Robinhood Markets, Inc. (HOOD) Stock Analysis
Robinhood Markets, Inc. (HOOD) Stock Analysis
Analysis from 10-Q filed 2025-11-06. Data as of Q4 2025.
Overall Grade: F (Concerning)
Robinhood Markets, Inc. faces challenges in financial performance that warrant careful analysis.
| Metric | Value | Context |
|---|---|---|
| ROIC | N/A | Below expectations |
| FCF Margin | 36.6% | Strong cash generation |
Investment Thesis: Healthy free cash flow margin of 36.6% provides financial flexibility for growth and shareholder returns.
Explore Robinhood Markets, Inc.: Earnings History | Filing Intelligence | ROIC Analysis
Profitability: Robinhood Markets, Inc. earns N/A ROIC
Robinhood Markets, Inc.'s trailing-twelve-month ROIC of N/A (sector median: 9.2%). Source: 10-Q filed 2025-11-06.
| Metric | HOOD | Rating | Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | N/A | Red flag | Below sector median of 9.2% |
| Return on Equity (ROE) | 22.9% | Excellent | Efficient use of shareholder equity |
Cash Flow: Robinhood Markets, Inc. generates $1.6B FCF at 36.6% margin, positive NaN/8 quarters
Robinhood Markets, Inc. generated $1.6B in free cash flow (TTM), a 36.6% FCF margin, a margin that ranks Top 25% in Financials. FCF was positive in N/A of the last 8 quarters. Source: 10-Q filed 2025-11-06.
| Metric | HOOD | Rating | Context |
|---|---|---|---|
| Free Cash Flow Margin | 36.6% | Excellent | Excellent cash conversion |
| Free Cash Flow (TTM) | $1.6B | Good | Positive cash generation |
| OCF/Net Income | 0.9x | Good | Potential accrual concerns |
| FCF Consistency (8Q) | N/A | Warning | Variable cash flow |
Balance Sheet Analysis for Robinhood Markets, Inc.
Source: 10-Q filed 2025-11-06.
Valuation: Robinhood Markets, Inc. trades at 53.1x earnings
Robinhood Markets, Inc. trades at a P/E of 53.1x. Free cash flow yield of 1.6% reflects market expectations for growth.
| Metric | HOOD | Rating | Context |
|---|---|---|---|
| P/E Ratio | 53.1x | Warning | Premium valuation |
| EV/Sales | 20.1x | Warning | Growth premium priced in |
| FCF Yield | 1.6% | Warning | Lower cash yield |
Capital Allocation: Robinhood Markets, Inc. returns 0.6% shareholder yield
Robinhood Markets, Inc.'s total shareholder yield is 0.6% (dividends + buybacks 0.6%). Source: 10-Q filed 2025-11-06.
| Metric | HOOD | Rating | Context |
|---|---|---|---|
| Total Shareholder Yield | 0.6% | Adequate | Dividend + buyback yield combined |
| Buyback Yield | 0.6% | Adequate | Minimal buyback activity |
| Total Capital Returned (TTM) | $653.0M | Good | Dividends + buybacks returned to shareholders |
Sector Rankings
| Metric | Value | Percentile | vs Median |
|---|---|---|---|
| Free Cash Flow Margin | 36.6% | Top 25% | 1.7x above |
| Return on Equity (ROE) | 22.9% | Top 5% | 2.2x above |
| P/E Ratio | 53.1x | N/A | - |
Financial Scorecard
| Metric | HOOD | Rating | Sector Context |
|---|---|---|---|
| Free Cash Flow Margin | 36.6% | Excellent | Top 25% of sector (median: 21.3%) |
| P/E Ratio (Price-to-Earnings) | 53.1x | Warning | High expectations priced in |
| Free Cash Flow Yield | 1.6% | Warning | Growth-focused valuation |
Frequently Asked Questions
Q: What is Robinhood Markets, Inc.'s Return on Invested Capital (ROIC)?
Robinhood Markets, Inc. (HOOD) has a trailing twelve-month Return on Invested Capital (ROIC) of N/A. This compares below the sector median of 9.2%. An ROIC below 8% suggests the company may be destroying shareholder value.
Q: What is Robinhood Markets, Inc.'s Free Cash Flow Margin?
Robinhood Markets, Inc. (HOOD) has a free cash flow margin of 36.6%, generating $1.6 billion in free cash flow over the trailing twelve months. A FCF margin above 20% indicates excellent cash conversion and a high-quality business model.
Q: Is Robinhood Markets, Inc. stock overvalued or undervalued?
Robinhood Markets, Inc. (HOOD) trades at a P/E ratio of 53.1x, which is above the sector median of N/A. The EV/Sales multiple is 20.1x. Free cash flow yield is 1.6%, reflecting growth expectations priced into the stock.
Q: What is Robinhood Markets, Inc.'s revenue and earnings growth?
Robinhood Markets, Inc. (HOOD) grew revenue by 51.6% year-over-year. Earnings per share increased by 31.2% compared to the prior year. Double-digit revenue growth indicates strong demand and market share gains.
Q: Is Robinhood Markets, Inc. buying back stock?
Robinhood Markets, Inc. (HOOD) repurchased $653.0 million of stock over the trailing twelve months. This represents a buyback yield of 0.6%.
Q: How does Robinhood Markets, Inc. compare to competitors in Financials?
Compared to other companies in Financials, Robinhood Markets, Inc. (HOOD) shows: ROIC of N/A is below the sector median of 9.2% (NaNx median). FCF margin of 36.6% exceeds the sector median of 21.3% (Top 21% of sector). These rankings are based on MetricDuck's analysis of all Financials companies with available SEC filings.
Q: What warning signs should I watch for with Robinhood Markets, Inc.?
Robinhood Markets, Inc. (HOOD) shows no major financial warning signs based on current metrics. However, investors should always monitor: 1) Margin compression trends, 2) Cash flow consistency, 3) Debt levels relative to cash generation, and 4) Changes in competitive positioning.
Data Source: Data sourced from 10-Q filed 2025-11-06. TTM metrics as of Q4 2025.
Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.
Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.
This analysis is for informational purposes only and does not constitute investment advice.