What each dimension measures and where the thresholds come from.
Gross Profit Margin
Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Years to Pay Off Debt
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Price-to-Book
Market price vs book value per share. Rarely below 1.5x for quality businesses today. Intangible assets (brand, software, patents) don't appear on the balance sheet under accounting rules, making P/B artificially high for asset-light companies. Negative P/B indicates book equity has been reduced by buybacks — common in highly profitable capital-return businesses.
Free Cash Flow
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
Owner Earnings
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
Opendoor Technologies Inc. operates a digital platform for residential real estate transactions in the United States. It buys and sells homes through online e-commerce platform. The company also resells the home to a home buyer. In addition, it offers real estate brokerage, title insurance and settlement, and escrow services, as well as property and casualty insurance, real estate licenses, and construction services. The company was formerly known as Social Capital Hedosophia Holdings Corp. II and changed its name to Opendoor Technologies Inc. Opendoor Technologies Inc. was incorporated in 2013 and is based in Tempe, Arizona.
Showing Key Metrics
Income Highlights
Metric
2025
2024
2023
2022
2021
Gross Profit %
8.0%▼
8.4%
7.0%
4.3%
N/A
Operating Margin %
-6.3%▼
-5.9%
-5.4%
-5.5%
N/A
Net Income %
-29.7%▼
-7.6%
-4.0%
-8.7%
N/A
Diluted EPS
-1.70▼
-0.56
-0.42
-2.16
N/A
Balance Sheet Highlights
Metric
2025
2024
2023
2022
2021
Total Assets
$2.4B
$3.1B
$3.6B
$6.6B
N/A
Total Debt
$1.3B↓
$2.3B
$2.5B
$5.4B
N/A
Working Capital
$2.0B▼
$2.5B
$3.4B
$5.0B
N/A
Years to Pay Debt
-1.02
-5.91
-9.21
-3.99
N/A
Cash Flow Highlights
Metric
2025
2024
2023
2022
2021
Free Cash Flow
$1.0B▲
-$620M
$2.3B
$693M
N/A
Owner Earnings
-$1.2B
-$314M
-$166M
-$1.2B
N/A
CapEx % of Net Income
N/A
N/A
N/A
N/A
N/A
Income Statement
2025
2024
2023
2022
2021
Tax Effect Of Unusual Items
0
-38
42,420
-21,420
Tax Rate For Calcs
0
0
0
0
Normalized EBITDA
-189,000
-186,000
-193,000
-774,000
Total Unusual Items
-934,000
-19,000
202,000
-102,000
Total Unusual Items Excluding Goodwill
-934,000
-19,000
202,000
-102,000
Net Income From Continuing Operation Net Minority Interest
-1,300,000
-392,000
-275,000
-1,353,000
Reconciled Depreciation
46,000
53,000
72,000
90,000
Reconciled Cost Of Revenue
4,021,000
4,720,000
6,459,000
14,900,000
EBITDA
-1,123,000
-205,000
9,000
-876,000
EBIT
-1,169,000
-258,000
-63,000
-966,000
Net Interest Income
-131,000
-133,000
-211,000
-385,000
Interest Expense
131,000
133,000
211,000
385,000
Normalized Income
-366,000
-373,038
-434,580
-1,272,420
Net Income From Continuing And Discontinued Operation
-1,300,000
-392,000
-275,000
-1,353,000
Total Expenses
4,648,000
5,456,000
7,318,000
16,421,000
Total Operating Income As Reported
-287,000
-320,000
-386,000
-931,000
Diluted Average Shares
766,531
699,457
657,111
627,105
Basic Average Shares
766,531
699,457
657,111
627,105
Diluted EPS
0
0
0
0
Basic EPS
0
0
0
0
Diluted NI Availto Com Stockholders
-1,300,000
-392,000
-275,000
-1,353,000
Net Income Common Stockholders
-1,300,000
-392,000
-275,000
-1,353,000
Net Income
-1,300,000
-392,000
-275,000
-1,353,000
Net Income Including Noncontrolling Interests
-1,300,000
-392,000
-275,000
-1,353,000
Net Income Continuous Operations
-1,300,000
-392,000
-275,000
-1,353,000
Tax Provision
0
1,000
1,000
2,000
Pretax Income
-1,300,000
-391,000
-274,000
-1,351,000
Other Income Expense
-892,000
45,000
309,000
-112,000
Other Non Operating Income Expenses
42,000
64,000
107,000
-10,000
Special Income Charges
-934,000
-19,000
202,000
-102,000
Other Special Charges
924,000
2,000
-216,000
25,000
Impairment Of Capital Assets
0
0
60,000
0
Restructuring And Mergern Acquisition
10,000
17,000
14,000
17,000
Gain On Sale Of Security
12,000
Net Non Operating Interest Income Expense
-131,000
-133,000
-211,000
-385,000
Interest Expense Non Operating
131,000
133,000
211,000
385,000
Operating Income
-277,000
-303,000
-372,000
-854,000
Operating Expense
627,000
736,000
859,000
1,521,000
Research And Development
79,000
141,000
167,000
169,000
Selling General And Administration
548,000
595,000
692,000
1,352,000
Selling And Marketing Expense
310,000
413,000
486,000
1,006,000
General And Administrative Expense
238,000
182,000
206,000
346,000
Other Gand A
238,000
182,000
206,000
346,000
Gross Profit
350,000
433,000
487,000
667,000
Cost Of Revenue
4,021,000
4,720,000
6,459,000
14,900,000
Total Revenue
4,371,000
5,153,000
6,946,000
15,567,000
Operating Revenue
4,371,000
5,153,000
6,946,000
15,567,000
Balance Sheet
2025
2024
2023
2022
2021
Ordinary Shares Number
957,245
719,990
677,636
637,387
Share Issued
957,245
719,990
677,636
637,387
Net Debt
351,000
1,631,000
1,511,000
4,218,000
Total Debt
1,320,000
2,317,000
2,534,000
5,400,000
Tangible Book Value
1,002,000
710,000
958,000
1,070,000
Invested Capital
2,318,000
3,015,000
3,477,000
6,441,000
Working Capital
1,972,000
2,468,000
3,375,000
4,961,000
Net Tangible Assets
1,002,000
710,000
958,000
1,070,000
Capital Lease Obligations
7,000
15,000
24,000
45,000
Common Stock Equity
1,005,000
713,000
967,000
1,086,000
Total Capitalization
2,073,000
2,583,000
3,477,000
5,065,000
Total Equity Gross Minority Interest
1,005,000
713,000
967,000
1,086,000
Stockholders Equity
1,005,000
713,000
967,000
1,086,000
Gains Losses Not Affecting Retained Earnings
0
0
-1,000
-4,000
Other Equity Adjustments
-1,000
-4,000
-2,000
Retained Earnings
-5,033,000
-3,725,000
-3,333,000
-3,058,000
Additional Paid In Capital
6,038,000
4,438,000
4,301,000
4,148,000
Total Liabilities Net Minority Interest
1,402,000
2,413,000
2,600,000
5,522,000
Total Non Current Liabilities Net Minority Interest
1,075,000
1,884,000
2,530,000
4,017,000
Other Non Current Liabilities
1,000
1,000
1,000
Long Term Debt And Capital Lease Obligation
1,074,000
1,883,000
2,529,000
4,017,000
Long Term Capital Lease Obligation
6,000
13,000
19,000
38,000
Long Term Debt
1,068,000
1,870,000
2,510,000
3,979,000
Current Liabilities
327,000
529,000
70,000
1,505,000
Current Debt And Capital Lease Obligation
246,000
434,000
5,000
1,383,000
Current Capital Lease Obligation
1,000
2,000
5,000
7,000
Current Debt
245,000
432,000
1,376,000
4,247,000
Other Current Borrowings
245,000
432,000
1,376,000
4,240,000
Line Of Credit
0
7,000
Pensionand Other Post Retirement Benefit Plans Current
17,000
Payables And Accrued Expenses
81,000
95,000
65,000
122,000
Current Accrued Expenses
78,000
78,000
56,000
88,000
Interest Payable
1,000
3,000
1,000
12,000
Payables
3,000
17,000
9,000
34,000
Total Tax Payable
3,000
8,000
7,000
29,000
Accounts Payable
0
9,000
2,000
5,000
Total Assets
2,407,000
3,126,000
3,567,000
6,608,000
Total Non Current Assets
108,000
129,000
122,000
142,000
Other Non Current Assets
70,000
60,000
22,000
27,000
Goodwill And Other Intangible Assets
3,000
3,000
9,000
16,000
Other Intangible Assets
5,000
12,000
12,000
Goodwill
3,000
3,000
4,000
4,000
Net PPE
35,000
66,000
91,000
99,000
Accumulated Depreciation
-90,000
-75,000
-100,000
-90,000
Gross PPE
125,000
141,000
191,000
189,000
Leases
0
2,000
2,000
2,000
Other Properties
12,000
22,000
44,000
59,000
Machinery Furniture Equipment
113,000
119,000
145,000
128,000
Current Assets
2,299,000
2,997,000
3,445,000
6,466,000
Other Current Assets
69,000
61,000
52,000
41,000
Assets Held For Sale Current
0
7,000
Restricted Cash
343,000
98,000
550,000
684,000
Inventory
925,000
2,159,000
1,775,000
4,460,000
Finished Goods
676,000
1,582,000
1,135,000
3,569,000
Work In Process
249,000
577,000
640,000
891,000
Cash Cash Equivalents And Short Term Investments
962,000
679,000
1,068,000
1,281,000
Other Short Term Investments
0
8,000
69,000
144,000
Cash And Cash Equivalents
962,000
671,000
999,000
1,137,000
Cash Equivalents
876,000
611,000
936,000
715,000
Cash Financial
86,000
60,000
63,000
422,000
Cash Flow
2025
2024
2023
2022
2021
Free Cash Flow
1,037,000
-620,000
2,307,000
693,000
Repayment Of Debt
-2,665,000
-715,000
-2,877,000
-11,943,000
Issuance Of Debt
760,000
500,000
238,000
10,222,000
Issuance Of Capital Stock
1,423,000
0
0
0
Capital Expenditure
-12,000
-25,000
-37,000
-37,000
Interest Paid Supplemental Data
120,000
121,000
203,000
355,000
End Cash Position
1,301,000
763,000
1,540,000
1,791,000
Beginning Cash Position
763,000
1,540,000
1,791,000
2,578,000
Changes In Cash
538,000
-777,000
-251,000
-787,000
Financing Cash Flow
-499,000
-210,000
-2,639,000
-1,751,000
Cash Flow From Continuing Financing Activities
-499,000
-210,000
-2,639,000
-1,751,000
Net Other Financing Charges
-23,000
-5,000
-36,000
-76,000
Proceeds From Stock Option Exercised
6,000
5,000
5,000
6,000
Net Common Stock Issuance
1,423,000
0
0
0
Common Stock Issuance
1,423,000
0
0
0
Net Issuance Payments Of Debt
-1,905,000
-215,000
-2,639,000
-1,721,000
Net Short Term Debt Issuance
-7,000
0
Short Term Debt Payments
-121,000
-192,000
Short Term Debt Issuance
114,000
192,000
Net Long Term Debt Issuance
-1,905,000
-215,000
-2,639,000
-1,721,000
Long Term Debt Payments
-2,665,000
-715,000
-2,877,000
-11,943,000
Long Term Debt Issuance
760,000
500,000
238,000
10,222,000
Investing Cash Flow
-12,000
28,000
44,000
234,000
Cash Flow From Continuing Investing Activities
-12,000
28,000
44,000
234,000
Net Investment Purchase And Sale
0
55,000
81,000
281,000
Sale Of Investment
6,000
55,000
81,000
334,000
Purchase Of Investment
-6,000
0
0
-53,000
Net Business Purchase And Sale
0
-2,000
0
-10,000
Purchase Of Business
0
-2,000
0
-10,000
Net Intangibles Purchase And Sale
0
0
-1,000
Purchase Of Intangibles
0
0
-1,000
Net PPE Purchase And Sale
-12,000
-25,000
-37,000
-37,000
Purchase Of PPE
-12,000
-25,000
-37,000
-37,000
Operating Cash Flow
1,049,000
-595,000
2,344,000
730,000
Cash Flow From Continuing Operating Activities
1,049,000
-595,000
2,344,000
730,000
Change In Working Capital
1,155,000
-429,000
2,557,000
956,000
Change In Other Working Capital
2,000
3,000
21,000
54,000
Change In Other Current Liabilities
-1,000
-6,000
-10,000
-8,000
Change In Other Current Assets
-9,000
-10,000
-19,000
37,000
Change In Payables And Accrued Expense
-9,000
33,000
-48,000
-23,000
Change In Accrued Expense
-2,000
2,000
-10,000
2,000
Change In Interest Payable
-2,000
2,000
-10,000
2,000
Change In Payable
-7,000
31,000
-38,000
-25,000
Change In Account Payable
-7,000
31,000
-38,000
-25,000
Change In Inventory
1,172,000
-449,000
2,613,000
896,000
Other Non Cash Items
62,000
64,000
79,000
746,000
Stock Based Compensation
159,000
114,000
126,000
171,000
Unrealized Gain Loss On Investment Securities
3,000
7,000
1,000
35,000
Asset Impairment Charge
0
0
60,000
0
Depreciation Amortization Depletion
46,000
53,000
72,000
90,000
Depreciation And Amortization
46,000
53,000
72,000
90,000
Depreciation
46,000
53,000
72,000
90,000
Operating Gains Losses
924,000
-12,000
-216,000
25,000
Gain Loss On Investment Securities
-12,000
Gain Loss On Sale Of Business
0
-14,000
0
0
Net Income From Continuing Operations
-1,300,000
-392,000
-275,000
-1,353,000
These metrics estimate what Opendoor Technologies Inc. is worth based on its fundamentals — independent of what the market currently prices it at.
Graham's Fair Value and NCAV are conservative floors rooted in 1930s–60s principles.
EPV assumes zero growth. None are price targets — they are reference points for judging whether the current price offers a margin of safety.
Graham's Fair Value
N/A (negative EPS)
Margin of Safety
—
Market Cap ÷ Company Value
2.06
P/B Ratio
4.92
Warren's Owner Earnings
-$1.2B
Latest fiscal year
Graham's 7 Criteria
Defensive Investor Checklist
2/6 — Speculative Investor
✅Adequate Size
$4.4B
vs > $1.5B revenue
✅Strong Financial Condition
7.03x
vs Current Ratio > 2.0x
❌Earnings Stability
4 loss years (4 yrs data)
vs No negative EPS years
❌Dividend Record
No dividend
vs Uninterrupted dividends
❌Moderate P/E Ratio
-375.2x
vs P/E ≤ 15.0x
❌Moderate Price-to-Book
4.92x P/B (P/E×P/B: -1845.5)
vs P/B ≤ 1.5x | P/E × P/B ≤ 22.5
Graham's 7 Criteria — Explained
What each criterion measures and why it may or may not apply to modern businesses.
✅ Adequate Size — $4.4Bvs > $1.5B revenue
Graham required companies large enough to withstand economic downturns. This threshold ($1.5B) is inflation-adjusted from Graham's original $100M — virtually all S&P 500 companies pass this today.
"The minimum size of an enterprise should be not less than $100 million of annual sales."
✅ Strong Financial Condition — 7.03xvs Current Ratio > 2.0x
Current assets must be at least twice current liabilities. Note: highly profitable companies (Apple, Domino's) often run negative or low working capital deliberately — they collect cash fast and stretch payables. A failing score here is not always a warning sign.
"For industrial companies, current assets should be at least twice current liabilities."
❌ Earnings Stability — 4 loss years (4 yrs data)vs No negative EPS years
Graham required uninterrupted positive earnings. Any loss year is a red flag for defensive investors. Growth companies and cyclicals may show occasional losses during investment cycles or downturns without being fundamentally unsound.
"The company should have shown no deficit in the past ten years."
❌ Dividend Record — No dividendvs Uninterrupted dividends
Graham valued dividends as evidence of financial discipline and shareholder alignment. Many excellent modern businesses (Alphabet, Amazon, Berkshire Hathaway) pay no dividend, preferring to reinvest cash at high rates of return. Failing this criterion does not indicate a poor business — it may indicate a high-growth one.
"Some current dividend payments — for at least the past 20 years."
❌ Moderate P/E Ratio — -375.2xvs P/E ≤ 15.0x
Graham's 15x P/E threshold was calibrated to 1960s market averages when interest rates were higher. Today's lower rate environment structurally supports higher multiples — the S&P 500 long-run average P/E is now closer to 20–25x. A stock trading at 20x is not automatically speculative in the modern context.
"The price-earnings ratio should be no more than 15 times average earnings."
Graham's 1.5x P/B threshold made sense when most company value was tangible. Today, intangible assets — brand, software, patents, network effects — rarely appear on the balance sheet. A high P/B in tech, pharma, or consumer brands often reflects intangible value, not overvaluation. P/FCF or EV/EBITDA are more reliable for asset-light businesses.
"The price should not be more than 1½ times book value. P/E × P/B ≤ 22.5."
Net Current Asset Value
$0.93
Trading at 5.5x NCAV. Expected for most quality businesses — NCAV was designed to find depression-era bargains and rarely applies to modern profitable companies.
"Buy at two-thirds of net current assets." — Graham
Earnings Power Value
$-3.19
Per share, no-growth floor. Compare to current price.
Cash Flow Analysis
Metric
2025
2024
2023
2022
2021
Capital Expenditure % of Net Income
N/A
N/A
N/A
N/A
N/A
Repurchase of Capital Stock
N/A
N/A
N/A
N/A
$0M
Free Cash Flow
$1.0B▲
-$620M▼
$2.3B▲
$693M•
N/A•
Warren's Owner Earnings
-$1.2B
-$314M
-$166M
-$1.2B
N/A
Peers & Industry
No auto-detected peers for Real Estate Services. You can manually compare OPEN against any stock using the Compare tool.
"The management of a business is its most important single factor — more important than market position, patents, or financial structure."
— Benjamin Graham
Capital Allocation & Alignment
Insider Ownership
4.94%
Moderate — some alignment with shareholders
Return on Equity (ROE)
-129.4%
Weak — poor returns on equity
Return on Assets (ROA)
-54.0%
Poor — assets are not generating adequate returns
Debt Trend YoY
-43.0% YoY
Debt is declining — management is deleveraging
Leadership Team
Giang Nguyen
Chief Operating Officer
Age 43
Pay: $1,140,833
Top Institutional Holders
Institution
% Owned
Shares
Vanguard Group Inc
11.43%
110,258,796
Morgan Stanley
5.35%
51,586,202
Renaissance Technologies, LLC
4.08%
39,330,438
Lennar Corp
1.95%
18,785,943
Blackrock Inc.
1.86%
17,906,367
American Century Companies Inc
1.49%
14,346,288
Jane Street Group, LLC
1.44%
13,876,517
Charles Schwab Investment Management, Inc.
1.21%
11,682,366
⚠️Very high beta — extreme price volatility
Risk Analysis
Beta (Market Risk)
3.66
High volatility — moves more than the market
Short Interest
14.5% of float
Moderate short interest
Debt-to-Equity
1.31x
Moderate leverage
Current Ratio
7.03x
Strong liquidity — Graham approved
52-Week Price Range
Low: $0.51Current: $5.12High: $10.87
Currently at 45% of 52-week range
Opendoor Technologies Inc. (OPEN) fundamental analysis — Overall grade F based on profitability, financial health, valuation and cash flow. Graham's
Fair Value: N/A (negative EPS). Gross profit margin: 8.0%. Operating margin: -6.3%. Net margin: -29.7%. Market cap: $4.9B. Sector: Real Estate. Industry: Real Estate Services. Analysis powered by 360investing — free fundamental stock analysis based on Benjamin Graham and Warren Buffett
principles.
Disclaimer: 360investing is provided for informational and educational purposes only and does not constitute financial, investment, legal, or tax advice. All data is sourced from public third-party providers
and may be delayed, inaccurate, or incomplete. Past performance is not indicative of future results. Analysis, scores, and valuations are algorithmic and do not represent professional investment recommendations. Always conduct your own due
diligence and consult a qualified financial adviser before making any investment decision. Use of this tool constitutes acceptance that 360investing and its operators bear no liability for decisions made based on information presented here.