ROCKET COS INC-CLASS A (RKT)
US77311W1018 - Common Stock
Overall RKT gets a fundamental rating of 2 out of 10. We evaluated RKT against 104 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
In the past year RKT was profitable.
RKT had a negative operating cash flow in the past year.
In multiple years RKT reported negative net income over the last 5 years.
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
RKT's Return On Assets of 0.09% is on the low side compared to the rest of the industry. RKT is outperformed by 65.38% of its industry peers.
RKT's Return On Equity of 2.94% is on the low side compared to the rest of the industry. RKT is outperformed by 62.50% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.06%, RKT is in line with its industry, outperforming 52.88% of the companies in the same industry.
RKT had an Average Return On Invested Capital over the past 3 years of 7.85%. This is in line with the industry average of 7.10%.
The last Return On Invested Capital (3.06%) 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 | 0.09% | ||
| ROE | 2.94% | ||
| ROIC | 3.06% |
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
RKT has a worse Profit Margin (0.40%) than 63.46% of its industry peers.
Looking at the Operating Margin, with a value of 17.68%, RKT is in the better half of the industry, outperforming 60.58% of the companies in the same industry.
In the last couple of years the Operating Margin of RKT has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.68% | ||
| PM (TTM) | 0.4% | ||
| 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
RKT has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
RKT has more shares outstanding than it did 1 year ago.
The number of shares outstanding for RKT remains at a similar level compared to 5 years ago.
The debt/assets ratio for RKT has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.79, we must say that RKT is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.79, RKT perfoms like the industry average, outperforming 56.73% of the companies in the same industry.
A Debt/Equity ratio of 18.40 is on the high side and indicates that RKT has dependencies on debt financing.
The Debt to Equity ratio of RKT (18.40) is worse than 95.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 18.4 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.79 |
ROIC/WACC0.4
WACC7.57%
2.3 Liquidity
RKT has a Current Ratio of 0.10. 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 (0.10) than 79.81% of its industry peers.
A Quick Ratio of 0.10 indicates that RKT may have some problems paying its short term obligations.
RKT's Quick ratio of 0.10 is on the low side compared to the rest of the industry. RKT is outperformed by 79.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.1 | ||
| Quick Ratio | 0.1 |
3. Growth
3.1 Past
RKT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 107.41%, which is quite impressive.
The Revenue has grown by 19.01% in the past year. This is quite good.
The Revenue has been decreasing by -1.45% on average over the past years.
EPS 1Y (TTM)107.41%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%166.67%
Revenue 1Y (TTM)19.01%
Revenue growth 3Y-36.95%
Revenue growth 5Y-1.45%
Sales Q2Q%115.47%
3.2 Future
RKT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 121.26% yearly.
Based on estimates for the next years, RKT will show a very strong growth in Revenue. The Revenue will grow by 23.67% on average per year.
EPS Next Y469.74%
EPS Next 2Y200.11%
EPS Next 3Y133.89%
EPS Next 5Y121.26%
Revenue Next Year37.27%
Revenue Next 2Y26.51%
Revenue Next 3Y23.03%
Revenue Next 5Y23.67%
3.3 Evolution
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 795.50 indicates a quite expensive valuation of RKT.
Based on the Price/Earnings ratio, RKT is valued a bit more expensive than 72.12% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 24.41, RKT is valued quite expensively.
The Price/Forward Earnings ratio is 28.38, which means the current valuation is very expensive for RKT.
Based on the Price/Forward Earnings ratio, RKT is valued a bit more expensive than the industry average as 68.27% of the companies are valued more cheaply.
When comparing the Price/Forward Earnings ratio of RKT to the average of the S&P500 Index (20.59), we can say RKT is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 795.5 | ||
| Fwd PE | 28.38 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as RKT.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 35.4 |
4.3 Compensation for Growth
RKT's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as RKT's earnings are expected to grow with 133.89% in the coming years.
PEG (NY)1.69
PEG (5Y)N/A
EPS Next 2Y200.11%
EPS Next 3Y133.89%
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 (7/26/2024, 7:04:01 PM)
After market: 15.8805 -0.03 (-0.19%)15.91
+0.69 (+4.53%)
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 Cap31.63B
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)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
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 | 795.5 | ||
| Fwd PE | 28.38 | ||
| 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)1.69
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.09% | ||
| ROE | 2.94% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 17.68% | ||
| PM (TTM) | 0.4% | ||
| 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 | 18.4 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.1 | ||
| Quick Ratio | 0.1 | ||
| 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)
High Growth Momentum
Growth
EPS 1Y (TTM)107.41%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y469.74%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)19.01%
Revenue growth 3Y-36.95%
Revenue growth 5Y
Sales 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