Rocket Companies EBITDA vs. Net Income
| RKT Stock | USD 14.53 0.19 1.32% |
EBITDA | First Reported 2010-12-31 | Previous Quarter 67.3 M | Current Value 64 M | Quarterly Volatility 381.3 M |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.76 | 0.9695 |
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For Rocket Companies profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Rocket Companies to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Rocket Companies utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Rocket Companies's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Rocket Companies over time as well as its relative position and ranking within its peers.
Rocket |
Rocket Companies' Revenue Breakdown by Earning Segment
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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 Companies Net Income vs. EBITDA Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Rocket Companies's current stock value. Our valuation model uses many indicators to compare Rocket Companies value to that of its competitors to determine the firm's financial worth. Rocket Companies is rated below average in ebitda category among its peers. It also is rated below average in net income category among its peers . At this time, Rocket Companies' EBITDA is comparatively stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Rocket Companies by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.Rocket Net Income vs. EBITDA
EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company operating cash flow based on data from the company income statement and is a very good way to compare companies within industries or across different sectors. However, unlike Operating Cash Flow, EBITDA does not include the effects of changes in working capital.
Rocket Companies |
| = | 67.35 M |
In a nutshell, EBITDA is calculated by adding back each of the excluded items to the post-tax profit, and can be used to compare companies with very different capital structures.
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.
Rocket Companies |
| = | (15.51 M) |
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Rocket Net Income Comparison
Rocket Companies is currently under evaluation in net income category among its peers.
Rocket Companies Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Rocket Companies, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Rocket Companies will eventually generate negative long term returns. The profitability progress is the general direction of Rocket Companies' change in net profit over the period of time. It can combine multiple indicators of Rocket Companies, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | 52 K | 54.6 K | |
| Interest Income | 326.5 M | 286.6 M | |
| Operating Income | -294.9 M | -280.1 M | |
| Income Before Tax | -402.9 M | -382.8 M | |
| Net Income Applicable To Common Shares | 41.8 M | 39.7 M | |
| Net Loss | -15.5 M | -14.7 M | |
| Net Interest Income | 8.2 M | 8.7 M | |
| Net Loss | -650 M | -617.5 M | |
| Total Other Income Expense Net | -108 M | -113.4 M | |
| Income Tax Expense | -12.8 M | -12.2 M | |
| Change To Netincome | 11.6 B | 12.2 B | |
| Net Loss | (0.12) | (0.11) | |
| Income Quality | (7.11) | (6.76) | |
| Net Income Per E B T | 0.04 | 0.04 |
Rocket Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Rocket Companies. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Rocket Companies position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Rocket Companies' important profitability drivers and their relationship over time.
Use Rocket Companies in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Rocket Companies position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Rocket Companies will appreciate offsetting losses from the drop in the long position's value.Rocket Companies Pair Trading
Rocket Companies Pair Trading Analysis
The ability to find closely correlated positions to Rocket Companies could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Rocket Companies when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Rocket Companies - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Rocket Companies to buy it.
The correlation of Rocket Companies is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Rocket Companies moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Rocket Companies moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Rocket Companies can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Rocket Companies position
In addition to having Rocket Companies in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Funds or Etfs that are made of portfolios of stocks, bonds, or cash instruments with different maturity horizons and characteristics. The Hybrid Mix Funds theme has 37 constituents at this time.
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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.