Rocket Pharmaceuticals (RCKT) AI Stock Analysis

• Market Cap: $575.80M
• Dividend Yield: N/A
• Average Volume (3M): 2.62M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.96
• Revenue Growth: N/A
• EPS Growth: 6.99%
• Country: US
• Employees: 299
• Sector: Healthcare
• Sector Strength: 70
• Industry: Biotechnology
• EPS (TTM): -2.73
• Shares Outstanding: 106,629,700
• 10 Day Avg. Volume: 4,703,901
• 30 Day Avg. Volume: 2,618,899
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• Price to Cash Flow (P/CF): -4.80
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $42.00
• Price Target Upside: 696.96% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 15

Rocket Pharmaceuticals' stock score reflects the high-risk nature of its business model as a biotechnology firm in the R&D phase. The company's strong cash and equity positions are positive, but the lack of revenue and ongoing cash burn are significant concerns. The stock's technical weakness further underscores the challenges, while its negative P/E ratio and absence of dividends highlight current profitability issues.

Positive Factors

Financial Performance

RCKT completed a public offering of 15.2M shares for net proceeds of $182.5M, easing concerns about the company's balance sheet position.

Pipeline Development

Enrollment completion for RP-A501 in the pivotal Danon disease trial is a significant step forward in the development process.

Therapy Impact

RCKT's therapies likely offer a life-long effect as they target the heart, unlike most liver-targeted gene therapies with limited durability.

Negative Factors

Market Expectations

RCKT reported 4Q24 financial results and pipeline updates largely in line with expectations, which might not excite investors looking for significant surprises.

Price Target Adjustment

The price target was decreased to $36 from $39 following the 4Q24 earnings and public offering.

Regulatory Challenges

CRL for Kresladi in leukocyte adhesion deficiency-1 (LAD-1) indicates challenges with FDA review.

Rocket Pharmaceuticals Business Overview & Revenue Model

Company Description

Rocket Pharmaceuticals, Inc., together with its subsidiaries, operates as a multi-platform biotechnology company that focuses on developing gene therapies for rare and devastating diseases. It has three clinical-stage ex vivo lentiviral vector programs for fanconi anemia, a genetic defect in the bone marrow that reduces production of blood cells or promotes the production of faulty blood cells; leukocyte adhesion deficiency-I, a genetic disorder that causes the immune system to malfunction; and pyruvate kinase deficiency, a rare red blood cell autosomal recessive disorder that results in chronic non-spherocytic hemolytic anemia. The company also has a clinical stage in vivo adeno-associated virus program for Danon disease, a multi-organ lysosomal-associated disorder leading to early death due to heart failure. It has license agreements with Fred Hutchinson Cancer Research Center; Centro de Investigaciones Energéticas, Medioambientales y Tecnológicas (CIEMAT), Centro de Investigacion Biomedica En Red, and Fundacion Instituto de investigacion Sanitaria Fundacion Jimenez Diaz; CIEMAT and UCL Business PLC; The Regents of the University of California; and REGENXBIO, Inc. Rocket Pharmaceuticals, Inc. is headquartered in Cranbury, New Jersey.

How the Company Makes Money

Rocket Pharmaceuticals primarily makes money through the development and eventual commercialization of its gene therapy products. The company's revenue model includes securing funding through partnerships, collaborations, and licensing agreements with other biotechnology and pharmaceutical companies. Additionally, Rocket Pharmaceuticals may receive grants and government funding to support its research and development activities. As its therapies progress through clinical trials and receive regulatory approval, the company anticipates generating revenue from the sale of its gene therapies. Strategic partnerships and collaborations may also contribute to its earnings, providing milestones and royalty payments based on the success of jointly developed therapies.

Rocket Pharmaceuticals Financial Statement Overview

Summary

Rocket Pharmaceuticals exhibits typical financial features of a biotech firm in the R&D phase, with no revenue generation and substantial R&D investment leading to operational losses. The balance sheet is strong with high equity and cash reserves, but ongoing cash burn and reliance on external financing are risks.

Income Statement

Rocket Pharmaceuticals has reported zero revenue consistently over the years, which is typical for many biotech firms in the research phase. However, this lack of revenue results in negative margins across all metrics such as EBIT and EBITDA, reflecting ongoing operational losses. The company's net income remains negative, indicating continued investment in R&D without current profitability.

Balance Sheet

The balance sheet shows a strong equity base with stockholders' equity consistently higher than total liabilities, indicating a solid equity ratio. However, the company has been increasing its debt slightly and continues to operate with negative net debt, signifying a strong cash position relative to its debt. The debt-to-equity ratio remains low, which is positive, but the lack of revenue generation is a concern for future leverage.

Cash Flow

Cash flow analysis reveals negative operating cash flows indicative of high cash burn typical for developmental biotech firms. Free cash flow is consistently negative, while financing activities have been supporting cash reserves. The lack of revenue generation is a significant concern, and the free cash flow growth rate is negative, reflecting a continuing cash burn without offsetting income.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
0.00	0.00	0.00	0.00	0.00
	Gross Profit
0.00	-7.10M	-6.27M	-5.37M	-1.15M
	EBIT
-273.20M	-259.66M	-224.34M	-167.25M	-134.30M
	EBITDA
-273.20M	-236.62M	-213.69M	-161.72M	-131.59M
	Net Income Common Stockholders
-258.75M	-245.59M	-219.38M	-169.59M	-146.67M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
163.63M	373.18M	356.39M	388.74M	482.72M
	Total Assets
527.70M	566.34M	551.81M	497.02M	590.82M
	Total Debt
25.50M	25.04M	22.87M	22.60M	61.70M
	Net Debt
-138.14M	-30.86M	-117.65M	-210.09M	-235.40M
	Total Liabilities
64.47M	73.77M	62.12M	42.30M	87.31M
	Stockholders Equity
463.23M	492.57M	489.69M	454.72M	503.52M
Cash Flow		Free Cash Flow
-209.72M	-211.39M	-186.76M	-128.88M	-103.70M
	Operating Cash Flow
-209.72M	-194.92M	-178.14M	-121.16M	-74.64M
	Investing Cash Flow
131.71M	-98.07M	-69.33M	18.85M	-96.59M
	Financing Cash Flow
185.74M	208.40M	155.29M	37.68K	282.99M

Rocket Pharmaceuticals Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5.27
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RCKT, the sentiment is Negative. The current price of 5.27 is below the 20-day moving average (MA) of 6.88, below the 50-day MA of 8.61, and below the 200-day MA of 14.90, indicating a bearish trend. The MACD of -0.75 indicates Positive momentum. The RSI at 23.00 is Positive, neither overbought nor oversold. The STOCH value of 8.32 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RCKT.

Rocket Pharmaceuticals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TRVI	55 Neutral	$522.08M	―	-52.59%	―	―	-60.26%
Sector *	48 Neutral	$6.25B	1.14	-46.26%	2.69%	19.24%	1.75%
PRTA	47 Neutral	$521.58M	―	-23.34%	―	47.92%	17.84%
KALV	45 Neutral	$524.00M	―	-150.50%	―	―	-18.75%
ABUS	44 Neutral	$597.42M	―	-68.76%	―	-65.98%	14.00%
COGT	35 Underperform	$457.68M	―	-99.54%	―	―	-2.53%
RCKT	34 Underperform	$575.80M	―	-54.14%	―	―	6.99%

Rocket Pharmaceuticals Corporate Events

Rocket Pharmaceuticals Advances Danon Disease and PKD Studies

Rocket Pharmaceuticals showcased promising results from its Phase 1 RP-A501 study for Danon Disease, revealing well-tolerated treatments and sustained improvements in heart function over several years. The study highlighted significant reductions in left ventricular mass and improvements in heart failure symptoms, presenting a hopeful outlook for patients. Additionally, Rocket Pharmaceuticals is planning to resume its Phase 2 trial for Pyruvate Kinase Deficiency in 2025, reflecting a strategic focus on advancing its pipeline.