| Snowflake Score | |
|---|---|
| Valuation | 1/6 |
| Future Growth | 2/6 |
| Past Performance | 0/6 |
| Financial Health | 3/6 |
| Dividends | 0/6 |
OPEN Stock Overview
Opendoor Technologies Inc. operates a digital platform for residential real estate in the United States.
Rewards
Risk Analysis
Currently unprofitable and not forecast to become profitable over the next 3 years
+ 1 more risk
Opendoor Technologies Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$9.75 |
| 52 Week High | US$39.24 |
| 52 Week Low | US$9.70 |
| Beta | 0 |
| 1 Month Change | -34.12% |
| 3 Month Change | -58.32% |
| 1 Year Change | -67.22% |
| 3 Year Change | n/a |
| 5 Year Change | n/a |
| Change since IPO | -9.75% |
Recent News & Updates
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.
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.
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.
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
| OPEN | US Real Estate | US 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
| OPEN volatility | |
|---|---|
| OPEN Average Weekly Movement | 11.9% |
| Real Estate Industry Average Movement | 8.0% |
| Market Average Movement | 6.6% |
| 10% most volatile stocks in US Market | 15.7% |
| 10% least volatile stocks in US Market | 2.4% |
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
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 2013 | 1,048 | Eric Chung Wu | https://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
| OPEN fundamental statistics | |
|---|---|
| Market Cap | US$5.97b |
| Earnings (TTM) | -US$558.85m |
| Revenue (TTM) | US$4.45b |
1.3x
P/S Ratio-10.7x
P/E RatioIs OPEN overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| OPEN income statement (TTM) | |
|---|---|
| Revenue | US$4.45b |
| Cost of Revenue | US$3.95b |
| Gross Profit | US$496.76m |
| Expenses | US$1.06b |
| Earnings | -US$558.85m |
Last Reported Earnings
Sep 30, 2021
Next Earnings Date
n/a
| Earnings per share (EPS) | -0.91 |
| Gross Margin | 11.17% |
| Net Profit Margin | -12.56% |
| Debt/Equity Ratio | 270.4% |
How did OPEN perform over the long term?
See historical performance and comparisonValuation
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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/01/21 00:12 |
| End of Day Share Price | 2022/01/20 00:00 |
| Earnings | 2021/09/30 |
| Annual Earnings | 2020/12/31 |
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.