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Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Robinhood Markets has the Profitability Rank of 4.
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company's business will stay that way. It is rated on a scale of 1 to 10 and is based on these factors:
1. Operating Margin %
2. Piotroski F-Score
3. Trend of the Operating Margin % (5-year average). The company with an uptrend profit margin has a higher rank.
4. Consistency of the profitability
5. Predictability Rank
A higher score indicates superior profitability, with companies rated 7 or above considered to have more robust and sustainable profit generation. Conversely, a score of 3 or lower suggests challenges in generating consistent profits.
Robinhood Markets Profitability Rank Related Terms
XSWX:HOOD vs IBKR, LPLA, SCHW: Profitability Rank Comparison
For the Capital Markets subindustry, Robinhood Markets's Profitability Rank, along with its competitors' market caps and Profitability Rank data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Robinhood Markets Profitability Rank vs Capital Markets Industry
For the Capital Markets industry and Financial Services sector, Robinhood Markets's Profitability Rank distribution charts can be found below:
* The bar in red indicates where Robinhood Markets's Profitability Rank falls into.
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company's business will stay that way.
The rank is rated on a scale of 1 to 10. A higher score indicates superior profitability, with companies rated 7 or above considered to have more robust and sustainable profit generation. Conversely, a score of 3 or lower suggests challenges in generating consistent profits.
Robinhood Markets has the Profitability Rank of 4.
Profitability Rank is not directly related to the Financial Strength. But if a company is consistently profitable, its financial strength will be stronger.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Robinhood Markets (XSWX:HOOD) has a Profitability Rank of 4 as of Mar. 2026. Profitability and Growth ranks a company based on its profit margins and earnings growth. View historical data on Robinhood Markets and its competitors. This is near median its historical median of 4.00. Over the past decade, Robinhood Markets' Profitability Rank has ranged from 4.00 to 4.00.
Is Robinhood Markets' Profitability Rank too high?
Robinhood Markets' current Profitability Rank of 4 is near median its 10-year median of 4.00. Over the past 10 years, this metric has ranged from a low of 4.00 to a high of 4.00. Overall, Robinhood Markets has a GF Score™ of 53/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Robinhood Markets' Profitability Rank compare to IBKR and LPLA?
Robinhood Markets' Profitability Rank of 4 can be compared against companies in the Capital Markets industry. Historically, Robinhood Markets' own Profitability Rank has ranged from 4.00 to 4.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Profitability Rank for a Capital Markets company?
A good Profitability Rank depends on the Capital Markets industry context. However, Profitability Rank should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Profitability Rank mean?
A high Profitability Rank can signal that a stock is expensive relative to its fundamentals. Profitability and Growth ranks a company based on its profit margins and earnings growth. View historical data on Robinhood Markets and its competitors. Robinhood Markets's current Profitability Rank is 4, which is near median its own 10-year median of 4.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Robinhood Markets stock overvalued right now?
Based on GuruFocus' analysis, Robinhood Markets (XSWX:HOOD) is currently considered Significantly Overvalued. The stock's GF Value™ is CHF49.42, compared to a current price of CHF89.37 — trading 80.8% above its estimated fair value. The current Profitability Rank is 4, which is near median its 10-year median of 4.00. Robinhood Markets' overall GF Score™ is 53/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Profitability Rank calculated?
Profitability Rank is calculated from a company's financial statements. For Robinhood Markets (XSWX:HOOD), the current Profitability Rank is 4 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Robinhood Markets (XSWX:HOOD) Overvalued in 2026?
Based on GuruFocus' analysis, Robinhood Markets stock appears to be overvalued.
The current stock price of CHF89.37 is trading 80.8% above its estimated GF Value™ of CHF49.42.
GuruFocus considers Robinhood Markets to be Significantly Overvalued.
Key valuation signals for XSWX:HOOD:
Profitability Rank: 4 (near median its 10-year median of 4.00)
GF Value™: CHF49.42 vs. price of CHF89.37 (80.8% above fair value)
No single metric tells the full story. See the XSWX:HOOD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Robinhood is a diversified financial services provider best known for its retail brokerage platform, which historically caters to a young, risk-seeking clientele that trades heavily on margin and in higher-risk asset classes like options, futures, cryptocurrencies, and more recently, in prediction markets. As those customers' financial needs have begun to mature, Robinhood has rolled out a suite of more conventional products, from retirement accounts to high-yield cash sweep accounts to nascent advisory services (Robinhood Strategies). With $322 billion in customer assets and 27 million active accounts at year-end 2025, the firm has emerged as a significant player in the large, quickly growing US brokerage market.
53GF Score
Get the complete analysis for XSWX:HOOD
Profitability Rank is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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