ROCKET COS INC-CLASS A (RKT) Stock Fundamental Analysis
USA - NYSE:RKT - US77311W1018 - Common Stock
16.97 USD
+0.55 (+3.35%)
16.9 USD
-0.07 (-0.41%)
RKT gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 99 industry peers in the Financial Services industry. RKT may be in some trouble as it scores bad on both profitability and health. While showing a medium growth rate, RKT is valued expensive at the moment.
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.
In multiple years RKT reported negative operating cash flow during the last 5 years.
1.2 Ratios
RKT has a Return On Assets of -0.30%. This is in the lower half of the industry: RKT underperforms 75.76% of its industry peers.
RKT has a worse Return On Equity (-1.15%) than 74.75% of its industry peers.
RKT has a Return On Invested Capital (2.71%) which is comparable to the rest of the industry.
RKT had an Average Return On Invested Capital over the past 3 years of 3.29%. This is below the industry average of 8.15%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.3% | ||
| ROE | -1.15% | ||
| ROIC | 2.71% |
ROA(3y)0.09%
ROA(5y)0.35%
ROE(3y)3.22%
ROE(5y)19.25%
ROIC(3y)3.29%
ROIC(5y)10.14%
1.3 Margins
In the last couple of years the Profit Margin of RKT has declined.
RKT's Operating Margin of 18.57% is fine compared to the rest of the industry. RKT outperforms 64.65% of its industry peers.
RKT's Operating Margin has declined in the last couple of years.
RKT does not have Profit Margin and Gross Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.57% | ||
| PM (TTM) | N/A | ||
| 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
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), RKT is destroying value.
RKT has more shares outstanding than it did 1 year ago.
RKT has more shares outstanding than it did 5 years ago.
RKT has a worse debt/assets ratio than last year.
2.2 Solvency
RKT has an Altman-Z score of 1.12. This is a bad value and indicates that RKT is not financially healthy and even has some risk of bankruptcy.
RKT's Altman-Z score of 1.12 is fine compared to the rest of the industry. RKT outperforms 61.62% of its industry peers.
RKT has a Debt/Equity ratio of 2.48. This is a high value indicating a heavy dependency on external financing.
RKT has a worse Debt to Equity ratio (2.48) than 72.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.48 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.12 |
ROIC/WACC0.35
WACC7.72%
2.3 Liquidity
A Current Ratio of 0.42 indicates that RKT may have some problems paying its short term obligations.
RKT has a Current ratio of 0.42. This is in the lower half of the industry: RKT underperforms 63.64% of its industry peers.
A Quick Ratio of 0.42 indicates that RKT may have some problems paying its short term obligations.
The Quick ratio of RKT (0.42) is worse than 63.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.42 | ||
| Quick Ratio | 0.42 |
3. Growth
3.1 Past
RKT shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.56%.
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.
RKT shows a strong growth in Revenue. In the last year, the Revenue has grown by 40.62%.
RKT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.62% yearly.
EPS 1Y (TTM)5.56%
EPS 3Y-53.86%
EPS 5YN/A
EPS Q2Q%-12.5%
Revenue 1Y (TTM)40.62%
Revenue growth 3Y-25.65%
Revenue growth 5Y0.62%
Sales Q2Q%148.11%
3.2 Future
RKT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 36.44% yearly.
The Revenue is expected to grow by 17.13% on average over the next years. This is quite good.
EPS Next Y8.1%
EPS Next 2Y87.89%
EPS Next 3Y70.69%
EPS Next 5Y36.44%
Revenue Next Year32.72%
Revenue Next 2Y46.88%
Revenue Next 3Y32.51%
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 89.32, RKT can be considered very expensive at the moment.
Based on the Price/Earnings ratio, RKT is valued a bit more expensive than 75.76% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 25.51. RKT is valued rather expensively when compared to this.
RKT is valuated rather expensively with a Price/Forward Earnings ratio of 21.85.
RKT's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. RKT is more expensive than 62.63% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of RKT to the average of the S&P500 Index (34.98), we can say RKT is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 89.32 | ||
| Fwd PE | 21.85 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RKT is valued a bit more expensive than the industry average as 60.61% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 37.73 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as RKT's earnings are expected to grow with 70.69% in the coming years.
PEG (NY)11.03
PEG (5Y)N/A
EPS Next 2Y87.89%
EPS Next 3Y70.69%
5. Dividend
5.1 Amount
RKT has a Yearly Dividend Yield of 4.69%, which is a nice return.
RKT's Dividend Yield is rather good when compared to the industry average which is at 4.68. RKT pays more dividend than 81.82% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, RKT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.69% |
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
5.3 Sustainability
DPN/A
EPS Next 2Y87.89%
EPS Next 3Y70.69%
16.97
+0.55 (+3.35%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners93.69%
Inst Owner Change57.57%
Ins Owners1.25%
Ins Owner Change-72.85%
Market Cap47.68B
Revenue(TTM)6.10B
Net Income(TTM)-102.15M
Analysts72
Price Target19.79 (16.62%)
Short Float %4.89%
Short Ratio1.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.69% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)48.67%
Min EPS beat(2)46.68%
Max EPS beat(2)50.67%
EPS beat(4)3
Avg EPS beat(4)34.73%
Min EPS beat(4)-1.8%
Max EPS beat(4)50.67%
EPS beat(8)6
Avg EPS beat(8)100.21%
EPS beat(12)10
Avg EPS beat(12)82.9%
EPS beat(16)10
Avg EPS beat(16)33.24%
Revenue beat(2)1
Avg Revenue beat(2)0.34%
Min Revenue beat(2)-4.67%
Max Revenue beat(2)5.36%
Revenue beat(4)2
Avg Revenue beat(4)9.18%
Min Revenue beat(4)-17.55%
Max Revenue beat(4)53.56%
Revenue beat(8)4
Avg Revenue beat(8)2.67%
Revenue beat(12)6
Avg Revenue beat(12)2.27%
Revenue beat(16)8
Avg Revenue beat(16)4.15%
PT rev (1m)6.59%
PT rev (3m)25.16%
EPS NQ rev (1m)-8.5%
EPS NQ rev (3m)14.87%
EPS NY rev (1m)10.54%
EPS NY rev (3m)-19.78%
Revenue NQ rev (1m)18.4%
Revenue NQ rev (3m)27.75%
Revenue NY rev (1m)3.08%
Revenue NY rev (3m)11.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 89.32 | ||
| Fwd PE | 21.85 | ||
| P/S | 7.82 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 5.39 | ||
| P/tB | N/A | ||
| EV/EBITDA | 37.73 |
EPS(TTM)0.19
EY1.12%
EPS(NY)0.78
Fwd EY4.58%
FCF(TTM)-0.33
FCFYN/A
OCF(TTM)-0.3
OCFYN/A
SpS2.17
BVpS3.15
TBVpS-1.81
PEG (NY)11.03
PEG (5Y)N/A
Graham Number3.67
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.3% | ||
| ROE | -1.15% | ||
| ROCE | 5.79% | ||
| ROIC | 2.71% | ||
| ROICexc | 3.3% | ||
| ROICexgc | 8.03% | ||
| OM | 18.57% | ||
| PM (TTM) | N/A | ||
| 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%
ROICexgc growth 3Y-32.9%
ROICexgc 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-Score2
Asset Turnover0.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.48 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 16.97 | ||
| Cap/Depr | 43.03% | ||
| Cap/Sales | 1.14% | ||
| Interest Coverage | 2.37 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.42 | ||
| Quick Ratio | 0.42 | ||
| Altman-Z | 1.12 |
F-Score2
WACC7.72%
ROIC/WACC0.35
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)5.56%
EPS 3Y-53.86%
EPS 5YN/A
EPS Q2Q%-12.5%
EPS Next Y8.1%
EPS Next 2Y87.89%
EPS Next 3Y70.69%
EPS Next 5Y36.44%
Revenue 1Y (TTM)40.62%
Revenue growth 3Y-25.65%
Revenue growth 5Y0.62%
Sales Q2Q%148.11%
Revenue Next Year32.72%
Revenue Next 2Y46.88%
Revenue Next 3Y32.51%
Revenue Next 5Y17.13%
EBIT growth 1Y196.98%
EBIT growth 3Y-43.41%
EBIT growth 5Y-2.5%
EBIT Next Year942.22%
EBIT Next 3Y264.59%
EBIT Next 5Y115.5%
FCF growth 1Y-599.97%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-1194.29%
OCF growth 3YN/A
OCF growth 5YN/A
ROCKET COS INC-CLASS A / RKT FAQ
What is the ChartMill fundamental rating of ROCKET COS INC-CLASS A (RKT) stock?
ChartMill assigns a fundamental rating of 2 / 10 to RKT.
Can you provide the valuation status for ROCKET COS INC-CLASS A?
ChartMill assigns a valuation rating of 1 / 10 to ROCKET COS INC-CLASS A (RKT). This can be considered as Overvalued.
Can you provide the profitability details for ROCKET COS INC-CLASS A?
ROCKET COS INC-CLASS A (RKT) has a profitability rating of 2 / 10.
What are the PE and PB ratios of ROCKET COS INC-CLASS A (RKT) stock?
The Price/Earnings (PE) ratio for ROCKET COS INC-CLASS A (RKT) is 89.32 and the Price/Book (PB) ratio is 5.39.
How financially healthy is ROCKET COS INC-CLASS A?
The financial health rating of ROCKET COS INC-CLASS A (RKT) is 0 / 10.