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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

13.25  +0.52 (+4.08%)

After market: 13.2 -0.05 (-0.38%)

Fundamental Rating

2

Overall RKT gets a fundamental rating of 2 out of 10. We evaluated RKT against 101 industry peers in the Financial Services industry. Both the profitability and financial health of RKT have multiple concerns. While showing a medium growth rate, RKT is valued expensive at the moment.


Dividend Valuation Growth Profitability Health

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2

1. Profitability

1.1 Basic Checks

RKT had positive earnings in the past year.
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.
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 0 5B -5B 10B

1.2 Ratios

RKT has a worse Return On Assets (-0.06%) than 73.27% of its industry peers.
The Return On Equity of RKT (-2.32%) is worse than 75.25% of its industry peers.
RKT has a Return On Invested Capital (1.22%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for RKT is in line with the industry average of 7.75%.
The 3 year average ROIC (7.85%) for RKT is well above the current ROIC(1.22%). The reason for the recent decline needs to be investigated.
Industry RankSector Rank
ROA -0.06%
ROE -2.32%
ROIC 1.22%
ROA(3y)0.36%
ROA(5y)0.32%
ROE(3y)17.25%
ROE(5y)18.41%
ROIC(3y)7.85%
ROIC(5y)10.48%
RKT Yearly ROA, ROE, ROICRKT Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 10 20 30 40

1.3 Margins

RKT has a Operating Margin of 8.79%. This is comparable to the rest of the industry: RKT outperforms 40.59% of its industry peers.
RKT's Operating Margin has declined in the last couple of years.
RKT does not have Profit Margin and Gross Margin available, so we won't be analyzing them here.
Industry RankSector Rank
OM 8.79%
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
RKT Yearly Profit, Operating, Gross MarginsRKT Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20 40 60

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1

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so RKT is destroying value.
Compared to 1 year ago, RKT has more shares outstanding
RKT has about the same amout of shares outstanding than it did 5 years ago.
RKT has a better debt/assets ratio than last year.
RKT Yearly Shares OutstandingRKT Yearly Shares OutstandingYearly Shares Outstanding 2018 2019 2020 2021 2022 2023 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 10B 20B 30B

2.2 Solvency

Based on the Altman-Z score of 0.38, we must say that RKT is in the distress zone and has some risk of bankruptcy.
RKT has a Altman-Z score (0.38) which is in line with its industry peers.
RKT has a Debt/Equity ratio of 22.93. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of RKT (22.93) is worse than 93.07% of its industry peers.
Industry RankSector Rank
Debt/Equity 22.93
Debt/FCF N/A
Altman-Z 0.38
ROIC/WACC0.1
WACC12.6%
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 0 5B -5B 10B

2.3 Liquidity

RKT has a Current Ratio of 0.11. 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 (0.11) than 76.24% of its industry peers.
RKT has a Quick Ratio of 0.11. 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's Quick ratio of 0.11 is on the low side compared to the rest of the industry. RKT is outperformed by 76.24% of its industry peers.
Industry RankSector Rank
Current Ratio 0.11
Quick Ratio 0.11
RKT Yearly Current Assets VS Current LiabilitesRKT Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2018 2019 2020 2021 2022 2023 5B 10B 15B 20B

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6

3. Growth

3.1 Past

RKT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 200.00%, which is quite impressive.
RKT shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.63%.
The Revenue has been decreasing by -1.45% on average over the past years.
EPS 1Y (TTM)200%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%N/A
Revenue 1Y (TTM)15.63%
Revenue growth 3Y-36.95%
Revenue growth 5Y-1.45%
Sales Q2Q%-46.23%

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 Y364.58%
EPS Next 2Y193.23%
EPS Next 3Y126.82%
EPS Next 5Y121.26%
Revenue Next Year16.8%
Revenue Next 2Y24.05%
Revenue Next 3Y22.24%
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.
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 2028 5B 10B 15B
RKT Yearly EPS VS EstimatesRKT Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 0 1 2 3

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2

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 73.61 indicates a quite expensive valuation of RKT.
76.24% of the companies in the same industry are cheaper than RKT, based on the Price/Earnings ratio.
RKT's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 29.63.
RKT is valuated quite expensively with a Price/Forward Earnings ratio of 25.10.
Based on the Price/Forward Earnings ratio, RKT is valued a bit more expensive than 67.33% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.68. RKT is around the same levels.
Industry RankSector Rank
PE 73.61
Fwd PE 25.1
RKT Price Earnings VS Forward Price EarningsRKT Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

RKT's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. RKT is more expensive than 62.38% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 57.48
RKT Per share dataRKT EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 1 -1 2 -2 -3

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 126.82% in the coming years.
PEG (NY)0.2
PEG (5Y)N/A
EPS Next 2Y193.23%
EPS Next 3Y126.82%

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0

5. Dividend

5.1 Amount

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

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ROCKET COS INC-CLASS A

NYSE:RKT (2/21/2025, 8:04:01 PM)

After market: 13.2 -0.05 (-0.38%)

13.25

+0.52 (+4.08%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)11-12 2024-11-12/amc
Earnings (Next)02-27 2025-02-27/amc
Inst Owners75.12%
Inst Owner Change7.91%
Ins Owners3.44%
Ins Owner Change0.44%
Market Cap26.43B
Analysts51.43
Price Target13.47 (1.66%)
Short Float %14.47%
Short Ratio6.18
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)9.37%
Min EPS beat(2)-1.93%
Max EPS beat(2)20.67%
EPS beat(4)3
Avg EPS beat(4)165.68%
Min EPS beat(4)-1.93%
Max EPS beat(4)543.97%
EPS beat(8)7
Avg EPS beat(8)106.99%
EPS beat(12)7
Avg EPS beat(12)32.74%
EPS beat(16)9
Avg EPS beat(16)27.12%
Revenue beat(2)1
Avg Revenue beat(2)-22.23%
Min Revenue beat(2)-50.12%
Max Revenue beat(2)5.66%
Revenue beat(4)2
Avg Revenue beat(4)-3.85%
Min Revenue beat(4)-50.12%
Max Revenue beat(4)39.74%
Revenue beat(8)4
Avg Revenue beat(8)-1.19%
Revenue beat(12)6
Avg Revenue beat(12)2.47%
Revenue beat(16)9
Avg Revenue beat(16)3.83%
PT rev (1m)-9.63%
PT rev (3m)-20.32%
EPS NQ rev (1m)-14.52%
EPS NQ rev (3m)-72.59%
EPS NY rev (1m)-2.53%
EPS NY rev (3m)-27.09%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)-8.16%
Revenue NY rev (1m)-3.03%
Revenue NY rev (3m)-16.42%
Valuation
Industry RankSector Rank
PE 73.61
Fwd PE 25.1
P/S 6.09
P/FCF N/A
P/OCF N/A
P/B 40.51
P/tB N/A
EV/EBITDA 57.48
EPS(TTM)0.18
EY1.36%
EPS(NY)0.53
Fwd EY3.98%
FCF(TTM)-1.57
FCFYN/A
OCF(TTM)-1.54
OCFYN/A
SpS2.17
BVpS0.33
TBVpS-3.71
PEG (NY)0.2
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -0.06%
ROE -2.32%
ROCE 2.78%
ROIC 1.22%
ROICexc 1.29%
ROICexgc 2.18%
OM 8.79%
PM (TTM) N/A
GM N/A
FCFM N/A
ROA(3y)0.36%
ROA(5y)0.32%
ROE(3y)17.25%
ROE(5y)18.41%
ROIC(3y)7.85%
ROIC(5y)10.48%
ROICexc(3y)8.36%
ROICexc(5y)11.13%
ROICexgc(3y)12.04%
ROICexgc(5y)14.45%
ROCE(3y)19.1%
ROCE(5y)32.17%
ROICexcg growth 3Y-69.26%
ROICexcg growth 5Y-41.86%
ROICexc growth 3Y-73.58%
ROICexc growth 5Y-43.95%
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
F-Score3
Asset Turnover0.17
Health
Industry RankSector Rank
Debt/Equity 22.93
Debt/FCF N/A
Debt/EBITDA 30.45
Cap/Depr 43.79%
Cap/Sales 1.11%
Interest Coverage 1.02
Cash Conversion N/A
Profit Quality N/A
Current Ratio 0.11
Quick Ratio 0.11
Altman-Z 0.38
F-Score3
WACC12.6%
ROIC/WACC0.1
Cap/Depr(3y)103.66%
Cap/Depr(5y)103.91%
Cap/Sales(3y)1.32%
Cap/Sales(5y)1.11%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)200%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%N/A
EPS Next Y364.58%
EPS Next 2Y193.23%
EPS Next 3Y126.82%
EPS Next 5Y121.26%
Revenue 1Y (TTM)15.63%
Revenue growth 3Y-36.95%
Revenue growth 5Y-1.45%
Sales Q2Q%-46.23%
Revenue Next Year16.8%
Revenue Next 2Y24.05%
Revenue Next 3Y22.24%
Revenue Next 5Y23.67%
EBIT growth 1Y282.52%
EBIT growth 3Y-79%
EBIT growth 5Y-37.77%
EBIT Next Year192%
EBIT Next 3Y65.8%
EBIT Next 5Y58.54%
FCF growth 1Y-122.48%
FCF growth 3YN/A
FCF growth 5Y-48.4%
OCF growth 1Y-121.97%
OCF growth 3YN/A
OCF growth 5Y-40.1%