NYSE:RKT

Stock Analysis Report

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Executive Summary

Rocket Companies, Inc. engages in the mortgage business in the United States. More Details


Snowflake Analysis

Slightly overvalued with questionable track record.

Share Price & News

How has Rocket Companies's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: RKT's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-0.8%

RKT

0.4%

US Mortgage

1.8%

US Market


1 Year Return

n/a

RKT

-22.1%

US Mortgage

14.2%

US Market

Return vs Industry: Insufficient data to determine how RKT performed against the US Mortgage industry.

Return vs Market: Insufficient data to determine how RKT performed against the US Market.


Shareholder returns

RKTIndustryMarket
7 Day-0.8%0.4%1.8%
30 Day5.5%1.4%0.04%
90 Dayn/a-29.0%9.8%
1 Yearn/a-19.8%-22.1%16.7%14.2%
3 Yearn/a8.6%-0.8%41.6%32.2%
5 Yearn/a12.1%-2.7%90.9%69.5%

Price Volatility Vs. Market

How volatile is Rocket Companies's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Rocket Companies undervalued compared to its fair value and its price relative to the market?

9.32x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: RKT ($22.57) is trading above our estimate of fair value ($21.42)

Significantly Below Fair Value: RKT is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: RKT is good value based on its PE Ratio (9.3x) compared to the US Mortgage industry average (11x).

PE vs Market: RKT is good value based on its PE Ratio (9.3x) compared to the US market (18.6x).


Price to Earnings Growth Ratio

PEG Ratio: RKT's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: RKT is overvalued based on its PB Ratio (8.1x) compared to the US Mortgage industry average (0.8x).


Next Steps

Future Growth

How is Rocket Companies forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

-33.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RKT's earnings are forecast to decline over the next 3 years (-33% per year).

Earnings vs Market: RKT's earnings are forecast to decline over the next 3 years (-33% per year).

High Growth Earnings: RKT's earnings are forecast to decline over the next 3 years.

Revenue vs Market: RKT's revenue is expected to decline over the next 3 years (-15.8% per year).

High Growth Revenue: RKT's revenue is forecast to decline over the next 3 years (-15.8% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RKT's Return on Equity is forecast to be high in 3 years time (25.2%)


Next Steps

Past Performance

How has Rocket Companies performed over the past 5 years?

538.3%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: RKT has a high level of non-cash earnings.

Growing Profit Margin: RKT's current net profit margins (47.5%) are higher than last year (15.8%).


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if RKT's year-on-year earnings growth rate was positive over the past 5 years.

Accelerating Growth: Insufficient data to compare RKT's past year earnings growth to its 5-year average.

Earnings vs Industry: RKT earnings growth over the past year (538.3%) exceeded the Mortgage industry 6.9%.


Return on Equity

High ROE: Whilst RKT's Return on Equity (86.78%) is outstanding, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is Rocket Companies's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Asset Level: RKT's Assets to Equity ratio (5.2x) is low.

Allowance for Bad Loans: Insufficient data to determine if RKT has a sufficient allowance for bad loans.

Low Risk Liabilities: RKT reports no customer deposits, 100% of its liabilities are made up of higher risk sources of funding.

Loan Level: Insufficient data to determine if RKT has an appropriate level of Loans to Assets ratio.

Low Risk Deposits: RKT reports no customer deposits, loans are made up entirely of externally borrowed funds.

Level of Bad Loans: Insufficient data to determine if RKT has an appropriate level of bad loans.


Next Steps

Dividend

What is Rocket Companies's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate RKT's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate RKT's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if RKT's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if RKT's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of RKT's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

0.5yrs

Average management tenure


CEO

Jay Farner (47 yo)

0.50

Tenure

US$11,728,067

Compensation

Mr. Jay D. Farner has been Chief Executive Officer and Director at Rocket Companies, Inc. since March 2020. Mr. Farner is Chief Executive Officer of Quicken Loans Inc. He is responsible for the leadership ...


CEO Compensation Analysis

Compensation vs Market: Jay's total compensation ($USD11.73M) is about average for companies of similar size in the US market ($USD11.31M).

Compensation vs Earnings: Insufficient data to compare Jay's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Jay Farner
CEO & Director0.50yrUS$11.73m0.053%
$ 24.0m
Robert Walters
President & COO0.50yrUS$258.10kno data
Julie Booth
CFO & Treasurer0.50yrUS$453.10kno data
Angelo Vitale
General Counsel & Secretary0.50yrUS$403.10kno data
Daniel Gilbert
Founder & Chairman of the Board0.50yrno data0.057%
$ 25.7m
Brian Brown
Chief Accounting Officerno datano datano data
Jason McGruder
Vice President of Investor Relationno datano datano data
Trina Scott
Chief Diversity Officerno datano datano data

0.5yrs

Average Tenure

55yo

Average Age

Experienced Management: RKT's management team is not considered experienced ( 0.5 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Jay Farner
CEO & Director0.50yrUS$11.73m0.053%
$ 24.0m
Daniel Gilbert
Founder & Chairman of the Board0.50yrno data0.057%
$ 25.7m
Nancy Tellem
Independent Director0.67yrno data0.0023%
$ 1.0m
Suzanne Shank-Werdlow
Independent Director0.67yrno datano data
Jennifer Gilbert
Director0.50yrno data0.057%
$ 25.7m
Matthew Rizik
Director0.50yrno datano data

0.5yrs

Average Tenure

58yo

Average Age

Experienced Board: RKT's board of directors are not considered experienced ( 0.5 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: RKT insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: RKT only recently listed within the past 12 months.


Top Shareholders

Company Information

Rocket Companies, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Rocket Companies, Inc.
  • Ticker: RKT
  • Exchange: NYSE
  • Founded: 1985
  • Industry: Thrifts and Mortgage Finance
  • Sector: Banks
  • Market Cap: US$45.128b
  • Shares outstanding: 2.00b
  • Website: https://www.rocketcompanies.com

Number of Employees


Location

  • Rocket Companies, Inc.
  • 1050 Woodward Avenue
  • Detroit
  • Michigan
  • 48226
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RKTNYSE (New York Stock Exchange)YesClass A Common StockUSUSDAug 2020

Biography

Rocket Companies, Inc. engages in the mortgage business in the United States. It is involved in originating, processing, underwriting, and servicing predominantly government sponsored enterprises-conformin ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/18 06:25
End of Day Share Price2020/09/17 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.