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ROCKET COS INC-CLASS A (RKT) Stock Fundamental Analysis

NYSE:RKT - New York Stock Exchange, Inc. - US77311W1018 - Common Stock - Currency: USD

14.24  -0.33 (-2.26%)

After market: 14.24 0 (0%)

Fundamental Rating

3

We assign a fundamental rating of 3 out of 10 to RKT. RKT was compared to 100 industry peers in the Financial Services industry. RKT has a bad profitability rating. Also its financial health evaluation is rather negative. RKT is quite expensive at the moment. It does show a decent growth rate.


Dividend Valuation Growth Profitability Health

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2

1. Profitability

1.1 Basic Checks

In the past year RKT was profitable.
RKT had a negative operating cash flow in the past year.
Of the past 5 years RKT 4 years were profitable.
The reported operating cash flow has been mixed in the past 5 years: RKT reported negative operating cash flow in multiple years.
RKT Yearly Net Income VS EBIT VS OCF VS FCFRKT Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5B -5B 10B

1.2 Ratios

RKT has a worse Return On Assets (0.01%) than 75.00% of its industry peers.
RKT's Return On Equity of 0.47% is on the low side compared to the rest of the industry. RKT is outperformed by 74.00% of its industry peers.
RKT's Return On Invested Capital of 2.66% is in line compared to the rest of the industry. RKT outperforms 48.00% of its industry peers.
RKT had an Average Return On Invested Capital over the past 3 years of 3.29%. This is significantly below the industry average of 11.84%.
Industry RankSector Rank
ROA 0.01%
ROE 0.47%
ROIC 2.66%
ROA(3y)0.09%
ROA(5y)0.35%
ROE(3y)3.22%
ROE(5y)19.25%
ROIC(3y)3.29%
ROIC(5y)10.14%
RKT Yearly ROA, ROE, ROICRKT Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 20 30 40

1.3 Margins

Looking at the Profit Margin, with a value of 0.05%, RKT is doing worse than 74.00% of the companies in the same industry.
In the last couple of years the Profit Margin of RKT has declined.
With a Operating Margin value of 16.32%, RKT perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
In the last couple of years the Operating Margin of RKT has declined.
Industry RankSector Rank
OM 16.32%
PM (TTM) 0.05%
GM N/A
OM growth 3Y-23.89%
OM growth 5Y-3.1%
PM growth 3Y-38.56%
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
RKT Yearly Profit, Operating, Gross MarginsRKT Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 40 60

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0

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), RKT is destroying value.
Compared to 1 year ago, RKT has more shares outstanding
RKT has more shares outstanding than it did 5 years ago.
The debt/assets ratio for RKT is higher compared to a year ago.
RKT Yearly Shares OutstandingRKT Yearly Shares OutstandingYearly Shares Outstanding 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B
RKT Yearly Total Debt VS Total AssetsRKT Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2018 2019 2020 2021 2022 2023 2024 10B 20B 30B

2.2 Solvency

Based on the Altman-Z score of 0.55, we must say that RKT is in the distress zone and has some risk of bankruptcy.
RKT has a Altman-Z score (0.55) which is comparable to the rest of the industry.
RKT has a Debt/Equity ratio of 24.82. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 24.82, RKT is doing worse than 90.00% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 24.82
Debt/FCF N/A
Altman-Z 0.55
ROIC/WACC0.34
WACC7.76%
RKT Yearly LT Debt VS Equity VS FCFRKT Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2017 2018 2019 2020 2021 2022 2023 2024 0 5B -5B 10B

2.3 Liquidity

A Current Ratio of 0.13 indicates that RKT may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.13, RKT is doing worse than 76.00% of the companies in the same industry.
A Quick Ratio of 0.13 indicates that RKT may have some problems paying its short term obligations.
The Quick ratio of RKT (0.13) is worse than 76.00% of its industry peers.
Industry RankSector Rank
Current Ratio 0.13
Quick Ratio 0.13
RKT Yearly Current Assets VS Current LiabilitesRKT Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B 20B

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6

3. Growth

3.1 Past

RKT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 1000.00%, which is quite impressive.
Measured over the past years, RKT shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -53.86% on average per year.
The Revenue has been growing slightly by 7.09% in the past year.
RKT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.62% yearly.
EPS 1Y (TTM)1000%
EPS 3Y-53.86%
EPS 5YN/A
EPS Q2Q%0%
Revenue 1Y (TTM)7.09%
Revenue growth 3Y-25.65%
Revenue growth 5Y0.62%
Sales Q2Q%-27.72%

3.2 Future

Based on estimates for the next years, RKT will show a very strong growth in Earnings Per Share. The EPS will grow by 43.16% on average per year.
RKT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 17.13% yearly.
EPS Next Y46.22%
EPS Next 2Y81.91%
EPS Next 3Y67.95%
EPS Next 5Y43.16%
Revenue Next Year20.5%
Revenue Next 2Y26.8%
Revenue Next 3Y23.34%
Revenue Next 5Y17.13%

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
RKT Yearly Revenue VS EstimatesRKT Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 5B 10B 15B
RKT Yearly EPS VS EstimatesRKT Yearly EPS VS EstimatesYearly EPS VS Estimates 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 0 1 2 3

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2

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 64.73, which means the current valuation is very expensive for RKT.
Based on the Price/Earnings ratio, RKT is valued a bit more expensive than 77.00% of the companies in the same industry.
RKT is valuated expensively when we compare the Price/Earnings ratio to 27.45, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 19.56, the valuation of RKT can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RKT indicates a slightly more expensive valuation: RKT is more expensive than 63.00% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.90. RKT is around the same levels.
Industry RankSector Rank
PE 64.73
Fwd PE 19.56
RKT Price Earnings VS Forward Price EarningsRKT Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

The rest of the industry has a similar Enterprise Value to EBITDA ratio as RKT.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 33.03
RKT Per share dataRKT EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 -2 -4

4.3 Compensation for Growth

RKT's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as RKT's earnings are expected to grow with 67.95% in the coming years.
PEG (NY)1.4
PEG (5Y)N/A
EPS Next 2Y81.91%
EPS Next 3Y67.95%

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5

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 5.63%, RKT is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.97, RKT pays a better dividend. On top of this RKT pays more dividend than 85.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.42, RKT pays a better dividend.
Industry RankSector Rank
Dividend Yield 5.63%

5.2 History

RKT has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
RKT Yearly Dividends per shareRKT Yearly Dividends per shareYearly Dividends per share 2015 2021 2022 2025 0.2 0.4 0.6 0.8 1

5.3 Sustainability

DPN/A
EPS Next 2Y81.91%
EPS Next 3Y67.95%
RKT Yearly Income VS Free CF VS DividendRKT Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5B -5B 10B

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ROCKET COS INC-CLASS A

NYSE:RKT (7/3/2025, 8:06:34 PM)

After market: 14.24 0 (0%)

14.24

-0.33 (-2.26%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)05-08 2025-05-08/amc
Earnings (Next)07-30 2025-07-30/amc
Inst Owners97.43%
Inst Owner Change32.99%
Ins Owners1.89%
Ins Owner Change10.17%
Market Cap28.48B
Analysts66.67
Price Target14.23 (-0.07%)
Short Float %44.61%
Short Ratio5.22
Dividend
Industry RankSector Rank
Dividend Yield 5.63%
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-Date03-20 2025-03-20 (0.8)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)20.79%
Min EPS beat(2)-1.8%
Max EPS beat(2)43.39%
EPS beat(4)2
Avg EPS beat(4)15.08%
Min EPS beat(4)-1.93%
Max EPS beat(4)43.39%
EPS beat(8)6
Avg EPS beat(8)107.01%
EPS beat(12)8
Avg EPS beat(12)39%
EPS beat(16)9
Avg EPS beat(16)27.93%
Revenue beat(2)1
Avg Revenue beat(2)18.01%
Min Revenue beat(2)-17.55%
Max Revenue beat(2)53.56%
Revenue beat(4)2
Avg Revenue beat(4)-2.11%
Min Revenue beat(4)-50.12%
Max Revenue beat(4)53.56%
Revenue beat(8)5
Avg Revenue beat(8)8.28%
Revenue beat(12)6
Avg Revenue beat(12)3.69%
Revenue beat(16)8
Avg Revenue beat(16)3.99%
PT rev (1m)-3.46%
PT rev (3m)1.29%
EPS NQ rev (1m)-27.15%
EPS NQ rev (3m)-62.8%
EPS NY rev (1m)-15.11%
EPS NY rev (3m)-31.01%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-14.48%
Revenue NY rev (1m)-0.35%
Revenue NY rev (3m)-13.39%
Valuation
Industry RankSector Rank
PE 64.73
Fwd PE 19.56
P/S 5.6
P/FCF N/A
P/OCF N/A
P/B 48.77
P/tB N/A
EV/EBITDA 33.03
EPS(TTM)0.22
EY1.54%
EPS(NY)0.73
Fwd EY5.11%
FCF(TTM)-0.24
FCFYN/A
OCF(TTM)-0.21
OCFYN/A
SpS2.54
BVpS0.29
TBVpS-4.61
PEG (NY)1.4
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 0.01%
ROE 0.47%
ROCE 5.84%
ROIC 2.66%
ROICexc 2.82%
ROICexgc 5.66%
OM 16.32%
PM (TTM) 0.05%
GM N/A
FCFM N/A
ROA(3y)0.09%
ROA(5y)0.35%
ROE(3y)3.22%
ROE(5y)19.25%
ROIC(3y)3.29%
ROIC(5y)10.14%
ROICexc(3y)3.45%
ROICexc(5y)10.75%
ROICexgc(3y)6.07%
ROICexgc(5y)14.38%
ROCE(3y)6.38%
ROCE(5y)29.47%
ROICexcg growth 3Y-32.9%
ROICexcg growth 5Y-0.88%
ROICexc growth 3Y-38.01%
ROICexc growth 5Y-6.72%
OM growth 3Y-23.89%
OM growth 5Y-3.1%
PM growth 3Y-38.56%
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
F-Score3
Asset Turnover0.2
Health
Industry RankSector Rank
Debt/Equity 24.82
Debt/FCF N/A
Debt/EBITDA 15.38
Cap/Depr 59.82%
Cap/Sales 1.33%
Interest Coverage 1.73
Cash Conversion N/A
Profit Quality N/A
Current Ratio 0.13
Quick Ratio 0.13
Altman-Z 0.55
F-Score3
WACC7.76%
ROIC/WACC0.34
Cap/Depr(3y)71.15%
Cap/Depr(5y)102.8%
Cap/Sales(3y)1.43%
Cap/Sales(5y)1.17%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)1000%
EPS 3Y-53.86%
EPS 5YN/A
EPS Q2Q%0%
EPS Next Y46.22%
EPS Next 2Y81.91%
EPS Next 3Y67.95%
EPS Next 5Y43.16%
Revenue 1Y (TTM)7.09%
Revenue growth 3Y-25.65%
Revenue growth 5Y0.62%
Sales Q2Q%-27.72%
Revenue Next Year20.5%
Revenue Next 2Y26.8%
Revenue Next 3Y23.34%
Revenue Next 5Y17.13%
EBIT growth 1Y-1.18%
EBIT growth 3Y-43.41%
EBIT growth 5Y-2.5%
EBIT Next Year1658.47%
EBIT Next 3Y253.07%
EBIT Next 5Y115.5%
FCF growth 1Y-175.75%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-157.04%
OCF growth 3YN/A
OCF growth 5YN/A