Opendoor Technologies Inc.
Opendoor Technologies Inc. Fundamental Analysis
Opendoor Technologies Inc. (OPEN) shows weak financial fundamentals with a PE ratio of -2.74, profit margin of -29.74%, and ROE of -1.68%. The company generates $4.4B in annual revenue with weak year-over-year growth of -15.18%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -175.5/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze OPEN's fundamental strength across five key dimensions:
Efficiency Score
WeakOPEN struggles to generate sufficient returns from assets.
Valuation Score
ExcellentOPEN trades at attractive valuation levels.
Growth Score
WeakOPEN faces weak or negative growth trends.
Financial Health Score
ExcellentOPEN maintains a strong and stable balance sheet.
Profitability Score
WeakOPEN struggles to sustain strong margins.
Key Financial Metrics
Is OPEN Expensive or Cheap?
P/E Ratio
OPEN trades at -2.74 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, OPEN's PEG of 0.01 indicates potential undervaluation.
Price to Book
The market values Opendoor Technologies Inc. at 3.54 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at -3.83 times EBITDA. This is generally considered low.
How Well Does OPEN Make Money?
Net Profit Margin
For every $100 in sales, Opendoor Technologies Inc. keeps $-29.74 as profit after all expenses.
Operating Margin
Core operations generate -6.25 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-1.68 in profit for every $100 of shareholder equity.
ROA
Opendoor Technologies Inc. generates $-54.01 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Opendoor Technologies Inc. produces operating cash flow of $1.05B, showing steady but balanced cash generation.
Free Cash Flow
Opendoor Technologies Inc. generates strong free cash flow of $1.04B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.35 in free cash annually.
FCF Yield
OPEN converts 28.72% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-2.74
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.010
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.54
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.81
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.19
vs 25 benchmark
Current Ratio
Current assets to current liabilities
7.03
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-1.68
vs 25 benchmark
ROA
Return on assets percentage
-0.54
vs 25 benchmark
ROCE
Return on capital employed
-0.13
vs 25 benchmark
How OPEN Stacks Against Its Sector Peers
| Metric | OPEN Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -2.74 | 24.42 | Better (Cheaper) |
| ROE | -168.18% | 679.00% | Weak |
| Net Margin | -29.74% | 4578.00% | Weak |
| Debt/Equity | 0.19 | -22.07 (disorted) | Distorted |
| Current Ratio | 7.03 | 14.99 | Strong Liquidity |
| ROA | -54.01% | -1370.00% (disorted) | Weak |
OPEN outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Opendoor Technologies Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-75.87%
Industry Style: Income, Inflation Hedge, REIT
DecliningEPS CAGR
26.73%
Industry Style: Income, Inflation Hedge, REIT
High GrowthFCF CAGR
-78.07%
Industry Style: Income, Inflation Hedge, REIT
Declining