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Rocket Pharmaceuticals (RCKT)
NASDAQ:RCKT

Rocket Pharmaceuticals (RCKT) AI Stock Analysis

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Rocket Pharmaceuticals

(NASDAQ:RCKT)

Rating:40Underperform
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
Regulatory Clearance
Rocket received IND clearance for RP-A701, a gene therapy in development for BAG3-DCM, in line with expectations.
Regulatory Support
There is a possibility for the clinical hold on RP-A501 to be lifted based on precedents, with recent meetings suggesting continued flexibility and strong support from the FDA.
Safety and Efficacy
Initial data demonstrated robust expression of PKP2 and additional components of the same protein complex, supporting the decision that the current dose is safe and efficacious.
Negative Factors
Clinical Hold
The FDA placed the study on clinical hold following an unexpected serious adverse event in the RP-A501 study, adding uncertainty to its clinical or commercial success.
Financing Concerns
There are still serious dilution concerns for RCKT's financing, which could affect investor sentiment.
Patient Safety Concerns
Rocket reported an unexpected SAE of capillary leak syndrome leading to patient death due to an acute systemic infection in the ongoing pivotal Ph2 study of DP-A501 in Danon disease.

Rocket Pharmaceuticals (RCKT) vs. SPDR S&P 500 ETF (SPY)

Rocket Pharmaceuticals Business Overview & Revenue Model

Company DescriptionRocket 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 MoneyRocket 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
10
Very Negative
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
55
Neutral
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
20
Very Negative
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue0.000.000.000.000.000.00
Gross Profit-2.34M0.00-7.10M-6.27M-5.37M-1.15M
EBITDA-246.06M-273.20M-236.62M-213.69M-161.72M-131.59M
Net Income-258.03M-258.75M-245.59M-219.38M-169.59M-146.67M
Balance Sheet
Total Assets471.07M527.70M566.34M551.81M497.02M590.82M
Cash, Cash Equivalents and Short-Term Investments318.16M372.34M373.18M356.39M388.74M482.72M
Total Debt25.35M25.50M25.04M22.87M22.60M61.70M
Total Liabilities58.93M64.47M73.77M62.12M42.30M87.31M
Stockholders Equity412.14M463.23M492.57M489.69M454.72M503.52M
Cash Flow
Free Cash Flow-212.88M-215.59M-211.39M-186.76M-128.88M-103.70M
Operating Cash Flow-208.69M-209.72M-194.92M-178.14M-121.16M-74.64M
Investing Cash Flow38.64M131.71M-98.07M-69.33M18.85M-96.59M
Financing Cash Flow184.58M185.74M208.40M155.29M37.68K282.99M

Rocket Pharmaceuticals Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price2.90
Price Trends
50DMA
4.70
Negative
100DMA
6.40
Negative
200DMA
10.47
Negative
Market Momentum
MACD
-0.49
Negative
RSI
41.68
Neutral
STOCH
70.91
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RCKT, the sentiment is Neutral. The current price of 2.9 is above the 20-day moving average (MA) of 2.81, below the 50-day MA of 4.70, and below the 200-day MA of 10.47, indicating a neutral trend. The MACD of -0.49 indicates Negative momentum. The RSI at 41.68 is Neutral, neither overbought nor oversold. The STOCH value of 70.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for RCKT.

Rocket Pharmaceuticals Risk Analysis

Rocket Pharmaceuticals disclosed 72 risk factors in its most recent earnings report. Rocket Pharmaceuticals reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Rocket Pharmaceuticals Peers Comparison

Overall Rating
UnderperformOutperform
Sector (52)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
55
Neutral
$708.91M-55.12%-60.26%
52
Neutral
$7.50B0.31-61.87%2.27%17.10%1.59%
51
Neutral
$346.38M-23.46%54.55%36.41%
49
Neutral
$620.55M-79.02%-50.69%8.01%
45
Neutral
$595.59M-150.50%-18.75%
40
Underperform
$312.44M-60.45%6.99%
37
Underperform
$863.03M-84.04%-2.53%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
RCKT
Rocket Pharmaceuticals
2.90
-17.75
-85.96%
ABUS
Arbutus Biopharma
3.24
-0.02
-0.61%
PRTA
Prothena
6.44
-13.74
-68.09%
KALV
KalVista Pharmaceuticals
11.98
-0.22
-1.80%
COGT
Cogent Biosciences
7.58
-1.24
-14.06%
TRVI
Trevi Therapeutics
5.95
3.23
118.75%

Rocket Pharmaceuticals Corporate Events

Executive/Board ChangesShareholder Meetings
Rocket Pharmaceuticals Director R. Keith Woods to Depart
Neutral
Apr 29, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Apr 25, 2025