Rocket Companies Inc (RKT) Stock Analysis — PE Ratio, PS Ratio, Intrinsic Value & 2030 Price Target
Rocket Companies Inc stock (RKT) is currently trading at $14.29. Rocket Companies Inc PS ratio (Price-to-Sales) is 5.65. Analyst consensus price target for RKT is $21.86. WallStSmart rates RKT as Hold.
- RKT PE ratio analysis and historical PE chart
- RKT PS ratio (Price-to-Sales) history and trend
- RKT intrinsic value — DCF, Graham Number, EPV models
- RKT stock price prediction 2025 2026 2027 2028 2029 2030
- RKT fair value vs current price
- RKT insider transactions and insider buying
- Is RKT undervalued or overvalued?
- Rocket Companies Inc financial analysis — revenue, earnings, cash flow
- RKT Piotroski F-Score and Altman Z-Score
- RKT analyst price target and Smart Rating
Rocket Companies Inc
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Smart Analysis
Rocket Companies Inc (RKT) · 10 metrics scored
Smart Score
Category Performance
WallStSmart pulls financial metrics like revenue growth, profit margins, and valuation ratios and scores each one from 0 to 10 based on how strong or weak it is. Those 10 scores are grouped into 4 categories: Growth, Profitability, Valuation, and Quality — which form the 4 axes of the spider chart you see. The categories are then combined into a final score out of 100, but not equally. Growth and Profitability together count for 60% of the total, because a fast-growing profitable business matters more than just a cheap one. That final number maps to a rating (Strong Buy, Buy, Hold, Avoid) and a letter grade, giving you one clear Stock Rating.
Investment Thesis
Strong fundamentals in market cap, peg ratio, price/book. Concerns around return on equity and eps growth. Fundamentals are solid but monitor weak areas for improvement.
Rocket Companies Inc (RKT) Key Strengths (5)
Growing significantly faster than its price suggests
Revenue surging 52.60% year-over-year
88.87% of shares held by major funds and institutions
Large-cap company with substantial market presence
Trading at 1.68x book value, attractively priced
Supporting Valuation Data
Rocket Companies Inc (RKT) Areas to Watch (5)
Company is destroying shareholder value
Earnings declining -89.50%, profits shrinking
Company is losing money with a negative profit margin
Premium valuation at 5.7x annual revenue
Decent operational efficiency, solid but not exceptional
Supporting Valuation Data
Rocket Companies Inc (RKT) Detailed Analysis Report
Overall Assessment
This company scores 55/100 in our Smart Analysis, earning a C grade. Out of 10 metrics analyzed, 5 register as strengths (avg 9.4/10) while 5 fall into concern territory (avg 2.0/10). The category breakdown reveals uneven performance, with some areas requiring attention.
The Bull Case
The strongest argument centers on PEG Ratio, Revenue Growth, Institutional Own.. Valuation metrics including PEG Ratio (0.45), Price/Book (1.68) suggest the stock is attractively priced. Growth metrics are encouraging with Revenue Growth at 52.60%.
The Bear Case
The primary concerns are Return on Equity, EPS Growth, Profit Margin. Some valuation metrics including Price/Sales (5.65) suggest expensive pricing. Growth concerns include EPS Growth at -89.50%, which may limit upside. Profitability pressure is visible in Return on Equity at -1.47%, Operating Margin at 17.90%, Profit Margin at -0.96%.
Key Dynamics to Monitor
Three factors to monitor going forward. First, whether Return on Equity improves, as this is the primary drag on the overall score. Second, margin trajectory, with Return on Equity at -1.47% needing improvement to support the investment thesis. Third, growth sustainability, with Revenue Growth at 52.60% strong but requiring continuation.
Risk Considerations
Based on the metric profile, this is a moderate-to-high risk investment. Strengths and concerns are roughly balanced. Investors should size positions according to their risk tolerance and maintain diversification.
Bottom Line
Mixed fundamentals with both positives (PEG Ratio, Revenue Growth) and negatives (Return on Equity, EPS Growth). A cautious approach is warranted. Monitor for improvement in weak areas before increasing conviction.
Disclaimer: Smart Analysis is a scoring system developed by WallStSmart Team. Scores update daily using multi-model valuation framework. Always conduct your own research and consult with financial advisors before making investment decisions.
RKT Price-to-Sales(PS) Ratio Chart
Historical valuation based on market cap ÷ trailing 12-month revenue
RKT's Price-to-Sales ratio of 5.65x trades 83% above its historical average of 3.08x (79th percentile), historically expensive. The current valuation is 26% below its historical high of 7.59x set in Dec 2023, and 5036% above its historical low of 0.11x in May 2021. Over the past 12 months, the PS ratio has expanded from ~0.4x, reflecting growing market expectations outpacing revenue growth.
WallStSmart Analysis Synopsis
Data-driven financial summary for Rocket Companies Inc (RKT) · FINANCIAL SERVICES › MORTGAGE FINANCE
The Big Picture
Rocket Companies Inc is in a high-growth phase, prioritizing rapid expansion over margins. Revenue reached 7.1B with 53% growth year-over-year. The company is currently unprofitable, posting a -1.0% profit margin.
Key Findings
Revenue growing at 53% YoY, reaching 7.1B. This pace significantly outperforms most MORTGAGE FINANCE peers.
The company is unprofitable with a -1.0% profit margin. The path to breakeven will be the key catalyst.
Free cash flow is -1.3B, meaning the company is burning cash. This may be acceptable for high-growth companies investing heavily.
What to Watch Next
Growth sustainability: can Rocket Companies Inc maintain 53%+ revenue growth, or will competition slow it down?
Volatility is elevated with a beta of 2.31, so expect amplified moves relative to the broader market.
Debt management: total debt of 22.3B is significantly higher than cash (5.8B). Monitor refinancing risk.
Sector dynamics: monitor MORTGAGE FINANCE industry trends, competitive moves, and regulatory changes that could impact Rocket Companies Inc.
Bottom Line
Rocket Companies Inc is a high-conviction growth story with revenue accelerating at 53% while profitability is still developing. For growth-oriented investors, the trajectory is compelling. For value investors, the thin -1.0% margins and premium valuation suggest patience until the unit economics mature further.
This synopsis is generated from publicly available financial data. It is not financial advice. Always conduct your own research and consult a qualified financial advisor before making investment decisions.
Insider Transactions
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About Rocket Companies Inc(RKT)
NYSE
FINANCIAL SERVICES
MORTGAGE FINANCE
USA
Rocket Companies, Inc. is engaged in the technology-driven real estate, mortgage and e-commerce businesses in the United States and Canada. The company is headquartered in Detroit, Michigan.