Rocket Companies
Market Cap
US$45.1b
Last Updated
2020/09/18 06:25 UTC
Data Sources
Company Financials +
Executive Summary
Rocket Companies, Inc. engages in the mortgage business in the United States. More Details
Rewards
Risk Analysis
Earnings are forecast to decline by an average of 33% per year for the next 3 years
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
| RKT | Industry | Market | |
|---|---|---|---|
| 7 Day | -0.8% | 0.4% | 1.8% |
| 30 Day | 5.5% | 1.4% | 0.04% |
| 90 Day | n/a | -29.0% | 9.8% |
| 1 Year | n/a | -19.8%-22.1% | 16.7%14.2% |
| 3 Year | n/a | 8.6%-0.8% | 41.6%32.2% |
| 5 Year | n/a | 12.1%-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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 0.50yr | US$11.73m | 0.053% $ 24.0m | |
| President & COO | 0.50yr | US$258.10k | no data | |
| CFO & Treasurer | 0.50yr | US$453.10k | no data | |
| General Counsel & Secretary | 0.50yr | US$403.10k | no data | |
| Founder & Chairman of the Board | 0.50yr | no data | 0.057% $ 25.7m | |
| Chief Accounting Officer | no data | no data | no data | |
| Vice President of Investor Relation | no data | no data | no data | |
| Chief Diversity Officer | no data | no data | no 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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 0.50yr | US$11.73m | 0.053% $ 24.0m | |
| Founder & Chairman of the Board | 0.50yr | no data | 0.057% $ 25.7m | |
| Independent Director | 0.67yr | no data | 0.0023% $ 1.0m | |
| Independent Director | 0.67yr | no data | no data | |
| Director | 0.50yr | no data | 0.057% $ 25.7m | |
| Director | 0.50yr | no data | no 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| RKT | NYSE (New York Stock Exchange) | Yes | Class A Common Stock | US | USD | Aug 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/09/18 06:25 |
| End of Day Share Price | 2020/09/17 00:00 |
| Earnings | 2020/06/30 |
| Annual Earnings | 2019/12/31 |
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.