NASDAQ · Industrials

Rocket Lab Corporation

RKLB · Aerospace & Defense

$107.24

▼ -0.74 (-0.69%)

Cached · 10 min

Overall Grade

Defensive

Enterprising

Profitability

F⤢

Gross Profit Margin 38.2%

Operating Margin -27.9%

Net Income Margin -22.5%

Fin. Health

C⤢

Years to Pay Off Debt -3.1 yrs

Working Capital vs Long-Term Debt $1.4B

Working Capital $1.4B

Valuation

F⤢

Price-to-Book 27.42x

Cash Flow

F⤢

Free Cash Flow -$77M

Owner Earnings -$3M

Profitability

Gross Profit Margin 38.2%

Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.

Operating Margin -27.9%

Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.

Net Income Margin -22.5%

Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.

Financial Health

Years to Pay Off Debt -3.1 yrs

Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.

Working Capital vs Long-Term Debt $1.4B

Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.

Working Capital $1.4B

Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.

Defensive — Graham's strict criteria (P/B, P/E, dividends, stability) · Enterprising — Profitability & cash flow focused, accepts higher valuations for quality

About Rocket Lab Corporation

Rocket Lab Corporation, a space company, provides launch services and space systems solutions in the United States, Canada, Japan, and internationally. The company operates through launch services and space systems segments. The company provides launch services, spacecraft design services, spacecraft components, spacecraft manufacturing, optical systems, and other spacecraft and on-orbit management solutions and constellation management services, as well as designs and manufactures small and medium-class rockets and develops flight and ground software. It also designs, manufactures, and sells Electron, an orbital small launch vehicle for small spacecraft launch services, as well as develops Neutron launch vehicles for large constellation deployments, interplanetary missions, and potentially for human spaceflight. In addition, the company designs and manufactures a range of components and subsystems for its launch vehicles and spacecraft. It serves commercial, aerospace prime contractors, and government customers. Rocket Lab Corporation was formerly known as Rocket Lab USA, Inc. and changed its name to Rocket Lab Corporation in August 2021. The company was founded in 2006 and is headquartered in Long Beach, California.

Market Data

Market Cap $67.0B

Enterprise Value $59.3B

P/E (TTM) -14,751.03

Dividend Yield N/A

Exchange NASDAQ

Key Margins

Gross Profit 38.2%

Operating Margin -27.9%

Net Margin -22.5%

Company Info

Sector Industrials

Industry Aerospace & Defense

Employees 2600

Country United States

Visit website

Showing Key Metrics

Income Highlights

Metric	Q1 2026	Q4 2025
Gross Profit %	38.2%▲	38.0%
Operating Margin %	-27.9%▲	-28.4%
Net Income %	-22.5%▲	-29.5%
Diluted EPS	-0.07▲	-0.09

Balance Sheet Highlights

Metric	Q1 2026	Q4 2025	Q4 2024
Total Assets	$2.8B	$2.3B	N/A
Total Debt	$139M▼	$254M•	N/A
Working Capital	$1.4B▲	$1.0B•	N/A
Years to Pay Debt	-3.08	-4.80	N/A

Cash Flow Highlights

Metric	Q1 2026	Q4 2025
Free Cash Flow	-$77M▲	-$114M
Owner Earnings	-$3M	$11M
CapEx % of Net Income	N/A	N/A

Income Statement

	2026	2025
Tax Effect Of Unusual Items	6	-48
Tax Rate For Calcs	0	0
Normalized EBITDA	-30,706	-5,730
Total Unusual Items	156	-228
Total Unusual Items Excluding Goodwill	156	-228
Net Income From Continuing Operation Net Minority Interest	-45,022	-52,922
Reconciled Depreciation	14,990	14,744
Reconciled Cost Of Revenue	123,855	111,420
EBITDA	-30,550	-5,958
EBIT	-45,540	-20,702
Net Interest Income	8,875	4,570
Interest Expense	1,274	20,942
Interest Income	10,149
Normalized Income	-45,172	-52,742
Net Income From Continuing And Discontinued Operation	-45,022	-52,922
Total Expenses	256,317	230,694
Total Operating Income As Reported	-55,969	-51,042
Diluted Average Shares	605,435	572,518
Basic Average Shares	605,435	572,518
Diluted EPS	0	0
Basic EPS	0	0
Diluted NI Availto Com Stockholders	-45,022	-52,922
Net Income Common Stockholders	-45,022	-52,922
Net Income	-45,022	-52,922
Net Income Including Noncontrolling Interests	-45,022	-52,922
Net Income Continuous Operations	-45,022	-52,922
Tax Provision	-1,792	11,278
Pretax Income	-46,814	-41,644
Other Income Expense	280	4,828
Other Non Operating Income Expenses	124	5,056
Gain On Sale Of Security	156	-228
Net Non Operating Interest Income Expense	8,875	4,570
Interest Expense Non Operating	1,274	20,942
Interest Income Non Operating	10,149
Operating Income	-55,969	-51,042
Operating Expense	132,462	119,274
Research And Development	80,513	78,779
Selling General And Administration	51,949	40,495
Gross Profit	76,493	68,232
Cost Of Revenue	123,855	111,420
Total Revenue	200,348	179,652
Operating Revenue	200,348	179,652

Balance Sheet

	2026	2025	2024
Treasury Shares Number	45,951	45,951
Ordinary Shares Number	621,719	594,526
Share Issued	667,670	640,477
Net Debt			130,444
Total Debt	138,670	253,955
Tangible Book Value	1,835,057	1,291,353
Invested Capital	2,302,947	1,875,960
Working Capital	1,398,017	1,031,068
Net Tangible Assets	1,835,062	1,291,358
Capital Lease Obligations	100,085	99,844
Common Stock Equity	2,264,362	1,721,849
Preferred Stock Equity	5	5
Total Capitalization	2,302,952	1,875,965
Total Equity Gross Minority Interest	2,264,367	1,721,854
Stockholders Equity	2,264,367	1,721,854
Gains Losses Not Affecting Retained Earnings	-2,970	-1,964
Other Equity Adjustments	-2,970	-1,964
Retained Earnings	-1,056,932	-1,011,910
Additional Paid In Capital	3,324,206	2,735,669
Capital Stock	63	59
Common Stock	58	54
Preferred Stock	5	5
Total Liabilities Net Minority Interest	555,574	602,624
Total Non Current Liabilities Net Minority Interest	153,229	268,148
Other Non Current Liabilities	13,207	12,952
Non Current Deferred Liabilities	1,352	1,241
Non Current Deferred Taxes Liabilities	1,352	1,241
Long Term Debt And Capital Lease Obligation	138,670	253,955
Long Term Capital Lease Obligation	100,085	99,844
Long Term Debt	38,585	154,111
Current Liabilities	402,345	334,476
Other Current Liabilities	23,555	21,237
Current Deferred Liabilities	241,412	195,438
Current Deferred Revenue	241,412	195,438
Current Debt And Capital Lease Obligation			12,045
Current Debt			12,045
Other Current Borrowings			12,045
Payables And Accrued Expenses	137,378	117,801
Current Accrued Expenses	33,546	19,299
Payables	103,832	98,502
Other Payable	40,720	25,803
Accounts Payable	63,112	72,699
Total Assets	2,819,941	2,324,478
Total Non Current Assets	1,019,579	958,934
Other Non Current Assets	47,243	20,557
Non Current Deferred Assets	849	1,895
Non Current Deferred Taxes Assets	849	1,895
Investments And Advances	93,494	82,247
Investmentin Financial Assets	93,494	82,247
Available For Sale Securities	93,494	82,247
Goodwill And Other Intangible Assets	429,305	430,496
Other Intangible Assets	220,567	224,746
Goodwill	208,738	205,750
Net PPE	448,688	423,739
Accumulated Depreciation	-97,189	-90,865
Gross PPE	545,877	514,604
Construction In Progress	130,340	111,167
Other Properties	130,638	129,596
Machinery Furniture Equipment	204,890	195,277
Buildings And Improvements	80,009	78,564
Current Assets	1,800,362	1,365,544
Other Current Assets	9,614	9,836
Prepaid Assets	49,041	57,738
Inventory	183,146	158,407
Finished Goods	14,072	12,956
Work In Process	76,061	68,712
Raw Materials	93,013	76,739
Receivables	175,210	122,986
Other Receivables	100,255	83,985
Accounts Receivable	74,955	39,001
Cash Cash Equivalents And Short Term Investments	1,383,351	1,016,577
Other Short Term Investments	177,852	187,917
Cash And Cash Equivalents	1,205,499	828,660

Cash Flow

	2026	2025
Free Cash Flow	-77,397	-114,185
Repayment Of Debt	-73	-72,888
Issuance Of Debt	0	0
Issuance Of Capital Stock	450,347	280,604
Capital Expenditure	-27,065	-49,654
Interest Paid Supplemental Data	3,394	2,656
Income Tax Paid Supplemental Data	255	281
End Cash Position	1,211,023	833,545
Beginning Cash Position	833,545	812,710
Effect Of Exchange Rate Changes	237	-24
Changes In Cash	377,241	20,859
Financing Cash Flow	463,293	189,537
Cash Flow From Continuing Financing Activities	463,293	189,537
Net Other Financing Charges	-44,588	-54,195
Proceeds From Stock Option Exercised	57,607	36,016
Net Common Stock Issuance	450,347	280,604
Common Stock Issuance	450,347	280,604
Net Issuance Payments Of Debt	-73	-72,888
Net Long Term Debt Issuance	-73	-72,888
Long Term Debt Payments	-73	-72,888
Long Term Debt Issuance	0	0
Investing Cash Flow	-35,720	-104,147
Cash Flow From Continuing Investing Activities	-35,720	-104,147
Net Other Investing Changes	715	0
Net Investment Purchase And Sale	-1,349	-54,493
Sale Of Investment	89,979	33,046
Purchase Of Investment	-91,328	-87,539
Net Business Purchase And Sale	-8,021	0
Purchase Of Business	-8,021	0
Net PPE Purchase And Sale	-27,065	-49,654
Purchase Of PPE	-27,065	-49,654
Operating Cash Flow	-50,332	-64,531
Cash Flow From Continuing Operating Activities	-50,332	-64,531
Change In Working Capital	-51,821	-44,755
Change In Other Working Capital	47,062	-54,313
Change In Other Current Liabilities	-5,863	-870
Change In Other Current Assets	-26,098	5,702
Change In Payables And Accrued Expense	2,664	7,252
Change In Accrued Expense	10,825	-4,602
Change In Payable	-8,161	11,854
Change In Account Payable	-8,161	11,854
Change In Prepaid Assets	4,081	1,995
Change In Inventory	-24,571	-14,318
Change In Receivables	-49,096	9,797
Changes In Account Receivables	-35,662	20,109
Other Non Cash Items	3,117	-7,722
Stock Based Compensation	28,116	18,205
Amortization Of Securities	-458	-646
Deferred Tax	1,155	2,382
Deferred Income Tax	1,155	2,382
Depreciation Amortization Depletion	14,990	14,744
Depreciation And Amortization	14,990	14,744
Operating Gains Losses	-409	6,183
Net Income From Continuing Operations	-45,022	-52,922

📊 Quarterly mode — Graham Fair Value & 7 Criteria require annual data. Switch to Annual for full analysis.

Quarter vs Same Quarter Last Year

YoY strips seasonality

Revenue Growth (YoY)

Prior year: $123M ▲ $200M +63.5%

Revenue growth vs same quarter last year strips seasonality. Consistent double-digit growth is a Buffett hallmark.

Gross Margin

Prior year: 28.8% ▲ 38.2% +9.4pp

Buffett: consistent gross margin above 40% signals durable pricing power and competitive moat.

Operating Margin

Prior year: -45.7% ▲ -27.9% +17.7pp

Graham: operating margin reflects true business economics before financing. Trend matters as much as level.

Net Margin

Prior year: -49.5% ▲ -22.5% +27.0pp

Net margin can be distorted by one-time items, tax timing, or interest costs — compare to operating margin for signal quality.

Quarterly Health Checks

3 Graham/Buffett criteria that are valid and reliable on quarterly data

❌ Adequate Size

Graham required scale for resilience. Quarterly revenue × 4 gives an annualised proxy.

$200M/qtr (≈$801M ann.)

vs > $1.5B annualised revenue

✅ Financial Condition

Current assets vs current liabilities — a real-time liquidity snapshot. Valid and reliable on quarterly data.

4.47x current ratio

vs ≥ 2.0x

❌ Free Cash Flow

Buffett's most important single metric. A positive FCF quarter means the business generated real cash for owners after maintaining its asset base.

-$77M

vs Positive

Operating Cash Flow

-$50M

Latest quarter · Buffett's cash reality check

ROIC

-1.8%

Based on latest annual operating income

Return on Invested Capital — Buffett's preferred measure for asset-light businesses. ROIC > 15% consistently signals a durable competitive advantage (moat). More meaningful than P/B for software, pharma, and consumer brand companies where most value is intangible and off-balance-sheet.

Market Cap / Net Assets

27.4x

Net Assets: $2.3B

Peers & Industry Comparison

Aerospace & Defense — Auto-detected peers

Company	Price	Market Cap	P/E	Gross Margin	Net Margin	Revenue
RKLB	$107.24	$67.0B	-14,751.03	38.2%	-22.5%	$200M
BA Boeing Company (The)	$222.72	$175.6B	88.0	4.8%	2.5%	$92.2B
LMT Lockheed Martin Corporation	$510.95	$117.8B	24.8	9.9%	6.4%	$75.1B
RTX RTX Corporation	$185.60	$249.9B	34.9	20.2%	8.0%	$90.4B
NOC Northrop Grumman Corporation	$521.50	$74.1B	16.3	20.5%	10.8%	$42.4B
GD General Dynamics Corporation	$350.01	$94.7B	21.8	15.2%	8.1%	$53.8B

"The management of a business is its most important single factor — more important than market position, patents, or financial structure."

— Benjamin Graham

Capital Allocation & Alignment

Insider Ownership

0.86%

Low — management has little skin in the game

Return on Equity (ROE)

-2.0%

Weak — poor returns on equity

Return on Assets (ROA)

-1.6%

Poor — assets are not generating adequate returns

Debt Trend YoY

-45.4% YoY

Debt is declining — management is deleveraging

Leadership Team

Peter Beck

Founder, Chairman, President & CEO

Age 47

Pay: $800,000

Adam Spice

CFO & Treasurer

Age 56

Pay: $455,090

Morgan Bailey Connaughton

Vice President of Marketing & Communications

Connie Lundgren

Vice President of People & Culture

Top Institutional Holders

Institution	% Owned	Shares
Blackrock Inc.	6.56%	37,985,996
Vanguard Portfolio Management LLC	4.45%	25,738,450
Vanguard Capital Management LLC	4.20%	24,287,490
BAILLIE GIFFORD & CO	3.18%	18,428,043
State Street Corporation	2.41%	13,924,751
JPMORGAN CHASE & CO	1.84%	10,677,805
Geode Capital Management, LLC	1.83%	10,570,885
Capital World Investors	1.25%	7,242,084

⚠️ Very high beta — extreme price volatility

Risk Analysis

Beta (Market Risk)

2.50

High volatility — moves more than the market

Short Interest

5.5% of float

Moderate short interest

Debt-to-Equity

0.06x

Conservative balance sheet — low financial risk

Current Ratio

4.47x

Strong liquidity — Graham approved

52-Week Price Range

Low: $27.84 Current: $107.24 High: $151.00

Currently at 64% of 52-week range

Rocket Lab Corporation

Metric Explanations

Income Highlights

Balance Sheet Highlights

Cash Flow Highlights

Quarter vs Same Quarter Last Year

Quarterly Health Checks

Operating Cash Flow

ROIC

Market Cap / Net Assets

Peers & Industry Comparison

Capital Allocation & Alignment

Leadership Team

Top Institutional Holders

Risk Analysis