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Rocket Companies Inc (RKT)

Undervalued
Financial ServicesMortgage FinanceUnited States

Fundamental

18

Price

$11.51

Market Cap

$32.96B

Part 1 · What the company is worth

Overview

Rocket Companies, Inc., a fintech company, engages in the mortgage, real estate, and personal finance businesses in the United States and Canada. It operates in two segments, Direct to Consumer and Partner Network. The company offers Rocket Mortgage, a mortgage lender service; Redfin, a digital real estate brokerage and home search platform; Rocket Close, a digital experience for appraisal management, settlement, and title services; Rocket Money, a finance app that offers a suite of financial wellness services including subscription cancellation, budget management and credit score improvement; and Rocket Loans, a platform for personal loan. It also originates, closes, sells, and services agency-conforming loans; and provides Rocket Pro that works with mortgage brokers, community banks, and credit unions, to maintain own brand and client relationships. Rocket Companies, Inc. was founded in 1985 and is headquartered in Detroit, Michigan. Rocket Companies, Inc. was formerly a subsidiary of Rock Holdings Inc.

No editorial profile for this company yet

Direct competitors

Who this company fights with for the same customers

No editorial profile for this company yet

No competitor list for this company yet.

Balance Sheet & Liquidity

Revenue

$6.87B

Fiscal year ended 12/31/2025

Net Income

$-68M

Fiscal year ended 12/31/2025

Free Cash Flow

$-4.02B

Total Equity

$22.90B

Total Liabilities

$37.79B

Current Ratio

0.21

Interest Coverage

-

Debt/EBITDA

14.80

Earnings Per Share

Revenue & Net Income

Free Cash Flow

Income Breakdown

No income data available

Historical statement

Margins over time

Debt over time

How heavy the debt is

Growth grid

Growth — Revenue

Fair Value Estimation

Pre-revenueUndervalued

Fair Value

$15.63

Current Price

$11.51

Margin of Safety

+26.4%

Fair Value Range

$12.05 - $19.21

Spread across the valuation methods used, not a statistically calibrated confidence interval.

Estimation Methods

Analyst price target:$17.70
Discounted cash flow (DCF):Not applicable to this type of company
Earnings multiple (P/E):Not applicable to this type of company
Graham growth formula:Not applicable to this type of company
Earnings power value (EPV):Not applicable to this type of company
Justified P/B:Not applicable to this type of company
Dividend discount (Gordon):Not applicable to this type of company
P/FFO, funds from operations:Not applicable to this type of company
Mid-cycle earnings:Not applicable to this type of company
Revenue multiple:$9.43
Analyst Consensus:Buy (12B / 10H / 0S)
Last Earnings Surprise:-5.33%

Valuation Metrics

P/E Ratio

52.32

ROE

-0.3%

P/B Ratio

0.93

P/FCF

-

Gross Margin

-

ROIC

-

Profitability Radar

Value Creation (Economic Moat)

ROIC

-

WACC

8.1%

ROIC − WACC

-

Fundamental Analysis Criteria

Passed (4)

  • P/B Ratio 0.93
  • Debt/Equity ratio
  • Analyst Consensus 55% Buy
  • Earnings Surprise avg 24.3%

Failed (13)

  • EPS shows upward trend
  • Price CAGR -6.89%
  • Positive Free Cash Flow
  • Debt/EBITDA
  • Return on Tangible Assets
  • Low reliance on intangibles
  • Price below Graham Number
  • DCF valuation (Unknown)
  • ROE 2.4%
  • Revenue Growth 5Y -15.1%
  • Earnings Quality (OCF/NI) -1.35
  • Share Dilution 884.8%
  • Piotroski F-Score 1/9

Unavailable (10)

  • ROIC NaN%
  • Gross Margin NaN%
  • P/FCF NaN
  • Dividend Payout NaN%
  • Operating Margin NaN%
  • CapEx intensity
  • Current Ratio
  • Interest Coverage
  • PEG Ratio (need PE > 0 and growth > 0)
  • Net Margin Trend (invalid data)

Piotroski F-Score

1/9

Serious financial concerns

score
criteria

Earnings Quality

-1.35

Low quality: investigate accounting

Share Dilution

884.8%

Issuing new shares, diluting ownership

Institutional Holdings

Governance

Executive Team

NameTitleAge
Mr. Daniel B. GilbertFounder & Chairman of the Board63
Mr. Varun KrishnaCEO & Director43
Mr. Brian Nicholas BrownPresident, CFO & Treasurer46
Ms. Heather LovierChief Operating Officer50
Mr. William C. EmersonDirector62
Mr. William BanfieldChief Business Officer53
Mr. Jesse K. Bray CPAPresident & CEO of Rocket Mortgage and Director58
Mr. Noah EdwardsChief Accounting Officer40
Mr. Shawn MalhotraChief Technology Officer43
Ms. Sharon NgVice President of Investor Relations-

Audit Risk

7

Board Risk

10

Compensation Risk

10

Shareholder Rights Risk

7

Part 2 · The price and when to enter

This part won't tell you whether the company is worth owning: it helps you choose when to buy it, once the fundamentals have convinced you. Inside: technical analysis, potential, historical drawdowns, gamma exposure.

Documents

  • Annual Report (10-K)

    A yearly overview of the business, its financial results, and the risks it faces.

    Filed on 2026-03-02

    View document
  • Quarterly Report (10-Q)

    A snapshot of financial performance for the most recent three-month period.

    Filed on 2026-08-07

    View document
  • Current Report (8-K)

    An announcement of a major event, such as a leadership change or big news.

    Filed on 2026-08-17

    View document

via SEC EDGAR

Income History

via SEC EDGAR

Latest News

Recent headlines for RKT, sourced from Markets Gazette.

  • 5/29/2026NEGATIVE
    Why Is Rocket One Stock Falling On Friday?

    Rocket One Inc. stock experienced a decline on Friday, influenced by a broader sector pullback and a significant event involving Blue Origin's rocket explosion. While the specific financial impact on Rocket One Inc. is not detailed, the combination of industry-wide headwinds and a major negative event within the space sector suggests a challenging trading environment. Investors are likely reassessing risk exposure to space-related equities, leading to downward pressure on Rocket One's share price. The news highlights the volatility inherent in the emerging space industry and its susceptibility to external shocks.

  • 2/26/2026POSITIVE
    Rocket Shares Blast Off After Q4 Earnings: Here's Why

    Shares of Rocket Companies, Inc. (RKT) experienced a significant surge following the release of their fourth-quarter earnings report, signaling a strong positive market reaction. Although specific details of the report were not provided in the article, the headline clearly indicates that the company's financial performance either surpassed analyst expectations or offered a particularly encouraging future outlook. This 'blast off' in share price suggests investors welcomed the data, likely driven by increased revenues, improved profitability, or effective cost management within a dynamic market environment. For investors, this positive post-earnings reaction is a clear sign of confidence in Rocket's strategy and its ability to generate value, positioning the stock as a point of interest for those seeking growth opportunities in the financial and mortgage services sector.

via Markets Gazette