Rocket Pharmaceuticals (RCKT) AI Stock Analysis

• Market Cap: $345.84M
• Dividend Yield: N/A
• Average Volume (3M): 3.72M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.63
• Revenue Growth: N/A
• EPS Growth: 6.99%
• Country: US
• Employees: 299
• Sector: Healthcare
• Sector Strength: 41
• Industry: Biotechnology
• EPS (TTM): -0.56
• Shares Outstanding: 107,737,920
• 10 Day Avg. Volume: 3,760,272
• 30 Day Avg. Volume: 3,720,256
• PEG Ratio: -0.33
• Price to Book (P/B): 0.76
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.43
• Enterprise Value/Market Cap: 0.80
• Enterprise Value/Revenue: 13.49
• Enterprise Value/Gross Profit: -118.98
• Enterprise Value/Ebitda: -0.28
• 1Y Price Target: $9.70
• Price Target Upside: 208.92% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 18

• Rating: 40 Underperform
• Price Target: ―

Rocket Pharmaceuticals' overall score reflects its position as a biotechnology firm in the development phase, with significant financial risks due to its lack of revenue and reliance on external financing. Technical indicators suggest potential volatility, while the negative P/E ratio highlights current valuation challenges. The company's strong equity position is a positive factor, but ongoing cash burn remains a critical concern.

Positive Factors

Clinical Progress

The data from the first three patients in the Ph1 study of RP-A601 demonstrated a consistent and significant decrease in arrhythmia burden, and stabilization or improvement in both right ventricular function and patients' quality of life from RP-A601 treatment.

Regulatory Prospects

An agreement with the FDA on an accelerated approval pathway for RP-A601 is seen as possible based on a favorable clinical profile and the precedent of RP-A501 for Danon disease.

Strategic Restructuring

The company's strategic reorganization and pipeline prioritization, including a 30% workforce reduction, is expected to reduce 12-month operating expenses by approximately 25% and extend the cash runway into the second quarter of 2027.

Negative Factors

Clinical Hold Concerns

The clinical hold on RP-A501 followed an unexpected patient death, raising concerns about the safety of the new C3 inhibitor added to the regimen.

Price Target Reduction

The net result of recent changes is a decrease in the year-end price target to $10 from $11.

Program Delays

Program development for RP-L102 for Fanconi anemia and RP-L301 for pyruvate kinase deficiency has been delayed, impacting the progression of these therapies.

Rocket Pharmaceuticals Business Overview & Revenue Model

Company Description

Rocket Pharmaceuticals, Inc. (RCKT) is a clinical-stage biotechnology company focused on developing first-in-class gene therapies for rare and devastating diseases. The company operates in the pharmaceutical sector, primarily targeting inherited genetic disorders with high unmet medical needs. Rocket Pharmaceuticals leverages its proprietary lentiviral vector platform to develop gene therapies aimed at providing long-lasting and potentially curative treatments for patients.

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 traits of a biotech firm in its R&D phase, with no revenue generation and significant R&D investment leading to operational losses. The balance sheet is robust with high equity and cash reserves, but the ongoing cash burn poses a risk, and the company relies on external financing to sustain operations.

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
EBITDA	-273.20M	-236.62M	-213.69M	-161.72M	-131.59M
Net Income	-258.75M	-245.59M	-219.38M	-169.59M	-146.67M
Balance Sheet
Total Assets	527.70M	566.34M	551.81M	497.02M	590.82M
Cash, Cash Equivalents and Short-Term Investments	372.34M	373.18M	356.39M	388.74M	482.72M
Total Debt	25.50M	25.04M	22.87M	22.60M	61.70M
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	-215.59M	-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: 3.14
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 3.14 is above the 20-day moving average (MA) of 2.99, below the 50-day MA of 3.46, and below the 200-day MA of 9.29, indicating a neutral trend. The MACD of -0.04 indicates Negative momentum. The RSI at 49.02 is Neutral, neither overbought nor oversold. The STOCH value of 61.60 is Neutral, 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	$937.67M	―	-55.12%	―	―	-60.26%
Sector *	52 Neutral	$7.63B	0.11	-62.96%	2.08%	16.16%	0.31%
ABUS	51 Neutral	$616.72M	―	-79.02%	―	-50.69%	8.01%
PRTA	51 Neutral	$360.64M	―	-23.46%	―	54.55%	36.41%
KALV	45 Neutral	$728.33M	―	-121.50%	―	―	-18.75%
RCKT	40 Underperform	$345.84M	―	-60.45%	―	―	6.99%
COGT	37 Underperform	$1.98B	―	-84.04%	―	―	-2.53%

Rocket Pharmaceuticals Corporate Events

Rocket Pharmaceuticals Director R. Keith Woods to Depart

On April 26, 2025, R. Keith Woods informed Rocket Pharmaceuticals‘ board that he will not seek re-election at the 2025 Annual Meeting due to his new position as Chief Operating Officer at another biopharmaceutical company. His departure is not due to any disagreements with Rocket Pharmaceuticals, and his term will conclude at the 2025 Annual Meeting.

Spark’s Take on RCKT Stock

According to Spark, TipRanks’ AI Analyst, RCKT is a Underperform.

Rocket Pharmaceuticals’ overall score reflects its position as a biotechnology firm in the development phase, with significant financial risks due to its lack of revenue and reliance on external financing. Technical indicators suggest potential volatility, while the negative P/E ratio highlights current valuation challenges. The company’s strong equity position is a positive factor, but ongoing cash burn remains a critical concern.

To see Spark’s full report on RCKT stock, click here.