ROCKET COS INC-CLASS A (RKT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RKT - US77311W1018 - Common Stock
18.12 USD
+0.68 (+3.9%)
18.12 USD
0 (0%)
Taking everything into account, RKT scores 2 out of 10 in our fundamental rating. RKT was compared to 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 valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year RKT was profitable.
RKT had a negative operating cash flow in the past year.
RKT had positive earnings in 4 of the past 5 years.
In multiple years RKT reported negative operating cash flow during the last 5 years.
1.2 Ratios
The Return On Assets of RKT (-0.30%) is worse than 77.55% of its industry peers.
RKT's Return On Equity of -1.15% is on the low side compared to the rest of the industry. RKT is outperformed by 75.51% of its industry peers.
RKT's Return On Invested Capital of 2.71% is in line compared to the rest of the industry. RKT outperforms 48.98% of its industry peers.
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
In the last couple of years the Profit Margin of RKT has declined.
Looking at the Operating Margin, with a value of 18.57%, RKT is in the better half of the industry, outperforming 63.27% of the companies in the same industry.
In the last couple of years the Operating Margin of RKT has declined.
The Profit Margin and Gross Margin are not available for RKT so they could not be analyzed.
| 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
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.
RKT has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, RKT has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.19, we must say that RKT is in the distress zone and has some risk of bankruptcy.
RKT has a better Altman-Z score (1.19) than 62.24% 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 73.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.48 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.19 |
ROIC/WACC0.35
WACC7.68%
2.3 Liquidity
A Current Ratio of 0.42 indicates that RKT may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.42, RKT is doing worse than 64.29% of the companies in the same industry.
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 has a Quick ratio of 0.42. This is in the lower half of the industry: RKT underperforms 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.
The earnings per share for RKT have been decreasing by -53.86% on average. This is quite bad
Looking at the last year, RKT shows a very strong growth in Revenue. 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
The Earnings Per Share is expected to grow by 36.44% on average over the next years. This is a very strong growth
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
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
Based on the Price/Earnings ratio of 95.37, the valuation of RKT can be described as expensive.
Based on the Price/Earnings ratio, RKT is valued a bit more expensive than 76.53% of the companies in the same industry.
RKT is valuated expensively when we compare the Price/Earnings ratio to 25.47, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 23.33, which indicates a rather expensive current valuation of RKT.
RKT's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. RKT is more expensive than 64.29% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of RKT to the average of the S&P500 Index (34.42), we can say RKT is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 95.37 | ||
| Fwd PE | 23.33 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RKT is valued a bit more expensive than 63.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 39.95 |
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)11.78
PEG (5Y)N/A
EPS Next 2Y87.89%
EPS Next 3Y70.69%
5. Dividend
5.1 Amount
RKT has a Yearly Dividend Yield of 4.59%, which is a nice return.
Compared to an average industry Dividend Yield of 5.20, RKT pays a better dividend. On top of this RKT pays more dividend than 81.63% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, RKT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.59% |
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%
18.12
+0.68 (+3.9%)
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 Cap50.91B
Revenue(TTM)6.10B
Net Income(TTM)-102.15M
Analysts72
Price Target20.68 (14.13%)
Short Float %4.89%
Short Ratio1.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.59% |
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)-17.7%
EPS NQ rev (3m)14.46%
EPS NY rev (1m)-1.52%
EPS NY rev (3m)10.8%
Revenue NQ rev (1m)12.58%
Revenue NQ rev (3m)27%
Revenue NY rev (1m)1.69%
Revenue NY rev (3m)2.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 95.37 | ||
| Fwd PE | 23.33 | ||
| P/S | 8.35 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 5.75 | ||
| P/tB | N/A | ||
| EV/EBITDA | 39.95 |
EPS(TTM)0.19
EY1.05%
EPS(NY)0.78
Fwd EY4.29%
FCF(TTM)-0.33
FCFYN/A
OCF(TTM)-0.3
OCFYN/A
SpS2.17
BVpS3.15
TBVpS-1.81
PEG (NY)11.78
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 | 1.19 |
F-Score2
WACC7.68%
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 95.37 and the Price/Book (PB) ratio is 5.75.
How financially healthy is ROCKET COS INC-CLASS A?
The financial health rating of ROCKET COS INC-CLASS A (RKT) is 0 / 10.