ROCKET COS INC-CLASS A (RKT)
US77311W1018 - Common Stock
We assign a fundamental rating of 2 out of 10 to RKT. RKT was compared to 102 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
RKT had negative earnings in the past year.
In the past year RKT had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: RKT reported negative net income in multiple years.
In multiple years RKT reported negative operating cash flow during the last 5 years.
1.2 Ratios
RKT's Return On Assets of -0.08% is on the low side compared to the rest of the industry. RKT is outperformed by 64.71% of its industry peers.
RKT has a worse Return On Equity (-2.49%) than 67.65% of its industry peers.
The Return On Invested Capital of RKT (0.42%) is worse than 63.73% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for RKT is in line with the industry average of 7.92%.
The last Return On Invested Capital (0.42%) for RKT is well below the 3 year average (7.85%), which needs to be investigated, but indicates that RKT had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.08% | ||
| ROE | -2.49% | ||
| ROIC | 0.42% |
ROA(3y)0.36%
ROA(5y)0.32%
ROE(3y)17.25%
ROE(5y)18.41%
ROIC(3y)7.85%
ROIC(5y)10.48%
1.3 Margins
Looking at the Operating Margin, with a value of 2.47%, RKT is doing worse than 64.71% of the companies in the same industry.
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 | 2.47% | ||
| PM (TTM) | N/A | ||
| GM | N/A |
OM growth 3Y-66.7%
OM growth 5Y-36.85%
PM growth 3YN/A
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) just above the Cost of Capital (WACC), RKT is creating some value.
RKT has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, RKT has about the same amount of shares outstanding.
RKT has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.76, we must say that RKT is in the distress zone and has some risk of bankruptcy.
RKT has a Altman-Z score (0.76) which is comparable to the rest of the industry.
The Debt to FCF ratio of RKT is 183.39, which is on the high side as it means it would take RKT, 183.39 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of RKT (183.39) is comparable to the rest of the industry.
RKT has a Debt/Equity ratio of 14.67. This is a high value indicating a heavy dependency on external financing.
RKT has a Debt to Equity ratio of 14.67. This is amonst the worse of the industry: RKT underperforms 94.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 14.67 | ||
| Debt/FCF | 183.39 | ||
| Altman-Z | 0.76 |
ROIC/WACC0.05
WACC7.73%
2.3 Liquidity
A Current Ratio of 0.20 indicates that RKT may have some problems paying its short term obligations.
With a Current ratio value of 0.20, RKT is not doing good in the industry: 76.47% of the companies in the same industry are doing better.
A Quick Ratio of 0.20 indicates that RKT may have some problems paying its short term obligations.
RKT's Quick ratio of 0.20 is on the low side compared to the rest of the industry. RKT is outperformed by 76.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.2 | ||
| Quick Ratio | 0.2 |
3. Growth
3.1 Past
RKT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -33.33%.
The Revenue for RKT has decreased by -33.29% in the past year. This is quite bad
The Revenue has been decreasing by -1.45% on average over the past years.
EPS 1Y (TTM)-33.33%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q100%
Revenue 1Y (TTM)-33.29%
Revenue growth 3Y-36.95%
Revenue growth 5Y-1.45%
Revenue growth Q2Q49.31%
3.2 Future
The Earnings Per Share is expected to grow by 121.26% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 23.67% on average over the next years. This is a very strong growth
EPS Next Y501.48%
EPS Next 2Y203.94%
EPS Next 3Y138.04%
EPS Next 5Y121.26%
Revenue Next Year26.59%
Revenue Next 2Y26.23%
Revenue Next 3Y22.78%
Revenue Next 5Y23.67%
3.3 Evolution
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
RKT reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
A Price/Forward Earnings ratio of 37.98 indicates a quite expensive valuation of RKT.
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 68.63% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.63. RKT is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 37.98 |
4.2 Price Multiples
RKT's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. RKT is more expensive than 63.73% of the companies in the same industry.
RKT's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 484.56 | ||
| EV/EBITDA | 133.35 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as RKT's earnings are expected to grow with 138.04% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y203.94%
EPS Next 3Y138.04%
5. Dividend
5.1 Amount
RKT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
ROCKET COS INC-CLASS A
NYSE:RKT (4/25/2024, 7:14:49 PM)
After market: 12.18 -0.02 (-0.16%)12.2
-0.35 (-2.79%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap24.22B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 37.98 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.08% | ||
| ROE | -2.49% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 2.47% | ||
| PM (TTM) | N/A | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 14.67 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.2 | ||
| Quick Ratio | 0.2 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-33.33%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y501.48%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-33.29%
Revenue growth 3Y-36.95%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y