ROCKET COS INC-CLASS A (RKT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RKT - US77311W1018 - Common Stock
19.39 USD
-0.32 (-1.62%)
19.4191 USD
+0.03 (+0.15%)
Overall RKT gets a fundamental rating of 2 out of 10. We evaluated RKT against 98 industry peers in the Financial Services industry. RKT may be in some trouble as it scores bad on both profitability and health. RKT is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
RKT had positive earnings in the past year.
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.
1.2 Ratios
The Return On Assets of RKT (-0.30%) is worse than 77.55% of its industry peers.
The Return On Equity of RKT (-1.15%) is worse than 75.51% of its industry peers.
With a Return On Invested Capital value of 2.71%, RKT perfoms like the industry average, outperforming 48.98% of the companies in the same industry.
RKT had an Average Return On Invested Capital over the past 3 years of 3.29%. This is below the industry average of 8.20%.
| 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
RKT's Profit Margin has declined in the last couple of years.
RKT has a Operating Margin of 18.57%. This is in the better half of the industry: RKT outperforms 63.27% of its industry peers.
In the last couple of years the Operating Margin of RKT has declined.
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
RKT has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, RKT has more shares outstanding
Compared to 5 years ago, RKT has more shares outstanding
The debt/assets ratio for RKT is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.35, we must say that RKT is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of RKT (1.35) is better than 63.27% of its industry peers.
A Debt/Equity ratio of 2.48 is on the high side and indicates that RKT has dependencies on debt financing.
RKT has a Debt to Equity ratio of 2.48. This is in the lower half of the industry: RKT underperforms 73.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.48 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.35 |
ROIC/WACC0.35
WACC7.77%
2.3 Liquidity
RKT has a Current Ratio of 0.42. This is a bad value and indicates that RKT is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of RKT (0.42) is worse than 64.29% of its industry peers.
RKT has a Quick Ratio of 0.42. 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's Quick ratio of 0.42 is on the low side compared to the rest of the industry. RKT is outperformed by 64.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.42 | ||
| Quick Ratio | 0.42 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 5.56% over the past year.
RKT shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -53.86% yearly.
The Revenue has grown by 40.62% in the past year. This is a very strong growth!
Measured over the past years, RKT shows a small growth in Revenue. The Revenue has been growing by 0.62% on average per year.
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
Based on estimates for the next years, RKT will show a very strong growth in Earnings Per Share. The EPS will grow by 36.44% 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 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
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 102.05 indicates a quite expensive valuation of RKT.
Compared to the rest of the industry, the Price/Earnings ratio of RKT indicates a slightly more expensive valuation: RKT is more expensive than 76.53% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of RKT to the average of the S&P500 Index (26.41), we can say RKT is valued expensively.
With a Price/Forward Earnings ratio of 24.96, RKT is valued on the expensive side.
69.39% of the companies in the same industry are cheaper than RKT, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.40, RKT is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 102.05 | ||
| Fwd PE | 24.96 |
4.2 Price Multiples
63.27% of the companies in the same industry are cheaper than RKT, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 44.97 |
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.
A more expensive valuation may be justified as RKT's earnings are expected to grow with 70.69% in the coming years.
PEG (NY)12.6
PEG (5Y)N/A
EPS Next 2Y87.89%
EPS Next 3Y70.69%
5. Dividend
5.1 Amount
RKT has a Yearly Dividend Yield of 4.00%, which is a nice return.
Compared to an average industry Dividend Yield of 4.97, RKT pays a better dividend. On top of this RKT pays more dividend than 81.63% of the companies listed in the same industry.
RKT's Dividend Yield is rather good when compared to the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4% |
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%
19.39
-0.32 (-1.62%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners93.69%
Inst Owner Change59.25%
Ins Owners1.25%
Ins Owner Change-72.79%
Market Cap54.60B
Revenue(TTM)6.10B
Net Income(TTM)-102.15M
Analysts72
Price Target20.68 (6.65%)
Short Float %4.12%
Short Ratio0.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4% |
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)11.39%
PT rev (3m)20.83%
EPS NQ rev (1m)-18.58%
EPS NQ rev (3m)31.43%
EPS NY rev (1m)-1.52%
EPS NY rev (3m)10.8%
Revenue NQ rev (1m)12.58%
Revenue NQ rev (3m)26.42%
Revenue NY rev (1m)1.69%
Revenue NY rev (3m)2.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 102.05 | ||
| Fwd PE | 24.96 | ||
| P/S | 8.95 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 6.17 | ||
| P/tB | N/A | ||
| EV/EBITDA | 44.97 |
EPS(TTM)0.19
EY0.98%
EPS(NY)0.78
Fwd EY4.01%
FCF(TTM)-0.33
FCFYN/A
OCF(TTM)-0.3
OCFYN/A
SpS2.17
BVpS3.14
TBVpS-1.8
PEG (NY)12.6
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 | 1.35 |
F-Score2
WACC7.77%
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 102.05 and the Price/Book (PB) ratio is 6.17.
How financially healthy is ROCKET COS INC-CLASS A?
The financial health rating of ROCKET COS INC-CLASS A (RKT) is 0 / 10.