Rocket Pharmaceuticals (RCKT) AI Stock Analysis

• Market Cap: $360.38M
• Dividend Yield: N/A
• Average Volume (3M): 1.85M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.54
• Revenue Growth: N/A
• EPS Growth: 18.39%
• Country: US
• Employees: 299
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.45
• Shares Outstanding: 108,222,230
• 10 Day Avg. Volume: 2,084,864
• 30 Day Avg. Volume: 1,852,849
• PEG Ratio: 0.71
• Price to Book (P/B): 2.57
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -5.53
• Enterprise Value/Market Cap: 0.76
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: -107.82
• Enterprise Value/Ebitda: -1.20
• 1Y Price Target: $8.86
• Price Target Upside: 166.07% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 52 Neutral
• Price Target: $3.50 ▲(5.11% Upside)

The score is mainly held back by weak financial performance (no revenue, widening losses, and heavy cash burn) despite low leverage. Technicals are moderately supportive with improving momentum, and the FDA acceptance/PDUFA date adds a meaningful near-term catalyst, but valuation remains constrained by ongoing losses and no dividend support.

Positive Factors

Low Financial Leverage

Low absolute debt and a very low debt-to-equity ratio give Rocket tangible financial flexibility for a clinical-stage biotech. Reduced refinancing pressure supports multi-year development timelines, lowers bankruptcy risk, and preserves optionality for partnerships or milestone-based funding.

Multi-Quarter Cash Runway

A cash balance that funds operations into Q2 2027 provides runway to pursue regulatory interactions, the March 2026 PDUFA, and pivotal study resumptions without immediate capital raises. That lowers short-term dilution risk and allows management to execute clinical milestones that drive long-term value.

Regulatory Visibility for KRESLADI

Acceptance of the BLA resubmission and a set PDUFA date materially improves regulatory clarity and creates a credible pathway to approval. Approval would shift Rocket toward product revenues and potential PRV monetization, fundamentally altering the company’s growth and funding profile.

Negative Factors

No Product Revenue & Widening Losses

Persistent zero product revenue and materially negative net results mean Rocket remains fully pre-commercial and dependent on external funding or partnerships. This structural lack of operating income constrains sustainability and raises execution and financing risks over the next several quarters.

Accelerating Cash Burn

sharply negative free cash flow and steep deterioration indicate rising program spend with limited operating leverage. Even with current cash, continued ~-$200M annualized burn increases reliance on milestone payments, PRV proceeds, or capital raises, which may force dilution or constrained choices.

Pipeline Narrowing / Program Withdrawal

Withdrawing the RP-L102 BLA and halting internal investment reflects strategic prioritization but reduces pipeline breadth. Concentrating resources on fewer programs raises single-program execution risk: setbacks or delays in prioritized assets would have outsized impact on long-term prospects.

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

Income statement and cash flow are weak: no revenue and sustained, sizable losses with very large negative operating and free cash flow in TTM, indicating heavy ongoing burn. The balance sheet is a relative strength with modest debt and low leverage, but equity/assets have declined with continued losses.

Income Statement

Results remain heavily loss-making with no reported revenue across annual periods and in TTM (Trailing-Twelve-Months). Losses have widened versus earlier years (net loss grew from about -$147M in 2020 to about -$259M in 2024, and ~-$241M in TTM), indicating elevated expense intensity and limited operating leverage so far. While this pattern can be typical for pre-commercial biotech, the sustained and sizable operating losses keep income statement quality weak.

Balance Sheet

Leverage is modest, with total debt around $25M in both 2024 and TTM (Trailing-Twelve-Months) and a low debt-to-equity ratio (~0.06–0.08), which reduces financial risk. However, equity and total assets have declined meaningfully since 2020–2023 levels (equity down to ~$314M in TTM from ~$463M in 2024 and ~$503M in 2020), consistent with ongoing losses and cash burn. Returns on equity are deeply negative, reflecting the lack of profitability.

Cash Flow

Cash generation is weak: operating cash flow is significantly negative each year and remains very large in TTM (Trailing-Twelve-Months) at about -$202M, with free cash flow also around -$203M. Free cash flow deterioration is notable in TTM (free cash flow growth of about -161%), signaling accelerating burn versus the prior period. A positive point is that free cash flow roughly tracks net loss (free cash flow to net income ~1.0–1.1), suggesting losses are broadly reflected in cash usage rather than being driven by large non-cash accounting items.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	0.00	0.00	0.00	0.00	0.00	0.00
Gross Profit	-2.54M	0.00	0.00	0.00	0.00	-1.15M
EBITDA	-227.85M	-247.49M	-236.62M	-213.69M	-157.81M	-131.59M
Net Income	-240.91M	-258.75M	-245.59M	-221.86M	-169.07M	-146.67M
Balance Sheet
Total Assets	368.03M	527.70M	566.34M	551.81M	497.02M	590.82M
Cash, Cash Equivalents and Short-Term Investments	222.76M	372.34M	373.18M	356.39M	388.74M	482.72M
Total Debt	25.05M	25.50M	25.04M	22.87M	22.60M	61.70M
Total Liabilities	54.36M	64.47M	73.77M	62.12M	42.30M	87.31M
Stockholders Equity	313.67M	463.23M	492.57M	489.69M	454.72M	503.52M
Cash Flow
Free Cash Flow	-202.82M	-215.59M	-211.39M	-186.76M	-128.88M	-103.70M
Operating Cash Flow	-202.15M	-209.72M	-194.92M	-178.14M	-121.16M	-74.64M
Investing Cash Flow	29.47M	131.71M	-98.07M	-69.33M	18.85M	-96.59M
Financing Cash Flow	183.03M	185.74M	208.40M	155.29M	37.68M	282.99M

Rocket Pharmaceuticals Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.33
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• 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 3.33 is below the 20-day moving average (MA) of 3.66, below the 50-day MA of 3.48, and below the 200-day MA of 3.73, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 39.07 is Neutral, neither overbought nor oversold. The STOCH value of 16.73 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
CTMX	62 Neutral	$960.70M	13.56	66.76%	―	-10.26%	144.62%
RCKT	52 Neutral	$360.38M	-1.48	-74.88%	―	―	18.39%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
AUTL	51 Neutral	$367.28M	-1.63	-60.52%	―	407.86%	30.35%
DRTS	51 Neutral	$648.01M	-14.57	-54.38%	―	―	-22.82%
ASMB	49 Neutral	$427.85M	-5.63	-36.94%	―	31.30%	32.79%
FDMT	47 Neutral	$473.86M	-2.36	-45.38%	―	―	―