Rocket Companies (RKT) AI Stock Analysis

• Market Cap: $53.47B
• Dividend Yield: N/A
• Average Volume (3M): 35.20M
• Price to Earnings (P/E): 242.3
• Beta (1Y): 0.47
• Revenue Growth: 22.56%
• EPS Growth: N/A
• Country: US
• Employees: 14,200
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Mortgages
• EPS (TTM): 0.07
• Shares Outstanding: 967,010,560
• 10 Day Avg. Volume: 19,510,418
• 30 Day Avg. Volume: 35,203,095
• PEG Ratio: -0.20
• Price to Book (P/B): 2.26
• Price to Sales (P/S): 0.29
• P/FCF Ratio: -0.46
• Enterprise Value/Market Cap: 1.07
• Enterprise Value/Revenue: 9.26
• Enterprise Value/Gross Profit: 9.99
• Enterprise Value/Ebitda: 83.90
• 1Y Price Target: $13.83
• Price Target Upside: -4.49% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 7
• EPS Forecast (FY): 0.22
• Revenue Forecast (FY): $6.28B

• Rating: 54 Neutral
• Price Target: $19.00 ▲(31.22% Upside)

Rocket Companies' overall stock score reflects significant challenges in financial performance and valuation, with high leverage and overvaluation concerns. However, strong strategic moves, including successful integrations and AI advancements, provide a positive outlook. The technical analysis suggests a moderate bullish trend, but the high P/E ratio remains a concern. The earnings call and corporate events highlight strategic growth, but the challenging housing market and increased expenses pose risks.

Positive Factors

Successful Integration and Expansion

The integration of Redfin and Mr. Cooper enhances Rocket's market position, adding millions of clients and prospects, which strengthens its competitive advantage and potential for revenue growth.

AI-Driven Enhancements

AI advancements improve operational efficiency and conversion rates, reducing costs and enhancing customer service, which supports long-term profitability and market competitiveness.

Market Share Gains

Increased market share in key segments indicates strong competitive positioning and potential for sustained revenue growth, even in challenging market conditions.

Negative Factors

High Leverage

High leverage poses financial risks, limiting flexibility and increasing vulnerability to interest rate changes, which could impact long-term financial stability.

Negative Profit Margins

Negative profit margins reflect operational inefficiencies and profitability challenges, which could hinder long-term growth and shareholder value.

Increased Expenses

Rising expenses, driven by acquisitions and variable costs, could pressure margins and profitability, challenging the company's ability to maintain financial health.

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

Rocket Companies faces profitability challenges and high leverage, despite strong revenue growth. The company needs to address its debt levels and improve operational efficiency to enhance financial stability.

Income Statement

Rocket Companies shows a volatile revenue growth trajectory with a recent TTM growth of 20.27% following a decline in previous years. Gross profit margins remain strong, but net profit margins have turned negative, indicating profitability challenges. The EBIT and EBITDA margins have also declined, reflecting operational inefficiencies.

Balance Sheet

The company has a high debt-to-equity ratio, indicating significant leverage, which poses financial risk. Return on equity has been negative recently, reflecting poor profitability. The equity ratio is low, suggesting a heavy reliance on debt financing.

Cash Flow

Operating cash flow has improved significantly in the TTM period, but free cash flow growth is negative, indicating cash management issues. The operating cash flow to net income ratio is strong, suggesting good cash generation relative to reported earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.18B	5.40B	4.01B	6.00B	13.18B	15.90B
Gross Profit	5.73B	4.93B	3.65B	5.68B	12.68B	15.46B
EBITDA	681.96M	780.97M	-292.63M	835.93M	6.26B	9.61B
Net Income	-102.15M	29.37M	-15.51M	46.42M	308.21M	197.95M
Balance Sheet
Total Assets	33.58B	24.51B	19.23B	20.08B	32.77B	37.53B
Cash, Cash Equivalents and Short-Term Investments	5.84B	1.27B	1.11B	722.29M	4.05B	7.67B
Total Debt	22.26B	13.98B	9.56B	10.35B	21.18B	27.65B
Total Liabilities	24.72B	15.47B	10.93B	11.61B	23.02B	29.65B
Stockholders Equity	8.85B	702.50M	624.90M	576.70M	665.66M	490.50M
Cash Flow
Free Cash Flow	-1.08B	-3.43B	49.99M	10.72B	7.44B	-1.78B
Operating Cash Flow	-854.23M	-2.63B	110.33M	10.82B	7.74B	-1.68B
Investing Cash Flow	-93.29M	-495.47M	861.15M	578.74M	-664.85M	517.20M
Financing Cash Flow	5.56B	3.28B	-623.56M	-12.82B	-6.92B	1.76B

Rocket Companies Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 14.48
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 14.48 is below the 20-day moving average (MA) of 18.58, below the 50-day MA of 17.56, and below the 200-day MA of 15.68, indicating a bullish trend. The MACD of 0.46 indicates Positive momentum. The RSI at 51.93 is Neutral, neither overbought nor oversold. The STOCH value of 25.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RKT.

Rocket Companies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GHLD	70 Outperform	$1.24B	50.97	10.53%	―	23.81%	―
PFSI	69 Neutral	$6.59B	13.66	12.55%	0.92%	25.42%	190.85%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
COOP	65 Neutral	―	―	―	―	2.27%	-17.46%
RKT	54 Neutral	$53.47B	242.32	-2.15%	―	22.56%	―
UWMC	52 Neutral	$8.98B	―	11.37%	7.43%	-8.66%	―
LDI	47 Neutral	$936.39M	―	-25.72%	―	3.91%	27.78%

Rocket Companies Corporate Events

Rocket Companies Extends Master Repurchase Agreement

On November 26, 2025, Rocket Mortgage, LLC, a subsidiary of Rocket Companies, Inc., extended its Master Repurchase Agreement with Morgan Stanley Bank, N.A., pushing the expiration date to November 26, 2027. Despite the extension, the company’s total funding capacity remained stable at $26.4 billion as of November 26, 2025, compared to previous figures of $26.4 billion in September 2025 and $27.5 billion in December 2024.

Rocket Companies Completes Historic Acquisition of Mr. Cooper

On October 1, 2025, Rocket Companies completed its acquisition of Mr. Cooper Group, marking the largest independent mortgage deal in history. This acquisition combines the largest home loan originator with the largest mortgage servicer in the U.S., creating a combined servicing portfolio of nearly 10 million homeowners. The merger aims to transform homeownership by integrating Mr. Cooper’s servicing expertise with Rocket’s origination capabilities and AI technology, ultimately lowering costs and simplifying the homeownership process. Jay Bray, CEO of Mr. Cooper, will join Rocket as the new President and CEO of Rocket Mortgage, further strengthening the company’s leadership.

Rocket Companies Extends Repurchase Agreement with UBS

On September 18, 2025, Rocket Mortgage, LLC and One Reverse Mortgage, LLC, both subsidiaries of Rocket Companies, Inc., extended their Master Repurchase Agreement with UBS AG New York Branch to September 16, 2027. This amendment increased the company’s total funding capacity to $26.4 billion, up from $26.2 billion in June 2025, indicating a strategic move to enhance liquidity and financial flexibility.

Rocket Companies Announces Acquisition of Mr. Cooper Group

On September 22, 2025, Rocket Companies announced its pending acquisition of Mr. Cooper Group Inc. and the conditional redemption of Nationstar Mortgage Holdings’ senior notes, set for October 1, 2025, contingent on the acquisition’s completion. The acquisition is expected to close in the fourth quarter of 2025, and Rocket plans an internal reorganization post-acquisition, which could impact its market positioning and stakeholder interests.

Rocket Companies Extends Repurchase Agreement with Bank

On September 4, 2025, Rocket Mortgage, LLC, a subsidiary of Rocket Companies, Inc., entered into an Amended and Restated Master Repurchase Agreement with Bank of Montreal, extending the agreement’s expiration to September 3, 2027, and increasing the facility to $1.0 billion. This agreement, along with other financial facilities, raised Rocket Companies’ total funding capacity to $26.4 billion, reflecting a slight increase from $26.2 billion in June 2025, but a decrease from $27.5 billion at the end of 2024.