Opendoor Technologies Inc (OPEN, Financial) has seen a significant surge in its stock price over the past three months. The price has risen from $1.46 to $3.8, indicating a substantial gain of 58.90%. Over the past week alone, the stock has seen a gain of 17.19%. With a current market capitalization of $2.5 billion and a GF Value of $8.11, the stock appears to be significantly undervalued. The GF Value, defined by GuruFocus.com, calculates a stock's intrinsic value using historical multiples, past performance adjustments, and future business estimates.
Introduction to Opendoor Technologies Inc
Opendoor Technologies Inc operates as a digital platform for residential real estate. The platform enables customers to buy and sell houses online, simplifying the traditionally complex process of real estate transactions. The company generates revenue through home sales and other real estate services. With its innovative business model, Opendoor Technologies Inc is redefining the real estate industry.
Profitability Analysis of Opendoor Technologies Inc
Despite its innovative business model, Opendoor Technologies Inc has a Profitability Rank of 2/10, indicating low profitability. The company's operating margin stands at -10.48%, which is better than 17.97% of companies in the same industry. Its ROE is -99.62%, better than 1.71% of companies in the same industry. The company's ROA and ROIC are -19.59% and -21.65% respectively, better than 3.34% and 2.91% of companies in the same industry. These figures suggest that while the company's profitability is low, it is performing better than a significant portion of its industry peers.
Growth Analysis of Opendoor Technologies Inc
Opendoor Technologies Inc has demonstrated impressive growth over the past three years. The company's 3-Year Revenue Growth Rate per Share stands at 41.80%, which is better than 91.87% of companies in the same industry. However, its 3-Year EPS without NRI Growth Rate is -51.10%, better than only 7.74% of companies in the same industry. This suggests that while the company's revenue growth is strong, its earnings growth is lagging behind.
Major Holders of Opendoor Technologies Inc Stock
Several prominent investors hold significant stakes in Opendoor Technologies Inc. Jim Simons (Trades, Portfolio) holds 17,785,000 shares, representing 2.7% of the total shares. Steven Cohen (Trades, Portfolio) holds 3,645,765 shares, representing 0.55% of the total shares. Joel Greenblatt (Trades, Portfolio) holds 1,686,785 shares, representing 0.26% of the total shares. These holdings indicate a level of confidence in the company's future prospects.
Competitors of Opendoor Technologies Inc
Opendoor Technologies Inc faces competition from several companies in the real estate industry. Cushman & Wakefield PLC has a market cap of $2.07 billion, WeWork Inc has a market cap of $255.346 million, and Kennedy-Wilson Holdings Inc has a market cap of $2.2 billion. These companies represent significant competition for Opendoor Technologies Inc in the digital real estate space.
Conclusion
In conclusion, Opendoor Technologies Inc has demonstrated significant stock performance, profitability, and growth in the past three months. Despite facing competition from other companies in the real estate industry, the company's innovative business model and strong revenue growth suggest a promising future. However, its low profitability and earnings growth indicate areas for improvement. Investors should keep a close eye on this stock as it continues to navigate the dynamic real estate industry.
