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-16.0%
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-18.3%
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.
Financial Health
C
Years to Pay Off Debt-12.1 yrs
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$811M
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$1.9B
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.
Valuation
D
Price-to-Book2.85x
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 like software and consumer brands.
Cash Flow
F
Free Cash Flow-$723M
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-$148M
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.
About Opendoor Technologies Inc.
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.
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.
Metric Explanations
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 like software and consumer brands.
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.
Net Income From Continuing Operation Net Minority Interest
-162,000
-1,096,000
Reconciled Depreciation
9,000
11,000
Reconciled Cost Of Revenue
797,000
679,000
EBITDA
-124,000
-1,058,000
EBIT
-133,000
-1,069,000
Net Interest Income
-29,000
-28,000
Interest Expense
29,000
28,000
Normalized Income
-159,002
-163,851
Net Income From Continuing And Discontinued Operation
-162,000
-1,096,000
Total Expenses
1,024,000
886,000
Total Operating Income As Reported
-144,000
-150,000
Diluted Average Shares
965,780
869,822
Basic Average Shares
965,780
869,822
Diluted EPS
0
0
Basic EPS
0
0
Diluted NI Availto Com Stockholders
-162,000
-1,096,000
Net Income Common Stockholders
-162,000
-1,096,000
Net Income
-162,000
-1,096,000
Net Income Including Noncontrolling Interests
-162,000
-1,096,000
Net Income Continuous Operations
-162,000
-1,096,000
Tax Provision
0
-1,000
Pretax Income
-162,000
-1,097,000
Other Income Expense
8,000
-919,000
Other Non Operating Income Expenses
11,000
14,000
Special Income Charges
-3,000
-933,000
Other Special Charges
933,000
1,000
Restructuring And Mergern Acquisition
3,000
0
Net Non Operating Interest Income Expense
-29,000
-28,000
Interest Expense Non Operating
29,000
28,000
Operating Income
-141,000
-150,000
Operating Expense
227,000
207,000
Research And Development
27,000
18,000
Selling General And Administration
200,000
189,000
Selling And Marketing Expense
65,000
60,000
General And Administrative Expense
135,000
129,000
Other Gand A
135,000
129,000
Gross Profit
86,000
57,000
Cost Of Revenue
797,000
679,000
Total Revenue
883,000
736,000
Operating Revenue
883,000
736,000
Balance Sheet
2026
2025
2024
Ordinary Shares Number
968,627
957,245
Share Issued
968,627
957,245
Net Debt
1,060,000
351,000
Total Debt
1,964,000
1,320,000
Tangible Book Value
911,000
1,002,000
Invested Capital
2,870,000
2,318,000
Working Capital
1,882,000
1,972,000
Net Tangible Assets
911,000
1,002,000
Capital Lease Obligations
8,000
7,000
Common Stock Equity
914,000
1,005,000
Total Capitalization
1,985,000
2,073,000
Total Equity Gross Minority Interest
914,000
1,005,000
Stockholders Equity
914,000
1,005,000
Gains Losses Not Affecting Retained Earnings
-1,000
0
Other Equity Adjustments
-1,000
Retained Earnings
-5,368,000
-5,033,000
Additional Paid In Capital
6,283,000
6,038,000
Total Liabilities Net Minority Interest
2,047,000
1,402,000
Total Non Current Liabilities Net Minority Interest
1,079,000
1,075,000
Other Non Current Liabilities
2,000
1,000
Long Term Debt And Capital Lease Obligation
1,077,000
1,074,000
Long Term Capital Lease Obligation
6,000
6,000
Long Term Debt
1,071,000
1,068,000
Current Liabilities
968,000
327,000
Current Debt And Capital Lease Obligation
887,000
246,000
Current Capital Lease Obligation
2,000
1,000
Current Debt
885,000
245,000
Other Current Borrowings
885,000
245,000
Payables And Accrued Expenses
81,000
81,000
Current Accrued Expenses
3,000
78,000
Interest Payable
3,000
1,000
Payables
78,000
3,000
Total Tax Payable
3,000
8,000
Accounts Payable
78,000
0
Total Assets
2,961,000
2,407,000
Total Non Current Assets
111,000
108,000
Other Non Current Assets
74,000
70,000
Goodwill And Other Intangible Assets
3,000
3,000
Goodwill
3,000
3,000
Net PPE
34,000
35,000
Accumulated Depreciation
-85,000
-90,000
Gross PPE
119,000
125,000
Leases
1,000
0
Other Properties
14,000
12,000
Machinery Furniture Equipment
104,000
113,000
Current Assets
2,850,000
2,299,000
Other Current Assets
30,000
69,000
Restricted Cash
79,000
343,000
Inventory
1,845,000
925,000
Finished Goods
1,349,000
676,000
Work In Process
496,000
249,000
Cash Cash Equivalents And Short Term Investments
896,000
962,000
Other Short Term Investments
0
8,000
Cash And Cash Equivalents
896,000
962,000
Cash Equivalents
709,000
876,000
Cash Financial
187,000
86,000
Cash Flow
2026
2025
2024
Free Cash Flow
-723,000
67,000
Repayment Of Debt
-90,000
-1,397,000
Issuance Of Debt
713,000
1,000
Issuance Of Capital Stock
1,184,000
Capital Expenditure
-5,000
-3,000
Interest Paid Supplemental Data
26,000
32,000
End Cash Position
962,000
1,301,000
Beginning Cash Position
1,067,000
1,452,000
Changes In Cash
-105,000
-151,000
Financing Cash Flow
623,000
-218,000
Cash Flow From Continuing Financing Activities
623,000
-218,000
Net Other Financing Charges
-6,000
Proceeds From Stock Option Exercised
0
0
Net Common Stock Issuance
1,184,000
Common Stock Issuance
1,184,000
Net Issuance Payments Of Debt
623,000
-1,396,000
Net Long Term Debt Issuance
623,000
-1,396,000
Long Term Debt Payments
-90,000
-1,397,000
Long Term Debt Issuance
713,000
1,000
Investing Cash Flow
-10,000
-3,000
Cash Flow From Continuing Investing Activities
-10,000
-3,000
Net Investment Purchase And Sale
-5,000
0
Purchase Of Investment
0
Net PPE Purchase And Sale
-5,000
-3,000
Purchase Of PPE
-5,000
-3,000
Operating Cash Flow
-718,000
70,000
Cash Flow From Continuing Operating Activities
-718,000
70,000
Change In Working Capital
-701,000
110,000
Change In Other Working Capital
-3,000
5,000
Change In Other Current Liabilities
-1,000
0
Change In Other Current Assets
-5,000
6,000
Change In Payables And Accrued Expense
19,000
-19,000
Change In Accrued Expense
1,000
-8,000
Change In Interest Payable
1,000
-8,000
Change In Payable
18,000
-11,000
Change In Account Payable
18,000
-11,000
Change In Inventory
-711,000
118,000
Other Non Cash Items
17,000
7,000
Stock Based Compensation
119,000
105,000
Depreciation Amortization Depletion
9,000
11,000
Depreciation And Amortization
9,000
11,000
Depreciation
9,000
11,000
Operating Gains Losses
0
933,000
1,000
Net Income From Continuing Operations
-162,000
-1,096,000
📊Quarterly mode — Graham Fair Value & 7 Criteria require annual data. Switch to Annual for full analysis.
Quarter vs Same Quarter Last Year
YoY strips seasonality
Revenue Growth (YoY)
Prior year: $1.6B▼ $883M-43.7%
Revenue growth vs same quarter last year strips seasonality. Consistent double-digit growth is a Buffett hallmark.
Gross Margin
Prior year: 8.2%▼ 9.7%+1.6pp
Buffett: consistent gross margin above 40% signals durable pricing power and competitive moat.
Operating Margin
Prior year: -9.0%▼ -16.0%-7.0pp
Graham: operating margin reflects true business economics before financing. Trend matters as much as level.
Net Margin
Prior year: -1.9%▼ -18.3%-16.5pp
Net margin can be distorted by one-time items, tax timing, or interest costs — compare to operating margin for signal quality.
Quarterly Health Checks
3 Graham/Buffett criteria that are valid and reliable on quarterly data
✅ Adequate Size
Graham required scale for resilience. Quarterly revenue × 4 gives an annualised proxy.
$883M/qtr (≈$3.5B ann.)
vs > $1.5B annualised revenue
✅ Financial Condition
Current assets vs current liabilities — a real-time liquidity snapshot. Valid and reliable on quarterly data.
2.94x current ratio
vs ≥ 2.0x
❌ Free Cash Flow
Buffett's most important single metric. A positive FCF quarter means the business generated real cash for owners after maintaining its asset base.
-$723M
vs Positive
Operating Cash Flow
-$718M
Latest quarter · Buffett's cash reality check
ROIC
-5.6%
Based on latest annual operating income
Return on Invested Capital — Buffett's preferred measure for asset-light businesses. ROIC > 15% consistently signals a durable competitive advantage (moat). More meaningful than P/B for software, pharma, and consumer brand companies where most value is intangible and off-balance-sheet.
Market Cap / Net Assets
2.8x
Net Assets: $914M
⚠️Net margin compressed 16.5pp vs same quarter last year. Common causes: one-time charges (restructuring, write-downs, legal settlements), tax rate changes, or rising interest expense. Check the income statement notes before drawing conclusions about operating health.
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
4.90%
Moderate — some alignment with shareholders
Return on Equity (ROE)
-17.7%
Weak — poor returns on equity
Return on Assets (ROA)
-5.5%
Poor — assets are not generating adequate returns
Debt Trend YoY
+46.8% YoY
Debt is growing — management is leveraging up
Leadership Team
Keith Rabois
Co-Founder & Chairman
Age 56
Pay: $28,447
Kasra Nejatian
CEO & Director
Age 42
Lucas Matheson
President
Age 46
Pay: $208,336
Chung Wei Wu
Co-Founder & Director
Age 42
Pay: $15,377
Christina Schwartz
Chief Financial Officer
Age 46
Pay: $841,078
Top Institutional Holders
Institution
% Owned
Shares
Morgan Stanley
11.94%
115,205,390
Vanguard Portfolio Management LLC
7.90%
76,214,771
Blackrock Inc.
7.56%
72,920,992
Vanguard Capital Management LLC
3.59%
34,618,646
Geode Capital Management, LLC
2.59%
24,951,742
State Street Corporation
2.26%
21,768,138
American Century Companies Inc
1.47%
14,201,295
Lennar Corp
1.40%
13,534,807
⚠️Very high beta — extreme price volatility
⚠️Short interest exceeds 20% — heavy bearish bets
Risk Analysis
Beta (Market Risk)
3.56
High volatility — moves more than the market
Short Interest
24.0% of float
Heavy short selling — market has significant bearish bets
Debt-to-Equity
2.15x
High leverage — significant financial risk
Current Ratio
2.94x
Strong liquidity — Graham approved
52-Week Price Range
Low: $2.52Current: $2.68High: $9.69
Currently at 2% 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: 9.7%. Operating margin: -16.0%. Net margin: -18.3%. Market cap: $2.6B. Sector: Real Estate. Industry: Real Estate Services. Analysis powered by 360investing — free fundamental stock analysis based on Benjamin Graham and Warren Buffett
principles.
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