Robinhood Markets Profitability Analysis

HOOD
 Stock
  

USD 11.01  0.59  5.66%   

For Robinhood Markets profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Robinhood Markets to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Robinhood Markets utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Robinhood Markets's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Robinhood Markets over time as well as its relative position and ranking within its peers. Please check Risk vs Return Analysis.
  
The current year Sales per Share is expected to grow to 3.71, whereas Price to Sales Ratio is forecasted to decline to 4.32. The current year Income Tax Expense is expected to grow to about 2.5 M, whereas Accumulated Other Comprehensive Income is forecasted to decline to about 847.1 K.

Robinhood Markets Revenues

1.54 Billion

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
8.7 B
Quarterly Revenue Growth YOY
-0.44
Return On Assets
-0.11
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.

Robinhood Markets Market Capitalization vs. Price to Earnings To Growth Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Robinhood Markets's current stock value. Our valuation model uses many indicators to compare Robinhood Markets value to that of its competitors to determine the firm's financial worth.
Robinhood Markets is rated below average in price to earnings to growth category among related companies. It is rated below average in market capitalization category among related companies . Robinhood Markets Market Capitalization is projected to decrease significantly based on the last few years of reporting. The past year's Market Capitalization was at 13.74 Billion. Comparative valuation analysis is a catch-all model that can be used if you cannot value Robinhood Markets by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Robinhood Markets' Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Robinhood Markets' earnings, one of the primary drivers of an investment's value.

Robinhood Market Capitalization vs. Price to Earnings To Growth

PEG Ratio indicates the potential value of an equity instrument and is calculated by dividing Price to Earnings (P/E) ratio into earnings growth rate. Most analysts and investors prefer this measure to a Price to Earnings (P/E) ratio because it incorporates the future growth of a firm. The low PEG ratio usually implies that an equity instrument is undervalued; whereas PEG of 1 may indicate that an equity is reasonably priced under given expectations of future growth.
Robinhood Markets 
PEG Ratio 
 = 
PE Ratio 
EPS Growth 
(0.04) X
Generally speaking, PEG ratio is a 'quick and dirty' way to measure how the current price of a firm's stock relates to its earnings and growth rate. The main benefit of using PEG ratio is that investors can compare the relative valuations of companies within different industries without analyzing their P/E ratios.
Market Capitalization is the total market value of a company's equity. It is one of many ways to value a company and is calculated by multiplying the price of the stock by the number of shares issued. If a firm has one type of stock its market capitalization will be the current market share price multiplied by the number of shares. However, if a company has multiple types of equities then the market cap will be the total of the market caps of the different types of shares.
Robinhood Markets 
Market Cap 
 = 
Shares Outstanding 
X  
Share Price 
9.11 B
In most publications or references market cap is broken down into the mega-cap, large-cap, mid-cap, small-cap, micro-cap, and nano-cap. Market Cap is a measurement of business as total market value of all of the outstanding shares at a given time, and can be used to compare different companies based on their size.

Robinhood Market Capitalization vs Competition

Robinhood Markets is rated below average in market capitalization category among related companies. Market capitalization of Software—Infrastructure industry is currently estimated at about 478.03 Billion. Robinhood Markets claims roughly 9.11 Billion in market capitalization contributing just under 2% to equities listed under Software—Infrastructure industry.
Capitalization  Workforce  Valuation  Total debt  Revenue

Robinhood Markets Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Robinhood Markets, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Robinhood Markets will eventually generate negative long term returns. The profitability progress is the general direction of Robinhood Markets' change in net profit over the period of time. It can combine multiple indicators of Robinhood Markets, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for 2022
Accumulated Other Comprehensive Income1000 K847.1 K
Consolidated Income-3.7 B-3.8 B
Net Income-3.7 B-3.8 B
Net Income Common Stock-3.7 B-3.8 B
Net Income to Non Controlling Interests4.1 M4.1 M
Operating Income-1.6 B-1.7 B
Income Tax ExpenseM2.5 M
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 3400 people.

Robinhood Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Robinhood Markets. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Robinhood Markets position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Robinhood Markets' important profitability drivers and their relationship over time.

Robinhood Markets Profitability Trends

Robinhood Markets profitability trend refers to the progression of profit or loss within a business. An upward trend means that Robinhood Markets' profit has generally increased over time, and a downward profitability trend means profits are declining. Recognizing problems early in profitability trends allows investors to address revenue and cost issues in advance. Investors and analysts usually monitor three types of profitability trends: gross, operating, and net. Gross profit is the difference between revenue and costs of goods sold. Operating profit is Robinhood Markets' gross profit minus its overhead. After you account for other unusual revenue, expenses, and costs, you get net profit. Gross profit trends are often a good indicator of future profitability. If you have high gross profit margins, you have a better chance to cover overhead and make money.

Robinhood Markets Profitability Drivers Correlations

One of the toughest challenges investors face today is learning how to quickly synthesize and read into endless financial statements and information provided by the company, SEC reporting, and various external parties. Understanding the correlation between Robinhood Markets different financial indicators related to revenue and profit generation helps investors identify and prioritize their investing strategies towards Robinhood Markets in a much-optimized way. Analyzing correlations between profit drivers that are directly associated with dollar figures is the most effective way to break down Robinhood Markets' future profitability.

Use Robinhood Markets in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Robinhood Markets position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Robinhood Markets will appreciate offsetting losses from the drop in the long position's value.

Robinhood Markets Pair Trading

Robinhood Markets Pair Trading Analysis

The ability to find closely correlated positions to Robinhood Markets could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Robinhood Markets when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Robinhood Markets - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Robinhood Markets to buy it.
The correlation of Robinhood Markets is a statistical measure of how it moves in relation to other equities. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Robinhood Markets moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Robinhood Markets moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Robinhood Markets can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Robinhood Markets position

In addition to having Robinhood Markets in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Sport Products Thematic Idea Now

Sport Products
Sport Products Theme
Companies manufacturing sporting goods and accessories. The Sport Products theme has 40 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Sport Products Theme or any other thematic opportunities.
View All  Next Launch
Please check Risk vs Return 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 Stock Screener module to find equities using custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..

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.
Premium Stories
Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope
Go
Cryptocurrency Center
Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency
Go
Aroon Oscillator
Analyze current equity momentum using Aroon Oscillator and other momentum ratios
Go
Portfolio Center
All portfolio management and optimization tools to improve performance of your portfolios
Go
Stock Screener
Find equities using custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook.
Go
Portfolio Volatility
Check portfolio volatility and analyze historical return density to properly model market risk
Go
Bond Directory
Find actively traded corporate debentures issued by US companies
Go
Portfolio Rebalancing
Analyze risk-adjusted returns against different time horizons to find asset-allocation targets
Go
Idea Analyzer
Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas
Go
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
Go
Alpha Finder
Use alpha and beta coefficients to find investment opportunities after accounting for the risk
Go
To fully project Robinhood Markets' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Robinhood Markets at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Robinhood Markets' income statement, its balance sheet, and the statement of cash flows.
Potential Robinhood Markets investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Robinhood Markets investors may work on each financial statement separately, they are all related. The changes in Robinhood Markets's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Robinhood Markets's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.