HOOD

Robinhood Markets, Inc.

Fundamental data last updated:May 20, 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 financial services platform in the United States. Its platform allows users to invest in stocks, exchange-traded funds (ETFs), options, gold, and cryptocurrencies. The company also offers various learning and education solutions comprise Snacks, a digest of business news stories; Learn, which is a collection of approximately articles, including guides, feature tutorials, and financial dictionary; Newsfeeds that offer access to free premium news from various sites, such as Barron's, Reuters, and The Wall Street Journal; lists and alerts, which allow users to create custom watchlists and alerts to monitor securities, ETFs, and cryptocurrencies, as well as cash management services; and offers First trade recommendations to all new customers who have yet to place a trade. Robinhood Markets, Inc. was incorporated in 2013 and is headquartered in Menlo Park, California.

 


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VALUATION

P/E

36.57

Market Cap ($M USD)

$69.47B

Forward P/E

25.30

PEG

0.57

PRICE TO SALES

15.06

PRICE TO BOOK

7.44

EV / EBITDA

28.98

5-Year Average P/E

Free Cash Flow Yield

3.11%

DCF Value

$-48.37

Graham Number

$22.18

Price to FCF

32.19

EV to FCF

29.87

Earnings Yield

2.73%

FCF Yield

3.11%

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

1.57

Return on Invested Capital (ROIC)

21.52%

Current Ratio

1.22

Quick Ratio

1.22

Net Debt to EBITDA

-2.25

Interest Coverage

97.05

Gross Profit margin

82.27%

FCF PER SHARE

$2.40

REVENUE PER SHARE

$5.13

Analyze HOOD on TradingView

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

$117.14

Institutional Ownership %

1-Year Beta

2.29

Insider Buying % (6 Mo)

Distance to 52-Week High

99.43%

Distance to 52-Week Low

18.82%

EARNINGS SURPRISE %

-1.38%

50-DAY SMA

$76.48

200-DAY SMA

$105.12

⚠️ 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.