Robinhood Markets, Inc. (HOOD) stock analysis
Close on Nov 12, 2026Market cap $73.26BP/E 37.5Yield –
StockData Score
Prices as of Nov 11, 2026How the score works
Mixed10 of 30 checks passed
Robinhood Markets passes 10 of the 30 checks behind our score; 14 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.
- Valuation
- 1/6
- Growth
- 3/6
- Past performance
- 4/6
- Financial health
- 2/6
- Dividend
- 0/6
What stands out
Earnings grew over 5 years
Net income grew 206% a year on average over the last five fiscal years.
Revenue growing 10%+ a year
Revenue grew 48.8% a year over the last three fiscal years.
Debt covered by cash flow
Operating cash flow over the last twelve months equals 115% of total debt.
P/E below its 5-year median
Robinhood Markets's P/E of 39.0 is below its own 5-year median of 51.7.
What to watch
Return on equity under 15%
Return on equity was 23.2% over the last twelve months and averaged -16.3% over five years; we look for 15% on both.
Earnings growth not accelerating
Net income grew -9.6% over the last twelve months, against a 5-year average of 206% a year.
Elevated bankruptcy risk
The Altman Z-score is 1.24; above 3 is the safe zone and below 1.8 the distress zone.
P/E above the industry
Robinhood Markets's P/E of 39.0 is above the Security Brokers, Dealers, and Flotation median of 15.7.
Valuation1/6
P/E below its 5-year median
Robinhood Markets's P/E of 39.0 is below its own 5-year median of 51.7.
P/E above the industry
Robinhood Markets's P/E of 39.0 is above the Security Brokers, Dealers, and Flotation median of 15.7.
EV/EBITDA against its history
Needs positive EBITDA and price history.
P/S above the industry
Robinhood Markets's price-to-sales of 14.99 is above the Security Brokers, Dealers, and Flotation median of 3.73 (book value is negative, so we use sales).
Price against fair value
We could not estimate a fair value: it needs at least two valuation methods with positive inputs.
Margin of safety
Depends on the fair value estimate.
Growth3/6
Revenue growing 10%+ a year
Revenue grew 48.8% a year over the last three fiscal years.
EPS growth over 3 years
Needs positive EPS three years ago and today.
Earnings growth not accelerating
Net income grew -9.6% over the last twelve months, against a 5-year average of 206% a year.
Growing faster than the industry
Revenue grew 20.9% over the last twelve months; the Security Brokers, Dealers, and Flotation median is 16.2%.
Guidance raised
Robinhood Markets raised its 2026 Adjusted Operating Expenses and SBC outlook on Oct 27, 2026.
Gross margin trend
This company does not report gross profit.
Past performance4/6
Return on equity under 15%
Return on equity was 23.2% over the last twelve months and averaged -16.3% over five years; we look for 15% on both.
Return on invested capital
Needs operating income and invested capital.
Return on equity above the industry
Robinhood Markets's return on equity of 23.2% is above the Security Brokers, Dealers, and Flotation median of 17.9%.
Earnings grew over 5 years
Net income grew 206% a year on average over the last five fiscal years.
Net margin above its 5-year average
Net margin was 39.0% over the last twelve months, against a 5-year average of -43.6%.
Net margin above the industry
Robinhood Markets's net margin of 39.0% is above the Security Brokers, Dealers, and Flotation median of 14.4%.
Financial health2/6
Debt level
Needs debt and equity figures.
Debt trend
Needs a balance sheet from five years ago with positive equity.
Debt covered by cash flow
Operating cash flow over the last twelve months equals 115% of total debt.
Interest coverage
Interest expense is not reported separately.
Short-term assets cover short-term debts
Current assets are 1.24 times current liabilities.
Elevated bankruptcy risk
The Altman Z-score is 1.24; above 3 is the safe zone and below 1.8 the distress zone.
Dividend0/6
No dividend
Robinhood Markets has not paid a dividend in the last twelve months.
Yield against Treasuries
No dividend.
Yield against the market
No dividend.
Dividend stability
No dividend.
Earnings cover
No dividend.
Cash-flow cover
No dividend.
Fair value
How we estimate itWe don't publish a fair value for Robinhood Markets. It needs a US-dollar share price, at least two valuation methods with positive inputs (earnings, EBITDA, book value or sales) and, for companies with several share classes, classes that trade at the same price.
Valuation over time
Using the earnings and balance sheet published at each date, not today's.
- P/E at month end
- Own 5-year median 51.7
- Security Brokers, Dealers, and Flotation median 15.7
An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.
Market risk
From the past year of daily prices.
Liquidity
Low risk
- Average value traded per day
- $1.88B
- Value traded per 1% price move
- $697.49M
Downside
High risk
- Typical loss in a bad month
- 32.8%
- Volatility (annualized)
- 71%
- Sharpe ratio, 1 year
- -0.59
- Beta to the S&P 500 (5Y)
- 2.25
Typical bad-month loss, week by week
Margins
Share of revenue, fiscal years 2018 to 2025
Net margin
Growth rates
Compound annual growth to fiscal 2025
| Per year | 1 year | 3 years | 5 years | 10 years | Five-year pace |
|---|---|---|---|---|---|
| Revenue | +51.6% | +48.8% | +36.1% | – | |
| Net income | +33.5% | – | +206.2% | – | |
| EPS, diluted | +31.4% | – | +190.0% | – |
Returns and balance sheet
8 fiscal years. Hover a measure to see how it is calculated.
| Measure | FY2018 | FY2020 | FY2025 | Trend |
|---|---|---|---|---|
| Return on equity | – | -9.2% | – | |
| Return on assets | – | – | 5.9% | |
| Current ratio | – | 1.23 | 1.26 | |
| Capex to revenue | – | 2.5% | – | |
| Diluted shares | – | 245M | 919M |
Cash use needs five years of cash flow figures
Robinhood Markets does not report operating cash flow and capital expenditure for each of the last five fiscal years.
DuPont analysis
Return on equity split into margin, efficiency and leverage
| Fiscal year | Net margin | Asset turnover | Equity multiplier | Return on equity |
|---|---|---|---|---|
| FY2024 | 47.8% | 0.13× | 2.99× | 19.2% |
| FY2023 | -29.0% | 0.09× | 3.00× | -7.9% |
| FY2022 | -75.7% | 0.06× | 3.03× | -14.4% |
| FY2021 | -203.1% | 0.12× | 4.25× | -101.9% |
Piotroski F-Score
Nine tests of profitability, balance sheet and efficiency, fiscal 2025 against fiscal 2024
- ProfitableNet income above zero$1.88B
- Cash generatingOperating cash flow above zero$1.64B
- Return on assets improvedROA up on the prior year8.0% → 7.2%
- Earnings backed by cashOperating cash flow above net income$1.64B vs $1.88B
- Less leverageLong-term debt to assets fell– → 0.0%
- Better liquidityCurrent ratio rose1.39 → 1.26
- No dilutionShare count did not rise906M → 919M
- Gross margin improvedGross margin up on the prior year– → –
- More efficientAsset turnover rose0.17 → 0.17
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