Rocket Companies, Inc. (RKT) Stock Analysis
Rocket Companies, Inc. (RKT) Stock Analysis
Analysis from 10-Q filed 2025-11-06. Data as of Q4 2025.
Overall Grade: F (Concerning)
Rocket Companies, Inc. faces challenges in financial performance that warrant careful analysis.
| Metric | Value | Context |
|---|---|---|
| ROIC | N/A | Below expectations |
| FCF Margin | -60.0% | Cash flow pressure |
Investment Thesis: Financial metrics indicate concerning business quality with areas requiring attention.
Explore Rocket Companies, Inc.: Earnings History | Filing Intelligence | ROIC Analysis
Profitability: Rocket Companies, Inc. earns N/A ROIC
Rocket Companies, Inc.'s trailing-twelve-month ROIC of N/A (sector median: 4.3%). Source: 10-Q filed 2025-11-06.
| Metric | RKT | Rating | Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | N/A | Red flag | Below sector median of 4.3% |
Cash Flow: Rocket Companies, Inc. generates $-4.0B FCF at -60.0% margin, positive NaN/8 quarters
Rocket Companies, Inc. generated $-4.0B in free cash flow (TTM), a -60.0% FCF margin, a margin that ranks Top 5% in Other. Operating cash flow exceeds net income by 57.8x, indicating high earnings quality. FCF was positive in N/A of the last 8 quarters. Source: 10-Q filed 2025-11-06.
| Metric | RKT | Rating | Context |
|---|---|---|---|
| Free Cash Flow Margin | -60.0% | Red flag | Thin cash margins |
| Free Cash Flow (TTM) | $-4.0B | Red flag | Cash burn |
| OCF/Net Income | 57.8x | Excellent | High earnings quality |
| FCF Consistency (8Q) | N/A | Warning | Variable cash flow |
Balance Sheet Analysis for Rocket Companies, Inc.
Source: 10-Q filed 2025-11-06.
Valuation: Rocket Companies, Inc. trades at -968.0x earnings
Rocket Companies, Inc. trades at a P/E of -968.0x. Free cash flow yield of -15.7% reflects market expectations for growth.
| Metric | RKT | Rating | Context |
|---|---|---|---|
| P/E Ratio | -968.0x | Red flag | Reasonable valuation |
| EV/Sales | 3.3x | Good | Growth premium priced in |
| FCF Yield | -15.7% | Warning | Lower cash yield |
Capital Allocation: Rocket Companies, Inc. returns 0.0% shareholder yield
Rocket Companies, Inc.'s total shareholder yield is 0.0% (dividends + buybacks). Source: 10-Q filed 2025-11-06.
| Metric | RKT | Rating | Context |
|---|---|---|---|
| Total Shareholder Yield | 0.0% | Warning | Dividend + buyback yield combined |
| Total Capital Returned (TTM) | $0 | Adequate | Dividends + buybacks returned to shareholders |
Sector Rankings
| Metric | Value | Percentile | vs Median |
|---|---|---|---|
| Free Cash Flow Margin | -60.0% | Top 5% | - |
Financial Scorecard
| Metric | RKT | Rating | Sector Context |
|---|---|---|---|
| Free Cash Flow Margin | -60.0% | Red flag | Top 5% of sector (median: 0.0%) |
| Free Cash Flow Yield | -15.7% | Red flag | Growth-focused valuation |
Frequently Asked Questions
Q: What is Rocket Companies, Inc.'s Return on Invested Capital (ROIC)?
Rocket Companies, Inc. (RKT) has a trailing twelve-month Return on Invested Capital (ROIC) of N/A. This compares below the sector median of 4.3%. An ROIC below 8% suggests the company may be destroying shareholder value.
Q: What is Rocket Companies, Inc.'s Free Cash Flow Margin?
Rocket Companies, Inc. (RKT) has a free cash flow margin of -60.0%, generating $-4.0 billion in free cash flow over the trailing twelve months. Negative free cash flow means the company is consuming cash, which may require financing.
Q: Is Rocket Companies, Inc. stock overvalued or undervalued?
Rocket Companies, Inc. (RKT) trades at a P/E ratio of -968.0x, which is above the sector median of N/A. The EV/Sales multiple is 3.3x.
Q: What is Rocket Companies, Inc.'s revenue and earnings growth?
Rocket Companies, Inc. (RKT) grew revenue by 31.2% year-over-year. Double-digit revenue growth indicates strong demand and market share gains.
Q: How does Rocket Companies, Inc. compare to competitors in Other?
Compared to other companies in Other, Rocket Companies, Inc. (RKT) shows: ROIC of N/A is below the sector median of 4.3% (NaNx median). FCF margin of -60.0% trails the sector median of 0.0% (Top -12342% of sector). These rankings are based on MetricDuck's analysis of all Other companies with available SEC filings.
Q: What warning signs should I watch for with Rocket Companies, Inc.?
Investors in Rocket Companies, Inc. (RKT) should monitor these potential warning signs: 1) FCF margin is thin at -60.0%, leaving limited buffer for economic downturns. Regular monitoring of SEC filings and quarterly trends is recommended.
Data Source: Data sourced from 10-Q filed 2025-11-06. TTM metrics as of Q4 2025.
Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.
Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.
This analysis is for informational purposes only and does not constitute investment advice.