5.87 USD
-0.14 (-2.33%)
5.92 USD
+0.05 (+0.85%)
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. While OPEN seems to be doing ok healthwise, 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
- OPEN had negative earnings in the past year.
- OPEN had a positive operating cash flow in the past year.
- In the past 5 years OPEN always reported negative net income.
- In multiple years OPEN reported negative operating cash flow during the last 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of -11.74%, OPEN is doing worse than 69.35% of the companies in the same industry.
- With a Return On Equity value of -39.09%, OPEN is not doing good in the industry: 70.97% of the companies in the same industry are doing better.
| 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
- OPEN has a Gross Margin of 8.01%. This is in the lower half of the industry: OPEN underperforms 69.35% of its industry peers.
- OPEN's Gross Margin has improved in the last couple of years.
- 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.
- Compared to 1 year ago, OPEN has more shares outstanding
- OPEN has more shares outstanding than it did 5 years ago.
- Compared to 1 year ago, OPEN has a worse debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 1.99 indicates that OPEN is not a great score, but indicates only limited risk for bankruptcy at the moment.
- OPEN has a Altman-Z score (1.99) which is comparable to the rest of the 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.
- Looking at the Debt to FCF ratio, with a value of 2.01, OPEN belongs to the top of the industry, outperforming 83.87% of the companies in the same industry.
- A Debt/Equity ratio of 1.19 is on the high side and indicates that OPEN has dependencies on debt financing.
- OPEN has a Debt to Equity ratio of 1.19. This is in the lower half of the industry: OPEN underperforms 66.13% of its industry peers.
- Although OPEN does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.19 | ||
| Debt/FCF | 2.01 | ||
| Altman-Z | 1.99 |
ROIC/WACCN/A
WACC7.79%
2.3 Liquidity
- A Current Ratio of 2.83 indicates that OPEN has no problem at all paying its short term obligations.
- OPEN has a Current ratio of 2.83. This is in the better half of the industry: OPEN outperforms 70.97% of its industry peers.
- A Quick Ratio of 1.68 indicates that OPEN should not have too much problems paying its short term obligations.
- OPEN has a Quick ratio (1.68) which is comparable to the rest of the industry.
| 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.
- OPEN shows a decrease in Revenue. In the last year, the revenue decreased by -4.45%.
- The Revenue has been growing slightly by 1.68% on average over the past years.
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
- The Earnings Per Share is expected to grow by 39.49% on average over the next years. This is a very strong growth
- OPEN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.39% yearly.
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
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings Ratio is negative for OPEN. In the last year negative earnings were reported.
- Also next year OPEN is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
- Based on the Price/Free Cash Flow ratio, OPEN is valued cheaply inside the industry as 93.55% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.31 | ||
| 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
- No dividends for OPEN!.
| 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.