Rocket Lab USA (RKLB) AI Stock Analysis

• Market Cap: $23.56B
• Dividend Yield: N/A
• Average Volume (3M): 22.73M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.07
• Revenue Growth: 54.36%
• EPS Growth: -26.35%
• Country: US
• Employees: 2,100
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): -0.13
• Shares Outstanding: 483,960,660
• 10 Day Avg. Volume: 27,604,787
• 30 Day Avg. Volume: 22,730,826
• PEG Ratio: 0.00
• Price to Book (P/B): 33.03
• Price to Sales (P/S): 28.96
• P/FCF Ratio: -108.91
• Enterprise Value/Market Cap: 0.77
• Enterprise Value/Revenue: 36.16
• Enterprise Value/Gross Profit: 124.51
• Enterprise Value/Ebitda: -98.20
• 1Y Price Target: $49.27
• Price Target Upside: 6.51% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13

• Rating: 55 Neutral
• Price Target: $46.00 ▼(-0.56% Downside)

Rocket Lab's overall stock score reflects strong revenue growth and strategic acquisitions, which are positive indicators for future growth. However, significant challenges remain in terms of profitability, cash flow, and valuation. The technical analysis suggests moderate bullish momentum, but the stock's high P/E ratio and lack of dividend yield indicate potential overvaluation. Investors should weigh the company's growth prospects against its financial challenges.

Positive Factors

Revenue Growth

The significant revenue growth indicates strong demand for Rocket Lab's services, enhancing its market position and supporting long-term financial stability.

Strategic Acquisitions

Acquiring Geost strengthens Rocket Lab's competitive edge in national security, potentially leading to more government contracts and revenue streams.

U.S. Investments and Expansion

Expanding U.S. investments in semiconductor manufacturing enhances Rocket Lab's supply chain security and positions it as a key player in national security missions.

Negative Factors

Profitability Challenges

Persistent profitability challenges could impact Rocket Lab's ability to reinvest in growth and maintain competitive advantages over the long term.

Elevated Cash Consumption

High cash consumption for development projects may strain financial resources, affecting Rocket Lab's ability to fund other strategic initiatives.

Operating Expenses

Rising operating expenses could pressure margins and profitability, potentially limiting Rocket Lab's financial flexibility and growth prospects.

Rocket Lab USA Business Overview & Revenue Model

Company Description

Rocket Lab USA, Inc., a space company, provides launch services and space systems solutions for the space and defense industries. The company provides launch services, spacecraft engineering and design services, spacecraft components, spacecraft manufacturing, and other spacecraft and on-orbit management solutions; and constellation management services, as well as designs and manufactures small and medium-class rockets. It also designs, manufactures, and sells Electron small orbital launch vehicles and the Photon satellite platforms, as well as developing the Neutron 8-ton payload class launch vehicle; conducts remote launch activities; and designs and manufactures a range of components and subsystems for the Photon family of spacecraft and broader merchant spacecraft components. The company serves commercial, aerospace prime contractors, and government customers. The company was founded in 2006 and is headquartered in Long Beach, California.

How the Company Makes Money

Rocket Lab generates revenue through multiple streams primarily focused on its launch services and satellite solutions. The main revenue source comes from the launch contracts it secures with commercial, government, and international customers to transport small satellites into orbit using its Electron rocket. Additionally, Rocket Lab derives income from the sales and services associated with its Photon satellite platform, which includes satellite design, manufacturing, and mission management. Significant partnerships, such as collaborations with NASA and various commercial entities, enhance its market presence and contribute to its earnings by securing a steady pipeline of launch contracts and satellite deployments.

Rocket Lab USA Financial Statement Overview

Summary

Rocket Lab USA is experiencing strong revenue growth, but profitability and cash flow remain significant challenges. The company has managed to improve its leverage position, but ongoing losses are impacting return on equity and cash flow metrics. Continued focus on improving operational efficiency and profitability will be crucial for future financial health.

Income Statement

Rocket Lab USA shows a positive revenue growth trend, with a TTM revenue growth rate of 8.21%. However, the company is facing challenges in profitability, as indicated by negative net profit margins (-45.87%) and EBIT margins (-43.70%). The gross profit margin has improved to 29.04% in the TTM, showing some operational efficiency gains. Overall, while revenue is growing, profitability remains a significant concern.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.65 in the TTM, indicating better leverage management compared to previous years. However, the return on equity remains negative (-48.14%), reflecting ongoing losses. The equity ratio is stable, suggesting a solid capital structure. While leverage is under control, the negative ROE highlights profitability issues.

Cash Flow

Rocket Lab USA's cash flow situation is challenging, with negative operating cash flow and free cash flow. Although there is a positive free cash flow growth rate of 15.21% in the TTM, the operating cash flow to net income ratio is negative, indicating cash flow issues. The free cash flow to net income ratio of 1.84 suggests some ability to cover net losses, but overall cash flow health is weak.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	504.26M	436.21M	244.59M	211.00M	62.24M	35.16M
Gross Profit	146.45M	116.15M	51.41M	18.99M	-1.89M	-11.82M
EBITDA	-185.68M	-151.80M	-144.93M	-95.20M	-91.20M	-45.61M
Net Income	-231.31M	-190.18M	-182.57M	-135.94M	-117.32M	-55.01M
Balance Sheet
Total Assets	1.55B	1.18B	941.21M	989.12M	980.85M	187.87M
Cash, Cash Equivalents and Short-Term Investments	688.14M	418.99M	244.77M	471.79M	690.96M	52.79M
Total Debt	498.13M	468.42M	176.69M	152.78M	128.43M	27.30M
Total Liabilities	864.75M	801.89M	386.67M	315.92M	282.40M	354.58M
Stockholders Equity	688.49M	382.45M	554.54M	673.21M	698.45M	-166.71M
Cash Flow
Free Cash Flow	-204.06M	-115.98M	-153.57M	-148.95M	-97.49M	-52.88M
Operating Cash Flow	-110.77M	-48.89M	-98.87M	-106.54M	-71.79M	-27.76M
Investing Cash Flow	-71.25M	-98.33M	12.02M	-346.08M	-92.13M	-37.33M
Financing Cash Flow	405.79M	256.68M	7.37M	2.04M	799.94M	21.48M

Rocket Lab USA Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 46.26
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RKLB, the sentiment is Neutral. The current price of 46.26 is below the 20-day moving average (MA) of 48.08, below the 50-day MA of 46.41, and above the 200-day MA of 30.81, indicating a neutral trend. The MACD of 0.82 indicates Positive momentum. The RSI at 47.88 is Neutral, neither overbought nor oversold. The STOCH value of 17.23 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for RKLB.

Rocket Lab USA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DCO	73 Outperform	1.39B	35.37	5.65%	―	2.42%	72.72%
PL	59 Neutral	3.76B	-40.21	-20.76%	―	11.33%	35.92%
RKLB	55 Neutral	$23.56B	―	-40.45%	―	54.36%	-26.35%
EVEX	43 Neutral	1.17B	-6.15	―	―	―	-30.78%
LUNR	43 Neutral	1.80B	-3.82	64.24%	―	43.23%	-3174.53%
RDW	41 Neutral	1.27B	-2.72	-20.72%	―	-10.50%	-230.68%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Rocket Lab USA Corporate Events

Rocket Lab USA Holds Annual Stockholders Meeting

On August 25, 2025, Rocket Lab USA‘s Compensation Committee adopted a Senior Executive Cash Incentive Bonus Plan, which ties cash bonuses to the achievement of specific performance targets. This plan aims to align executive performance with corporate goals and operational success. Additionally, on August 27, 2025, Rocket Lab held its Annual Meeting of Stockholders, where four proposals were considered. Notably, three directors were elected, and the appointment of Deloitte & Touche LLP as the independent auditor was ratified. However, a proposed amendment to eliminate a pass-through voting provision was not approved.

Rocket Lab USA Acquires GEOST for $275 Million

On August 12, 2025, Rocket Lab completed its acquisition of GEOST, a developer of electro-optical and infrared sensor systems for national security space missions, for $275 million. This acquisition enhances Rocket Lab’s capabilities in national security by integrating GEOST’s technologies, supporting initiatives like the Golden Dome for America and the Space Development Agency’s Proliferated Warfighter Space Architecture, and expanding its footprint in North America.