ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Robinhood Markets's annualizedNet Income for the quarter that ended in Mar. 2026 was zł5,144 Mil.
Robinhood Markets's average Total Assets over the quarter that ended in Mar. 2026 was zł153,619 Mil. Therefore, Robinhood Markets's annualized ROA % for the quarter that ended in Mar. 2026 was 3.35%.
The historical rank and industry rank for Robinhood Markets's ROA % or its related term are showing as below:
WAR:HOOD'
s ROA % Range Over the Past 10 Years
Min: -23.97 Med: -2.64 Max: 6.44
Current: 5.05
During the past 7 years, Robinhood Markets's highest ROA % was 6.44%. The lowest was -23.97%. And the median was -2.64%.
WAR:HOOD's ROA % is ranked better than 74.51% of 816
companies
in the Capital Markets industry
Industry Median: 1.495
vs WAR:HOOD: 5.05
Robinhood Markets (WAR:HOOD) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data.
* 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.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
Robinhood Markets ROA % Related Terms
Robinhood Markets ROA % Historical Data
* Premium members only.
The historical data trend for Robinhood Markets's ROA % can be seen below:
* 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.
For the Capital Markets subindustry, Robinhood Markets's ROA %, along with its competitors' market caps and ROA % 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 ROA % vs Capital Markets Industry
For the Capital Markets industry and Financial Services sector, Robinhood Markets's ROA % distribution charts can be found below:
* The bar in red indicates where Robinhood Markets's ROA % falls into.
* 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.
In the calculation of annual ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
ROA % is displayed in the 30-year financial page.
Robinhood Markets (WAR:HOOD) has a ROA % of 3.35% as of Mar. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Robinhood Markets and its competitors. According to the industry distribution chart, Robinhood Markets ranks #208 out of 816 companies in the Capital Markets industry, placing it in the top 25.5%.
Is Robinhood Markets' ROA % too high?
Robinhood Markets' current ROA % is 3.35%. The Capital Markets industry median ROA % is 1.50. Robinhood Markets' value of 3.35% is 124.1% above this industry median. Based on the distribution chart, Robinhood Markets ranks #208 out of 816 companies in the Capital Markets industry, which is above the industry midpoint. Overall, Robinhood Markets has a GF Score™ of 52/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Robinhood Markets' ROA % compare to IBKR and CRCL?
According to the Capital Markets industry distribution chart, Robinhood Markets ranks #208 out of 816 companies for ROA %. This puts Robinhood Markets in the upper half of its industry. The industry median ROA % is 1.50. Robinhood Markets' value of 3.35% is 124.1% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROA % for a Capital Markets company?
The median ROA % among Capital Markets companies is 1.50, based on 816 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Robinhood Markets's current ROA % of 3.35% is 124.1% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Robinhood Markets and its competitors. For the Capital Markets industry, the median ROA % is 1.50 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Robinhood Markets's current ROA % is 3.35%. 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 (WAR:HOOD) is currently considered Significantly Overvalued. The stock's GF Value™ is zł246.71, compared to a current price of zł370.80 — trading 50.3% above its estimated fair value. The current ROA % is 3.35% and 124.1% above the Capital Markets industry median of 1.50. Robinhood Markets' overall GF Score™ is 52/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROA % calculated?
ROA % is calculated from a company's financial statements. For Robinhood Markets (WAR:HOOD), the current ROA % is 3.35% 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 (WAR:HOOD) Overvalued in 2026?
Based on GuruFocus' analysis, Robinhood Markets stock appears to be overvalued.
The current stock price of zł370.80 is trading 50.3% above its estimated GF Value™ of zł246.71.
GuruFocus considers Robinhood Markets to be Significantly Overvalued.
Key valuation signals for WAR:HOOD:
ROA %: 3.35%
GF Value™: zł246.71 vs. price of zł370.80 (50.3% above fair value)
Industry Position: 124.1% above the Capital Markets median (#208 of 816)
No single metric tells the full story. See the WAR: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.
52GF Score
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