ROBINHOOD MARKETS INC - A (HOOD) Stock Fundamental Analysis
NASDAQ:HOOD - US7707001027 - Common Stock
104.03 USD
+0.34 (+0.33%)
103.688 USD
-0.34 (-0.33%)
Taking everything into account, HOOD scores 5 out of 10 in our fundamental rating. HOOD was compared to 239 industry peers in the Capital Markets industry. HOOD has only an average score on both its financial health and profitability. 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.
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.
1.2 Ratios
HOOD has a Return On Assets of 5.06%. This is in the better half of the industry: HOOD outperforms 71.97% of its industry peers.
Looking at the Return On Equity, with a value of 22.15%, HOOD belongs to the top of the industry, outperforming 89.54% of the companies in the same industry.
HOOD has a better Return On Invested Capital (5.80%) than 69.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.06% | ||
| ROE | 22.15% | ||
| ROIC | 5.8% |
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 50.13%, HOOD belongs to the top of the industry, outperforming 88.70% of the companies in the same industry.
Looking at the Operating Margin, with a value of 42.89%, HOOD is in the better half of the industry, outperforming 76.57% of the companies in the same industry.
HOOD has a Gross Margin of 94.76%. This is amongst the best in the industry. HOOD outperforms 94.98% of its industry peers.
In the last couple of years the Gross Margin of HOOD has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 42.89% | ||
| PM (TTM) | 50.13% | ||
| GM | 94.76% |
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
Compared to 1 year ago, HOOD has more shares outstanding
Compared to 5 years ago, HOOD has more shares outstanding
HOOD has a worse debt/assets ratio than last year.
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.
The Altman-Z score of HOOD (2.38) is better than 72.80% of its industry peers.
HOOD has a debt to FCF ratio of 2.81. This is a good value and a sign of high solvency as HOOD would need 2.81 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.81, HOOD belongs to the top of the industry, outperforming 83.68% of the companies in the same industry.
A Debt/Equity ratio of 1.57 is on the high side and indicates that HOOD has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.57, HOOD is doing worse than 73.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.57 | ||
| Debt/FCF | 2.81 | ||
| Altman-Z | 2.38 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 1.25 indicates that HOOD should not have too much problems paying its short term obligations.
HOOD has a Current ratio of 1.25. This is comparable to the rest of the industry: HOOD outperforms 55.23% of its industry peers.
A Quick Ratio of 1.25 indicates that HOOD should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.25, HOOD perfoms like the industry average, outperforming 56.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.25 | ||
| Quick Ratio | 1.25 |
3. Growth
3.1 Past
HOOD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 496.97%, which is quite impressive.
Looking at the last year, HOOD shows a very strong growth in Revenue. The Revenue has grown by 59.38%.
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)496.97%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%100%
Revenue 1Y (TTM)59.38%
Revenue growth 3Y17.59%
Revenue growth 5Y60.45%
Sales Q2Q%45.01%
3.2 Future
HOOD is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.83% yearly.
Based on estimates for the next years, HOOD will show a quite strong growth in Revenue. The Revenue will grow by 15.10% on average per year.
EPS Next Y4.04%
EPS Next 2Y12.42%
EPS Next 3Y12.93%
EPS Next 5Y8.83%
Revenue Next Year44.02%
Revenue Next 2Y31%
Revenue Next 3Y23.28%
Revenue Next 5Y15.1%
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 52.81, the valuation of HOOD can be described as expensive.
76.57% of the companies in the same industry are cheaper than HOOD, based on the Price/Earnings ratio.
HOOD is valuated expensively when we compare the Price/Earnings ratio to 27.13, which is the current average of the S&P500 Index.
HOOD is valuated quite expensively with a Price/Forward Earnings ratio of 52.43.
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 72.80% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.76. HOOD is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 52.81 | ||
| Fwd PE | 52.43 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HOOD indicates a somewhat cheap valuation: HOOD is cheaper than 61.92% of the companies listed in the same industry.
HOOD's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.54 | ||
| EV/EBITDA | 49.03 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates HOOD does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of HOOD may justify a higher PE ratio.
HOOD's earnings are expected to grow with 12.93% in the coming years. This may justify a more expensive valuation.
PEG (NY)13.09
PEG (5Y)N/A
EPS Next 2Y12.42%
EPS Next 3Y12.93%
5. Dividend
5.1 Amount
HOOD does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
104.03
+0.34 (+0.33%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners69.82%
Inst Owner Change4.02%
Ins Owners0.77%
Ins Owner Change-0.45%
Market Cap92.45B
Analysts78
Price Target116.86 (12.33%)
Short Float %3.86%
Short Ratio0.63
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)20.17%
Min EPS beat(2)8.54%
Max EPS beat(2)31.8%
EPS beat(4)3
Avg EPS beat(4)39.32%
Min EPS beat(4)-8.06%
Max EPS beat(4)125%
EPS beat(8)7
Avg EPS beat(8)89.46%
EPS beat(12)11
Avg EPS beat(12)90.99%
EPS beat(16)12
Avg EPS beat(16)60.37%
Revenue beat(2)1
Avg Revenue beat(2)2.54%
Min Revenue beat(2)-1.71%
Max Revenue beat(2)6.78%
Revenue beat(4)2
Avg Revenue beat(4)1.31%
Min Revenue beat(4)-5.07%
Max Revenue beat(4)6.78%
Revenue beat(8)5
Avg Revenue beat(8)2.05%
Revenue beat(12)7
Avg Revenue beat(12)1.02%
Revenue beat(16)7
Avg Revenue beat(16)-1.7%
PT rev (1m)17.21%
PT rev (3m)91.03%
EPS NQ rev (1m)23.63%
EPS NQ rev (3m)27.11%
EPS NY rev (1m)20.56%
EPS NY rev (3m)21.15%
Revenue NQ rev (1m)6.06%
Revenue NQ rev (3m)16.76%
Revenue NY rev (1m)9.05%
Revenue NY rev (3m)11.96%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 52.81 | ||
| Fwd PE | 52.43 | ||
| P/S | 25.92 | ||
| P/FCF | 20.54 | ||
| P/OCF | 20.26 | ||
| P/B | 11.45 | ||
| P/tB | 12.33 | ||
| EV/EBITDA | 49.03 |
EPS(TTM)1.97
EY1.89%
EPS(NY)1.98
Fwd EY1.91%
FCF(TTM)5.06
FCFY4.87%
OCF(TTM)5.13
OCFY4.94%
SpS4.01
BVpS9.08
TBVpS8.44
PEG (NY)13.09
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.06% | ||
| ROE | 22.15% | ||
| ROCE | 18.65% | ||
| ROIC | 5.8% | ||
| ROICexc | 15.89% | ||
| ROICexgc | 17.19% | ||
| OM | 42.89% | ||
| PM (TTM) | 50.13% | ||
| GM | 94.76% | ||
| FCFM | 126.16% |
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-Score9
Asset Turnover0.1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.57 | ||
| Debt/FCF | 2.81 | ||
| Debt/EBITDA | 7.84 | ||
| Cap/Depr | 75.9% | ||
| Cap/Sales | 1.77% | ||
| Interest Coverage | 76.5 | ||
| Cash Conversion | 282.89% | ||
| Profit Quality | 251.68% | ||
| Current Ratio | 1.25 | ||
| Quick Ratio | 1.25 | ||
| Altman-Z | 2.38 |
F-Score9
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)496.97%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%100%
EPS Next Y4.04%
EPS Next 2Y12.42%
EPS Next 3Y12.93%
EPS Next 5Y8.83%
Revenue 1Y (TTM)59.38%
Revenue growth 3Y17.59%
Revenue growth 5Y60.45%
Sales Q2Q%45.01%
Revenue Next Year44.02%
Revenue Next 2Y31%
Revenue Next 3Y23.28%
Revenue Next 5Y15.1%
EBIT growth 1Y401.64%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year152%
EBIT Next 3Y53.7%
EBIT Next 5Y29.37%
FCF growth 1Y295.08%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y289.33%
OCF growth 3YN/A
OCF growth 5YN/A