Rocket Companies (RKT) AI Stock Analysis

• Market Cap: $47.28B
• Dividend Yield: N/A
• Average Volume (3M): 28.65M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.35
• Revenue Growth: 22.56%
• EPS Growth: N/A
• Country: US
• Employees: 14,200
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Mortgages
• EPS (TTM): 0.11
• Shares Outstanding: 967,010,560
• 10 Day Avg. Volume: 23,213,413
• 30 Day Avg. Volume: 28,647,020
• PEG Ratio: 3.02
• Price to Book (P/B): 1.12
• Price to Sales (P/S): 3.72
• P/FCF Ratio: -6.52
• Enterprise Value/Market Cap: 0.94
• Enterprise Value/Revenue: 6.51
• Enterprise Value/Gross Profit: 7.19
• Enterprise Value/Ebitda: 69.75
• 1Y Price Target: $23.00
• Price Target Upside: 23.13% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): 0.81
• Revenue Forecast (FY): $10.59B

• Rating: 52 Neutral
• Price Target: $17.00 ▼(-8.99% Downside)
• Action: Reiterated Date: 03/03/26
• Date: Action: Reiterated 03/03/26

The score is held back primarily by weak and inconsistent cash generation (negative operating and free cash flow in 2024–2025) and a bearish technical setup (price below key moving averages with negative MACD). These are partly offset by a more de-risked balance sheet in 2025 and a positive earnings-call outlook highlighting market-share gains, integration synergies, and AI-driven operating leverage.

Positive Factors

Large servicing portfolio and recurring cash flow

A $2.1 trillion unpaid principal balance and 9.5M servicing clients create a durable annuity-like revenue base. Servicing cash flows (~$5B annualized) provide recurring, less rate-sensitive income that cushions origination cyclicality and supports long-term cash generation and capital allocation flexibility.

Realized acquisition integration synergies

Rapid, measurable synergy realization from Redfin and efficient MSR migrations demonstrate execution capability on M&A. Early cost saves and operational consolidation support faster margin expansion, lower per-loan costs, and durable scale advantages as integrations complete ahead of schedule.

De-risked balance sheet and stronger capitalization

Eliminating reported debt by 2025 and rebuilding equity materially reduces funding and refinancing risks in a cyclical mortgage model. Stronger capitalization improves liquidity optionality, supports countercyclical capacity to originate or buy MSRs, and lowers the probability of distress in rate shocks.

Negative Factors

Weak and inconsistent cash generation

Sustained negative operating and free cash flow raises concerns about earnings quality and working-capital volatility in the mortgage cycle. Without consistent cash conversion, the firm may rely on external funding or equity to support growth, limiting sustainable investment and increasing sensitivity to funding market stress.

Volatile profitability and weak returns on equity

Fluctuating earnings—strong years followed by near-breakeven or loss years—indicate earnings sensitivity to cyclical origination volumes and margins. Negative or weak ROE signals the company currently struggles to convert scale and capital into consistent shareholder returns, limiting long-term return predictability.

Structural housing affordability and inventory headwinds

Enduring affordability issues and thin seller inventory constrain purchase activity, capping origination potential over multiple quarters. These supply-demand structural issues reduce addressable volumes for mortgages and increase sensitivity to policy, making revenue growth and margin expansion harder to sustain absent broader housing-market fixes.

Rocket Companies Business Overview & Revenue Model

Company Description

Rocket Companies, Inc. engages in the tech-driven real estate, mortgage, and e-Commerce businesses in the United States and Canada. It operates through two segments, Direct to Consumer and Partner Network. The company's solutions include Rocket Mortgage, a mortgage lender; Amrock that provides title insurance, property valuation, and settlement services; Rocket Homes, a home search platform and real estate agent referral network, which offers technology-enabled services to support the home buying and selling experience; Rocket Auto, an automotive retail marketplace that provides centralized and virtual car sales support to online car purchasing platforms; and Rocket Loans, an online-based personal loans business. It also offer Core Digital Media, a digital social and display advertiser in the mortgage, insurance, and education sectors; Rocket Solar, which connect homeowners with digital financing solutions through a team of trained solar advisors; Truebill, a personal finance app that helps clients manage every aspect of their financial lives; Lendesk, a technology services company that provides a point of sale system for mortgage professionals and a loan origination system for private lenders; and Edison Financial, a digital mortgage broker. In addition, the company originates, closes, sells, and services agency-conforming loans. Rocket Companies, Inc. was founded in 1985 and is headquartered in Detroit, Michigan. Rocket Companies, Inc. operates as a subsidiary of Rock Holdings, Inc.

How the Company Makes Money

Rocket Companies generates revenue primarily through its mortgage origination and servicing activities. The company earns money by charging fees and interest on the loans it originates, which includes origination fees, processing fees, and points collected at closing. Additionally, Rocket Companies earns ongoing revenue from servicing the loans it retains in its portfolio, receiving monthly servicing fees from borrowers. Another significant revenue stream comes from its technology platform, which offers various services to real estate agents and brokers, including lead generation and CRM solutions. Strategic partnerships with financial institutions and technology firms further enhance its offerings and drive additional revenue growth. The company also benefits from market conditions, such as low interest rates, which can increase loan origination volumes, contributing to its overall earnings.

Rocket Companies Financial Statement Overview

Summary

Mixed fundamentals. Revenue rebounded in 2025 (+11.4% YoY) and EBIT margin remained positive (~8.7%), but earnings have been volatile and 2025 returned to a small net loss. The balance sheet appears materially de-risked in 2025 with reported total debt at 0 versus very high leverage in 2024, yet returns remain weak. Cash flow is the biggest drag: operating cash flow and free cash flow were meaningfully negative in both 2024 and 2025, raising cash-conversion and cyclicality concerns.

Income Statement

Revenue improved in 2025 (annual) with an 11.4% increase versus 2024, showing a rebound after the prior downcycle. Profitability, however, remains inconsistent: 2025 swung back to a small net loss (about -1.0% margin) after a modest profit in 2024, and results have been volatile across the period (strong earnings in 2020–2021, losses/near-breakeven in 2023–2025). Operating profitability in 2025 remained positive (EBIT margin ~8.7%), but the lower margin level versus 2024 points to pressure on operating leverage.

Balance Sheet

Leverage and capitalization show a dramatic shift. In 2024, the balance sheet appeared highly leveraged (debt-to-equity ~19.9x), which is a key risk factor in a cyclical mortgage business. By 2025 (annual), reported total debt is 0 with a very large equity base, materially reducing balance-sheet risk and improving financial flexibility; however, profitability on equity is weak (slightly negative return on equity in 2025), indicating that the stronger capitalization is not currently translating into strong shareholder returns.

Cash Flow

Cash generation is the weakest area. Operating cash flow and free cash flow were meaningfully negative in both 2024 and 2025 (annual), despite near-breakeven earnings, indicating earnings quality and/or working-capital volatility concerns. The cash flow picture is also highly cyclical: 2022 posted very strong positive operating and free cash flow, while 2020 and the most recent two years were negative, reducing consistency and visibility.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	6.88B	5.40B	4.01B	6.00B	13.18B
Gross Profit	6.30B	4.93B	3.65B	5.68B	12.68B
EBITDA	890.00M	780.97M	-292.63M	835.93M	6.26B
Net Income	-68.00M	29.37M	-15.51M	46.42M	308.21M
Balance Sheet
Total Assets	60.69B	24.51B	19.23B	20.08B	32.77B
Cash, Cash Equivalents and Short-Term Investments	2.70B	1.27B	1.11B	722.29M	4.05B
Total Debt	0.00	13.98B	9.56B	10.35B	21.18B
Total Liabilities	37.79B	15.47B	10.93B	11.61B	23.02B
Stockholders Equity	22.90B	702.50M	624.90M	576.70M	665.66M
Cash Flow
Free Cash Flow	-3.93B	-3.43B	49.99M	10.72B	7.44B
Operating Cash Flow	-3.93B	-2.63B	110.33M	10.82B	7.74B
Investing Cash Flow	-2.53B	-495.47M	861.15M	578.74M	-664.85M
Financing Cash Flow	8.10B	3.28B	-623.56M	-12.82B	-6.92B

Rocket Companies Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 18.68
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RKT, the sentiment is Neutral. The current price of 18.68 is above the 20-day moving average (MA) of 18.56, below the 50-day MA of 19.88, and above the 200-day MA of 17.42, indicating a neutral trend. The MACD of -0.70 indicates Positive momentum. The RSI at 45.21 is Neutral, neither overbought nor oversold. The STOCH value of 50.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for RKT.

Rocket Companies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
PFSI	58 Neutral	$4.71B	9.89	12.55%	0.90%	25.42%	190.85%
RKT	52 Neutral	$47.28B	-129.95	-0.58%	―	22.56%	―
UWMC	50 Neutral	$7.01B	36.30	15.17%	8.64%	-8.66%	―
LDI	47 Neutral	$639.81M	-5.21	-25.72%	―	3.91%	27.78%

Rocket Companies Corporate Events

Rocket Companies Extends Key Bank of America Facility

On December 19, 2025, Rocket Mortgage entered as a guarantor into an amendment to its Amended and Restated Master Repurchase Agreement with Bank of America, extending the facility’s expiration date from October 3, 2026, to December 17, 2027, and making certain technical changes, a move that helps secure longer-term liquidity support for its mortgage funding activities. Following this amendment, the company reported that, as of December 19, 2025, its total funding capacity across repurchase agreements, early funding facilities, unsecured credit lines, MSR credit lines and early buyout facilities stood at $25.9 billion, down from $26.4 billion on September 30, 2025, and $27.5 billion on December 31, 2024, while it also disclosed a correction to a date error in its May 29, 2025 proxy statement regarding the deadline for stockholder proposal submissions for its 2026 annual meeting.

The most recent analyst rating on (RKT) stock is a Buy with a $25.00 price target. To see the full list of analyst forecasts on Rocket Companies stock, see the RKT Stock Forecast page.