6.01 USD
-0.41 (-6.39%)
6.02 USD
+0.01 (+0.17%)
We assign a fundamental rating of 3 out of 10 to OPEN. OPEN was compared to 62 industry peers in the Real Estate Management & Development industry. The financial health of OPEN is average, but there are quite some concerns on its profitability. OPEN is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year OPEN has reported negative net income.
- OPEN had a positive operating cash flow in the past year.
- OPEN had negative earnings in each of the past 5 years.
- The reported operating cash flow has been mixed in the past 5 years: OPEN reported negative operating cash flow in multiple years.
1.2 Ratios
- With a Return On Assets value of -11.74%, OPEN is not doing good in the industry: 69.35% of the companies in the same industry are doing better.
- OPEN has a worse Return On Equity (-39.09%) than 70.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -11.74% | ||
| ROE | -39.09% | ||
| ROIC | N/A |
ROA(3y)-13.57%
ROA(5y)-11.86%
ROE(3y)-69.33%
ROE(5y)-50.65%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- Looking at the Gross Margin, with a value of 8.01%, OPEN is doing worse than 69.35% of the companies in the same industry.
- In the last couple of years the Gross Margin of OPEN has grown nicely.
- The Profit Margin and Operating Margin are not available for OPEN so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 8.01% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-2.63%
GM growth 5Y5.77%
2. Health
2.1 Basic Checks
- OPEN does not have a ROIC to compare to the WACC, probably because it is not profitable.
- OPEN has more shares outstanding than it did 1 year ago.
- The number of shares outstanding for OPEN has been increased compared to 5 years ago.
- Compared to 1 year ago, OPEN has a worse debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 2.04 indicates that OPEN is not a great score, but indicates only limited risk for bankruptcy at the moment.
- With a Altman-Z score value of 2.04, OPEN perfoms like the industry average, outperforming 59.68% of the companies in the same industry.
- OPEN has a debt to FCF ratio of 2.01. This is a good value and a sign of high solvency as OPEN would need 2.01 years to pay back of all of its debts.
- OPEN's Debt to FCF ratio of 2.01 is amongst the best of the industry. OPEN outperforms 83.87% of its industry peers.
- OPEN has a Debt/Equity ratio of 1.19. This is a high value indicating a heavy dependency on external financing.
- OPEN has a worse Debt to Equity ratio (1.19) than 66.13% of its industry peers.
- Even though the debt/equity ratio score it not favorable for OPEN, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.19 | ||
| Debt/FCF | 2.01 | ||
| Altman-Z | 2.04 |
ROIC/WACCN/A
WACC7.71%
2.3 Liquidity
- A Current Ratio of 2.83 indicates that OPEN has no problem at all paying its short term obligations.
- OPEN's Current ratio of 2.83 is fine compared to the rest of the industry. OPEN outperforms 70.97% of its industry peers.
- OPEN has a Quick Ratio of 1.68. This is a normal value and indicates that OPEN is financially healthy and should not expect problems in meeting its short term obligations.
- OPEN's Quick ratio of 1.68 is in line compared to the rest of the industry. OPEN outperforms 59.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.83 | ||
| Quick Ratio | 1.68 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 27.00% over the past year.
- Looking at the last year, OPEN shows a decrease in Revenue. The Revenue has decreased by -4.45% in the last year.
- Measured over the past years, OPEN shows a small growth in Revenue. The Revenue has been growing by 1.68% on average per year.
EPS 1Y (TTM)27%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%20%
Revenue 1Y (TTM)-4.45%
Revenue growth 3Y-13.71%
Revenue growth 5Y1.68%
Sales Q2Q%-33.55%
3.2 Future
- OPEN is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 39.49% yearly.
- The Revenue is expected to grow by 12.39% on average over the next years. This is quite good.
EPS Next Y23.91%
EPS Next 2Y18.51%
EPS Next 3Y21.18%
EPS Next 5Y39.49%
Revenue Next Year-16.26%
Revenue Next 2Y1.47%
Revenue Next 3Y11.48%
Revenue Next 5Y12.39%
3.3 Evolution
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings Ratio is negative for OPEN. In the last year negative earnings were reported.
- Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for OPEN. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of OPEN indicates a rather cheap valuation: OPEN is cheaper than 93.55% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.46 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
- OPEN's earnings are expected to grow with 21.18% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y18.51%
EPS Next 3Y21.18%
5. Dividend
5.1 Amount
- OPEN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
OPENDOOR TECHNOLOGIES INC / OPEN FAQ
What is the ChartMill fundamental rating of OPENDOOR TECHNOLOGIES INC (OPEN) stock?
ChartMill assigns a fundamental rating of 3 / 10 to OPEN.
What is the valuation status of OPENDOOR TECHNOLOGIES INC (OPEN) stock?
ChartMill assigns a valuation rating of 2 / 10 to OPENDOOR TECHNOLOGIES INC (OPEN). This can be considered as Overvalued.
How profitable is OPENDOOR TECHNOLOGIES INC (OPEN) stock?
OPENDOOR TECHNOLOGIES INC (OPEN) has a profitability rating of 1 / 10.