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

NYSE:RKT - US77311W1018 - Common Stock

19.21 USD
+1.63 (+9.27%)
Last: 8/22/2025, 8:04:01 PM
19.2899 USD
+0.08 (+0.42%)
After Hours: 8/22/2025, 8:04:01 PM
Fundamental Rating

2

We assign a fundamental rating of 2 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. While showing a medium growth rate, RKT is valued expensive at the moment.


Dividend Valuation Growth Profitability Health

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2

1. Profitability

1.1 Basic Checks

RKT had positive earnings in the past year.
In the past year RKT has reported a negative cash flow from operations.
RKT had positive earnings in 4 of the past 5 years.
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

Looking at the Return On Assets, with a value of 0.01%, RKT is doing worse than 71.00% of the companies in the same industry.
RKT has a Return On Equity of 0.47%. This is in the lower half of the industry: RKT underperforms 70.00% of its industry peers.
RKT has a Return On Invested Capital (2.66%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for RKT is below the industry average of 7.90%.
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 71.00% of the companies in the same industry.
In the last couple of years the Profit Margin of RKT has declined.
RKT has a better Operating Margin (16.32%) than 61.00% of its industry peers.
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

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so RKT is destroying value.
The number of shares outstanding for RKT has been increased compared to 1 year ago.
The number of shares outstanding for RKT has been increased compared to 5 years ago.
Compared to 1 year ago, RKT has a worse debt to assets ratio.
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

RKT has an Altman-Z score of 0.76. This is a bad value and indicates that RKT is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 0.76, RKT perfoms like the industry average, outperforming 56.00% of the companies in the same industry.
A Debt/Equity ratio of 24.82 is on the high side and indicates that RKT has dependencies on debt financing.
RKT has a Debt to Equity ratio of 24.82. This is amonst the worse of the industry: RKT underperforms 90.00% of its industry peers.
Industry RankSector Rank
Debt/Equity 24.82
Debt/FCF N/A
Altman-Z 0.76
ROIC/WACC0.34
WACC7.82%
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

RKT has a Current Ratio of 0.13. This is a bad value and indicates that RKT is not financially healthy enough and could expect problems in meeting its short term obligations.
RKT has a worse Current ratio (0.13) than 76.00% of its industry peers.
A Quick Ratio of 0.13 indicates that RKT may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.13, RKT is doing worse than 76.00% of the companies in the same industry.
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

The Earnings Per Share has grown by an impressive 100.00% over the past year.
The earnings per share for RKT have been decreasing by -53.86% on average. This is quite bad
The Revenue has been growing slightly by 6.27% in the past year.
The Revenue has been growing slightly by 0.62% on average over the past years.
EPS 1Y (TTM)100%
EPS 3Y-53.86%
EPS 5YN/A
EPS Q2Q%-33.33%
Revenue 1Y (TTM)6.27%
Revenue growth 3Y-25.65%
Revenue growth 5Y0.62%
Sales Q2Q%4.58%

3.2 Future

The Earnings Per Share is expected to grow by 43.16% on average over the next years. This is a very strong growth
Based on estimates for the next years, RKT will show a quite strong growth in Revenue. The Revenue will grow by 17.13% on average per year.
EPS Next Y34.74%
EPS Next 2Y79.59%
EPS Next 3Y65.76%
EPS Next 5Y43.16%
Revenue Next Year19.27%
Revenue Next 2Y28.28%
Revenue Next 3Y23.29%
Revenue Next 5Y17.13%

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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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1

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 96.05, which means the current valuation is very expensive for RKT.
Based on the Price/Earnings ratio, RKT is valued a bit more expensive than the industry average as 76.00% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Earnings ratio of 27.24, RKT is valued quite expensively.
Based on the Price/Forward Earnings ratio of 27.07, the valuation of RKT can be described as 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 70.00% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 35.82. RKT is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 96.05
Fwd PE 27.07
RKT Price Earnings VS Forward Price EarningsRKT Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, RKT is valued a bit more expensive than the industry average as 63.00% of the companies are valued more cheaply.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 42.05
RKT Per share dataRKT EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 -2 -4

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates RKT does not grow enough to justify the current Price/Earnings ratio.
RKT's earnings are expected to grow with 65.76% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.76
PEG (5Y)N/A
EPS Next 2Y79.59%
EPS Next 3Y65.76%

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5

5. Dividend

5.1 Amount

RKT has a Yearly Dividend Yield of 4.16%, which is a nice return.
Compared to an average industry Dividend Yield of 5.33, RKT pays a bit more dividend than its industry peers.
RKT's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
Industry RankSector Rank
Dividend Yield 4.16%

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 2Y79.59%
EPS Next 3Y65.76%
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 (8/22/2025, 8:04:01 PM)

After market: 19.2899 +0.08 (+0.42%)

19.21

+1.63 (+9.27%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)07-31 2025-07-31/amc
Earnings (Next)11-10 2025-11-10/amc
Inst Owners64.51%
Inst Owner Change47.6%
Ins Owners1.38%
Ins Owner Change-293.27%
Market Cap40.43B
Analysts67.69
Price Target17.11 (-10.93%)
Short Float %37.71%
Short Ratio5.01
Dividend
Industry RankSector Rank
Dividend Yield 4.16%
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)11.11%
PT rev (3m)7.27%
EPS NQ rev (1m)-12.65%
EPS NQ rev (3m)-56.96%
EPS NY rev (1m)0%
EPS NY rev (3m)-21.77%
Revenue NQ rev (1m)-0.23%
Revenue NQ rev (3m)-2.2%
Revenue NY rev (1m)-0.31%
Revenue NY rev (3m)-1.37%
Valuation
Industry RankSector Rank
PE 96.05
Fwd PE 27.07
P/S 7.95
P/FCF N/A
P/OCF N/A
P/B 69.2
P/tB N/A
EV/EBITDA 42.05
EPS(TTM)0.2
EY1.04%
EPS(NY)0.71
Fwd EY3.69%
FCF(TTM)-0.23
FCFYN/A
OCF(TTM)-0.2
OCFYN/A
SpS2.42
BVpS0.28
TBVpS-4.38
PEG (NY)2.76
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 0.76
F-Score3
WACC7.82%
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)100%
EPS 3Y-53.86%
EPS 5YN/A
EPS Q2Q%-33.33%
EPS Next Y34.74%
EPS Next 2Y79.59%
EPS Next 3Y65.76%
EPS Next 5Y43.16%
Revenue 1Y (TTM)6.27%
Revenue growth 3Y-25.65%
Revenue growth 5Y0.62%
Sales Q2Q%4.58%
Revenue Next Year19.27%
Revenue Next 2Y28.28%
Revenue Next 3Y23.29%
Revenue Next 5Y17.13%
EBIT growth 1Y-1.18%
EBIT growth 3Y-43.41%
EBIT growth 5Y-2.5%
EBIT Next Year1149.83%
EBIT Next 3Y247.32%
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