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ROCKET COS INC-CLASS A (RKT) Stock Fundamental Analysis

NYSE:RKT - New York Stock Exchange, Inc. - US77311W1018 - Common Stock - Currency: USD

12.61  -0.22 (-1.71%)

After market: 12.5901 -0.02 (-0.16%)

Fundamental Rating

3

RKT gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 101 industry peers in the Financial Services industry. Both the profitability and financial health of RKT have multiple concerns. RKT shows excellent growth, but is valued quite expensive already.


Dividend Valuation Growth Profitability Health

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3

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.
RKT had positive earnings in 4 of the past 5 years.
The reported operating cash flow has been mixed in the past 5 years: RKT reported negative operating cash flow in multiple years.
RKT Yearly Net Income VS EBIT VS OCF VS FCFRKT Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5B -5B 10B

1.2 Ratios

RKT has a worse Return On Assets (0.12%) than 75.25% of its industry peers.
RKT's Return On Equity of 4.18% is on the low side compared to the rest of the industry. RKT is outperformed by 69.31% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.36%, RKT is in the better half of the industry, outperforming 61.39% 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 significantly below the industry average of 11.85%.
The 3 year average ROIC (3.29%) for RKT is below the current ROIC(4.36%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 0.12%
ROE 4.18%
ROIC 4.36%
ROA(3y)0.09%
ROA(5y)0.35%
ROE(3y)3.22%
ROE(5y)19.25%
ROIC(3y)3.29%
ROIC(5y)10.14%
RKT Yearly ROA, ROE, ROICRKT Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 20 30 40

1.3 Margins

With a Profit Margin value of 0.54%, RKT is not doing good in the industry: 73.27% of the companies in the same industry are doing better.
RKT's Profit Margin has declined in the last couple of years.
RKT's Operating Margin of 24.46% is fine compared to the rest of the industry. RKT outperforms 68.32% of its industry peers.
In the last couple of years the Operating Margin of RKT has declined.
Industry RankSector Rank
OM 24.46%
PM (TTM) 0.54%
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
RKT Yearly Profit, Operating, Gross MarginsRKT Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 40 60

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0

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.
Compared to 1 year ago, RKT has a worse debt to assets ratio.
RKT Yearly Shares OutstandingRKT Yearly Shares OutstandingYearly Shares Outstanding 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B
RKT Yearly Total Debt VS Total AssetsRKT Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2018 2019 2020 2021 2022 2023 2024 10B 20B 30B

2.2 Solvency

RKT has an Altman-Z score of 0.62. This is a bad value and indicates that RKT is not financially healthy and even has some risk of bankruptcy.
RKT has a Altman-Z score (0.62) which is in line with its industry peers.
RKT has a Debt/Equity ratio of 19.44. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of RKT (19.44) is worse than 91.09% of its industry peers.
Industry RankSector Rank
Debt/Equity 19.44
Debt/FCF N/A
Altman-Z 0.62
ROIC/WACC0.36
WACC11.97%
RKT Yearly LT Debt VS Equity VS FCFRKT Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2017 2018 2019 2020 2021 2022 2023 2024 0 5B -5B 10B

2.3 Liquidity

RKT has a Current Ratio of 0.13. This is a bad value and indicates that RKT is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.13, RKT is doing worse than 74.26% of the companies in the same industry.
RKT has a Quick Ratio of 0.13. 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 0.13. This is in the lower half of the industry: RKT underperforms 74.26% of its industry peers.
Industry RankSector Rank
Current Ratio 0.13
Quick Ratio 0.13
RKT Yearly Current Assets VS Current LiabilitesRKT Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B 20B

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8

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 375.00% over the past year.
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.
Looking at the last year, RKT shows a very strong growth in Revenue. The Revenue has grown by 35.21%.
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)375%
EPS 3Y-53.86%
EPS 5YN/A
EPS Q2Q%391.96%
Revenue 1Y (TTM)35.21%
Revenue growth 3Y-25.65%
Revenue growth 5Y0.62%
Sales Q2Q%166.71%

3.2 Future

The Earnings Per Share is expected to grow by 71.98% on average over the next years. This is a very strong growth
RKT is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 27.16% yearly.
EPS Next Y112.24%
EPS Next 2Y90.6%
EPS Next 3Y71.98%
EPS Next 5YN/A
Revenue Next Year30.59%
Revenue Next 2Y27.34%
Revenue Next 3Y27.17%
Revenue Next 5YN/A

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.
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.
RKT Yearly Revenue VS EstimatesRKT Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 5B 10B 15B
RKT Yearly EPS VS EstimatesRKT Yearly EPS VS EstimatesYearly EPS VS Estimates 2020 2021 2022 2023 2024 2025 2026 2027 0 1 2 3

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2

4. Valuation

4.1 Price/Earnings Ratio

RKT is valuated quite expensively with a Price/Earnings ratio of 57.32.
RKT's Price/Earnings ratio is a bit more expensive when compared to the industry. RKT is more expensive than 76.24% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.87. RKT is valued rather expensively when compared to this.
Based on the Price/Forward Earnings ratio of 27.01, the valuation of RKT can be described as expensive.
Based on the Price/Forward Earnings ratio, RKT is valued a bit more expensive than 68.32% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.38. RKT is valued slightly more expensive when compared to this.
Industry RankSector Rank
PE 57.32
Fwd PE 27.01
RKT Price Earnings VS Forward Price EarningsRKT Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RKT is on the same level as its industry peers.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 19.48
RKT Per share dataRKT EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 -2 -4

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 71.98% in the coming years.
PEG (NY)0.51
PEG (5Y)N/A
EPS Next 2Y90.6%
EPS Next 3Y71.98%

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5

5. Dividend

5.1 Amount

RKT has a Yearly Dividend Yield of 6.24%, which is a nice return.
RKT's Dividend Yield is rather good when compared to the industry average which is at 4.92. RKT pays more dividend than 86.14% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.46, RKT pays a better dividend.
Industry RankSector Rank
Dividend Yield 6.24%

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
RKT Yearly Dividends per shareRKT Yearly Dividends per shareYearly Dividends per share 2015 2021 2022 2025 0.2 0.4 0.6 0.8 1

5.3 Sustainability

DPN/A
EPS Next 2Y90.6%
EPS Next 3Y71.98%
RKT Yearly Income VS Free CF VS DividendRKT Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5B -5B 10B

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ROCKET COS INC-CLASS A

NYSE:RKT (4/28/2025, 8:04:01 PM)

After market: 12.5901 -0.02 (-0.16%)

12.61

-0.22 (-1.71%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)02-27 2025-02-27/amc
Earnings (Next)05-08 2025-05-08/amc
Inst Owners75.12%
Inst Owner Change1.1%
Ins Owners3.44%
Ins Owner Change9.76%
Market Cap25.21B
Analysts51.58
Price Target14.74 (16.89%)
Short Float %18.71%
Short Ratio2.31
Dividend
Industry RankSector Rank
Dividend Yield 6.24%
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-Date03-20 2025-03-20 (0.8)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)20.73%
Min EPS beat(2)-1.93%
Max EPS beat(2)43.39%
EPS beat(4)3
Avg EPS beat(4)151.52%
Min EPS beat(4)-1.93%
Max EPS beat(4)543.97%
EPS beat(8)7
Avg EPS beat(8)111.38%
EPS beat(12)8
Avg EPS beat(12)37.46%
EPS beat(16)9
Avg EPS beat(16)27.99%
Revenue beat(2)1
Avg Revenue beat(2)1.72%
Min Revenue beat(2)-50.12%
Max Revenue beat(2)53.56%
Revenue beat(4)3
Avg Revenue beat(4)12.21%
Min Revenue beat(4)-50.12%
Max Revenue beat(4)53.56%
Revenue beat(8)5
Avg Revenue beat(8)8.64%
Revenue beat(12)7
Avg Revenue beat(12)6.93%
Revenue beat(16)9
Avg Revenue beat(16)5.88%
PT rev (1m)7.7%
PT rev (3m)-1.13%
EPS NQ rev (1m)-4.81%
EPS NQ rev (3m)-44.4%
EPS NY rev (1m)0.14%
EPS NY rev (3m)-22.76%
Revenue NQ rev (1m)-1.02%
Revenue NQ rev (3m)-9.3%
Revenue NY rev (1m)-6.14%
Revenue NY rev (3m)-1.23%
Valuation
Industry RankSector Rank
PE 57.32
Fwd PE 27.01
P/S 4.65
P/FCF N/A
P/OCF N/A
P/B 35.88
P/tB N/A
EV/EBITDA 19.48
EPS(TTM)0.22
EY1.74%
EPS(NY)0.47
Fwd EY3.7%
FCF(TTM)-1.35
FCFYN/A
OCF(TTM)-1.32
OCFYN/A
SpS2.71
BVpS0.35
TBVpS-4.7
PEG (NY)0.51
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 0.12%
ROE 4.18%
ROCE 9.19%
ROIC 4.36%
ROICexc 4.6%
ROICexgc 9.41%
OM 24.46%
PM (TTM) 0.54%
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%
ROICexcg growth 3Y-32.9%
ROICexcg 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-Score5
Asset Turnover0.22
Health
Industry RankSector Rank
Debt/Equity 19.44
Debt/FCF N/A
Debt/EBITDA 9.5
Cap/Depr 59.79%
Cap/Sales 1.25%
Interest Coverage 2.76
Cash Conversion N/A
Profit Quality N/A
Current Ratio 0.13
Quick Ratio 0.13
Altman-Z 0.62
F-Score5
WACC11.97%
ROIC/WACC0.36
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)375%
EPS 3Y-53.86%
EPS 5YN/A
EPS Q2Q%391.96%
EPS Next Y112.24%
EPS Next 2Y90.6%
EPS Next 3Y71.98%
EPS Next 5YN/A
Revenue 1Y (TTM)35.21%
Revenue growth 3Y-25.65%
Revenue growth 5Y0.62%
Sales Q2Q%166.71%
Revenue Next Year30.59%
Revenue Next 2Y27.34%
Revenue Next 3Y27.17%
Revenue Next 5YN/A
EBIT growth 1Y1241.43%
EBIT growth 3Y-43.41%
EBIT growth 5Y-2.5%
EBIT Next Year1922.11%
EBIT Next 3Y259.56%
EBIT Next 5YN/A
FCF growth 1Y-5494.25%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-2483.09%
OCF growth 3YN/A
OCF growth 5YN/A