Rocket Pharmaceuticals (RCKT) AI Stock Analysis

• Market Cap: $478.79M
• Dividend Yield: N/A
• Average Volume (3M): 2.44M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.52
• Revenue Growth: N/A
• EPS Growth: 18.39%
• Country: US
• Employees: 299
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.38
• Shares Outstanding: 108,569,145
• 10 Day Avg. Volume: 3,798,275
• 30 Day Avg. Volume: 2,440,458
• PEG Ratio: 0.07
• Price to Book (P/B): 1.41
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -2.05
• Enterprise Value/Market Cap: 0.89
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: -167.83
• Enterprise Value/Ebitda: -2.05
• 1Y Price Target: $8.56
• Price Target Upside: 94.00% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): -1.47
• Revenue Forecast (FY): $17.09M

• Rating: 49 Neutral
• Price Target: $4.50 ▲(2.04% Upside)
• Action: Reiterated Date: 02/28/26
• Date: Action: Reiterated 02/28/26

The score is held back primarily by weak financial performance (no revenue, persistent losses, and ongoing cash burn with equity erosion risk). Technicals are supportive due to strong trend and positive MACD, but extremely overbought RSI/Stochastics temper the technical score. Valuation is constrained by negative earnings and no provided dividend yield.

Positive Factors

Targeted gene-therapy pipeline for rare diseases

Rocket’s concentrated pipeline in ex vivo LVV and in vivo AAV gene therapies targets rare, high-unmet-need indications. This focus aligns with durable structural advantages—regulatory incentives, high clinical value per approval, and limited competition—supporting long-term commercial optionality if trials succeed.

In-house manufacturing capability tied to development

Owning or developing manufacturing capabilities reduces CMC risks and dependency on third parties, accelerating trials and enabling smoother scale-up to commercialization. For gene therapy companies, durable control of manufacturing is a strategic advantage that preserves program timelines and partner negotiation leverage.

Modest leverage with meaningful equity cushion

Low debt levels reduce solvency risk and provide financial flexibility to fund R&D or access financing without heavy interest burden. A meaningful equity base, even if eroded, gives runway and capacity to raise capital when needed—important for clinical-stage biotech funding cycles over coming months.

Negative Factors

High and persistent cash burn

Consuming roughly $190M annually is a durable structural weakness: it necessitates frequent external financing, increases dilution risk, and constrains the company's ability to independently advance multiple programs simultaneously without partnerships or capital raises over the next several quarters.

No product revenue; sustained operating losses

Absence of product revenue and ongoing operating losses mean the business model is not yet cash-generative. This persistent lack of revenue creates structural dependence on external funding and milestone-based collaborations, limiting near-term self-sufficiency and making program timelines financing-sensitive.

Material equity erosion and negative returns on equity

Material declines in equity and sharply negative ROE signal capital erosion from sustained losses. This weakens the balance-sheet buffer, raises the likelihood of dilutive financings, and can impair investor appetite and partner economics—structural constraints on funding access over the medium term.

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

Financials reflect a pre-commercial biotech profile: essentially no revenue, large and persistent operating/net losses, and consistently negative operating and free cash flow. The balance sheet has modest leverage, but equity has fallen materially in recent years, and cash burn remains high, implying continued funding reliance.

Income Statement

Across the annual periods provided, the company reports essentially no revenue, while operating losses remain large and persistent (EBIT and net income are deeply negative each year). Losses improved in 2025 versus 2024 (net loss narrowed), but the longer trend still reflects heavy ongoing R&D/operating spend without an offsetting revenue base, keeping profitability weak and limiting visibility on near-term earnings power.

Balance Sheet

The balance sheet is supported by meaningful equity and relatively low leverage, with debt-to-equity staying modest (~0.05–0.09 in recent years, down from ~0.12 in 2020). However, equity has fallen materially from 2023–2025 (consistent with sustained losses), and returns on equity are sharply negative, highlighting ongoing capital erosion risk if losses persist.

Cash Flow

Cash generation is a key weakness: operating cash flow and free cash flow are consistently negative, and free cash flow declined further in 2025 versus 2024. While cash burn improved meaningfully versus 2020, the company is still consuming close to ~$190M of cash annually (2025), indicating continued reliance on external funding (equity or debt) until revenues scale.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	0.00	0.00	0.00	0.00	0.00
Gross Profit	-11.03M	0.00	0.00	0.00	0.00
EBITDA	-210.21M	-247.49M	-236.62M	-213.69M	-157.81M
Net Income	-223.12M	-258.75M	-245.59M	-221.86M	-169.07M
Balance Sheet
Total Assets	330.45M	527.70M	566.34M	551.81M	497.02M
Cash, Cash Equivalents and Short-Term Investments	188.93M	372.34M	373.18M	356.39M	388.74M
Total Debt	24.88M	25.50M	25.04M	22.87M	22.60M
Total Liabilities	53.23M	64.47M	73.77M	62.12M	42.30M
Stockholders Equity	277.22M	463.23M	492.57M	489.69M	454.72M
Cash Flow
Free Cash Flow	-190.45M	-215.59M	-211.39M	-186.76M	-128.88M
Operating Cash Flow	-190.01M	-209.72M	-194.92M	-178.14M	-121.16M
Investing Cash Flow	103.77M	131.71M	-98.07M	-69.33M	18.85M
Financing Cash Flow	148.00K	185.74M	208.40M	155.29M	37.68M

Rocket Pharmaceuticals Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.41
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 4.41 is above the 20-day moving average (MA) of 3.97, above the 50-day MA of 3.74, and above the 200-day MA of 3.40, indicating a bullish trend. The MACD of 0.33 indicates Negative momentum. The RSI at 59.69 is Neutral, neither overbought nor oversold. The STOCH value of 51.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RCKT.

Rocket Pharmaceuticals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CTMX	62 Neutral	$792.96M	-9.25	66.76%	―	-10.26%	144.62%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
AUTL	51 Neutral	$401.87M	-1.37	-60.52%	―	407.86%	30.35%
DRTS	51 Neutral	$546.54M	-8.08	-54.38%	―	―	-22.82%
RCKT	49 Neutral	$478.79M	-2.29	-60.27%	―	―	18.39%
ASMB	49 Neutral	$447.15M	-5.33	-36.94%	―	31.30%	32.79%
FDMT	47 Neutral	$432.55M	-2.14	-45.38%	―	―	―