Robinhood Beneish M Score

HOOD
 Stock
  

USD 8.18  0.04  0.49%   

This module uses fundamental data of Robinhood Markets to approximate the value of its Beneish M Score. Robinhood Markets M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Please check Robinhood Markets Piotroski F Score and Robinhood Markets Altman Z Score analysis.
  
Refresh
The current year Debt to Equity Ratio is expected to grow to 1.85, whereas Total Debt is forecasted to decline to about 135.1 M.
At this time, it appears that Robinhood Markets is an unlikely manipulator. The earnings manipulation may begin if Robinhood Markets' top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by Robinhood Markets executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of Robinhood Markets' earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-3.01
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables0.99Focus
Asset Quality0.4Focus
Expense Coverage0.94Focus
Gross Margin Strengs1.08Focus
Accruals Factor0.94Focus
Depreciation Resistance1.27Focus
Net Sales Growth0.85Focus
Financial Leverage Condition1.05Focus

Robinhood Markets Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if Robinhood Markets' auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Revenues1.5 B1.8 B
Fairly Down
Increasing
Slightly volatile
Selling General and Administrative Expense1.4 B1.7 B
Significantly Down
Increasing
Slightly volatile
Net Cash Flow from Operations(908.1 M)(884.8 M)
Fairly Down
Decreasing
Slightly volatile
Depreciation Amortization and Accretion21.3 M25.5 M
Fairly Down
Increasing
Slightly volatile
Total Assets17.1 B19.8 B
Fairly Down
Increasing
Slightly volatile
Investments24.2 M24.3 M
Slightly Down
Decreasing
Slightly volatile
Investments Current24.2 M24.3 M
Slightly Down
Decreasing
Slightly volatile
Property Plant and Equipment Net296.7 M275 M
Significantly Up
Increasing
Slightly volatile
Trade and Non Trade Receivables5.6 B6.7 B
Fairly Down
Increasing
Slightly volatile
Total Liabilities11.3 B12.5 B
Moderately Down
Increasing
Slightly volatile
Current Assets16.7 B19.3 B
Fairly Down
Increasing
Slightly volatile
Assets Non Current385.1 M486 M
Significantly Down
Increasing
Slightly volatile
Current Liabilities11.2 B12.3 B
Moderately Down
Increasing
Slightly volatile
Liabilities Non Current107.4 M129 M
Significantly Down
Increasing
Slightly volatile
Total Debt135.1 M135.9 M
Slightly Down
Decreasing
Slightly volatile
Debt Current19.7 M19.8 M
Slightly Down
Decreasing
Slightly volatile
Debt Non Current115.4 M116.1 M
Slightly Down
Decreasing
Slightly volatile
Operating Income(1.7 B)(1.6 B)
Fairly Down
Decreasing
Slightly volatile
Gross Margin0.990.916
Significantly Up
Increasing
Slightly volatile

Robinhood Markets Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between Robinhood Markets' different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Robinhood Markets in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Robinhood Markets' degree of accounting gimmicks and manipulations.

About Robinhood Markets Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Depreciation Amortization and Accretion

21.31 Million

Share
Robinhood Markets Depreciation Amortization and Accretion is projected to increase significantly based on the last few years of reporting. The past year's Depreciation Amortization and Accretion was at 25.5 Million

About Robinhood Markets Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Robinhood Markets's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Robinhood Markets using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Robinhood Markets based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Robinhood Markets, Inc. operates financial services platform in the United States. Robinhood Markets, Inc. was incorporated in 2013 and is headquartered in Menlo Park, California. Robinhood Markets operates under SoftwareInfrastructure classification in the United States and is traded on NASDAQ Exchange. It employs 3800 people.

Robinhood Markets Investors Sentiment

The influence of Robinhood Markets' investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in Robinhood. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock markets does not have a solid backing from leading economists and market statisticians.

Robinhood Markets Implied Volatility

    
  93.27  
Robinhood Markets' implied volatility exposes the market's sentiment of Robinhood Markets stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Robinhood Markets' implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Robinhood Markets stock will not fluctuate a lot when Robinhood Markets' options are near their expiration.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Robinhood Markets in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Robinhood Markets' short interest history, or implied volatility extrapolated from Robinhood Markets options trading.

Current Sentiment - HOOD

Robinhood Markets Investor Sentiment

Macroaxis portfolio users are indifferent in their judgment towards investing in Robinhood Markets. What is your perspective on investing in Robinhood Markets? Are you bullish or bearish?
Bullish
Bearish
50% Bullish
50% Bearish

Becoming a Better Investor with Macroaxis

Macroaxis puts the power of mathematics on your side. We analyze your portfolios and positions such as Robinhood Markets using complex mathematical models and algorithms, but make them easy to understand. There is no real person involved in your portfolio analysis. We perform a number of calculations to compute absolute and relative portfolio volatility, correlation between your assets, value at risk, expected return as well as over 100 different fundamental and technical indicators.

Build Optimal Portfolios

Align your risk with return expectations

Fix your portfolio
By capturing your risk tolerance and investment horizon Macroaxis technology of instant portfolio optimization will compute exactly how much risk is acceptable for your desired return expectations
Please check Robinhood Markets Piotroski F Score and Robinhood Markets Altman Z Score analysis. Note that the Robinhood Markets information on this page should be used as a complementary analysis to other Robinhood Markets' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Money Managers module to screen money managers from public funds and ETFs managed around the world.

Complementary Tools for Robinhood Stock analysis

When running Robinhood Markets price analysis, check to measure Robinhood Markets' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Robinhood Markets is operating at the current time. Most of Robinhood Markets' value examination focuses on studying past and present price action to predict the probability of Robinhood Markets' future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Robinhood Markets' price. Additionally, you may evaluate how the addition of Robinhood Markets to your portfolios can decrease your overall portfolio volatility.
Volatility Analysis
Get historical volatility and risk analysis based on latest market data
Go
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
Go
Price Transformation
Use Price Transformation models to analyze depth of different equity instruments across global markets
Go
Portfolio File Import
Quickly import all of your third-party portfolios from your local drive in csv format
Go
Watchlist Optimization
Optimize watchlists to build efficient portfolio or rebalance existing positions based on mean-variance optimization algorithm
Go
Equity Search
Search for actively traded equities including funds and ETFs from over 30 global markets
Go
Portfolio Center
All portfolio management and optimization tools to improve performance of your portfolios
Go
Earnings Calls
Check upcoming earnings announcements updated hourly across public exchanges
Go
Portfolio Anywhere
Track or share privately all of your investments from the convenience of any device
Go
ETF Directory
Find actively traded Exchange Traded Funds (ETF) from around the world
Go
Shere Portfolio
Track or share privately all of your investments from the convenience of any device
Go
Is Robinhood Markets' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Robinhood Markets. If investors know Robinhood will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Robinhood Markets listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Market Capitalization
6.8 B
Quarterly Revenue Growth YOY
-0.43
Return On Assets
-0.15
Return On Equity
-0.67
The market value of Robinhood Markets is measured differently than its book value, which is the value of Robinhood that is recorded on the company's balance sheet. Investors also form their own opinion of Robinhood Markets' value that differs from its market value or its book value, called intrinsic value, which is Robinhood Markets' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Robinhood Markets' market value can be influenced by many factors that don't directly affect Robinhood Markets' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Robinhood Markets' value and its price as these two are different measures arrived at by different means. Investors typically determine Robinhood Markets value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Robinhood Markets' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.