ROBINHOOD MARKETS INC - A (HOOD) Stock Fundamental Analysis
NASDAQ:HOOD - Nasdaq - US7707001027 - Common Stock - Currency: USD
HOOD gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 222 industry peers in the Capital Markets industry. The financial health of HOOD is average, but there are quite some concerns on its profitability. HOOD is valued quite expensively, but it does show have an excellent growth rating.
1. Profitability
1.1 Basic Checks
HOOD had positive earnings in the past year.
HOOD had a positive operating cash flow in the past year.
In the past 5 years HOOD reported 4 times negative net income.
The reported operating cash flow has been mixed in the past 5 years: HOOD reported negative operating cash flow in multiple years.
1.2 Ratios
HOOD's Return On Assets of 1.21% is on the low side compared to the rest of the industry. HOOD is outperformed by 65.44% of its industry peers.
With a Return On Equity value of 7.28%, HOOD perfoms like the industry average, outperforming 40.09% of the companies in the same industry.
With a Return On Invested Capital value of 2.86%, HOOD is not doing good in the industry: 64.98% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.21% | ||
| ROE | 7.28% | ||
| ROIC | 2.86% |
ROA(3y)-8.24%
ROA(5y)-5.48%
ROE(3y)-24.47%
ROE(5y)-17.27%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With a Profit Margin value of 21.80%, HOOD perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
HOOD's Operating Margin of 21.97% is in line compared to the rest of the industry. HOOD outperforms 43.32% of its industry peers.
With an excellent Gross Margin value of 93.94%, HOOD belongs to the best of the industry, outperforming 93.09% of the companies in the same industry.
In the last couple of years the Gross Margin of HOOD has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.97% | ||
| PM (TTM) | 21.8% | ||
| GM | 93.94% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.39%
GM growth 5YN/A
2. Health
2.1 Basic Checks
HOOD has less shares outstanding than it did 1 year ago.
HOOD has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.82, we must say that HOOD is in the distress zone and has some risk of bankruptcy.
HOOD has a Altman-Z score of 0.82. This is comparable to the rest of the industry: HOOD outperforms 47.47% of its industry peers.
HOOD has a debt to FCF ratio of 3.38. This is a good value and a sign of high solvency as HOOD would need 3.38 years to pay back of all of its debts.
HOOD has a better Debt to FCF ratio (3.38) than 69.59% of its industry peers.
HOOD has a Debt/Equity ratio of 1.01. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of HOOD (1.01) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.01 | ||
| Debt/FCF | 3.38 | ||
| Altman-Z | 0.82 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
HOOD has a Current Ratio of 1.18. This is a normal value and indicates that HOOD is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.18, HOOD is in line with its industry, outperforming 53.46% of the companies in the same industry.
A Quick Ratio of 1.18 indicates that HOOD should not have too much problems paying its short term obligations.
HOOD has a Quick ratio (1.18) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.18 | ||
| Quick Ratio | 1.18 |
3. Growth
3.1 Past
HOOD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 179.73%, which is quite impressive.
HOOD shows a strong growth in Revenue. In the last year, the Revenue has grown by 35.74%.
HOOD shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 24.83% yearly.
EPS 1Y (TTM)179.73%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%288.89%
Revenue 1Y (TTM)35.74%
Revenue growth 3Y24.83%
Revenue growth 5YN/A
Sales Q2Q%36.4%
3.2 Future
Based on estimates for the next years, HOOD will show a very strong growth in Earnings Per Share. The EPS will grow by 54.80% on average per year.
Based on estimates for the next years, HOOD will show a very strong growth in Revenue. The Revenue will grow by 26.49% on average per year.
EPS Next Y232.83%
EPS Next 2Y89.57%
EPS Next 3Y54.8%
EPS Next 5YN/A
Revenue Next Year52.7%
Revenue Next 2Y35.02%
Revenue Next 3Y26.49%
Revenue Next 5YN/A
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 83.73, which means the current valuation is very expensive for HOOD.
81.11% of the companies in the same industry are cheaper than HOOD, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of HOOD to the average of the S&P500 Index (28.42), we can say HOOD is valued expensively.
With a Price/Forward Earnings ratio of 51.66, HOOD can be considered very expensive at the moment.
HOOD's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. HOOD is more expensive than 77.42% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 24.39. HOOD is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 83.73 | ||
| Fwd PE | 51.66 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as HOOD.
HOOD's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.2 | ||
| EV/EBITDA | 51.56 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
HOOD's earnings are expected to grow with 54.80% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.36
PEG (5Y)N/A
EPS Next 2Y89.57%
EPS Next 3Y54.8%
5. Dividend
5.1 Amount
No dividends for HOOD!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
ROBINHOOD MARKETS INC - A
NASDAQ:HOOD (1/28/2025, 8:00:01 PM)
After market: 49.3 -0.1 (-0.2%)49.4
+1.66 (+3.48%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners79.09%
Inst Owner Change0.2%
Ins Owners0.59%
Ins Owner Change-0.54%
Market Cap43.67B
Analysts78.26
Price Target44.94 (-9.03%)
Short Float %1.96%
Short Ratio0.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)12.5%
Min EPS beat(2)-8.06%
Max EPS beat(2)33.06%
EPS beat(4)3
Avg EPS beat(4)134.75%
Min EPS beat(4)-8.06%
Max EPS beat(4)301.45%
EPS beat(8)7
Avg EPS beat(8)111.13%
EPS beat(12)9
Avg EPS beat(12)75.92%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)-0.57%
Min Revenue beat(2)-5.07%
Max Revenue beat(2)3.93%
Revenue beat(4)3
Avg Revenue beat(4)2.6%
Min Revenue beat(4)-5.07%
Max Revenue beat(4)10.44%
Revenue beat(8)5
Avg Revenue beat(8)0.29%
Revenue beat(12)5
Avg Revenue beat(12)-1.7%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)28.25%
PT rev (3m)71.31%
EPS NQ rev (1m)0%
EPS NQ rev (3m)51.63%
EPS NY rev (1m)0%
EPS NY rev (3m)9.35%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)8.28%
Revenue NY rev (1m)4.54%
Revenue NY rev (3m)7.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 83.73 | ||
| Fwd PE | 51.66 | ||
| P/S | 18.13 | ||
| P/FCF | 20.2 | ||
| P/OCF | 19.82 | ||
| P/B | 6.06 | ||
| P/tB | 6.25 | ||
| EV/EBITDA | 51.56 |
EPS(TTM)0.59
EY1.19%
EPS(NY)0.96
Fwd EY1.94%
FCF(TTM)2.45
FCFY4.95%
OCF(TTM)2.49
OCFY5.04%
SpS2.72
BVpS8.15
TBVpS7.91
PEG (NY)0.36
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.21% | ||
| ROE | 7.28% | ||
| ROCE | 7.26% | ||
| ROIC | 2.86% | ||
| ROICexc | 10.69% | ||
| ROICexgc | 11.33% | ||
| OM | 21.97% | ||
| PM (TTM) | 21.8% | ||
| GM | 93.94% | ||
| FCFM | 89.78% |
ROA(3y)-8.24%
ROA(5y)-5.48%
ROE(3y)-24.47%
ROE(5y)-17.27%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.39%
GM growth 5YN/A
F-Score7
Asset Turnover0.06
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.01 | ||
| Debt/FCF | 3.38 | ||
| Debt/EBITDA | 12.16 | ||
| Cap/Depr | 56.94% | ||
| Cap/Sales | 1.7% | ||
| Interest Coverage | 33.06 | ||
| Cash Conversion | 366.56% | ||
| Profit Quality | 411.81% | ||
| Current Ratio | 1.18 | ||
| Quick Ratio | 1.18 | ||
| Altman-Z | 0.82 |
F-Score7
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)150.42%
Cap/Depr(5y)201.8%
Cap/Sales(3y)3.31%
Cap/Sales(5y)3.56%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)179.73%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%288.89%
EPS Next Y232.83%
EPS Next 2Y89.57%
EPS Next 3Y54.8%
EPS Next 5YN/A
Revenue 1Y (TTM)35.74%
Revenue growth 3Y24.83%
Revenue growth 5YN/A
Sales Q2Q%36.4%
Revenue Next Year52.7%
Revenue Next 2Y35.02%
Revenue Next 3Y26.49%
Revenue Next 5YN/A
EBIT growth 1Y174.09%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year321.44%
EBIT Next 3Y71.89%
EBIT Next 5YN/A
FCF growth 1Y256.59%
FCF growth 3Y-14.32%
FCF growth 5YN/A
OCF growth 1Y268.33%
OCF growth 3Y-14.3%
OCF growth 5YN/A