ROCKET COS INC-CLASS A (RKT)

US77311W1018 - Common Stock

13.84  +0.24 (+1.76%)

After market: 13.7 -0.14 (-1.01%)

Fundamental Rating

2

Overall RKT gets a fundamental rating of 2 out of 10. We evaluated RKT against 102 industry peers in the Financial Services industry. RKT has a bad profitability rating. Also its financial health evaluation is rather negative. While showing a medium growth rate, RKT is valued expensive at the moment.



2

1. Profitability

1.1 Basic Checks

In the past year RKT was profitable.
In the past year RKT has reported a negative cash flow from operations.
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

The Return On Assets of RKT (0.09%) is worse than 64.71% of its industry peers.
RKT has a worse Return On Equity (2.94%) than 62.75% of its industry peers.
With a Return On Invested Capital value of 3.06%, RKT perfoms like the industry average, outperforming 51.96% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for RKT is in line with the industry average of 7.89%.
The 3 year average ROIC (7.85%) for RKT is well above the current ROIC(3.06%). The reason for the recent decline needs to be investigated.
Industry RankSector 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's Profit Margin of 0.40% is on the low side compared to the rest of the industry. RKT is outperformed by 63.73% of its industry peers.
With a Operating Margin value of 17.68%, RKT perfoms like the industry average, outperforming 59.80% of the companies in the same industry.
RKT's Operating Margin has declined in the last couple of years.
Industry RankSector 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

1

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.
The number of shares outstanding for RKT has been increased compared to 1 year ago.
Compared to 5 years ago, RKT has about the same amount of shares outstanding.
Compared to 1 year ago, RKT has an improved debt to assets ratio.

2.2 Solvency

RKT has an Altman-Z score of 0.70. 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 (0.70) which is in line with its industry peers.
RKT has a Debt/Equity ratio of 18.40. This is a high value indicating a heavy dependency on external financing.
RKT's Debt to Equity ratio of 18.40 is on the low side compared to the rest of the industry. RKT is outperformed by 95.10% of its industry peers.
Industry RankSector Rank
Debt/Equity 18.4
Debt/FCF N/A
Altman-Z 0.7
ROIC/WACC0.4
WACC7.6%

2.3 Liquidity

A Current Ratio of 0.10 indicates that RKT may have some problems paying its short term obligations.
The Current ratio of RKT (0.10) is worse than 81.37% of its industry peers.
RKT has a Quick 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.
With a Quick ratio value of 0.10, RKT is not doing good in the industry: 81.37% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 0.1
Quick Ratio 0.1

6

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 107.41% over the past year.
Looking at the last year, RKT shows a quite strong growth in Revenue. The Revenue has grown by 19.01% in the last year.
Measured over the past years, RKT shows a decrease in Revenue. The Revenue has been decreasing by -1.45% on average per year.
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

Based on estimates for the next years, RKT will show a very strong growth in Earnings Per Share. The EPS will grow by 121.26% on average per year.
RKT is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 23.67% yearly.
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.

2

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 692.00, RKT can be considered very expensive at the moment.
RKT's Price/Earnings ratio is a bit more expensive when compared to the industry. RKT is more expensive than 73.53% of the companies in the same industry.
When comparing the Price/Earnings ratio of RKT to the average of the S&P500 Index (28.24), we can say RKT is valued expensively.
With a Price/Forward Earnings ratio of 23.90, RKT is valued on the expensive side.
Based on the Price/Forward Earnings ratio, RKT is valued a bit more expensive than the industry average as 66.67% of the companies are valued more cheaply.
RKT is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 19.93, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 692
Fwd PE 23.9

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 31.95

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 138.04% in the coming years.
PEG (NY)1.38
PEG (5Y)N/A
EPS Next 2Y203.94%
EPS Next 3Y138.04%

0

5. Dividend

5.1 Amount

No dividends for RKT!.
Industry RankSector Rank
Dividend Yield N/A

ROCKET COS INC-CLASS A

NYSE:RKT (5/24/2024, 7:04:01 PM)

After market: 13.7 -0.14 (-1.01%)

13.84

+0.24 (+1.76%)

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 Cap27.48B
Analysts
Price Target
Dividend
Industry RankSector 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 RankSector Rank
PE 692
Fwd PE 23.9
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)1.38
PEG (5Y)N/A
Profitability
Industry RankSector 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 RankSector 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 Y501.48%
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