Rocket Companies Valuation Ratios Examined as Stock Closes at $8.69, -6.16%

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Rocket Companies ($NYSE:RKT) Inc. has had a volatile few months, with its stock closing at $8.69 on Monday, representing a decrease of -6.16% from its prior close of $9.26.

However, a closer look at the company’s valuation ratios reveals a more nuanced picture of the state of the company. Rocket Companies Inc. is an American financial services company based in Detroit, Michigan. The company specializes in mortgage lending, mortgage servicing, and real estate services. Rocket Companies Inc., formerly known as Rock Financial, is the parent company of online mortgage lender Quicken Loans. These ratios are indicators of a company’s valuation and suggest that Rocket Companies Inc. has an appealing valuation relative to other companies in its industry. This suggests that while the stock is currently down from its prior close of $9.26, it has seen a lot of volatility over the last year and has the potential to rise again in the future. Overall, while the recent dip in Rocket Companies Inc.’s stock price may be concerning to some investors, an analysis of its valuation ratios reveals that the company still has an appealing valuation relative to its peers and that it could potentially rise in value in the future.

Analysis

At GoodWhale, we have conducted an analysis of ROCKET COMPANIES‘ wellbeing. Our Star Chart shows that they are classified as an ‘elephant’ company, which means that they have a lot of assets after taking into account their debts and liabilities. This type of company is likely to be of interest to investors who are looking for a stable investment in order to build their wealth over time. However, the results of our analysis suggest that ROCKET COMPANIES is not in the best of health with a score of 0/10 when considering their cash flows and debt. This means that they are less likely to be able to sustain their operations in the face of any future economic crisis. We have identified a number of areas where ROCKET COMPANIES are strong, such as dividend payments, but also areas where they could do better such as growth and profitability. More…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Rocket Companies. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Rocket Companies. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Rocket Companies. More…

Key Ratios Snapshot

Some of the financial key ratios for Rocket Companies are shown below. More…

Peers

Its competitors include Ocwen Financial Corp, Federal National Mortgage Association Fannie Mae, Home Capital Group Inc.

– Ocwen Financial Corp ($NYSE:OCN)

Ocwen Financial Corporation is a financial services holding company that, through its subsidiaries, originates and services loans. The Company’s segments include Servicing, Lending, Real Estate Owned (REO), Investment Management and Corporate.

– Federal National Mortgage Association Fannie Mae ($OTCPK:FNMA)

As of 2022, Fannie Mae has a market cap of 584.66M. The company is a government-sponsored enterprise that provides financial products and services to homeowners and renters. Its products include single-family and multifamily mortgages, home equity loans, and lines of credit. Fannie Mae was founded in 1938 and is headquartered in Washington, D.C.

– Home Capital Group Inc ($TSX:HCG)

As of 2022, Home Capital Group Inc has a market cap of 982.97M. The company is a provider of alternative residential mortgage solutions in Canada. Home Capital offers residential mortgage products, including first and second mortgages, home equity lines of credit, and lines of credit. The company was founded in 1954 and is headquartered in Toronto, Canada.

Summary

Investing in Rocket Companies Inc. can be risky, as indicated by its volatile stock performance. Investors should take the time to look at the company’s valuation ratios, which measure its performance relative to industry peers. These include the price-to-earnings ratio (P/E), price-to-book ratio (P/B), and market capitalization. The P/E is a measure of how expensive the stock is relative to its earnings per share, while the P/B is a measure of the stock’s market value compared to its net asset value.

The market capitalization gives an indication of Rocket Companies’ size in the marketplace. Careful analysis of these metrics can help investors make informed decisions when considering Rocket Companies as an investment.