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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

12.62  -0.16 (-1.25%)

After market: 12.59 -0.03 (-0.24%)

Fundamental Rating

3

Taking everything into account, RKT scores 3 out of 10 in our fundamental rating. RKT was compared to 101 industry peers in the Financial Services industry. RKT has a bad profitability rating. Also its financial health evaluation is rather negative. RKT is valued quite expensive, but it does show an excellent growth.


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.
In multiple years RKT reported negative operating cash flow during the last 5 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.
With a Return On Equity value of 4.18%, RKT is not doing good in the industry: 69.31% of the companies in the same industry are doing better.
RKT has a Return On Invested Capital of 4.36%. This is in the better half of the industry: RKT outperforms 61.39% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for RKT 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

The Profit Margin of RKT (0.54%) is worse than 73.27% of its industry peers.
RKT's Profit Margin has declined in the last couple of years.
RKT has a Operating Margin of 24.46%. This is in the better half of the industry: RKT outperforms 68.32% of its industry peers.
RKT's Operating Margin has declined in the last couple of years.
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

RKT has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
RKT has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, RKT has more shares outstanding
The debt/assets ratio for RKT is higher compared to a year ago.
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.
With a Altman-Z score value of 0.62, RKT perfoms like the industry average, outperforming 54.46% of the companies in the same industry.
A Debt/Equity ratio of 19.44 is on the high side and indicates that RKT has dependencies on debt financing.
RKT has a Debt to Equity ratio of 19.44. This is amonst the worse of the industry: RKT underperforms 91.09% of its industry peers.
Industry RankSector Rank
Debt/Equity 19.44
Debt/FCF N/A
Altman-Z 0.62
ROIC/WACC0.36
WACC12%
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

A Current Ratio of 0.13 indicates that RKT may have some problems paying 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 worse Quick ratio (0.13) than 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.
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 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

Based on estimates for the next years, RKT will show a very strong growth in Earnings Per Share. The EPS will grow by 71.98% on average per year.
Based on estimates for the next years, RKT will show a very strong growth in Revenue. The Revenue will grow by 27.16% on average per year.
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

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
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

With a Price/Earnings ratio of 57.36, RKT can be considered very expensive at the moment.
Based on the Price/Earnings ratio, RKT is valued a bit more expensive than the industry average as 76.24% of the companies are valued more cheaply.
When comparing the Price/Earnings ratio of RKT to the average of the S&P500 Index (28.22), we can say RKT is valued expensively.
A Price/Forward Earnings ratio of 27.03 indicates a quite expensive valuation of RKT.
68.32% 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 20.86, RKT is valued a bit more expensive.
Industry RankSector Rank
PE 57.36
Fwd PE 27.03
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

RKT's Enterprise Value to EBITDA ratio is in line with the industry average.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 19.5
RKT Per share dataRKT EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 -2 -4

4.3 Compensation for Growth

RKT's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
RKT's earnings are expected to grow with 71.98% in the coming years. This may justify a more expensive valuation.
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

With a Yearly Dividend Yield of 6.34%, RKT is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.91, RKT pays a better dividend. On top of this RKT pays more dividend than 86.14% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, RKT pays a better dividend.
Industry RankSector Rank
Dividend Yield 6.34%

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 (5/2/2025, 8:21:28 PM)

After market: 12.59 -0.03 (-0.24%)

12.62

-0.16 (-1.25%)

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 Cap25.24B
Analysts66.67
Price Target14.74 (16.8%)
Short Float %31.74%
Short Ratio3.91
Dividend
Industry RankSector Rank
Dividend Yield 6.34%
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)4.92%
PT rev (3m)9.4%
EPS NQ rev (1m)-20.56%
EPS NQ rev (3m)-42.39%
EPS NY rev (1m)0.14%
EPS NY rev (3m)-11.54%
Revenue NQ rev (1m)-1.02%
Revenue NQ rev (3m)-4.62%
Revenue NY rev (1m)-0.54%
Revenue NY rev (3m)-1.23%
Valuation
Industry RankSector Rank
PE 57.36
Fwd PE 27.03
P/S 4.66
P/FCF N/A
P/OCF N/A
P/B 35.93
P/tB N/A
EV/EBITDA 19.5
EPS(TTM)0.22
EY1.74%
EPS(NY)0.47
Fwd EY3.7%
FCF(TTM)-1.35
FCFYN/A
OCF(TTM)-1.31
OCFYN/A
SpS2.71
BVpS0.35
TBVpS-4.69
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
WACC12%
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