Rocket Pharmaceuticals (RCKT) AI Stock Analysis

• Market Cap: $340.45M
• Dividend Yield: N/A
• Average Volume (3M): 6.29M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.60
• Revenue Growth: N/A
• EPS Growth: 6.99%
• Country: US
• Employees: 299
• Sector: Healthcare
• Sector Strength: 55
• Industry: Biotechnology
• EPS (TTM): -0.56
• Shares Outstanding: 107,737,920
• 10 Day Avg. Volume: 7,879,605
• 30 Day Avg. Volume: 6,290,640
• PEG Ratio: -0.30
• Price to Book (P/B): 2.72
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -7.14
• Enterprise Value/Market Cap: 3.57
• Enterprise Value/Revenue: 58.96
• Enterprise Value/Gross Profit: -519.89
• Enterprise Value/Ebitda: -1.24
• 1Y Price Target: $10.75
• Price Target Upside: 250.16% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 17

• 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

Program Salvageability

Analysts remain cautiously optimistic about the RP-A501 program being salvageable if the capillary leak syndrome was driven by the C3 inhibitor.

Risk-Benefit Profile

RP-A501 has demonstrated a remarkably positive risk-benefit profile at the go-forward dose, markedly altering the natural history of the disease in patients and remaining durable across 5 years of data.

Negative Factors

Clinical Hold Impact

The clinical hold on RP-A501 adds uncertainty regarding its clinical or commercial success, especially if thrombotic microangiopathy remains a high-risk concern for the program moving forward.

Financial Concerns

There are still serious dilution concerns for RCKT's financing.

Regulatory Challenges

The clinical hold setback could result in a more conservative regulatory bar for approval, which is necessary for shares to regain a constructive foothold.

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
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
-2.34M	0.00	-7.10M	-6.27M	-5.37M	-1.15M
	EBIT
-270.22M	-273.20M	-259.66M	-224.34M	-167.25M	-134.30M
	EBITDA
-246.06M	-273.20M	-236.62M	-213.69M	-161.72M	-131.59M
	Net Income Common Stockholders
-258.03M	-258.75M	-245.59M	-219.38M	-169.59M	-146.67M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
318.16M	372.34M	373.18M	356.39M	388.74M	482.72M
	Total Assets
471.07M	527.70M	566.34M	551.81M	497.02M	590.82M
	Total Debt
25.35M	25.50M	25.04M	22.87M	22.60M	61.70M
	Net Debt
-24.46M	-138.14M	-30.86M	-117.65M	-210.09M	-235.40M
	Total Liabilities
58.93M	64.47M	73.77M	62.12M	42.30M	87.31M
	Stockholders Equity
412.14M	463.23M	492.57M	489.69M	454.72M	503.52M
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 Flow
38.64M	131.71M	-98.07M	-69.33M	18.85M	-96.59M
	Financing Cash Flow
184.58M	185.74M	208.40M	155.29M	37.68K	282.99M

Rocket Pharmaceuticals Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.07
• 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 3.07 is below the 20-day moving average (MA) of 4.13, below the 50-day MA of 5.57, and below the 200-day MA of 11.60, indicating a bearish trend. The MACD of -0.96 indicates Negative momentum. The RSI at 34.09 is Neutral, neither overbought nor oversold. The STOCH value of 72.69 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	$775.63M	―	-55.12%	―	―	-60.26%
Sector *	54 Neutral	$5.38B	3.31	-45.11%	3.29%	16.82%	0.04%
ABUS	50 Neutral	$679.92M	―	-79.02%	―	-50.69%	8.01%
KALV	45 Neutral	$706.46M	―	-150.50%	―	―	-18.75%
PRTA	42 Neutral	$283.13M	―	-23.46%	―	54.55%	36.41%
RCKT	40 Underperform	$340.45M	―	-60.45%	―	―	6.99%
COGT	37 Underperform	$826.60M	―	-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.