Robinhood Markets Net Income vs. Market Capitalization

HOOD Stock  USD 20.01  0.73  3.79%   
Based on Robinhood Markets' profitability indicators, Robinhood Markets may not be well positioned to generate adequate gross income at this time. It has a very high odds of underperforming in April. Profitability indicators assess Robinhood Markets' ability to earn profits and add value for shareholders.

Robinhood Markets Net Income

(568.05 Million)

At present, Robinhood Markets' Days Of Sales Outstanding is projected to increase significantly based on the last few years of reporting. The current year's Price Sales Ratio is expected to grow to 11.63, whereas Operating Cash Flow Sales Ratio is forecasted to decline to 0.28. At present, Robinhood Markets' Income Tax Expense is projected to increase significantly based on the last few years of reporting. The current year's Change To Netincome is expected to grow to about 1.3 B, whereas Net Interest Income is forecasted to decline to about 136.4 M.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.460.4901
Notably Down
Slightly volatile
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.
  
Check out Risk vs Return Analysis.
For information on how to trade Robinhood Stock refer to our How to Trade Robinhood Stock guide.
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.
Earnings Share
(0.61)
Revenue Per Share
2.093
Quarterly Revenue Growth
0.239
Return On Assets
(0.02)
Return On Equity
(0.08)
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 if Robinhood Markets is a good investment 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. Net Income 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 net income category among related companies. It is rated # 2 in market capitalization category among related companies . At present, Robinhood Markets' Net Loss is projected to decrease significantly based on the last few years of reporting.. 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. Net Income

Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.

Robinhood Markets

Net Income

 = 

(Rev + Gain)

-

(Exp + Loss)

 = 
(541 M)
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
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

 = 
16.86 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 # 2 in market capitalization category among related companies. Market capitalization of Financials industry is currently estimated at about 594.18 Billion. Robinhood Markets holds roughly 16.86 Billion in market capitalization claiming about 2.84% of equities under Financials industry.
Capitalization  Revenue  Total debt  Workforce  Valuation

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 2024
Accumulated Other Comprehensive Income-2.7 M-2.6 M
Net Interest Income204.1 M136.4 M
Interest Income209.7 M139.7 M
Operating Income-536 M-562.8 M
Net Loss-737 M-773.9 M
Income Before Tax-533 M-559.6 M
Total Other Income Expense NetM3.1 M
Net Loss-925.2 M-971.5 M
Net Loss-541 M-568 M
Income Tax ExpenseM8.4 M
Non Operating Income Net OtherM1.8 M
Change To Netincome895.9 M1.3 B
Net Income Per E B T 1.02  0.68 

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.

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 instruments. 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 Restaraunts Hotels Motels Thematic Idea Now

Restaraunts Hotels Motels
Restaraunts Hotels Motels Theme
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Restaraunts Hotels Motels theme has 61 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 Restaraunts Hotels Motels Theme or any other thematic opportunities.
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When determining whether Robinhood Markets is a strong investment it is important to analyze Robinhood Markets' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Robinhood Markets' future performance. For an informed investment choice regarding Robinhood Stock, refer to the following important reports:
Check out Risk vs Return Analysis.
For information on how to trade Robinhood Stock refer to our How to Trade Robinhood Stock guide.
You can also try the Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.

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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 the 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.
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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.