Overall HOOD gets a fundamental rating of 5 out of 10. We evaluated HOOD against 237 industry peers in the Capital Markets industry. There are concerns on the financial health of HOOD while its profitability can be described as average. 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

The Return On Assets of HOOD (5.29%) is better than 67.93% of its industry peers.
HOOD has a Return On Equity of 25.61%. This is amongst the best in the industry. HOOD outperforms 91.14% of its industry peers.
HOOD's Return On Invested Capital of 6.58% is fine compared to the rest of the industry. HOOD outperforms 75.95% 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's Profit Margin of 52.19% is amongst the best of the industry. HOOD outperforms 90.72% of its industry peers.
With an excellent Operating Margin value of 48.24%, HOOD belongs to the best of the industry, outperforming 86.08% of the companies in the same industry.
HOOD's Gross Margin of 95.15% is amongst the best of the industry. HOOD outperforms 95.36% 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%

More info and screens

ROA

ROE

ROIC

Operating and Profit Margin

Show most profitable peers

2. Health

2.1 Basic Checks

The number of shares outstanding for HOOD has been increased compared to 1 year ago.
Compared to 5 years ago, HOOD has more shares outstanding
Compared to 1 year ago, HOOD has a worse debt to assets ratio.

2.2 Solvency

An Altman-Z score of 2.13 indicates that HOOD is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.13, HOOD is doing good in the industry, outperforming 68.78% of the companies in the same industry.
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.
HOOD's Debt to FCF ratio of 14.00 is in line compared to the rest of the industry. HOOD outperforms 59.49% of its industry peers.
HOOD has a Debt/Equity ratio of 1.83. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.83, HOOD is doing worse than 76.37% of the companies in the same industry.

		Industry Rank	Sector Rank
Debt/Equity	1.83
Debt/FCF	14
Altman-Z	2.13

ROIC/WACCN/A

WACCN/A

2.3 Liquidity

HOOD has a Current Ratio of 1.22. 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 Current ratio of 1.22. This is comparable to the rest of the industry: HOOD outperforms 55.70% of its industry peers.
HOOD has a Quick Ratio of 1.22. This is a normal value and indicates that HOOD is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of HOOD (1.22) is comparable to the rest of the industry.

		Industry Rank	Sector Rank
Current Ratio	1.22
Quick Ratio	1.22

More info and screens

WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

Show peers with great health

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 308.47% over the past year.
The Revenue has grown by 74.58% in the past year. This is a very strong growth!
HOOD shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 60.45% yearly.

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.
Based on estimates for the next years, HOOD will show a quite strong growth in Revenue. The Revenue will grow by 18.41% on average per year.

EPS Next Y33.47%

EPS Next 2Y28.76%

EPS Next 3Y23.03%

EPS Next 5Y20.63%

Revenue Next Year58.21%

Revenue Next 2Y40.12%

Revenue Next 3Y30.55%

Revenue Next 5Y18.41%

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.

More info and screens

Find the best growth stocks

Show best growing peers

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 44.40 indicates a quite expensive valuation of HOOD.
Compared to the rest of the industry, the Price/Earnings ratio of HOOD indicates a slightly more expensive valuation: HOOD is more expensive than 78.90% of the companies listed in the same industry.
HOOD is valuated expensively when we compare the Price/Earnings ratio to 27.25, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 41.11, which means the current valuation is very expensive for HOOD.
70.46% of the companies in the same industry are cheaper than HOOD, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of HOOD to the average of the S&P500 Index (25.98), we can say HOOD is valued expensively.

		Industry Rank	Sector Rank
PE	44.4
Fwd PE	41.11

4.2 Price Multiples

64.14% of the companies in the same industry are more expensive than HOOD, based on the Enterprise Value to EBITDA ratio.
The rest of the industry has a similar Price/Free Cash Flow ratio as HOOD.

		Industry Rank	Sector Rank
P/FCF	85.98
EV/EBITDA	39.43

4.3 Compensation for Growth

The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of HOOD may justify a higher PE ratio.
HOOD's earnings are expected to grow with 23.03% in the coming years. This may justify a more expensive valuation.