Robinhood Markets Return On Asset vs. Net Income

HOOD Stock  USD 39.26  1.42  3.75%   
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 January. Profitability indicators assess Robinhood Markets' ability to earn profits and add value for shareholders. At present, Robinhood Markets' Days Of Sales Outstanding is projected to increase significantly based on the last few years of reporting. 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 Margin0.480.5925
Significantly 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.
  

Robinhood Markets' Revenue Breakdown by Earning Segment

Check out Risk vs Return Analysis.
For information on how to trade Robinhood Stock refer to our How to Trade Robinhood Stock guide.
Is Financial Exchanges & Data space 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.
Quarterly Earnings Growth
6.602
Earnings Share
0.58
Revenue Per Share
2.747
Quarterly Revenue Growth
0.364
Return On Assets
0.0151
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 Net Income vs. Return On Asset 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 one of the top stocks in return on asset category among its peers. It also is one of the top stocks in net income category among its peers . 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 technique that is used if you cannot value Robinhood Markets by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Robinhood Net Income vs. Return On Asset

Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.

Robinhood Markets

Return On Asset

 = 

Net Income

Total Assets

 = 
0.0151
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
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.

Robinhood Net Income Comparison

Robinhood Markets is currently under evaluation in net income category among its peers.

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 Next Year
Accumulated Other Comprehensive Income-3 M-2.9 M
Net Interest Income204.1 M136.4 M
Interest Income209.7 M139.7 M
Operating Income-1 B-1.1 B
Net Loss-737 M-773.9 M
Income Before Tax-533 M-559.6 M
Total Other Income Expense Net503 M528.1 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 Loss(0.61)(0.64)
Income Quality(2.18)(2.07)
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.

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Online Gaming Theme
Companies that are involved in the building and marketing of online gaming-related products. The Online Gaming theme has 48 constituents at this time.
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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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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.