Rocket Companies Stock Probability Of Bankruptcy

RKT Stock

USD 11.87 0.13 1.11%

Rocket Companies' threat of distress is below 50% at this time. It has small chance of experiencing financial hardship in the next few years. Probability of financial unrest prediction helps decision makers evaluate Rocket Companies' chance of financial distress in relation to its going-concern outlook and evaluation. All items used in analyzing the odds of distress are taken from the Rocket balance sheet, as well as cash flow and income statements available from the company's most recent filings. Check out Rocket Companies Piotroski F Score and Rocket Companies Altman Z Score analysis.

For more information on how to buy Rocket Stock please use our How to Invest in Rocket Companies guide.

Market Cap is likely to gain to about 2.3 B in 2025, whereas Enterprise Value is likely to drop slightly above 8.8 B in 2025.

Rocket Companies Company probability of financial unrest Analysis

Rocket Companies' Probability Of Bankruptcy is a relative measure of the likelihood of financial distress. For stocks, the Probability Of Bankruptcy is the normalized value of Z-Score. For funds and ETFs, it is derived from a multi-factor model developed by Macroaxis. The score is used to predict the probability of a firm or a fund experiencing financial distress within the next 24 months. Unlike Z-Score, Probability Of Bankruptcy is the value between 0 and 100, indicating the firm's actual probability it will be financially distressed in the next 2 fiscal years.

Probability Of Bankruptcy

Normalized

Z-Score

More About Probability Of Bankruptcy | All Equity Analysis

Current Rocket Companies Probability Of Bankruptcy

Less than 49%

Most of Rocket Companies' fundamental indicators, such as Probability Of Bankruptcy, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Rocket Companies is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.

Our calculation of Rocket Companies probability of bankruptcy is based on Altman Z-Score and Piotroski F-Score, but not limited to these measures. To be applied to a broader range of industries and markets, we use several other techniques to enhance the accuracy of predicting Rocket Companies odds of financial distress. These include financial statement analysis, different types of price predictions, earning estimates, analysis consensus, and basic intrinsic valuation. Please use the options below to get a better understanding of different measures that drive the calculation of Rocket Companies financial health.

Is Commercial & Residential Mortgage Finance space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Rocket Companies. If investors know Rocket will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Rocket Companies listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.

Quarterly Earnings Growth

(0.82)

Earnings Share

(0.12)

Revenue Per Share

31.189

Quarterly Revenue Growth

(0.41)

Return On Assets

0.005

The market value of Rocket Companies is measured differently than its book value, which is the value of Rocket that is recorded on the company's balance sheet. Investors also form their own opinion of Rocket Companies' value that differs from its market value or its book value, called intrinsic value, which is Rocket Companies' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Rocket Companies' market value can be influenced by many factors that don't directly affect Rocket Companies' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.

Please note, there is a significant difference between Rocket Companies' value and its price as these two are different measures arrived at by different means. Investors typically determine if Rocket Companies is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Rocket Companies' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Rocket Probability Of Bankruptcy Driver Correlations

Understanding the fundamental principles of building solid financial models for Rocket Companies is extremely important. It helps to project a fair market value of Rocket Stock properly, considering its historical fundamentals such as Probability Of Bankruptcy. Since Rocket Companies' main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of Rocket Companies' historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of Rocket Companies' interrelated accounts and indicators.

	Total Assets	Total Stockholder Equity	Net Tangible Assets	Current Deferred Revenue	Net Debt	Accounts Payable	Long Term Debt	Net Receivables	Good Will	Short Term Investments	Long Term Debt Total	Total Liab	Net Invested Capital	Short Long Term Debt	Total Current Assets	Capital Stock	Cash And Equivalents	Short Term Debt	Intangible Assets	Common Stock	Property Plant Equipment	Long Term Investments
Total Assets		-0.78	-0.28	-0.65	0.98	0.96	0.63	0.24	0.5	0.76	0.64	0.92	0.53	0.55	-0.82	-0.79	0.74	0.34	0.38	-0.79	0.88	0.48
Total Stockholder Equity	-0.78		0.37	0.28	-0.83	-0.77	-0.62	-0.42	-0.82	-0.39	-0.74	-0.51	0.04	-0.59	0.78	1.0	-0.27	-0.67	-0.79	1.0	-0.55	-0.4
Net Tangible Assets	-0.28	0.37		-0.04	-0.36	-0.13	0.35	0.32	0.13	-0.64	0.29	-0.29	-0.18	-0.72	0.07	0.34	-0.02	-0.2	0.04	0.34	0.2	0.43
Current Deferred Revenue	-0.65	0.28	-0.04		-0.57	-0.53	-0.49	0.36	-0.19	-0.5	-0.37	-0.77	-0.75	-0.5	0.61	0.3	-0.55	0.31	-0.08	0.3	-0.67	-0.59
Net Debt	0.98	-0.83	-0.36	-0.57		0.95	0.66	0.24	0.53	0.75	0.67	0.89	0.49	0.54	-0.74	-0.83	0.71	0.34	0.4	-0.83	0.82	0.51
Accounts Payable	0.96	-0.77	-0.13	-0.53	0.95		0.68	0.45	0.58	0.66	0.74	0.85	0.43	0.33	-0.79	-0.78	0.72	0.42	0.44	-0.78	0.91	0.52
Long Term Debt	0.63	-0.62	0.35	-0.49	0.66	0.68		0.39	0.71	0.08	0.95	0.49	0.15	0.06	-0.56	-0.64	0.54	0.14	0.55	-0.64	0.79	0.94
Net Receivables	0.24	-0.42	0.32	0.36	0.24	0.45	0.39		0.59	-0.18	0.57	-0.05	-0.48	-0.36	-0.35	-0.43	0.09	0.78	0.55	-0.43	0.39	0.12
Good Will	0.5	-0.82	0.13	-0.19	0.53	0.58	0.71	0.59		-0.1	0.86	0.18	-0.32	0.21	-0.74	-0.84	-0.03	0.64	0.97	-0.84	0.47	0.54
Short Term Investments	0.76	-0.39	-0.64	-0.5	0.75	0.66	0.08	-0.18	-0.1		0.05	0.88	0.77	0.57	-0.39	-0.38	0.7	0.02	-0.19	-0.38	0.51	0.02
Long Term Debt Total	0.64	-0.74	0.29	-0.37	0.67	0.74	0.95	0.57	0.86	0.05		0.43	0.0	0.04	-0.65	-0.76	0.39	0.37	0.73	-0.76	0.75	0.84
Total Liab	0.92	-0.51	-0.29	-0.77	0.89	0.85	0.49	-0.05	0.18	0.88	0.43		0.81	0.5	-0.62	-0.52	0.85	-0.01	0.03	-0.52	0.82	0.45
Net Invested Capital	0.53	0.04	-0.18	-0.75	0.49	0.43	0.15	-0.48	-0.32	0.77	0.0	0.81		0.27	-0.16	0.03	0.73	-0.55	-0.46	0.03	0.5	0.3
Short Long Term Debt	0.55	-0.59	-0.72	-0.5	0.54	0.33	0.06	-0.36	0.21	0.57	0.04	0.5	0.27		-0.55	-0.57	0.14	0.2	0.27	-0.57	0.18	-0.02
Total Current Assets	-0.82	0.78	0.07	0.61	-0.74	-0.79	-0.56	-0.35	-0.74	-0.39	-0.65	-0.62	-0.16	-0.55		0.8	-0.32	-0.55	-0.69	0.8	-0.73	-0.38
Capital Stock	-0.79	1.0	0.34	0.3	-0.83	-0.78	-0.64	-0.43	-0.84	-0.38	-0.76	-0.52	0.03	-0.57	0.8		-0.27	-0.67	-0.8	1.0	-0.58	-0.43
Cash And Equivalents	0.74	-0.27	-0.02	-0.55	0.71	0.72	0.54	0.09	-0.03	0.7	0.39	0.85	0.73	0.14	-0.32	-0.27		-0.14	-0.22	-0.27	0.82	0.5
Short Term Debt	0.34	-0.67	-0.2	0.31	0.34	0.42	0.14	0.78	0.64	0.02	0.37	-0.01	-0.55	0.2	-0.55	-0.67	-0.14		0.71	-0.67	0.2	-0.18
Intangible Assets	0.38	-0.79	0.04	-0.08	0.4	0.44	0.55	0.55	0.97	-0.19	0.73	0.03	-0.46	0.27	-0.69	-0.8	-0.22	0.71		-0.8	0.29	0.37
Common Stock	-0.79	1.0	0.34	0.3	-0.83	-0.78	-0.64	-0.43	-0.84	-0.38	-0.76	-0.52	0.03	-0.57	0.8	1.0	-0.27	-0.67	-0.8		-0.58	-0.43
Property Plant Equipment	0.88	-0.55	0.2	-0.67	0.82	0.91	0.79	0.39	0.47	0.51	0.75	0.82	0.5	0.18	-0.73	-0.58	0.82	0.2	0.29	-0.58		0.68
Long Term Investments	0.48	-0.4	0.43	-0.59	0.51	0.52	0.94	0.12	0.54	0.02	0.84	0.45	0.3	-0.02	-0.38	-0.43	0.5	-0.18	0.37	-0.43	0.68

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The Probability of Bankruptcy SHOULD NOT be confused with the actual chance of a company to file for chapter 7, 11, 12, or 13 bankruptcy protection. Macroaxis simply defines Financial Distress as an operational condition where a company is having difficulty meeting its current financial obligations towards its creditors or delivering on the expectations of its investors. Macroaxis derives these conditions daily from both public financial statements as well as analysis of stock prices reacting to market conditions or economic downturns, including short-term and long-term historical volatility. Other factors taken into account include analysis of liquidity, revenue patterns, R&D expenses, and commitments, as well as public headlines and social sentiment.

Competition

Predict Rocket Companies

Based on the latest financial disclosure, Rocket Companies has a Probability Of Bankruptcy of 49.0%. This indicator is about the same for the Financial Services average (which is currently at 49.93) sector and significantly higher than that of the Financials industry. The probability of bankruptcy for all United States stocks is 23.02% lower than that of the firm.

Rocket Probability Of Bankruptcy Peer Comparison

Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Rocket Companies' direct or indirect competition against its Probability Of Bankruptcy to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Rocket Companies could also be used in its relative valuation, which is a method of valuing Rocket Companies by comparing valuation metrics of similar companies.

Rocket Companies is currently under evaluation in probability of bankruptcy category among its peers.

Rocket Companies Main Bankruptcy Drivers

	2020	2021	2022	2023	2024	2025 (projected)
Return On Assets	0.25	0.19	0.0349	(8.07E-4)	(9.28E-4)	(8.81E-4)
Asset Turnover	0.41	0.39	0.28	0.19	0.22	0.34
Gross Profit Margin	0.98	1.0	0.99	0.97	0.87	0.76
Net Debt	20.0B	17.1B	8.0B	8.4B	9.7B	11.1B
Total Current Liabilities	627.0M	346.5M	572.6M	1.9B	2.2B	2.3B
Non Current Liabilities Total	21.6B	19.2B	11.0B	5.9B	6.8B	13.0B
Total Assets	37.5B	32.8B	20.1B	19.2B	22.1B	25.9B
Total Current Assets	2.0B	2.1B	722.3M	2.2B	2.0B	2.2B
Total Cash From Operating Activities	(1.7B)	7.7B	10.8B	110.3M	126.9M	120.5M

Rocket Companies ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Rocket Companies' sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Rocket Companies' managers, analysts, and investors.

Environmental

Governance

Social

Rocket Fundamentals

	Return On Equity	-0.0291
	Return On Asset	0.005
	Profit Margin	(0) %
	Operating Margin	(0.48) %
	Current Valuation	23.27 B
	Shares Outstanding	138.4 M
	Shares Owned By Insiders	6.75 %
	Shares Owned By Institutions	70.84 %
	Number Of Shares Shorted	17.83 M
	Price To Earning	4.55 X
	Price To Book	2.62 X
	Price To Sales	5.48 X
	Revenue	3.61 B
	Gross Profit	4.3 B
	EBITDA	67.35 M
	Net Income	(15.51 M)
	Cash And Equivalents	722.29 M
	Cash Per Share	6.85 X
	Total Debt	9.56 B
	Debt To Equity	1.31 %
	Current Ratio	4.03 X
	Book Value Per Share	4.50 X
	Cash Flow From Operations	110.33 M
	Short Ratio	5.67 X
	Earnings Per Share	(0.12) X
	Price To Earnings To Growth	1.40 X
	Target Price	13.21
	Number Of Employees	14.7 K
	Beta	2.44
	Market Capitalization	23.59 B
	Total Asset	19.23 B
	Retained Earnings	284.3 M
	Working Capital	1.07 B
	Current Asset	2.43 B
	Current Liabilities	1.36 B
	Net Asset	19.23 B

About Rocket Companies Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Rocket Companies's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Rocket Companies using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Rocket Companies based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.

Please read more on our fundamental analysis page.

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Additional Tools for Rocket Stock Analysis

When running Rocket Companies' price analysis, check to measure Rocket Companies' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Rocket Companies is operating at the current time. Most of Rocket Companies' value examination focuses on studying past and present price action to predict the probability of Rocket Companies' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Rocket Companies' price. Additionally, you may evaluate how the addition of Rocket Companies to your portfolios can decrease your overall portfolio volatility.

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Rocket Companies Stock Probability Of Bankruptcy

Rocket Companies Company probability of financial unrest Analysis

Probability Of Bankruptcy

Normalized

Z-Score

Current Rocket Companies Probability Of Bankruptcy

Rocket Probability Of Bankruptcy Driver Correlations

Rocket Probability Of Bankruptcy Peer Comparison

Rocket Companies Main Bankruptcy Drivers

Rocket Companies ESG Sustainability

Rocket Fundamentals

About Rocket Companies Fundamental Analysis

Thematic Opportunities

Explore Investment Opportunities

Additional Tools for Rocket Stock Analysis

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