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OPEN

Opendoor TechnologiesNasdaqGS:OPEN Stock Report

Last Price

US$9.75

Market Cap

US$6.0b

7D

-19.3%

1Y

-67.2%

Updated

21 Jan, 2022

Data

Company Financials +
OPEN fundamental analysis
Snowflake Score
Valuation1/6
Future Growth2/6
Past Performance0/6
Financial Health3/6
Dividends0/6

OPEN Stock Overview

Opendoor Technologies Inc. operates a digital platform for residential real estate in the United States.

Opendoor Technologies Competitors

Zillow Group

NasdaqGS:ZG

US$13.7b

Redfin

NasdaqGS:RDFN

US$3.2b

RE/MAX Holdings

NYSE:RMAX

US$928.1m

Offerpad Solutions

NYSE:OPAD

US$893.8m

Price History & Performance

Summary of all time highs, changes and price drops for Opendoor Technologies
Historical stock prices
Current Share PriceUS$9.75
52 Week HighUS$39.24
52 Week LowUS$9.70
Beta0
1 Month Change-34.12%
3 Month Change-58.32%
1 Year Change-67.22%
3 Year Changen/a
5 Year Changen/a
Change since IPO-9.75%

Recent News & Updates

Jan 15

Opendoor Revisited

A review of everything that's happened to the iBuyer business and Opendoor in 2021. Has anything changed my mind about this company and business since I wrote about Opendoor a little over a year ago? As always, valuation matters. I make another attempt to value this company.

Jan 07

It's Time To Slam The Door Shut On Opendoor

Opendoor has been a battleground stock ever since going public in a SPAC merger with Social Capital Hedosophia. Opendoor appears to be one of the best run iBuyers, but it doesn't change the fact that it relies on an extremely low margin business model, fraught with risk. Opendoor experienced a dramatic rise in price thanks to its surge in revenue, but in 2022 the market continues to punish the company for a lack of underlying profitability. Opendoor's impressive revenue growth does not make up for the numerous pitfalls it will face as it tries to scale up its iBuying business. Don't bother paying more than 1X sales for Opendoor.

Dec 28

Blockbuster Growth Is Knocking At Opendoor Technologies

Despite Zillow's exit from the iBuying market, Opendoor Technologies Inc.'s (OPEN) growth is not showing signs of slowing down. In FQ3'21, OPEN reported revenues of $2.26B, with revenue guidance of $3.1B to $3.2B in FQ4'21. It will bring OPEN's total revenue in FY2021 to a record high of $7.39B. OPEN expects to deliver an end-to-end integrated experience for its consumers while continuing its nationwide expansion in FY2022. We discuss whether investors should add OPEN stock now.

Dec 21

Opendoor Is A Conviction Buy If...

Opendoor is well-positioned to disrupt a massive market. There are questions about its pricing mechanism and its debt burden, but I believe that these risks are overblown and accounted for in company valuation. Opendoor stock could be a multi-bagger as it proves the viability of its business model.

Shareholder Returns

OPENUS Real EstateUS Market
7D-19.3%-4.2%-4.0%
1Y-67.2%-39.9%6.6%

Return vs Industry: OPEN underperformed the US Real Estate industry which returned -39.9% over the past year.

Return vs Market: OPEN underperformed the US Market which returned 6.6% over the past year.

Price Volatility

Is OPEN's price volatile compared to industry and market?
OPEN volatility
OPEN Average Weekly Movement11.9%
Real Estate Industry Average Movement8.0%
Market Average Movement6.6%
10% most volatile stocks in US Market15.7%
10% least volatile stocks in US Market2.4%

Stable Share Price: OPEN is more volatile than 75% of US stocks over the past 3 months, typically moving +/- 12% a week.

Volatility Over Time: OPEN's weekly volatility (12%) has been stable over the past year, but is still higher than 75% of US stocks.

About the Company

FoundedEmployeesCEOWebsite
20131,048Eric Chung Wuhttps://www.opendoor.com

Opendoor Technologies Inc. operates a digital platform for residential real estate in the United States. Its platform enables consumers to buy and sell a home online. The company was founded in 2014 and is based in Tempe, Arizona.

Opendoor Technologies Fundamentals Summary

How do Opendoor Technologies's earnings and revenue compare to its market cap?
OPEN fundamental statistics
Market CapUS$5.97b
Earnings (TTM)-US$558.85m
Revenue (TTM)US$4.45b

1.3x

P/S Ratio

-10.7x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
OPEN income statement (TTM)
RevenueUS$4.45b
Cost of RevenueUS$3.95b
Gross ProfitUS$496.76m
ExpensesUS$1.06b
Earnings-US$558.85m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-0.91
Gross Margin11.17%
Net Profit Margin-12.56%
Debt/Equity Ratio270.4%

How did OPEN perform over the long term?

See historical performance and comparison

Valuation

Is Opendoor Technologies undervalued compared to its fair value and its price relative to the market?

3.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: OPEN ($9.75) is trading below our estimate of fair value ($10.14)

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


Price To Earnings Ratio

PE vs Industry: OPEN is unprofitable, so we can't compare its PE Ratio to the US Real Estate industry average.

PE vs Market: OPEN 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 OPEN's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: OPEN is overvalued based on its PB Ratio (2.5x) compared to the US Real Estate industry average (1.6x).


Future Growth

How is Opendoor Technologies forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

55.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: OPEN is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: OPEN is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: OPEN is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: OPEN's revenue (27.6% per year) is forecast to grow faster than the US market (9.2% per year).

High Growth Revenue: OPEN's revenue (27.6% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if OPEN's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Opendoor Technologies performed over the past 5 years?

-32.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: OPEN is currently unprofitable.

Growing Profit Margin: OPEN is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: OPEN is unprofitable, and losses have increased over the past 5 years at a rate of 32.4% per year.

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

Earnings vs Industry: OPEN is unprofitable, making it difficult to compare its past year earnings growth to the Real Estate industry (85.5%).


Return on Equity

High ROE: OPEN has a negative Return on Equity (-23.65%), as it is currently unprofitable.


Financial Health

How is Opendoor Technologies's financial position?


Financial Position Analysis

Short Term Liabilities: OPEN's short term assets ($8.8B) exceed its short term liabilities ($4.2B).

Long Term Liabilities: OPEN's short term assets ($8.8B) exceed its long term liabilities ($2.4B).


Debt to Equity History and Analysis

Debt Level: OPEN's net debt to equity ratio (192.5%) is considered high.

Reducing Debt: Insufficient data to determine if OPEN'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: OPEN has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: OPEN has sufficient cash runway for 1.3 years if free cash flow continues to reduce at historical rates of 51.2% each year.


Dividend

What is Opendoor Technologies's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

High Dividend: Unable to evaluate OPEN'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 OPEN's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if OPEN'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 OPEN'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?

1.3yrs

Average management tenure


CEO

Eric Chung Wu (38 yo)

7.75yrs

Tenure

US$370,240,992

Compensation

Mr. Eric Chung Wei Wu serves as Co-Founder of Opendoor Technologies Inc. and has been its Chief Executive Officer and Director since April 2014 and serves as its Chairman of the Board since December 2020....


CEO Compensation Analysis

Compensation vs Market: Eric Chung's total compensation ($USD370.24M) is above average for companies of similar size in the US market ($USD6.45M).

Compensation vs Earnings: Eric Chung's compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: OPEN's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

Experienced Board: OPEN's board of directors are considered experienced (3.2 years average tenure).


Ownership

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


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 12.5%.


Top Shareholders

Company Information

Opendoor Technologies Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Opendoor Technologies Inc.
  • Ticker: OPEN
  • Exchange: NasdaqGS
  • Founded: 2013
  • Industry: Real Estate Services
  • Sector: Real Estate
  • Implied Market Cap: US$5.973b
  • Shares outstanding: 612.61m
  • Website: https://www.opendoor.com

Number of Employees


Location

  • Opendoor Technologies Inc.
  • 410 N Scottsdale Rd
  • Suite 1600
  • Tempe
  • Arizona
  • 85281
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/21 00:12
End of Day Share Price2022/01/20 00:00
Earnings2021/09/30
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.