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Robinhood Markets, Inc.

Fundamental data last updated:June 10, 2026

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company profile

SECTOR

Financial Services

industry

Financial - Capital Markets

Exchange

NASDAQ

County of HQ

US

Next Earnings Date

07/29/2026

Business Summary

Robinhood Markets, Inc. operates a financial services platform available to users throughout the United States. This platform empowers individuals to engage in a wide array of investments, encompassing common stocks, exchange-traded funds (ETFs), options contracts, gold, and various cryptocurrencies. Beyond its core trading functionalities, the company dedicates efforts to providing educational and informational resources. These include "Snacks," a concise daily summary of business news; "Learn," an extensive digital library offering guides, tutorials, and a comprehensive financial dictionary; and "Newsfeeds," which grants complimentary access to premium financial journalism from reputable sources like Barron's, Reuters, and The Wall Street Journal. Additionally, the platform supports users with tools such as customizable watchlists and alert systems for monitoring specific securities, ETFs, and digital assets. It also provides cash management services. For new customers, particularly those who have not yet made their initial investment, Robinhood offers personalized first trade recommendations. Robinhood Markets, Inc. was established in 2013 and maintains its principal operations from Menlo Park, California.

 


VALUATION

P/E

39.71

Market Cap ($M USD)

$75.44B

Forward P/E

27.47

PEG

0.62

PRICE TO SALES

16.35

PRICE TO BOOK

8.08

EV / EBITDA

37.68

5-Year Average P/E

Free Cash Flow Yield

2.86%

DCF Value

$-48.69

Graham Number

$22.18

Price to FCF

34.96

EV to FCF

38.84

Earnings Yield

2.52%

FCF Yield

2.86%

DIVIDEND

Yield

0.00%

Annual Payout

$0.00

Payout Ratio

0.00%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$2.11

Next Year EPS Growth Estimate

$3.05

Next Year Revenue Growth Estimate

$733.10B

Return on Equity (ROE)

21.61%

FREE CASH FLOW

Operating Margin

46.28%

Debt-to-Equity

1.68

Piotroski F-Score

5

Altman Z-Score

1.65

Return on Invested Capital (ROIC)

21.52%

Current Ratio

1.22

Quick Ratio

1.22

Net Debt to EBITDA

3.77

Interest Coverage

97.05

Gross Profit margin

82.27%

FCF PER SHARE

$2.40

REVENUE PER SHARE

$5.13

Gainseekers Quantitative Analysis

Summary

Robinhood Markets, Inc. appears to be trading in a precarious zone. The market’s valuation, with a Price/Earnings ratio of 37.55 and a Forward P/E of 25.98, suggests optimism, yet the DCF Value is alarmingly negative, indicating potential overvaluation. The Graham Number further underscores this mispricing, suggesting a disconnect between market expectations and intrinsic value. The Altman Z-score of 1.57 raises red flags about financial stability, while the Earnings Yield of 2.66% is underwhelming for a company in this sector. Overall, the stock seems to be priced for perfection, yet the fundamentals suggest caution.

AI Exposure / Tech Reliance

In the rapidly evolving financial services sector, Robinhood is uniquely positioned to leverage AI and technology. As a player in the capital markets industry, its platform is inherently digital, allowing for seamless integration of AI-driven trading and analytics tools. This adaptability is crucial for maintaining a competitive edge in an increasingly tech-driven market.

The Bull Case

For the discerning GARP investor, Robinhood offers compelling reasons to buy. The company boasts a robust Return on Invested Capital of 21.52%, indicating efficient capital use. Its Free Cash Flow Yield, though modest at 3.02%, combined with a solid Operating Margin of 46.28%, suggests strong pricing power and operational efficiency. The Piotroski F-Score of 5 signals moderate financial health, making it an attractive proposition for those seeking growth at a reasonable price.

The Bear Case

However, the bear case is equally compelling. The stock's Price/Book ratio of 7.64 and Price/Sales ratio of 15.47 highlight a potentially overextended valuation. Despite a high Gross Profit Margin of 82.27%, the technical indicators show it trading close to its 52-week high, suggesting limited upside. The Altman Z-score and negative DCF Value further emphasize structural risks, making it a risky bet for conservative investors.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$108.36

Institutional Ownership %

1-Year Beta

2.35

Insider Buying % (6 Mo)

Distance to 52-Week High

83.67%

Distance to 52-Week Low

24.18%

EARNINGS SURPRISE %

-1.38%

50-DAY SMA

$78.54

200-DAY SMA

$103.19

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.