ROCKET COS INC-CLASS A (RKT)

US77311W1018 - Common Stock

14.55  -0.02 (-0.14%)

After market: 14.49 -0.06 (-0.41%)

Fundamental Rating

2

We assign a fundamental rating of 2 out of 10 to RKT. RKT was compared to 102 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.



2

1. Profitability

1.1 Basic Checks

RKT had negative earnings in the past year.
In the past year RKT had a positive cash flow from operations.
In multiple years RKT reported negative net income over the last 5 years.
In multiple years RKT reported negative operating cash flow during the last 5 years.

1.2 Ratios

RKT has a worse Return On Assets (-0.08%) than 65.69% of its industry peers.
Looking at the Return On Equity, with a value of -2.49%, RKT is doing worse than 68.63% of the companies in the same industry.
RKT's Return On Invested Capital of 0.42% is on the low side compared to the rest of the industry. RKT is outperformed by 62.75% of its industry peers.
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 7.81%.
The last Return On Invested Capital (0.42%) 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 RankSector Rank
ROA -0.08%
ROE -2.49%
ROIC 0.42%
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 Operating Margin of 2.47% is on the low side compared to the rest of the industry. RKT is outperformed by 62.75% of its industry peers.
In the last couple of years the Operating Margin of RKT has declined.
RKT does not have Profit Margin and Gross Margin available, so we won't be analyzing them here.
Industry RankSector Rank
OM 2.47%
PM (TTM) N/A
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

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.
Compared to 5 years ago, RKT has about the same amount of shares outstanding.
RKT has a better debt/assets ratio than last year.

2.2 Solvency

RKT has an Altman-Z score of 0.89. 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 of 0.89. This is comparable to the rest of the industry: RKT outperforms 57.84% of its industry peers.
The Debt to FCF ratio of RKT is 183.39, which is on the high side as it means it would take RKT, 183.39 years of fcf income to pay off all of its debts.
RKT has a Debt to FCF ratio (183.39) which is in line with its industry peers.
A Debt/Equity ratio of 14.67 is on the high side and indicates that RKT has dependencies on debt financing.
The Debt to Equity ratio of RKT (14.67) is worse than 92.16% of its industry peers.
Industry RankSector Rank
Debt/Equity 14.67
Debt/FCF 183.39
Altman-Z 0.89
ROIC/WACC0.06
WACC7.42%

2.3 Liquidity

RKT has a Current Ratio of 0.20. 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 (0.20) than 77.45% of its industry peers.
A Quick Ratio of 0.20 indicates that RKT may have some problems paying its short term obligations.
With a Quick ratio value of 0.20, RKT is not doing good in the industry: 77.45% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 0.2
Quick Ratio 0.2

4

3. Growth

3.1 Past

The earnings per share for RKT have decreased strongly by -33.33% in the last year.
RKT shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -33.29%.
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)-33.33%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q100%
Revenue 1Y (TTM)-33.29%
Revenue growth 3Y-36.95%
Revenue growth 5Y-1.45%
Revenue growth Q2Q49.31%

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.
The Revenue is expected to grow by 23.67% on average over the next years. This is a very strong growth
EPS Next Y543.86%
EPS Next 2Y210.37%
EPS Next 3Y137.3%
EPS Next 5Y121.26%
Revenue Next Year34.03%
Revenue Next 2Y28.43%
Revenue Next 3Y22.99%
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.

2

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for RKT. In the last year negative earnings were reported.
RKT is valuated quite expensively with a Price/Forward Earnings ratio of 40.98.
69.61% 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 22.79, RKT is valued quite expensively.
Industry RankSector Rank
PE N/A
Fwd PE 40.98

4.2 Price Multiples

63.73% of the companies in the same industry are cheaper than RKT, based on the Enterprise Value to EBITDA ratio.
RKT's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 577.9
EV/EBITDA 152.53

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 137.30% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y210.37%
EPS Next 3Y137.3%

0

5. Dividend

5.1 Amount

RKT does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

ROCKET COS INC-CLASS A

NYSE:RKT (3/28/2024, 7:00:00 PM)

After market: 14.49 -0.06 (-0.41%)

14.55

-0.02 (-0.14%)

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 Cap28.89B
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 N/A
Fwd PE 40.98
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)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -0.08%
ROE -2.49%
ROCE
ROIC
ROICexc
ROICexgc
OM 2.47%
PM (TTM) N/A
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 14.67
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 0.2
Quick Ratio 0.2
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)
Growth
EPS 1Y (TTM)-33.33%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y543.86%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-33.29%
Revenue growth 3Y-36.95%
Revenue growth 5Y
Revenue growth 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