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Rocket Lab USA (RKLB)
NASDAQ:RKLB
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Rocket Lab USA
(NASDAQ:RKLB)45Neutral
Positive Factors
Contract Wins
Rocket Lab has been selected to provide hypersonic test launches for the Department of Defense, which indicates strong future opportunities for its HASTE missions.
Revenue Growth
Rocket Lab reported 4Q24 revenue of $132 million, above expectations and at the higher end of its outlook.
Negative Factors
Financial Outlook
The 1Q25 revenue outlook of $117-$123 million is below the Street's expectation of $136 million.
Rocket Lab USA (RKLB) vs. S&P 500 (SPY)
Market Cap
$8.46B
Dividend YieldN/A
Average Volume (3M)20.14M
Price to Earnings (P/E)―
Beta (1Y)2.28
Revenue Growth78.34%
EPS Growth-1.13%
CountryUS
Employees1,650
SectorIndustrials
Sector Strength66
IndustryAerospace & Defense
Share Statistics
EPS (TTM)-0.38
Shares Outstanding453,545,100
10 Day Avg. Volume23,174,772
30 Day Avg. Volume20,136,992
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)19.40
Price to Cash Flow (P/CF)-886.40
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$27.55Price Target Upside46.54% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering12
Rocket Lab USA Business Overview & Revenue Model
Company DescriptionRocket Lab USA, Inc. is a leading aerospace manufacturer and small satellite launch service provider, primarily operating in the space and defense sectors. The company is renowned for its Electron rocket, a dedicated small satellite launch vehicle, and its Photon spacecraft platform that facilitates end-to-end missions. Rocket Lab offers comprehensive launch services, spacecraft components, and mission management solutions tailored to commercial, civil, and government customers around the globe.
How the Company Makes MoneyRocket Lab USA generates revenue through several key streams. The primary source is its commercial launch services, where it charges clients for deploying their satellites into orbit using the Electron rocket. Additionally, Rocket Lab provides spacecraft components and systems, including satellite buses and propulsion systems, which are sold to various aerospace and defense clients. The company's Photon platform enables Rocket Lab to offer end-to-end space systems, including satellite operations and data services, contributing further to its revenue. Rocket Lab also engages in government contracts and partnerships, leveraging its expertise in space technology to support national defense and scientific missions, thus diversifying its income sources.
Rocket Lab USA Financial Statement Overview
Summary
Rocket Lab USA demonstrates strong revenue growth, a positive indication of market demand and business expansion. However, profitability and cash flow generation remain significant challenges. High leverage and negative returns on equity add to financial risks, suggesting the need for strategic improvements in cost management and operational efficiency to achieve sustainable profitability.Income Statement
Rocket Lab USA has shown significant revenue growth, with revenues increasing from $244.6 million in 2023 to $436.2 million in 2024, a growth of approximately 78.4%. However, the company continues to face challenges with profitability as indicated by negative net profit margins (-43.6% in 2024) and negative EBIT and EBITDA margins. Despite strong revenue growth, the consistent losses suggest difficulty in achieving operational efficiency and profitability.55
Neutral
Balance Sheet
The company's balance sheet reflects a high debt-to-equity ratio of approximately 1.11 in 2024, indicating significant leverage. While stockholders' equity has decreased over time, the equity ratio remains relatively low at 32.3% in 2024. The Return on Equity is negative due to consistent net losses, highlighting challenges in generating returns for shareholders. Overall, the balance sheet shows a risky capital structure with high leverage and negative equity growth.40
Negative
Cash Flow
Rocket Lab's cash flow statement shows improvement in free cash flow from -$153.6 million in 2023 to -$115.9 million in 2024. However, the company still reports negative operating cash flow and a negative free cash flow to net income ratio, indicating challenges in cash generation from operations. The operating cash flow to net income ratio is negative due to operating losses, which poses a risk to financial sustainability.45
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 436.21M | 244.59M | 211.00M | 62.24M | 35.16M | Gross Profit |
| 116.15M | 51.41M | 18.99M | -1.89M | -11.82M | EBIT |
| -189.80M | -177.92M | -135.20M | -102.05M | -54.95M | EBITDA |
| -151.80M | -148.78M | -105.26M | -91.20M | -44.59M | Net Income Common Stockholders |
| -190.18M | -182.57M | -135.94M | -117.32M | -55.01M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 418.99M | 244.77M | 471.79M | 690.96M | 52.79M | Total Assets |
| 1.18B | 941.21M | 989.12M | 980.85M | 187.87M | Total Debt |
| 424.37M | 176.69M | 152.78M | 128.43M | 27.30M | Net Debt |
| 153.33M | 14.17M | -89.73M | -562.53M | -25.49M | Total Liabilities |
| 801.89M | 386.67M | 315.92M | 282.40M | 354.58M | Stockholders Equity |
| 382.45M | 554.54M | 673.21M | 698.45M | -166.71M |
| Cash Flow | Free Cash Flow | |||
| -115.98M | -153.57M | -148.95M | -97.49M | -52.88M | Operating Cash Flow |
| -48.89M | -98.87M | -106.54M | -71.79M | -27.76M | Investing Cash Flow |
| -98.33M | 12.02M | -346.08M | -92.13M | -37.33M | Financing Cash Flow |
| 256.68M | 7.37M | 2.04M | 799.94M | 21.48M |
Rocket Lab USA Technical Analysis
Negative
18.80
Price Trends
25.99
Negative
21.88
Negative
13.89
Positive
Market Momentum
-2.27
Positive
34.34
Neutral
39.82
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RKLB, the sentiment is Negative. The current price of 18.8 is below the 20-day moving average (MA) of 23.63, below the 50-day MA of 25.99, and above the 200-day MA of 13.89, indicating a neutral trend. The MACD of -2.27 indicates Positive momentum. The RSI at 34.34 is Neutral, neither overbought nor oversold. The STOCH value of 39.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RKLB.
Rocket Lab USA Risk Analysis
Rocket Lab USA disclosed 63 risk factors in its most recent earnings report. Rocket Lab USA reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Rocket Lab USA Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $108.63B | 20.69 | 81.04% | 2.76% | 5.14% | -19.14% | |
73 Outperform | $1.19B | ― | -23.67% | ― | 12.49% | 24.15% | |
62 Neutral | $8.11B | 13.34 | 1.17% | 3.02% | 4.16% | -15.14% | |
61 Neutral | $828.31M | ― | -451.56% | ― | 27.35% | -36.73% | |
57 Neutral | $302.12M | ― | -132.51% | ― | 24.15% | 35.73% | |
45 Neutral | $8.46B | ― | -40.59% | ― | 78.34% | -1.13% | |
40 Underperform | $123.99M | ― | -83.78% | ― | 3.47% | 53.31% |
* Industrials Sector Average
Performance Comparison
RKLB
Rocket Lab USA
18.80
14.32
319.64%
LMT
Lockheed Martin
473.65
50.01
11.80%
SPCE
Virgin Galactic Holdings
3.41
-31.19
-90.14%
SPIR
Spire Global
10.46
-1.49
-12.47%
RDW
Redwire
12.06
8.95
287.78%
PL
Planet Labs PBC
3.98
1.78
80.91%
Rocket Lab USA Earnings Call Summary
Earnings Call Date: Feb 27, 2025 | % Change Since: -5.19% | Next Earnings Date: May 13, 2025
Earnings Call Sentiment Positive
Rocket Lab's earnings call highlights significant growth in revenue and successful contract wins, underpinning the company's strategic positioning in the space industry. Despite minor delays in the Neutron program and increased cash consumption, the overall sentiment is positive with continued progress and expansion across their business segments.Highlights
Record Revenue Growth
Rocket Lab achieved its highest annual revenue of $436 million, representing a 78% increase from the previous year. The Q4 growth was 121% year-over-year, with a 26% increase from Q3 to Q4.
Increased Launch Cadence
Rocket Lab delivered a record number of 16 launches in 2024 with 100% mission success, maintaining its position as the leading small launch provider globally.
Significant Contract Wins
Rocket Lab signed $450 million in new contracts in 2024, strengthening its backlog to over $1 billion.
Introduction of Flatellite
Rocket Lab introduced Flatellite, a low-cost, mass-producible satellite designed for large constellations, enhancing their space applications capabilities.
Neutron Development Progress
Neutron's launch infrastructure is nearing completion with significant progress in testing of the Archimedes engines and other hardware.
Lowlights
Neutron Launch Timeline Adjustment
The timeline for Neutron's first launch has been adjusted from mid-2025 to the second half of 2025, reflecting minor delays.
Increased Cash Consumption
Rocket Lab expects cash consumption to increase significantly in Q1 2025 due to Neutron-related investments and procurement items for the SDA program.
Challenges with Suppliers
Rocket Lab faced delays due to issues with third-party providers, affecting large structures and components.
Company Guidance
In the recent Rocket Lab conference call, the company reported its highest annual revenue to date for the fiscal year 2024, totaling $436 million, marking a 78% increase from the previous year. In the fourth quarter alone, revenue reached $132 million, a 121% year-over-year increase and a 26% sequential rise from the third quarter. Key drivers included a significant 382% revenue increase since their NASDAQ entry in 2021, fueled by 16 successful launches and a robust space systems segment. The company also secured over $450 million in new contracts, expanding its backlog to over $1 billion. For 2025, Rocket Lab projects further growth with over 20 missions scheduled and an ongoing focus on the Neutron launch vehicle, aiming to address the medium launch market, along with continued advancements in their space systems, highlighted by their new Flatellite satellite platform designed for high-volume production.Rocket Lab USA Corporate Events
Executive/Board ChangesPrivate Placements and Financing
Rocket Lab USA Announces Key Leadership and Stock Changes
Neutral
Dec 5, 2024
Rocket Lab Limited has entered an Exchange Agreement with The Equatorial Trust to swap 50,951,250 shares of Common Stock for Preferred Stock, exempt from U.S. Securities Act registration. This move includes conversion rights and a director designation for Sir Peter, who will continue as CEO and Board Chair with a new employment agreement featuring competitive compensation and stock awards. The Preferred Stock grants voting rights akin to Common Stock, with no scheduled dividends and a minimal liquidation preference.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.