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HOOD

Robinhood MarketsNasdaqGS:HOOD Stock Report

Market Cap

US$30.3b

7D

-15.3%

1Y

n/a

Updated

27 Oct, 2021

Data

Company Financials +
HOOD fundamental analysis
Snowflake Score
Valuation1/6
Future Growth5/6
Past Performance0/6
Financial Health4/6
Dividends0/6

HOOD Overview

Robinhood Markets, Inc. operates financial services platform in the United States.

Price History & Performance

Summary of all time highs, changes and price drops for Robinhood Markets
Historical stock prices
Current Share PriceUS$35.44
52 Week HighUS$33.25
52 Week LowUS$85.00
Beta0
1 Month Change-20.82%
3 Month Change1.78%
1 Year Changen/a
3 Year Changen/a
5 Year Changen/a
Change since IPO1.78%

Recent News & Updates

Oct 24

Robinhood: It's Time To Buy Again

I rode the wave of meme traders after I first bought Robinhood stock, as it shot up over 100% from $35.00 to $70.00 per share. But now that the stock is back around that first level, I'm thinking about buying more and returning my position to its former glory. I review what has changed and what hasn't when it comes to the company's fundamentals and conclude that its potential remains very good. As a result, I remain bullish on the company's long-term prospects.

Sep 22

Robinhood: Regulatory Risks Not Fully Priced Into The Stock

Robinhood reported very strong Q2 results with MAUs reaching 21.3 million as younger investors have rapidly adopted the trading platform. However, regulatory risks around payments for order flow could have a material negative impact to the company's operations. In addition, cryptocurrency has quickly become a majority of Robinhood's transaction-based revenue, which may not sustain at current trading volumes. Valuation is also quite expensive at 12.6x 2022 revenue.

Sep 16

Robinhood: Decent Upside Potential Thanks To Mobile Apps And Education

Robinhood became famous for pioneering commission-free trades of stocks and ETFs via a mobile app. The company’s business growth is based on technology innovation driven by a mobile-first approach. Existing clients will increase their interactions with Robinhood’s platform with more and better educational content. I believe that the company is quite cheap at its current valuation of $35-$40. The company is currently trading at $40, which means that the stock could increase by more than 35%.

Aug 19

Robinhood: Too Little Upside For Too Much Risk, Prospects Rely On Dogecoin

Q2 revenue growth rates decelerate and the guidance doesn't look inspiring either. The bulk of its prospects rely on Dogecoin remaining a crowd favorite with investors. At more than 18x forward sales, and hugely GAAP unprofitable too, this doesn't make for a good investment.

Shareholder Returns

HOODUS Capital MarketsUS Market
7D-15.3%1.4%-0.3%
1Yn/a74.2%37.0%

Return vs Industry: Insufficient data to determine how HOOD performed against the US Capital Markets industry.

Return vs Market: Insufficient data to determine how HOOD performed against the US Market.

Price Volatility

Is HOOD's price volatile compared to industry and market?
HOOD volatility
HOOD Beta0
Industry Beta1.19
Market Beta1

Stable Share Price: HOOD is more volatile than 90% of US stocks over the past 3 months, typically moving +/- 20% a week.

Volatility Over Time: Insufficient data to determine HOOD's volatility change over the past year.

About the Company

FoundedEmployeesCEOWebsite
20132,800Vlad Tenevhttps://www.robinhood.com

Robinhood Markets, Inc. operates financial services platform in the United States. Its platform allows users to invest in stocks, exchange-traded funds (ETFs), options, gold, and cryptocurrencies. The company also offers various learning and education solutions comprise Snacks, a digest of business news stories; Learn, which is a collection of approximately 650 articles, including guides, feature tutorials, and financial dictionary; Newsfeeds that offer access to free premium news from various sites, such as Barron’s, Reuters, and The Wall Street Journal; and lists, which allow users to create custom watchlists to monitor securities, ETFs, and cryptocurrencies, as well as cash management services.

Robinhood Markets Fundamentals Summary

How do Robinhood Markets's earnings and revenue compare to its market cap?
HOOD fundamental statistics
Market CapUS$30.31b
Earnings (TTM)-US$1.95b
Revenue (TTM)US$1.67b

18.1x

P/S Ratio

-15.6x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
HOOD income statement (TTM)
RevenueUS$1.67b
Cost of RevenueUS$394.14m
Gross ProfitUS$1.28b
ExpensesUS$3.23b
Earnings-US$1.95b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-2.27
Gross Margin76.46%
Net Profit Margin-116.19%
Debt/Equity Ratio4,017.3%

How did HOOD perform over the long term?

See historical performance and comparison

Valuation

Is Robinhood Markets undervalued compared to its fair value and its price relative to the market?

13.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HOOD ($35.44) is trading below our estimate of fair value ($41.04)

Significantly Below Fair Value: HOOD is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: HOOD is unprofitable, so we can't compare its PE Ratio to the US Capital Markets industry average.

PE vs Market: HOOD is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate HOOD's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: HOOD has negative assets, so we can't compare its PB Ratio to the US Capital Markets industry average.


Future Growth

How is Robinhood Markets forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

86.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HOOD is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2%).

Earnings vs Market: HOOD is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: HOOD's is expected to become profitable in the next 3 years.

Revenue vs Market: HOOD's revenue (22% per year) is forecast to grow faster than the US market (9.9% per year).

High Growth Revenue: HOOD's revenue (22% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HOOD is forecast to be unprofitable in 3 years.


Past Performance

How has Robinhood Markets performed over the past 5 years?

-3,630.2%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: HOOD is currently unprofitable.

Growing Profit Margin: HOOD is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: Unable to establish if HOOD's year-on-year earnings growth rate was positive over the past 5 years as it has been trading publicly for less than 3 years.

Accelerating Growth: Unable to compare HOOD's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: HOOD is unprofitable, making it difficult to compare its past year earnings growth to the Capital Markets industry (77.6%).


Return on Equity

High ROE: HOOD has a negative Return on Equity (-997.1%), as it is currently unprofitable.


Financial Health

How is Robinhood Markets's financial position?


Financial Position Analysis

Short Term Liabilities: HOOD's short term assets ($16.5B) exceed its short term liabilities ($12.2B).

Long Term Liabilities: HOOD's short term assets ($16.5B) exceed its long term liabilities ($5.7B).


Debt to Equity History and Analysis

Debt Level: HOOD's debt to equity ratio (4017.3%) is considered high.

Reducing Debt: Insufficient data to determine if HOOD's debt to equity ratio has reduced over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable HOOD has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: HOOD is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by 92.9% per year.


Dividend

What is Robinhood Markets's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate HOOD's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate HOOD's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if HOOD's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if HOOD's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of HOOD's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.1yrs

Average management tenure


CEO

Vlad Tenev (34 yo)

0.92

Tenure

US$767,923

Compensation

Mr. Vladimir Tenev, also known as Vlad, Co-Founder of Robinhood Markets, Inc and he is the Chief Executive Officer and President of Robinhood Markets, Inc since November 2020 and serves as its Chairman of...


CEO Compensation Analysis

Compensation vs Market: Vlad's total compensation ($USD767.92K) is below average for companies of similar size in the US market ($USD11.16M).

Compensation vs Earnings: Insufficient data to compare Vlad's compensation with company performance.


Leadership Team

Experienced Management: HOOD's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.


Board Members

Experienced Board: HOOD's board of directors are not considered experienced ( 0.7 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: HOOD insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: HOOD only recently listed within the past 12 months.


Top Shareholders

Company Information

Robinhood Markets, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Robinhood Markets, Inc.
  • Ticker: HOOD
  • Exchange: NasdaqGS
  • Founded: 2013
  • Industry: Investment Banking and Brokerage
  • Sector: Diversified Financials
  • Market Cap: US$30.315b
  • Shares outstanding: 855.39m
  • Website: https://www.robinhood.com

Number of Employees


Location

  • Robinhood Markets, Inc.
  • 85 Willow Road
  • Menlo Park
  • California
  • 94025
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/27 23:11
End of Day Share Price2021/10/27 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.