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ROBINHOOD MARKETS INC - A (HOOD) Stock Fundamental Analysis

NASDAQ:HOOD - Nasdaq - US7707001027 - Common Stock - Currency: USD

43.97  -2.92 (-6.23%)

Fundamental Rating

3

Overall HOOD gets a fundamental rating of 3 out of 10. We evaluated HOOD against 225 industry peers in the Capital Markets industry. While HOOD is still in line with the averages on profitability rating, there are concerns on its financial health. While showing a medium growth rate, HOOD is valued expensive at the moment.


Dividend Valuation Growth Profitability Health

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5

1. Profitability

1.1 Basic Checks

HOOD had positive earnings in the past year.
HOOD had a negative operating cash flow in the past year.
In multiple years HOOD reported negative net income over the last 5 years.
The reported operating cash flow has been mixed in the past 5 years: HOOD reported negative operating cash flow in multiple years.
HOOD Yearly Net Income VS EBIT VS OCF VS FCFHOOD Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2019 2020 2021 2022 2023 2024 0 1B -1B -2B -3B

1.2 Ratios

With a decent Return On Assets value of 5.39%, HOOD is doing good in the industry, outperforming 70.78% of the companies in the same industry.
HOOD has a Return On Equity of 17.70%. This is amongst the best in the industry. HOOD outperforms 83.56% of its industry peers.
With a decent Return On Invested Capital value of 5.36%, HOOD is doing good in the industry, outperforming 67.58% of the companies in the same industry.
Industry RankSector Rank
ROA 5.39%
ROE 17.7%
ROIC 5.36%
ROA(3y)-0.7%
ROA(5y)-4.14%
ROE(3y)-1.72%
ROE(5y)-11.11%
ROIC(3y)N/A
ROIC(5y)N/A
HOOD Yearly ROA, ROE, ROICHOOD Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2019 2020 2021 2022 2023 2024 0 -20 -40

1.3 Margins

HOOD's Profit Margin of 47.81% is amongst the best of the industry. HOOD outperforms 85.84% of its industry peers.
Looking at the Operating Margin, with a value of 35.72%, HOOD is in the better half of the industry, outperforming 62.10% of the companies in the same industry.
HOOD's Gross Margin of 94.44% is amongst the best of the industry. HOOD outperforms 93.61% of its industry peers.
HOOD's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 35.72%
PM (TTM) 47.81%
GM 94.44%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.74%
GM growth 5Y2.46%
HOOD Yearly Profit, Operating, Gross MarginsHOOD Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2019 2020 2021 2022 2023 2024 0 50 -50 -100 -150 -200

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2

2. Health

2.1 Basic Checks

Compared to 1 year ago, HOOD has more shares outstanding
The number of shares outstanding for HOOD has been increased compared to 5 years ago.
Compared to 1 year ago, HOOD has a worse debt to assets ratio.
HOOD Yearly Shares OutstandingHOOD Yearly Shares OutstandingYearly Shares Outstanding 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M
HOOD Yearly Total Debt VS Total AssetsHOOD Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2019 2020 2021 2022 2023 2024 5B 10B 15B 20B 25B

2.2 Solvency

Based on the Altman-Z score of 1.72, we must say that HOOD is in the distress zone and has some risk of bankruptcy.
HOOD has a Altman-Z score of 1.72. This is in the better half of the industry: HOOD outperforms 67.12% of its industry peers.
HOOD has a Debt/Equity ratio of 0.94. This is a neutral value indicating HOOD is somewhat dependend on debt financing.
HOOD has a Debt to Equity ratio (0.94) which is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.94
Debt/FCF N/A
Altman-Z 1.72
ROIC/WACCN/A
WACCN/A
HOOD Yearly LT Debt VS Equity VS FCFHOOD Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2019 2020 2021 2022 2023 2024 0 2B 4B 6B

2.3 Liquidity

A Current Ratio of 1.39 indicates that HOOD should not have too much problems paying its short term obligations.
HOOD's Current ratio of 1.39 is in line compared to the rest of the industry. HOOD outperforms 58.45% of its industry peers.
HOOD has a Quick Ratio of 1.39. This is a normal value and indicates that HOOD is financially healthy and should not expect problems in meeting its short term obligations.
HOOD has a Quick ratio (1.39) which is in line with its industry peers.
Industry RankSector Rank
Current Ratio 1.39
Quick Ratio 1.39
HOOD Yearly Current Assets VS Current LiabilitesHOOD Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2019 2020 2021 2022 2023 2024 5B 10B 15B 20B 25B

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6

3. Growth

3.1 Past

HOOD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 361.67%, which is quite impressive.
Looking at the last year, HOOD shows a very strong growth in Revenue. The Revenue has grown by 58.23%.
The Revenue has been growing by 60.45% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)361.67%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%3266.67%
Revenue 1Y (TTM)58.23%
Revenue growth 3Y17.59%
Revenue growth 5Y60.45%
Sales Q2Q%115.29%

3.2 Future

HOOD is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.74% yearly.
The Revenue is expected to grow by 18.25% on average over the next years. This is quite good.
EPS Next Y-10.77%
EPS Next 2Y1.72%
EPS Next 3Y4.74%
EPS Next 5YN/A
Revenue Next Year29.16%
Revenue Next 2Y20.72%
Revenue Next 3Y18.25%
Revenue Next 5YN/A

3.3 Evolution

Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
HOOD Yearly Revenue VS EstimatesHOOD Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2019 2020 2021 2022 2023 2024 2025 2026 2027 1B 2B 3B 4B
HOOD Yearly EPS VS EstimatesHOOD Yearly EPS VS EstimatesYearly EPS VS Estimates 2019 2020 2021 2022 2023 2024 2025 2026 2027 0 -2 -4 -6

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1

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 28.01, the valuation of HOOD can be described as expensive.
Based on the Price/Earnings ratio, HOOD is valued a bit more expensive than 73.06% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 29.75. HOOD is around the same levels.
The Price/Forward Earnings ratio is 31.39, which means the current valuation is very expensive for HOOD.
HOOD's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. HOOD is more expensive than 75.34% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of HOOD to the average of the S&P500 Index (22.44), we can say HOOD is valued slightly more expensively.
Industry RankSector Rank
PE 28.01
Fwd PE 31.39
HOOD Price Earnings VS Forward Price EarningsHOOD Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, HOOD is valued a bit cheaper than 65.30% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 27.94
HOOD Per share dataHOOD EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 4 6 8

4.3 Compensation for Growth

PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y1.72%
EPS Next 3Y4.74%

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0

5. Dividend

5.1 Amount

No dividends for HOOD!.
Industry RankSector Rank
Dividend Yield N/A

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ROBINHOOD MARKETS INC - A

NASDAQ:HOOD (3/4/2025, 9:45:09 AM)

43.97

-2.92 (-6.23%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)02-12 2025-02-12/amc
Earnings (Next)05-06 2025-05-06/amc
Inst Owners73.95%
Inst Owner Change-7.46%
Ins Owners0.51%
Ins Owner Change-0.69%
Market Cap38.87B
Analysts79.13
Price Target70.65 (60.68%)
Short Float %2.87%
Short Ratio0.8
Dividend
Industry RankSector 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)58.47%
Min EPS beat(2)-8.06%
Max EPS beat(2)125%
EPS beat(4)3
Avg EPS beat(4)90.64%
Min EPS beat(4)-8.06%
Max EPS beat(4)212.56%
EPS beat(8)7
Avg EPS beat(8)123.68%
EPS beat(12)10
Avg EPS beat(12)86.95%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)0.09%
Min Revenue beat(2)-5.07%
Max Revenue beat(2)5.24%
Revenue beat(4)3
Avg Revenue beat(4)3.64%
Min Revenue beat(4)-5.07%
Max Revenue beat(4)10.44%
Revenue beat(8)6
Avg Revenue beat(8)1.72%
Revenue beat(12)6
Avg Revenue beat(12)-1.11%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)38.02%
PT rev (3m)128.21%
EPS NQ rev (1m)27.18%
EPS NQ rev (3m)120.09%
EPS NY rev (1m)22.6%
EPS NY rev (3m)64.41%
Revenue NQ rev (1m)11.44%
Revenue NQ rev (3m)37.25%
Revenue NY rev (1m)9.4%
Revenue NY rev (3m)27.53%
Valuation
Industry RankSector Rank
PE 28.01
Fwd PE 31.39
P/S 13.17
P/FCF N/A
P/OCF N/A
P/B 4.88
P/tB 5.01
EV/EBITDA 27.94
EPS(TTM)1.57
EY3.57%
EPS(NY)1.4
Fwd EY3.19%
FCF(TTM)-0.23
FCFYN/A
OCF(TTM)-0.18
OCFYN/A
SpS3.34
BVpS9.02
TBVpS8.77
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 5.39%
ROE 17.7%
ROCE 13.04%
ROIC 5.36%
ROICexc 13.67%
ROICexgc 14.17%
OM 35.72%
PM (TTM) 47.81%
GM 94.44%
FCFM N/A
ROA(3y)-0.7%
ROA(5y)-4.14%
ROE(3y)-1.72%
ROE(5y)-11.11%
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 3Y0.74%
GM growth 5Y2.46%
F-Score6
Asset Turnover0.11
Health
Industry RankSector Rank
Debt/Equity 0.94
Debt/FCF N/A
Debt/EBITDA 6.6
Cap/Depr 64.94%
Cap/Sales 1.69%
Interest Coverage 65.88
Cash Conversion N/A
Profit Quality N/A
Current Ratio 1.39
Quick Ratio 1.39
Altman-Z 1.72
F-Score6
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)62.65%
Cap/Depr(5y)168.49%
Cap/Sales(3y)2.34%
Cap/Sales(5y)3%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)361.67%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%3266.67%
EPS Next Y-10.77%
EPS Next 2Y1.72%
EPS Next 3Y4.74%
EPS Next 5YN/A
Revenue 1Y (TTM)58.23%
Revenue growth 3Y17.59%
Revenue growth 5Y60.45%
Sales Q2Q%115.29%
Revenue Next Year29.16%
Revenue Next 2Y20.72%
Revenue Next 3Y18.25%
Revenue Next 5YN/A
EBIT growth 1Y298.49%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year85.55%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-117.84%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-113.29%
OCF growth 3YN/A
OCF growth 5YN/A