Will it survive? 14/25

Debt / equity 11.3% 10/10

Current ratio 1.8 4/8

Free cash flow $-71M 0/7

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Analysis generated by SmartStonks's AI from public fundamentals and news, first flagged 2026-07-20. Research only — not financial advice.