ROBINHOOD MARKETS INC - A (HOOD) Stock Fundamental Analysis
NASDAQ:HOOD - Nasdaq - US7707001027 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to HOOD. HOOD was compared to 232 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. HOOD is valued quite expensive, but it does show an excellent growth.
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 Return On Assets of 5.78%. This is in the better half of the industry: HOOD outperforms 73.28% of its industry peers.
Looking at the Return On Equity, with a value of 19.99%, HOOD belongs to the top of the industry, outperforming 87.93% of the companies in the same industry.
HOOD's Return On Invested Capital of 5.82% is fine compared to the rest of the industry. HOOD outperforms 69.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.78% | ||
| ROE | 19.99% | ||
| ROIC | 5.82% |
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 48.77%. This is amongst the best in the industry. HOOD outperforms 90.09% of its industry peers.
HOOD has a better Operating Margin (38.83%) than 68.53% of its industry peers.
HOOD's Gross Margin of 94.51% is amongst the best of the industry. HOOD outperforms 94.83% of its industry peers.
HOOD's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 38.83% | ||
| PM (TTM) | 48.77% | ||
| GM | 94.51% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.02%
GM growth 5Y2.46%
2. Health
2.1 Basic Checks
The number of shares outstanding for HOOD has been increased compared to 1 year ago.
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.
2.2 Solvency
HOOD has an Altman-Z score of 2.38. 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.
HOOD has a Altman-Z score of 2.38. This is in the better half of the industry: HOOD outperforms 72.84% of its industry peers.
The Debt to FCF ratio of HOOD is 8.62, which is on the high side as it means it would take HOOD, 8.62 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of HOOD (8.62) is comparable to the rest of the industry.
A Debt/Equity ratio of 1.14 is on the high side and indicates that HOOD has dependencies on debt financing.
HOOD's Debt to Equity ratio of 1.14 is in line compared to the rest of the industry. HOOD outperforms 43.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.14 | ||
| Debt/FCF | 8.62 | ||
| Altman-Z | 2.38 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 1.35 indicates that HOOD should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.35, HOOD is in line with its industry, outperforming 57.76% of the companies in the same industry.
HOOD has a Quick Ratio of 1.35. 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 (1.35) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.35 | ||
| Quick Ratio | 1.35 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 1073.33% over the past year.
HOOD shows a strong growth in Revenue. In the last year, the Revenue has grown by 59.65%.
The Revenue has been growing by 60.45% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)1073.33%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%105.56%
Revenue 1Y (TTM)59.65%
Revenue growth 3Y17.59%
Revenue growth 5Y60.45%
Sales Q2Q%50%
3.2 Future
Based on estimates for the next years, HOOD will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.36% 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 12.70% on average per year.
EPS Next Y-14.13%
EPS Next 2Y2.99%
EPS Next 3Y7.36%
EPS Next 5Y8.36%
Revenue Next Year28.81%
Revenue Next 2Y22.04%
Revenue Next 3Y18.27%
Revenue Next 5Y12.7%
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.
4. Valuation
4.1 Price/Earnings Ratio
HOOD is valuated quite expensively with a Price/Earnings ratio of 41.25.
HOOD's Price/Earnings ratio is a bit more expensive when compared to the industry. HOOD is more expensive than 76.29% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.31, HOOD is valued quite expensively.
Based on the Price/Forward Earnings ratio of 43.60, the valuation of HOOD can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HOOD indicates a slightly more expensive valuation: HOOD is more expensive than 72.41% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.13. HOOD is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.25 | ||
| Fwd PE | 43.6 |
4.2 Price Multiples
62.50% 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 | 60.67 | ||
| EV/EBITDA | 41.55 |
4.3 Compensation for Growth
The decent profitability rating of HOOD may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y2.99%
EPS Next 3Y7.36%
5. Dividend
5.1 Amount
No dividends for HOOD!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
72.6
-1.24 (-1.68%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners73.95%
Inst Owner Change-4.47%
Ins Owners0.51%
Ins Owner Change-0.26%
Market Cap64.07B
Analysts77.78
Price Target64.18 (-11.6%)
Short Float %3.9%
Short Ratio0.67
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)2
Avg EPS beat(2)66.77%
Min EPS beat(2)8.54%
Max EPS beat(2)125%
EPS beat(4)3
Avg EPS beat(4)39.64%
Min EPS beat(4)-8.06%
Max EPS beat(4)125%
EPS beat(8)7
Avg EPS beat(8)123.69%
EPS beat(12)11
Avg EPS beat(12)89.58%
EPS beat(16)12
Avg EPS beat(16)69.23%
Revenue beat(2)1
Avg Revenue beat(2)1.77%
Min Revenue beat(2)-1.71%
Max Revenue beat(2)5.24%
Revenue beat(4)2
Avg Revenue beat(4)0.6%
Min Revenue beat(4)-5.07%
Max Revenue beat(4)5.24%
Revenue beat(8)5
Avg Revenue beat(8)1.27%
Revenue beat(12)6
Avg Revenue beat(12)0.21%
Revenue beat(16)7
Avg Revenue beat(16)-1.85%
PT rev (1m)4.91%
PT rev (3m)-10.72%
EPS NQ rev (1m)-1.07%
EPS NQ rev (3m)-19.19%
EPS NY rev (1m)0.13%
EPS NY rev (3m)-3.76%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)-5.95%
Revenue NY rev (1m)-0.5%
Revenue NY rev (3m)-2.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.25 | ||
| Fwd PE | 43.6 | ||
| P/S | 19.65 | ||
| P/FCF | 60.67 | ||
| P/OCF | 57.82 | ||
| P/B | 8.06 | ||
| P/tB | 8.48 | ||
| EV/EBITDA | 41.55 |
EPS(TTM)1.76
EY2.42%
EPS(NY)1.67
Fwd EY2.29%
FCF(TTM)1.2
FCFY1.65%
OCF(TTM)1.26
OCFY1.73%
SpS3.69
BVpS9.01
TBVpS8.56
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.78% | ||
| ROE | 19.99% | ||
| ROCE | 15.66% | ||
| ROIC | 5.82% | ||
| ROICexc | 12.3% | ||
| ROICexgc | 12.93% | ||
| OM | 38.83% | ||
| PM (TTM) | 48.77% | ||
| GM | 94.51% | ||
| FCFM | 32.39% |
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 3Y1.02%
GM growth 5Y2.46%
F-Score8
Asset Turnover0.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.14 | ||
| Debt/FCF | 8.62 | ||
| Debt/EBITDA | 6.76 | ||
| Cap/Depr | 65% | ||
| Cap/Sales | 1.6% | ||
| Interest Coverage | 70.33 | ||
| Cash Conversion | 82.32% | ||
| Profit Quality | 66.42% | ||
| Current Ratio | 1.35 | ||
| Quick Ratio | 1.35 | ||
| Altman-Z | 2.38 |
F-Score8
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)62.65%
Cap/Depr(5y)168.28%
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)1073.33%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%105.56%
EPS Next Y-14.13%
EPS Next 2Y2.99%
EPS Next 3Y7.36%
EPS Next 5Y8.36%
Revenue 1Y (TTM)59.65%
Revenue growth 3Y17.59%
Revenue growth 5Y60.45%
Sales Q2Q%50%
Revenue Next Year28.81%
Revenue Next 2Y22.04%
Revenue Next 3Y18.27%
Revenue Next 5Y12.7%
EBIT growth 1Y830.88%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year115.54%
EBIT Next 3Y46.02%
EBIT Next 5Y26.84%
FCF growth 1Y310.36%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y340.35%
OCF growth 3YN/A
OCF growth 5YN/A