Robinhood Markets, Inc. HOOD
Composite 51/100; the shares have moved about 74% annualised. Names that move more contribute more risk for the same amount invested, and our composite reflects how strong the evidence for this one is right now.
Valuation ranks 18/100 — a strong mark against it.
Growth ranks 87/100 — a strong point in its favour. Momentum ranks 60/100 — a slight point in its favour. Quality ranks 54/100 — a slight point in its favour.
Valuation ranks 18/100 — a strong mark against it. Balance-sheet strength ranks 46/100 — a slight mark against it.
What the company does Robinhood Markets operates a retail-focused financial platform offering commission-free trading in stocks, ETFs, options, crypto, and alternative assets like event contracts. Its ecosystem includes fractional shares, margin trading, cash sweep programs, and educational modules such as Snacks and Learn. The platform emphasizes accessibility and 24/7 trading, targeting younger and first-time investors.
Key financials Revenue grew 52%, while net income rose 32% year-over-year. Gross margins remain exceptionally high at 92%, though operating and net margins stand at 44% and 42%, respectively. ROE is 24%, ROA 5%, and ROCE 5%. Leverage is elevated with a Debt/Equity of 2.40 and Net debt/EBITDA of 15.21. Free cash flow yield is negative 1%.
Stock health Momentum is mixed: +11% over 3 months, +37% over 6 months, but down 32% from the 52-week high. RSI(14) is 54, indicating neutral momentum. Sideravia scores the stock in the 50th percentile overall, with strength (47) and valuation (19) as notable weaknesses.
Price vs fair value The stock trades at a discount of 15.10% versus the analyst mean target of 120.01. - Robinhood, Kalshi, and Crypto.com lost appeals against Nevada gaming regulators, potentially limiting event-contract and crypto trading expansion (MT Newswires). - Recent Zacks coverage highlights a 27% rally post-earnings but questions long-term attractiveness amid high valuation (Zacks). - Peer Coinbase reported weaker Q2 revenue despite diversification gains, pressuring fintech multiples (Insider Monkey).
Looking forward Forward P/E of 45x suggests expectations for continued growth, though PEG is not available. Revenue growth of 52% supports a premium multiple, but high leverage and regulatory uncertainty over event contracts pose risks. Valuation remains sensitive to execution in crypto and alternative assets.
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Data as of 2026-09-05, compiled from third-party sources; errors and delays are possible and figures are not warranted. Investing puts your capital at risk; past performance does not predict future results. We publish our full track record, including the calls that lost, and our conflicts of interest.