HOOD gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 237 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.

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.
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

Looking at the Return On Assets, with a value of 5.29%, HOOD is in the better half of the industry, outperforming 67.93% of the companies in the same industry.
Looking at the Return On Equity, with a value of 25.61%, HOOD belongs to the top of the industry, outperforming 91.14% of the companies in the same industry.
With a decent Return On Invested Capital value of 6.58%, HOOD is doing good in the industry, outperforming 75.95% of the companies in the same industry.

		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

With an excellent Profit Margin value of 52.19%, HOOD belongs to the best of the industry, outperforming 90.72% of the companies in the same industry.
Looking at the Operating Margin, with a value of 48.24%, HOOD belongs to the top of the industry, outperforming 86.08% of the companies in the same industry.
With an excellent Gross Margin value of 95.15%, HOOD belongs to the best of the industry, outperforming 95.36% of the companies in the same industry.
HOOD's Gross Margin has improved in the last couple of years.

		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
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 2.11 indicates that HOOD is not a great score, but indicates only limited risk for bankruptcy at the moment.
HOOD has a better Altman-Z score (2.11) than 68.78% of its industry peers.
The Debt to FCF ratio of HOOD is 14.00, which is on the high side as it means it would take HOOD, 14.00 years of fcf income to pay off all of its debts.
HOOD has a Debt to FCF ratio (14.00) which is in line with its industry peers.
HOOD has a Debt/Equity ratio of 1.83. This is a high value indicating a heavy dependency on external financing.
HOOD has a Debt to Equity ratio of 1.83. This is in the lower half of the industry: HOOD underperforms 76.37% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	1.83
Debt/FCF	14
Altman-Z	2.11

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.
With a Current ratio value of 1.22, HOOD perfoms like the industry average, outperforming 55.70% of the companies in the same industry.
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

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

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

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

HOOD is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 20.63% yearly.
HOOD is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 18.41% yearly.

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

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

The Price/Earnings ratio is 43.67, which means the current valuation is very expensive for HOOD.
Based on the Price/Earnings ratio, HOOD is valued a bit more expensive than the industry average as 78.48% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Earnings ratio of 28.87, HOOD is valued quite expensively.
The Price/Forward Earnings ratio is 40.43, which means the current valuation is very expensive for HOOD.
Based on the Price/Forward Earnings ratio, HOOD is valued a bit more expensive than 70.46% of the companies in the same industry.
HOOD's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 25.96.

		Industry Rank	Sector Rank
PE	43.67
Fwd PE	40.43

4.2 Price Multiples

HOOD's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. HOOD is cheaper than 64.14% of the companies 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	84.57
EV/EBITDA	38.69

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.