Rocket Companies, Inc. engages in the tech-driven real estate, mortgage, and eCommerce businesses in the United States and Canada. More Details
Good value 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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.
Volatility Over Time: RKT's weekly volatility has decreased from 14% to 8% over the past year.
7 Day Return
1 Year Return
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.
Long-Term 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
2 months ago | Simply Wall StThese Analysts Think Rocket Companies, Inc.'s (NYSE:RKT) Sales Are Under Threat
8 months ago | Simply Wall StWhat Is The Ownership Structure Like For Rocket Companies, Inc. (NYSE:RKT)?
Is Rocket Companies undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: RKT ($17.25) is trading below our estimate of fair value ($31.5)
Significantly Below Fair Value: RKT is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: RKT is good value based on its PE Ratio (7.3x) compared to the US Mortgage industry average (12.2x).
PE vs Market: RKT is good value based on its PE Ratio (7.3x) compared to the US market (18.4x).
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 (4.2x) compared to the US Mortgage industry average (1.1x).
How is Rocket Companies forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?
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 (-19.4% per year).
Earnings vs Market: RKT's earnings are forecast to decline over the next 3 years (-19.4% 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 (-13.2% per year).
High Growth Revenue: RKT's revenue is forecast to decline over the next 3 years (-13.2% 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 (27.1%)
How has Rocket Companies performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: RKT has high quality earnings.
Growing Profit Margin: RKT's current net profit margins (1.7%) are lower than last year (5%).
Past Earnings Growth Analysis
Earnings Trend: RKT's earnings have declined by 59.9% per year over the past 5 years.
Accelerating Growth: RKT's earnings growth over the past year (7.5%) exceeds its 5-year average (-59.9% per year).
Earnings vs Industry: RKT earnings growth over the past year (7.5%) underperformed the Mortgage industry 30.9%.
Return on Equity
High ROE: Whilst RKT's Return on Equity (145.41%) is outstanding, this metric is skewed due to their high level of debt.
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
Financial Institutions Analysis
Asset Level: RKT's Assets to Equity ratio (4.2x) 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.
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.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Jay Farner (47 yo)
Mr. Jay D. Farner is Chief Executive Officer of Quicken Loans, LLC. He also serves as the Vice Chairman and CEO of Rocket Companies (NYSE: RKT), a Detroit-based holding company consisting of tech-driven re...
CEO Compensation Analysis
Compensation vs Market: Insufficient data to establish whether Jay's total compensation is reasonable compared to companies of similar size in the US market.
Compensation vs Earnings: Insufficient data to compare Jay's compensation with company performance.
Experienced Management: RKT's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.
Experienced Board: RKT's board of directors are not considered experienced ( 1.3 years average tenure), which suggests a new board.
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: RKT only recently listed within the past 12 months.
Rocket Companies, Inc.'s company bio, employee growth, exchange listings and data sources
- Name: Rocket Companies, Inc.
- Ticker: RKT
- Exchange: NYSE
- Founded: 1985
- Industry: Thrifts and Mortgage Finance
- Sector: Banks
- Implied Market Cap: US$34.247b
- Market Cap: US$2.354b
- Shares outstanding: 1.99b
- Website: https://www.rocketcompanies.com
Number of Employees
- Rocket Companies, Inc.
- 1050 Woodward Avenue
- United States
Rocket Companies, Inc. engages in the tech-driven real estate, mortgage, and eCommerce businesses in the United States and Canada. It operates in two segments, Direct to Consumer and Partner Network. The c...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/07/28 02:37|
|End of Day Share Price||2021/07/27 00:00|
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.