HOOD Robinhood Markets, Inc. - Fundamental Analysis
NEUTRAL
HOOD Stock | Fundamental Analysis & Investment Insights
NASDAQ
•
Financial Services
•
Capital Markets
Current Price
$115.21
Analyst Target
$151.04
+31.1% Upside
52W High
$153.86
52W Low
$29.66
At a glance
Key valuation, profitability, growth, and risk metrics.
Updated Jan 04, 2026
Market cap
$103.6B
P/E
48.0
ROE
27.8%
Profit margin
52.2%
Debt/Equity
1.89
Dividend yield
N/A
AI Analysis
Powered by advanced machine learning algorithms
Confidence Score
72%
Analysis Accuracy
HOOD's Advanced Deterministic Scorecard shows a mixed financial profile: the Piotroski F-Score of 5/9 indicates stable financial health, while the extraordinarily high Altman Z-Score (>3.0) suggests negligible bankruptcy risk. The company exhibits exceptional profitability with gross, operating, and net margins above sector averages, alongside explosive year-over-year revenue and earnings growth. However, elevated valuation multiples—P/E of 48.00 and Price/Sales of 24.64—significantly exceed sector norms, raising concerns about overvaluation. While analysts recommend a 'buy' and earnings surprises have been strong recently, insider selling activity and technical weakness over the past month counterbalance the bullish fundamentals.
Key Strengths
Exceptional profitability metrics: 92.25% gross margin, 51.80% operating margin, and 52.19% net margin far exceed sector averages.
Outstanding earnings and revenue growth: 100% YoY revenue growth and 259.5% YoY earnings growth reflect strong top- and bottom-line momentum.
High return on equity (27.82%) compared to sector average (26.06%), indicating efficient use of shareholder capital.
Altman Z-Score of 128518658406.4 indicates an extremely low probability of financial distress or bankruptcy.
Consistent earnings beat streak: 3 out of the last 4 quarters beat estimates, with an average surprise of 21.68%.
Key Risks
Elevated valuation: P/E of 48.00 and Price/Sales of 24.64 are substantially higher than sector averages (P/E 22.25, Price/Sales ~6.5), increasing vulnerability to multiple contraction.
High debt/equity ratio of 1.89, well above sector average of 0.74, indicating aggressive leverage that could pressure financial flexibility.
Bearish insider activity: 9 sell transactions totaling $125.31M in the last 6 months with zero buys, suggesting lack of confidence from insiders.
Technical trend score of 0/100 and recent price weakness: -13.8% over the last month despite strong fundamentals, indicating negative market sentiment.
Piotroski F-Score of 5/9 is only stable, not strong, suggesting some weaknesses in earnings quality, leverage, or liquidity trends.
AI Fair Value Estimate
Based on comprehensive analysis
$70.8
-38.5% below current price
Performance Snowflake
Multi-dimensional analysis across 5 key categories
Overall
60
Moderate
45
85
70
78
20
AI Verdict
Cautiously optimistic with valuation and insider risk overhangs
Key drivers: High growth and profitability, Strong balance sheet safety (Altman Z), Rich valuation multiples, Negative insider sentiment, Stable but not strong Piotroski score
Confidence
75%
Value
45/100
Ref P/E, PEG, Graham Number
Positives
- Intrinsic Value (Formula) of $70.8 provides a growth-adjusted floor
- Graham Number of $22.69 offers conservative downside protection
Watchpoints
- Current price ($115.21) trades at a 63% premium to Intrinsic Value
- P/E of 48.00 and Price/Sales of 24.64 are stretched vs sector
Future
85/100
Ref Growth rates
Positives
- 100% YoY Revenue Growth
- 259.5% YoY Earnings Growth
- 270.7% Q/Q Earnings Growth
- Consistent earnings beat momentum
Watchpoints
No urgent risks highlighted.
Past
70/100
Ref Historical trends
Positives
- Strong 3Y return of +1325.9%
- 19-quarter earnings track record with improving trend
- Multiple quarters with >100% earnings surprise
Watchpoints
- Recent 1-month return of -13.8% shows technical deterioration
- Mixed performance in earlier quarters including large misses
Health
78/100
Ref Altman Z-Score, Piotroski F-Score
Positives
- Altman Z-Score of 128518658406.4 indicates extreme financial stability
- Current Ratio (1.11) and Quick Ratio (1.05) show adequate short-term liquidity
Watchpoints
- Piotroski F-Score of 5/9 indicates only moderate financial health
- Debt/Equity of 1.89 is high relative to sector average of 0.74
Dividend
20/100
Ref Yield, Payout
Positives
No standout positives identified.
Watchpoints
- Dividend Strength of 0/100
- No dividend yield or payout history
- No indication of near-term dividend plans
Stock Price & Analyst Targets
Real-time price movements and analyst price targets
Current Price
$115.21
Analyst Target
$151.04
Upside/Downside
+31.1%
Multi-Horizon Performance vs Peers
Price momentum across 5Y → 1W horizons for HOOD and closest competitors.
Updated 2026-01-02
| Company | 5Y | 3Y | 1Y | 6M | 1M | 1W |
|---|---|---|---|---|---|---|
|
HOOD
Robinhood Markets, Inc.
Primary
|
+230.9% | +1325.9% | +192.1% | +22.0% | -13.8% | -2.5% |
|
CME
CME Group Inc.
Peer
|
+107.0% | +88.5% | +33.3% | +4.1% | +6.3% | +3.1% |
|
MMC
Marsh & McLennan Companies, Inc.
Peer
|
+70.2% | +16.8% | -16.1% | -20.3% | -10.3% | +1.5% |
|
KKR
KKR & Co. Inc.
Peer
|
+239.7% | +182.6% | -13.1% | -6.7% | +1.9% | -1.2% |
|
MCO
Moody's Corporation
Peer
|
+81.5% | +64.7% | +0.2% | -1.8% | +0.2% | -1.7% |
Positive values indicate cumulative gains over the specified period. Comparables pulled from the same sector to highlight whether momentum is stock-specific or industry-wide.
Historical Performance Trends
Long-term financial metrics and growth patterns
Revenue & Net Income
Profit & Operating Margins
Return on Equity (ROE)
Quarterly Revenue Growth
Historical data shows last 12 quarters (3 years)
Valuation Metrics
Key valuation ratios and pricing indicators
P/E Ratio
48.0
Forward P/E
44.19
PEG Ratio
N/A
P/B Ratio
12.09
P/S Ratio
24.64
EV/Revenue
23.87
EV/EBITDA
N/A
Market Cap
$103.6B
Profitability
Profit margins and return metrics
Profit Margin
52.19%
Operating Margin
51.8%
Gross Margin
92.25%
ROE
27.82%
ROA
5.18%
Growth
Revenue and earnings growth rates
Revenue Growth
+100.0%
Earnings Growth
+259.5%
Q/Q Revenue Growth
N/A
Q/Q Earnings Growth
+270.7%
Financial Health
Balance sheet strength and liquidity metrics
Debt/Equity
1.89
High debt
Current Ratio
1.11
Good
Quick Ratio
1.05
Good
Cash/Share
$21.58
Quarterly Earnings History
EPS performance vs analyst estimates
2026-02-10
$N/A
2025-11-05
$0.61
+12.1% surprise
2025-07-30
$0.5
+39.5% surprise
2025-04-30
$0.37
+13.5% surprise
Financial Services Sector Comparison
Comparing HOOD against 43 companies in the Financial Services sector
(7 bullish, 35 neutral, 1 bearish)
P/E Ratio
48.0
This Stock
vs
24.35
Sector Avg
+97.2%
(Expensive)
Return on Equity (ROE)
27.82%
This Stock
vs
23.5%
Sector Avg
+18.4%
(Excellent)
Profit Margin
52.19%
This Stock
vs
25.4%
Sector Avg
+105.4%
(Superior)
Debt to Equity
1.89
This Stock
vs
1.05
Sector Avg
+79.6%
(Higher)
Revenue Growth
100.0%
This Stock
vs
22.49%
Sector Avg
+344.7%
(Fast Growth)
Current Ratio
1.11
This Stock
vs
1.43
Sector Avg
-22.3%
(Weaker)
Similar Companies
Peer comparison within the same industry
| Company | AI Rating | Market Cap | P/E | ROE | Profit Margin | Price | |
|---|---|---|---|---|---|---|---|
|
HOOD
Robinhood Markets, Inc.
|
NEUTRAL | $103.6B | 48.0 | 27.8% | 52.2% | $115.21 | |
|
CME
CME Group Inc.
|
NEUTRAL | $102.78B | 27.62 | 13.3% | 58.9% | $285.04 | |
|
MMC
Marsh & McLennan Companies, Inc.
|
NEUTRAL | $90.07B | 21.92 | 28.7% | 15.6% | $182.81 | |
|
KKR
KKR & Co. Inc.
|
NEUTRAL | $119.35B | 54.16 | 7.7% | 10.6% | $128.9 | |
|
MCO
Moody's Corporation
|
BULLISH | $87.55B | 38.61 | 54.9% | 29.9% | $479.48 |
Recent Insider Trading
Insider buy and sell transactions from the last 6 months
| Date | Insider | Position | Transaction | Shares | Value |
|---|---|---|---|---|---|
| 2025-12-22 | PINNER JEFFREY TSVI | Chief Technology Officer | Sale | 5,864 | $717,689 |
| 2025-12-10 | TENEV VLADIMIR | Chief Executive Officer | Gift | 87,770 | - |
| 2025-12-10 | TENEV VLADIMIR | Chief Executive Officer | Stock Award | 87,770 | - |
| 2025-12-05 | PINNER JEFFREY TSVI | Chief Technology Officer | Sale | 5,865 | $775,711 |
| 2025-12-03 | GALLAGHER DANIEL MARTIN JR | Officer | Gift | 16,400 | - |
| 2025-12-03 | GALLAGHER DANIEL MARTIN JR | Officer | Sale | 120,000 | $15,855,436 |
| 2025-12-03 | QUIRK STEVEN M | Officer | Sale | 49,942 | $6,550,008 |
| 2025-12-01 | QUIRK STEVEN M | Officer | Stock Award | 61,331 | - |
| 2025-12-01 | GALLAGHER DANIEL MARTIN JR | Officer | Stock Award | 133,586 | - |
| 2025-12-01 | WARNICK JASON | Chief Financial Officer | Stock Award | 112,333 | - |
| 2025-12-01 | PINNER JEFFREY TSVI | Chief Technology Officer | Stock Award | 53,845 | - |
| 2025-11-26 | GALLAGHER DANIEL MARTIN JR | Officer | Sale | 50,000 | $6,066,500 |
| 2025-11-24 | GALLAGHER DANIEL MARTIN JR | Officer | Sale | 10,000 | $1,129,807 |
| 2025-11-19 | WARNICK JASON | Chief Financial Officer | Gift | 15,000 | - |
| 2025-11-17 | BHATT BAIJU PRAFULKUMAR | Director | Stock Award | 418,338 | - |
Insider transactions can signal confidence or concerns about company prospects
Wall Street Analysts
Professional analyst ratings and price targets
Consensus
BUY
21 analysts
Morgan Stanley
2025-12-22
Equal-Weight
Equal-Weight
Truist Securities
2025-12-17
Buy
Barclays
2025-12-12
Overweight
Overweight
Cantor Fitzgerald
2025-12-11
Overweight
Overweight
B of A Securities
2025-12-10
Buy
Buy
Needham
2025-12-05
Buy
Buy
Needham
2025-11-26
Buy
Buy
Citizens
2025-11-07
Market Outperform
Market Outperform
Barclays
2025-11-06
Overweight
Overweight
Cantor Fitzgerald
2025-11-06
Overweight
Overweight