(HOOD) Robinhood Markets - NASDAQ
Sector: Financial Services | Industry: Capital Markets | Exchange: NASDAQ (USA) | Market Cap: 88.358m USD | Total Return: 40.4% in 12m
Avg Turnover: 2.66B
EPS Trend: 84.7%
Qual. Beats: 0
Rev. Trend: 99.2%
Qual. Beats: -2
Warnings
Extended 1w
Tailwinds
No distinct edge detected
Robinhood Markets, Inc. operates a comprehensive financial services platform focused on retail investors in the United States. The company facilitates trading in equities, ETFs, and cryptocurrencies while offering specialized services such as fractional shares, 24-hour trading, and retirement accounts. Its business model relies heavily on transaction-based revenue and net interest income generated from uninvested customer cash and margin lending.
The platform integrates financial education tools, including business news digests and instructional modules, to support user engagement and retention. Beyond brokerage services, Robinhood has expanded into consumer finance through credit cards, spending accounts, and digital wallets. This diversification aligns with the broader trend in the Financial Exchanges & Data sector toward super-app ecosystems that combine trading, banking, and credit under a single digital interface.
Evaluating the long-term sustainability of these revenue streams on ValueRay can provide deeper insight into the companys valuation. Robinhood continues to compete by lowering barriers to entry for younger demographics through zero-commission structures and low-minimum investment requirements.
- Transaction rebates and net interest income sensitivity to federal funds rate
- Cryptocurrency trading volume volatility directly impacts quarterly transaction-based revenue
- Expansion into retirement accounts and credit cards increases long-term assets under custody
- Regulatory scrutiny of payment for order flow model threatens core revenue streams
- Growth in gold subscription membership stabilizes recurring revenue and improves customer retention
| Net Income: 1.90b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.05 > 0.02 and ΔFCF/TA 0.88 > 1.0 |
| NWC/Revenue: 170.4% < 20% (prev 208.1%; Δ -37.73% < -1%) |
| CFO/TA 0.05 > 3% & CFO 2.21b > Net Income 1.90b |
| Net Debt (1.36b) to EBITDA (2.22b): 0.61 < 3 |
| Current Ratio: 1.22 > 1.5 & < 3 |
| Outstanding Shares: last quarter (915.0m) vs 12m ago 0.64% < -2% |
| Gross Margin: 82.27% > 18% (prev 83.10%; Δ -0.83% > 0.5%) |
| Asset Turnover: 12.64% > 50% (prev 11.85%; Δ 0.79% > 0%) |
| Interest Coverage Ratio: error (cannot be calculated; needs correct EBIT TTM and Interest Expense TTM) |
| A: 0.17 (Total Current Assets 43.4b - Total Current Liabilities 35.6b) / Total Assets 45.5b |
| B: -0.04 (Retained Earnings -1.80b / Total Assets 45.5b) |
| C: 0.06 (EBIT TTM 2.13b / Avg Total Assets 36.5b) |
| D: 0.26 (Book Value of Equity 9.32b / Total Liabilities 35.8b) |
| Altman-Z'' = 1.67 = BB |
| DSRI: 1.39 (Receivables 18.6b/9.43b, Revenue 4.61b/3.26b) |
| GMI: 1.01 (GM 83.10% / 82.27%) |
| AQI: 0.99 (AQ_t 0.04 / AQ_t-1 0.04) |
| SGI: 1.42 (Revenue 4.61b / 3.26b) |
| TATA: -0.01 (NI 1.90b - CFO 2.21b) / TA 45.5b) |
| Beneish M = -2.40 (Cap -4..+1) = BBB |
As of June 18, 2026, the stock is trading at USD 105.20 with a total of 70,301,456 shares traded.
Over the past week, the price has changed by +21.82%,
over one month by +36.36%,
over three months by +36.01% and
over the past year by +40.36%.
Robinhood Markets has received a consensus analysts rating of 4.05. Therefore, it is recommended to buy HOOD.
- StrongBuy: 8
- Buy: 6
- Hold: 7
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 100.9 | -4.1% |
P/E Trailing = 47.6311
P/E Forward = 49.7512
P/S = 19.154
P/B = 9.4814
P/EG = 2.7518
Revenue TTM = 4.61b USD
EBIT TTM = 2.13b USD
EBITDA TTM = 2.22b USD
Long Term Debt = unknown (0.0)
Short Term Debt = 13.4b USD (from shortTermDebt, last quarter)
Debt = 13.5b USD (from shortLongTermDebtTotal, last quarter) + Leases 160.0m
Net Debt = 1.36b USD (calculated: Debt 13.5b - CCE 12.2b)
Enterprise Value = 89.7b USD (88.4b + Debt 13.5b - CCE 12.2b)
Interest Coverage Ratio = unknown (Ebit TTM 2.13b / Interest Expense TTM 0.0)
EV/FCF = 41.79x (Enterprise Value 89.7b / FCF TTM 2.15b)
FCF Yield = 2.39% (FCF TTM 2.15b / Enterprise Value 89.7b)
FCF Margin = 46.54% (FCF TTM 2.15b / Revenue TTM 4.61b)
Net Margin = 41.12% (Net Income TTM 1.90b / Revenue TTM 4.61b)
Gross Margin = 82.27% ((Revenue TTM 4.61b - Cost of Revenue TTM 818.0m) / Revenue TTM)
Gross Margin QoQ = 80.60% (prev 76.54%)
Tobins Q-Ratio = 1.97 (Enterprise Value 89.7b / Total Assets 45.5b)
Interest Expense / Debt = 0.0% (Interest Expense 0.0 / Debt 13.5b)
Taxrate = 11.87% (255.0m / 2.15b)
NOPAT = 1.88b (EBIT 2.13b * (1 - 11.87%))
Current Ratio = 1.22 (Total Current Assets 43.4b / Total Current Liabilities 35.6b)
Debt / Equity = 1.45 (Debt 13.5b / totalStockholderEquity, last quarter 9.32b)
Debt / EBITDA = 0.61 (Net Debt 1.36b / EBITDA 2.22b)
Debt / FCF = 0.63 (Net Debt 1.36b / FCF TTM 2.15b)
Total Stockholder Equity = 8.78b (last 4 quarters mean from totalStockholderEquity)
RoA = 5.20% (Net Income 1.90b / Total Assets 45.5b)
RoE = 21.61% (Net Income TTM 1.90b / Total Stockholder Equity 8.78b)
RoCE = 24.32% (EBIT 2.13b / Capital Employed (Equity 8.78b + L.T.Debt 0.0))
RoIC = 8.15% (NOPAT 1.88b / Invested Capital 23.1b)
WACC = 14.04% (E(88.4b)/V(102b) * Re(16.19%) + D(13.5b)/V(102b) * Rd(0.0%) * (1-Tc(0.12)))
Discount Rate = 16.19% (= CAPM, Blume Beta Adj.) -> capped to 13.17%
Shares (quarterly) Correlation: 77.78 | Cagr: 1.59%
[DCF] Terminal Value 61.81% ; FCFF base≈1.71b ; Y1≈1.96b ; Y5≈2.89b
[DCF] Fair Price = 25.46 (EV 21.5b - Net Debt 1.36b = Equity 20.1b / Shares 791.2m; r=14.04% [WACC]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 84.66 | EPS CAGR: 267.7% | SUE: -0.06 | # QB: 0
Revenue Correlation: 99.20 | Revenue CAGR: 50.70% | SUE: -1.29 | # QB: -2
EPS current Quarter (2026-06-30): EPS=0.40 | Chg30d=+0.77% | Revisions=-58% | Analysts=16
EPS next Quarter (2026-09-30): EPS=0.46 | Chg30d=+0.42% | Revisions=-69% | Analysts=16
EPS current Year (2026-12-31): EPS=1.85 | Chg30d=-2.40% | Revisions=-43% | GrowthEPS=-9.7% | GrowthRev=+11.8%
EPS next Year (2027-12-31): EPS=2.50 | Chg30d=+0.10% | Revisions=-25% | GrowthEPS=+34.8% | GrowthRev=+21.9%
[Analyst] Revisions Ratio: -69%