Shares of Opendoor Technologies Inc (OPEN, Financial) experienced a notable decline, with the stock price dropping approximately 10.35%. This movement follows the company's announcement of its fourth-quarter results, in which its sales and EBITDA guidance did not align with Wall Street expectations, despite surpassing analysts' projections for revenue and EBITDA for the current quarter.
Opendoor Technologies, trading on NASDAQ under the ticker OPEN, closed at $1.29 per share. The company, known for its digital platform that facilitates online real estate transactions, has faced significant financial challenges. Opendoor's market capitalization stands at approximately $923 million, with a price-to-book (P/B) ratio of 1.14. Notably, the company has a low price-to-sales (P/S) ratio of 0.18, indicating that the stock is trading near its 1-year low.
The company's financial strength is under scrutiny, as highlighted by a severe Altman Z-Score of 0.85, placing it in the distress zone, which implies a potential bankruptcy risk within the next two years. Furthermore, its Piotroski F-Score is low at 2, typically suggesting poor business operations. On the profitability front, Opendoor's gross margin has been in long-term decline, with an average annual decrease of 3.6%.
Despite these challenges, there are glimmers of hope for the company. The Beneish M-Score of -1.84 suggests that the company is unlikely to be manipulating its financial statements. Additionally, Opendoor's operating margin is expanding, a positive indicator for investors.
The GF Value of Opendoor is estimated at $1.80, which suggests that the stock is modestly undervalued GF Value. However, investors should approach with caution, given the company's current financial standings and market volatility.
