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 230 industry peers in the Capital Markets industry. HOOD has a medium profitability rating, but doesn't score so well on its financial health evaluation. While showing a medium growth rate, HOOD is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year HOOD was profitable.
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
Looking at the Return On Assets, with a value of 5.78%, HOOD is in the better half of the industry, outperforming 71.74% of the companies in the same industry.
HOOD has a Return On Equity of 19.99%. This is amongst the best in the industry. HOOD outperforms 87.39% of its industry peers.
With a decent Return On Invested Capital value of 5.82%, HOOD is doing good in the industry, outperforming 73.48% of the companies in the same industry.
| 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
Looking at the Profit Margin, with a value of 48.77%, HOOD belongs to the top of the industry, outperforming 85.65% of the companies in the same industry.
HOOD has a better Operating Margin (38.83%) than 67.83% of its industry peers.
HOOD has a better Gross Margin (94.51%) than 94.78% 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
HOOD has more shares outstanding than it did 1 year ago.
The number of shares outstanding for HOOD has been increased compared to 5 years ago.
HOOD has a worse debt/assets ratio than last year.
2.2 Solvency
HOOD has an Altman-Z score of 1.64. This is a bad value and indicates that HOOD is not financially healthy and even has some risk of bankruptcy.
With a decent Altman-Z score value of 1.64, HOOD is doing good in the industry, outperforming 66.52% of the companies in the same industry.
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.
HOOD has a Debt to FCF ratio (8.62) which 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 44.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.14 | ||
| Debt/FCF | 8.62 | ||
| Altman-Z | 1.64 |
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.
HOOD's Current ratio of 1.35 is fine compared to the rest of the industry. HOOD outperforms 60.43% of its industry peers.
A Quick Ratio of 1.35 indicates that HOOD should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.35, HOOD is doing good in the industry, outperforming 60.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.35 | ||
| Quick Ratio | 1.35 |
3. Growth
3.1 Past
HOOD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 1073.33%, which is quite impressive.
Looking at the last year, HOOD shows a very strong growth in Revenue. The Revenue has grown by 59.65%.
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)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
HOOD is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.41% yearly.
Based on estimates for the next years, HOOD will show a quite strong growth in Revenue. The Revenue will grow by 12.72% on average per year.
EPS Next Y-14.24%
EPS Next 2Y0.65%
EPS Next 3Y1.84%
EPS Next 5Y7.41%
Revenue Next Year29.91%
Revenue Next 2Y21.48%
Revenue Next 3Y17.16%
Revenue Next 5Y12.72%
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
Based on the Price/Earnings ratio of 26.49, the valuation of HOOD can be described as expensive.
HOOD's Price/Earnings ratio is a bit more expensive when compared to the industry. HOOD is more expensive than 66.96% of the companies in the same industry.
When comparing the Price/Earnings ratio of HOOD to the average of the S&P500 Index (27.85), we can say HOOD is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 29.31, the valuation of HOOD can be described as expensive.
Based on the Price/Forward Earnings ratio, HOOD is valued a bit more expensive than the industry average as 71.74% of the companies are valued more cheaply.
When comparing the Price/Forward Earnings ratio of HOOD to the average of the S&P500 Index (20.77), we can say HOOD is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.49 | ||
| Fwd PE | 29.31 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HOOD is valued a bit cheaper than 69.13% of the companies in the same industry.
HOOD's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.96 | ||
| EV/EBITDA | 23.7 |
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 2Y0.65%
EPS Next 3Y1.84%
5. Dividend
5.1 Amount
HOOD does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
46.62
-2.49 (-5.07%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners73.95%
Inst Owner Change-0.42%
Ins Owners0.51%
Ins Owner Change-0.5%
Market Cap41.14B
Analysts77.78
Price Target60.21 (29.15%)
Short Float %4.08%
Short Ratio0.64
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)66.64%
Min EPS beat(2)8.28%
Max EPS beat(2)125%
EPS beat(4)3
Avg EPS beat(4)39.57%
Min EPS beat(4)-8.06%
Max EPS beat(4)125%
EPS beat(8)7
Avg EPS beat(8)123.66%
EPS beat(12)11
Avg EPS beat(12)89.56%
EPS beat(16)12
Avg EPS beat(16)69.22%
Revenue beat(2)1
Avg Revenue beat(2)2.3%
Min Revenue beat(2)-0.65%
Max Revenue beat(2)5.24%
Revenue beat(4)2
Avg Revenue beat(4)0.86%
Min Revenue beat(4)-5.07%
Max Revenue beat(4)5.24%
Revenue beat(8)5
Avg Revenue beat(8)1.4%
Revenue beat(12)6
Avg Revenue beat(12)0.3%
Revenue beat(16)7
Avg Revenue beat(16)-1.78%
PT rev (1m)-16.24%
PT rev (3m)33.98%
EPS NQ rev (1m)-10.08%
EPS NQ rev (3m)92.09%
EPS NY rev (1m)-8.58%
EPS NY rev (3m)40.8%
Revenue NQ rev (1m)-0.61%
Revenue NQ rev (3m)35.08%
Revenue NY rev (1m)-1.18%
Revenue NY rev (3m)10.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.49 | ||
| Fwd PE | 29.31 | ||
| P/S | 12.62 | ||
| P/FCF | 38.96 | ||
| P/OCF | 37.13 | ||
| P/B | 5.17 | ||
| P/tB | 5.45 | ||
| EV/EBITDA | 23.7 |
EPS(TTM)1.76
EY3.78%
EPS(NY)1.59
Fwd EY3.41%
FCF(TTM)1.2
FCFY2.57%
OCF(TTM)1.26
OCFY2.69%
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 | 1.64 |
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-14.24%
EPS Next 2Y0.65%
EPS Next 3Y1.84%
EPS Next 5Y7.41%
Revenue 1Y (TTM)59.65%
Revenue growth 3Y17.59%
Revenue growth 5Y60.45%
Sales Q2Q%50%
Revenue Next Year29.91%
Revenue Next 2Y21.48%
Revenue Next 3Y17.16%
Revenue Next 5Y12.72%
EBIT growth 1Y830.88%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year133.77%
EBIT Next 3Y48.04%
EBIT Next 5Y27.39%
FCF growth 1Y310.36%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y340.35%
OCF growth 3YN/A
OCF growth 5YN/A