Robinhood Markets, Inc. cash flow to debt ratio of 10.63% indicates that the company cannot generate enough cash to cover its debt over time. This level indicates weak financial health.

Robinhood Markets, Inc.'s free cash flow has increased -865.22% from $-207.00M last year to $1.58B, signaling increasing performance

Robinhood Markets, Inc.'s debt to equity ratio is 2.92, which means that the company's assets are unhealthy financed, signaling financial risk.

Robinhood Markets, Inc.'s debt has increased relative to shareholder equity from 0.94 last year to 2.92 today, signaling weakened financials

Robinhood Markets, Inc. has a net debt to EBITDA ratio of 2.27x, which is below the 3.00x threshold, indicating healthy leverage and financial stability

Robinhood Markets, Inc. earns at least as much interest as it pays. Interest obligations are fully covered.

Robinhood Markets, Inc.'s profit margin has increased (4.19%) in the last year from 47.81% to 49.82%, signaling increasing performance

Robinhood Markets, Inc.'s short-term assets of $36.30B exceed its short-term liabilities of $28.77B

Robinhood Markets, Inc.'s return on assets of 3.66% is lower than the 5.00% threshold, indicating inefficient asset utilization

Robinhood Markets, Inc.'s return on equity of 22.70%, is higher than 15.00%, indicating good performance

Robinhood Markets, Inc.'s operating cash flow is lower than its net income, indicating that earnings may not be fully backed by cash generation

Robinhood Markets, Inc. had positive net income in only 2 out of 5 years, indicating unstable earnings

Robinhood Markets, Inc. has positive free cash flow, indicating the company generates cash after capital expenditures

Robinhood Markets, Inc. has a free cash flow yield of 1.86%, which is below the 2.00% threshold, indicating limited cash return relative to market value

Robinhood Markets, Inc.'s yearly earnings has increased 33.45% since last year from $1.41B to $1.88B, signaling increasing performance

Robinhood Markets, Inc.'s yearly revenue has increased 51.58% since last year from $2.95B to $4.47B, signaling increasing performance

ROIC 1.96% (Source: FMP key-metrics). Below the 5% partial-credit threshold. Score: 0 of 2. The 5% and 10% cutoffs anchor to typical US weighted-average cost of capital. Below 5% indicates the company is not generating returns above its likely cost of capital under this definition of invested capital. Invested capital here includes equity, non-current liabilities (pension obligations, deferred taxes, lease obligations), and short-term debt. Cash is not subtracted. Companies with substantial float, lease portfolios, or cash holdings will score lower under this definition than under narrower operating-capital definitions. See methodology.

Robinhood Markets, Inc.'s 3-year revenue CAGR of 48.79% is positive, indicating growing revenue over the past 3 years

Robinhood Markets, Inc. had revenue growth in 4 out of 5 years, indicating consistent revenue performance

Robinhood Markets, Inc. had positive ROE in only 2 out of 5 years, indicating inconsistent returns on equity

Robinhood Markets, Inc. is overvalued relative to its fair value price of 6.55 based on Discounted Cash Flow model

Robinhood Markets, Inc. has an earnings yield of 2.44%, which is below the 4.00% threshold, indicating the stock may be expensive relative to its earnings

Robinhood Markets, Inc. is overvalued relative to its fair value price of 4.68 based on EBITDA multiple model

Robinhood Markets, Inc. has an EV/EBITDA ratio of 41.26x, which exceeds the 20.00x threshold, indicating the stock may be overvalued relative to its operating earnings

Robinhood Markets, Inc. has insufficient data to evaluate this check.

Robinhood Markets, Inc. has a PEG-ratio under 1 which is considered undervalued

Robinhood Markets, Inc. has a price-to-book ratio of 8.91x, which exceeds the 5.00x threshold, indicating the stock may be overvalued relative to its book value

Robinhood Markets, Inc. has a price-to-sales ratio of 20.43x, which exceeds the 8.00x threshold, indicating the stock may be overvalued relative to its revenue