Overall HOOD gets a fundamental rating of 5 out of 10. We evaluated HOOD against 238 industry peers in the Capital Markets industry. HOOD has a medium profitability rating, but doesn't score so well on its financial health evaluation. HOOD is valued quite expensively, but it does show have an excellent growth rating.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

HOOD had positive earnings in the past year.
In the past year HOOD had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: HOOD reported negative net income in multiple years.
In multiple years HOOD reported negative operating cash flow during the last 5 years.

1.2 Ratios

HOOD has a better Return On Assets (5.29%) than 68.07% of its industry peers.
The Return On Equity of HOOD (25.61%) is better than 91.18% of its industry peers.
HOOD has a better Return On Invested Capital (6.58%) than 76.05% of its industry peers.

		Industry Rank	Sector Rank
ROA	5.29%
ROE	25.61%
ROIC	6.58%

ROA(3y)-0.7%

ROA(5y)-4.14%

ROE(3y)-1.72%

ROE(5y)-11.11%

ROIC(3y)N/A

ROIC(5y)N/A

1.3 Margins

HOOD has a Profit Margin of 52.19%. This is amongst the best in the industry. HOOD outperforms 90.76% of its industry peers.
HOOD has a Operating Margin of 48.24%. This is amongst the best in the industry. HOOD outperforms 86.13% of its industry peers.
HOOD's Gross Margin of 95.15% is amongst the best of the industry. HOOD outperforms 95.38% of its industry peers.
In the last couple of years the Gross Margin of HOOD has grown nicely.

		Industry Rank	Sector Rank
OM	48.24%
PM (TTM)	52.19%
GM	95.15%

OM growth 3YN/A

OM growth 5YN/A

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y1.02%

GM growth 5Y2.46%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

Compared to 1 year ago, HOOD has more shares outstanding
HOOD has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, HOOD has a worse debt to assets ratio.

2.2 Solvency

HOOD has an Altman-Z score of 2.12. This is not the best score and indicates that HOOD is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of HOOD (2.12) is better than 68.49% of its industry peers.
HOOD has a debt to FCF ratio of 14.00. This is a negative value and a sign of low solvency as HOOD would need 14.00 years to pay back of all of its debts.
The Debt to FCF ratio of HOOD (14.00) is comparable to the rest of the industry.
A Debt/Equity ratio of 1.83 is on the high side and indicates that HOOD has dependencies on debt financing.
HOOD's Debt to Equity ratio of 1.83 is on the low side compared to the rest of the industry. HOOD is outperformed by 76.47% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	1.83
Debt/FCF	14
Altman-Z	2.12

ROIC/WACCN/A

WACCN/A

2.3 Liquidity

A Current Ratio of 1.22 indicates that HOOD should not have too much problems paying its short term obligations.
With a Current ratio value of 1.22, HOOD perfoms like the industry average, outperforming 55.88% of the companies in the same industry.
A Quick Ratio of 1.22 indicates that HOOD should not have too much problems paying its short term obligations.
The Quick ratio of HOOD (1.22) is better than 60.08% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	1.22
Quick Ratio	1.22

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

HOOD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 308.47%, which is quite impressive.
The Revenue has grown by 74.58% in the past year. This is a very strong growth!
Measured over the past years, HOOD shows a very strong growth in Revenue. The Revenue has been growing by 60.45% on average per year.

EPS 1Y (TTM)308.47%

EPS 3YN/A

EPS 5YN/A

EPS Q2Q%258.82%

Revenue 1Y (TTM)74.58%

Revenue growth 3Y17.59%

Revenue growth 5Y60.45%

Sales Q2Q%100%

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 20.63% on average per year.
The Revenue is expected to grow by 18.41% on average over the next years. This is quite good.

EPS Next Y32.25%

EPS Next 2Y28.36%

EPS Next 3Y22.8%

EPS Next 5Y20.63%

Revenue Next Year57.69%

Revenue Next 2Y39.88%

Revenue Next 3Y30.25%

Revenue Next 5Y18.41%

3.3 Evolution

The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.

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4. Valuation

4.1 Price/Earnings Ratio

HOOD is valuated quite expensively with a Price/Earnings ratio of 44.39.
Compared to the rest of the industry, the Price/Earnings ratio of HOOD indicates a slightly more expensive valuation: HOOD is more expensive than 78.99% of the companies listed in the same industry.
HOOD's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.21.
Based on the Price/Forward Earnings ratio of 41.36, the valuation of HOOD can be described as expensive.
HOOD's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. HOOD is more expensive than 70.17% of the companies in the same industry.
HOOD is valuated expensively when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.

		Industry Rank	Sector Rank
PE	44.39
Fwd PE	41.36

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, HOOD is valued a bit cheaper than the industry average as 64.29% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HOOD is on the same level as its industry peers.

		Industry Rank	Sector Rank
P/FCF	85.97
EV/EBITDA	39.12

4.3 Compensation for Growth

HOOD's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
HOOD has a very decent profitability rating, which may justify a higher PE ratio.
HOOD's earnings are expected to grow with 22.80% in the coming years. This may justify a more expensive valuation.