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
F
Years to Pay Off Debt-228.8 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.
Valuation
A
Price-to-Book0.62x
Market price vs book value per share. Rarely below 1.5x for quality businesses today. Intangible assets (brand, software, patents) don't appear on the balance sheet under accounting rules, making P/B artificially high for asset-light companies like software and consumer brands.
Cash Flow
C
Free Cash Flow-$4.6B
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
Owner Earnings$863M
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
About Rocket Companies, Inc.
Rocket Companies, Inc., a fintech company, engages in the mortgage, real estate, and personal finance businesses in the United States and Canada. It operates in two segments, Direct to Consumer and Partner Network. The company offers Rocket Mortgage, a mortgage lender service; Redfin, a digital real estate brokerage and home search platform; Rocket Close, a digital experience for appraisal management, settlement, and title services; Rocket Money, a finance app that offers a suite of financial wellness services including subscription cancellation, budget management and credit score improvement; and Rocket Loans, a platform for personal loan. It also originates, closes, sells, and services agency-conforming loans; and provides Rocket Pro that works with mortgage brokers, community banks, and credit unions, to maintain own brand and client relationships. Rocket Companies, Inc. was founded in 1985 and is headquartered in Detroit, Michigan. Rocket Companies, Inc. was formerly a subsidiary of Rock Holdings Inc.
Rocket Companies, Inc., a fintech company, engages in the mortgage, real estate, and personal finance businesses in the United States and Canada. It operates in two segments, Direct to Consumer and Partner Network. The company offers Rocket Mortgage, a mortgage lender service; Redfin, a digital real estate brokerage and home search platform; Rocket Close, a digital experience for appraisal management, settlement, and title services; Rocket Money, a finance app that offers a suite of financial wellness services including subscription cancellation, budget management and credit score improvement; and Rocket Loans, a platform for personal loan. It also originates, closes, sells, and services agency-conforming loans; and provides Rocket Pro that works with mortgage brokers, community banks, and credit unions, to maintain own brand and client relationships. Rocket Companies, Inc. was founded in 1985 and is headquartered in Detroit, Michigan. Rocket Companies, Inc. was formerly a subsidiary of Rock Holdings Inc.
Metric Explanations
What each dimension measures and where the thresholds come from.
Net Income Margin
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.
Years to Pay Off Debt
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.
Price-to-Book
Market price vs book value per share. Rarely below 1.5x for quality businesses today. Intangible assets (brand, software, patents) don't appear on the balance sheet under accounting rules, making P/B artificially high for asset-light companies like software and consumer brands.
Free Cash Flow
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
Owner Earnings
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
Net Income From Continuing Operation Net Minority Interest
-68,000
29,000
-16,000
46,421
Reconciled Depreciation
290,000
113,000
110,000
94,020
Net Interest Income
-313,000
-56,000
-32,000
30,607
Interest Expense
814,000
469,000
359,000
319,984
Interest Income
501,000
413,000
327,000
350,591
Normalized Income
209,290
14,719
-16,000
46,421
Net Income From Continuing And Discontinued Operation
-68,000
29,000
-16,000
46,421
Diluted Average Shares
1,322,363
141,037
1,980,524
1,971,621
Basic Average Shares
1,322,363
141,037
128,642
120,578
Diluted EPS
0
0
0
0
Basic EPS
0
0
0
0
Diluted NI Availto Com Stockholders
-68,000
29,000
-299,000
549,995
Average Dilution Earnings
0
0
-283,000
503,552
Net Income Common Stockholders
-68,000
29,000
-16,000
46,443
Otherunder Preferred Stock Dividend
-22
-150
Net Income
-68,000
29,000
-16,000
46,421
Minority Interests
166,000
-607,000
374,000
-653,512
Net Income Including Noncontrolling Interests
-234,000
636,000
-390,000
699,933
Net Income Continuous Operations
-234,000
636,000
-390,000
699,933
Tax Provision
20,000
32,000
-13,000
41,978
Pretax Income
-214,000
668,000
-403,000
741,911
Special Income Charges
-351,000
15,000
0
0
Other Special Charges
-15,000
15,000
15,000
Restructuring And Mergern Acquisition
351,000
0
0
Depreciation Amortization Depletion Income Statement
290,000
113,000
110,000
94,020
Depreciation And Amortization In Income Statement
290,000
113,000
110,000
94,020
Selling General And Administration
5,501,000
3,978,000
3,797,000
4,649,757
Selling And Marketing Expense
1,088,000
824,000
737,000
945,694
General And Administrative Expense
4,413,000
3,154,000
3,060,000
3,704,063
Other Gand A
1,106,000
893,000
803,000
906,195
Salaries And Wages
3,307,000
2,261,000
2,257,000
2,797,868
Total Revenue
6,257,000
4,932,000
3,646,000
5,684,897
Operating Revenue
6,257,000
4,932,000
3,646,000
5,684,897
Other Non Interest Expense
329,000
188,000
142,000
199,209
Balance Sheet
2025
2024
2023
2022
2021
Ordinary Shares Number
2,818,157
146,028
135,814
123,492
Share Issued
2,818,157
146,028
135,814
123,492
Net Debt
12,865,000
3,619,000
3,745,304
4,801,004
Total Debt
15,561,000
4,892,000
5,247,652
5,946,066
Tangible Book Value
-9,379,000
-8,158,000
-7,051,652
-7,629,164
Invested Capital
38,459,000
5,594,000
5,478,670
6,100,001
Net Tangible Assets
-9,379,000
-8,158,000
-7,051,652
-7,629,164
Capital Lease Obligations
319,296
393,882
422,769
482,184
Common Stock Equity
22,898,000
702,000
624,900
576,704
Total Capitalization
35,180,000
5,434,000
5,159,362
5,427,119
Total Equity Gross Minority Interest
22,898,000
9,043,000
8,301,710
8,475,549
Minority Interest
0
8,341,000
7,676,810
7,898,845
Stockholders Equity
22,898,000
702,000
624,900
576,704
Gains Losses Not Affecting Retained Earnings
-48
52
69
81
Retained Earnings
124,000
313,000
284,296
300,394
Additional Paid In Capital
22,774,000
389,000
340,532
276,221
Capital Stock
0
0
20
20
Common Stock
20
20
20
20
Total Liabilities Net Minority Interest
37,787,000
15,467,000
10,930,030
11,606,663
Derivative Product Liabilities
145,000
11,000
142,988
25,117
Long Term Debt And Capital Lease Obligation
12,282,000
4,732,000
4,928,344
5,273,184
Long Term Capital Lease Obligation
319,296
393,882
422,769
482,184
Long Term Debt
12,282,000
4,732,000
4,534,462
4,850,415
Long Term Provisions
99,998
92,389
110,147
78,888
Current Debt And Capital Lease Obligation
3,279,000
160,000
319,308
672,882
Current Debt
3,279,000
160,000
319,308
672,882
Other Current Borrowings
92,949
203,208
672,882
Line Of Credit
3,279,000
160,000
116,100
0
Payables And Accrued Expenses
285,000
182,000
756,045
730,024
Payables
285,000
182,000
756,045
730,024
Total Tax Payable
581,183
584,695
613,693
688,573
Income Tax Payable
581,183
584,695
613,693
688,573
Accounts Payable
285,000
182,000
171,350
116,331
Total Assets
60,685,000
24,510,000
19,231,740
20,082,212
Investments And Advances
268,000
41,000
39,518
40,341
Available For Sale Securities
43,000
41,000
39,518
40,341
Long Term Equity Investment
225,000
0
Goodwill And Other Intangible Assets
32,277,000
8,860,000
7,676,552
8,205,868
Other Intangible Assets
21,666,000
7,724,000
6,439,787
6,946,940
Goodwill
10,611,000
1,136,000
1,236,765
1,258,928
Net PPE
552,000
496,000
598,552
640,381
Accumulated Depreciation
-695,000
-620,000
-536,196
-463,262
Gross PPE
1,247,000
1,116,000
1,134,748
1,103,643
Leases
265,000
265,000
261,304
202,806
Construction In Progress
65,000
19,000
29,152
92,352
Other Properties
292,000
282,000
347,696
366,189
Machinery Furniture Equipment
625,000
550,000
496,596
442,296
Prepaid Assets
186,000
94,000
158,260
192,883
Receivables
356,000
61,000
512,618
439,571
Other Receivables
356,000
61,000
493,088
428,775
Notes Receivable
14,245
19,530
10,796
9,753
Cash And Cash Equivalents
2,696,000
1,273,000
1,108,466
722,293
Cash Cash Equivalents And Federal Funds Sold
8,059,000
4,074,000
2,736,817
2,455,593
Cash Flow
2025
2024
2023
2022
2021
Free Cash Flow
-4,568,000
-3,436,000
-50,000
10,715,731
Repurchase Of Capital Stock
0
0
-177,700
-231,584
Repayment Of Debt
-103,000
-2,000
-651,000
-10,501,795
Issuance Of Debt
8,835,000
3,231,000
0
720
Issuance Of Capital Stock
55,000
41,000
25,000
37,760
Capital Expenditure
-641,000
-806,000
-161,000
-107,764
Interest Paid Supplemental Data
596,000
481,000
381,000
327,584
Income Tax Paid Supplemental Data
2,000
6,000
12,544
76,631
End Cash Position
2,934,000
1,289,000
1,137,000
789,099
Beginning Cash Position
1,289,000
1,137,000
789,000
2,211,597
Effect Of Exchange Rate Changes
1,000
-1,000
0
-949
Changes In Cash
1,644,000
153,000
348,000
-1,421,549
Financing Cash Flow
8,103,000
3,279,000
-624,000
-12,823,786
Cash Flow From Continuing Financing Activities
8,103,000
3,279,000
-623,000
-12,823,786
Net Other Financing Charges
-684,000
9,000
2,000
-2,182,771
Net Common Stock Issuance
55,000
41,000
25,000
-139,940
Common Stock Payments
0
0
-177,700
-231,584
Common Stock Issuance
55,000
41,000
25,000
37,760
Net Issuance Payments Of Debt
8,732,000
3,229,000
-651,000
-10,501,075
Net Short Term Debt Issuance
0
-75,000
-300,000
Short Term Debt Payments
0
-75,000
-300,000
Net Long Term Debt Issuance
8,732,000
3,229,000
-651,000
-10,501,075
Long Term Debt Payments
-103,000
-2,000
-651,000
-10,501,795
Long Term Debt Issuance
8,835,000
3,231,000
0
720
Investing Cash Flow
-2,532,000
-496,000
861,000
578,742
Cash Flow From Continuing Investing Activities
-2,532,000
-496,000
861,000
578,742
Net Other Investing Changes
2,000
12,000
10,000
Net Investment Purchase And Sale
0
1,007
2,055
-39,896
Sale Of Investment
0
6,479
2,055
0
Purchase Of Investment
0
-5,472
0
-39,896
Net Business Purchase And Sale
-2,323,000
0
0
0
Purchase Of Business
-2,323,000
0
0
0
Net Intangibles Purchase And Sale
-120,000
-440,000
911,000
657,277
Sale Of Intangibles
430,000
298,000
1,012,000
671,917
Purchase Of Intangibles
-550,000
-738,000
-101,000
-14,640
Net PPE Purchase And Sale
-91,000
-68,000
-60,000
-93,124
Purchase Of PPE
-91,000
-68,000
-60,000
-93,124
Operating Cash Flow
-3,927,000
-2,630,000
111,000
10,823,495
Cash Flow From Continuing Operating Activities
-3,927,000
-2,630,000
111,000
10,823,495
Change In Working Capital
502,000
134,000
-172,000
-479,488
Change In Other Current Liabilities
90,000
103,000
-157,000
-345,083
Change In Other Current Assets
881,000
21,000
-70,000
22,758
Change In Payables And Accrued Expense
-33,000
10,000
55,000
-156,120
Change In Payable
-33,000
10,000
55,000
-156,120
Change In Account Payable
-33,000
10,000
55,000
-155,213
Change In Receivables
5,285
-8,734
-1,043
12,420
Other Non Cash Items
-2,754,000
-2,004,000
1,375,000
11,423,625
Stock Based Compensation
343,000
145,000
180,000
216,001
Deferred Tax
12,000
29,000
-18,000
36,174
Deferred Income Tax
12,000
29,000
-18,000
36,174
Depreciation Amortization Depletion
290,000
113,000
110,000
94,020
Depreciation And Amortization
290,000
113,000
110,000
94,020
Operating Gains Losses
-2,086,000
-1,683,000
-974,000
-1,166,770
Net Income From Continuing Operations
-234,000
636,000
-390,000
699,933
3/6
Graham Score
Speculative Investor
Fails most of Graham's safety criteria. Treat with caution.
Graham's Fair Value
N/A (negative EPS)
Margin of Safety
—
Market Cap / Net Assets
0.6x
Net Assets: $22.9B
Warren's Owner Earnings
$863M
Latest fiscal year
Graham's 7 Criteria
Defensive Investor Checklist
3/6 — Speculative Investor
✅
Adequate Size
Graham required companies large enough to withstand economic downturns. This threshold ($1.5B) is inflation-adjusted from Graham's original $100M — virtually all S&P 500 companies pass this today.
$6.3B
vs > $1.5B revenue
❌
Earnings Stability
Graham required uninterrupted positive earnings. Any loss year is a red flag for defensive investors. Growth companies and cyclicals may show occasional losses during investment cycles or downturns without being fundamentally unsound.
2 loss years (4 yrs data)
vs No negative EPS years
❌
Dividend Record
Graham valued dividends as evidence of financial discipline and shareholder alignment. Many excellent modern businesses (Alphabet, Amazon, Berkshire Hathaway) pay no dividend, preferring to reinvest cash at high rates of return. Failing this criterion does not indicate a poor business — it may indicate a high-growth one.
No dividend
vs Uninterrupted dividends
❌
Earnings Growth
EPS grew from $0.28 to $0.21 over 1 years. Graham's 33% threshold was set over a 10-year period. Measured over fewer years (as here), the bar is proportionally lower. Share buybacks can also inflate EPS growth without reflecting underlying business improvement.
-25.0% EPS growth
vs > 33% EPS growth
✅
Moderate P/E Ratio
Graham's 15x P/E threshold was calibrated to 1960s market averages when interest rates were higher. Today's lower rate environment structurally supports higher multiples — the S&P 500 long-run average P/E is now closer to 20–25x. A stock trading at 20x is not automatically speculative in the modern context.
13.5x
vs P/E ≤ 15.0x
✅
Moderate Price-to-Book
Graham's 1.5x P/B threshold made sense when most company value was tangible. Today, intangible assets — brand, software, patents, network effects — rarely appear on the balance sheet. A high P/B in tech, pharma, or consumer brands often reflects intangible value, not overvaluation. P/FCF or EV/EBITDA are more reliable for asset-light businesses.
0.62x P/B (P/E×P/B: 8.3)
vs P/B ≤ 1.5x | P/E × P/B ≤ 22.5
Graham's 7 Criteria — Explained
What each criterion measures and why it matters.
✅ Adequate Size — $6.3Bvs > $1.5B revenue
Graham required companies large enough to withstand economic downturns. This threshold ($1.5B) is inflation-adjusted from Graham's original $100M — virtually all S&P 500 companies pass this today.
"The minimum size of an enterprise should be not less than $100 million of annual sales."
❌ Earnings Stability — 2 loss years (4 yrs data)vs No negative EPS years
Graham required uninterrupted positive earnings. Any loss year is a red flag for defensive investors. Growth companies and cyclicals may show occasional losses during investment cycles or downturns without being fundamentally unsound.
"The company should have shown no deficit in the past ten years."
❌ Dividend Record — No dividendvs Uninterrupted dividends
Graham valued dividends as evidence of financial discipline and shareholder alignment. Many excellent modern businesses (Alphabet, Amazon, Berkshire Hathaway) pay no dividend, preferring to reinvest cash at high rates of return. Failing this criterion does not indicate a poor business — it may indicate a high-growth one.
"Some current dividend payments — for at least the past 20 years."
EPS grew from $0.28 to $0.21 over 1 years. Graham's 33% threshold was set over a 10-year period. Measured over fewer years (as here), the bar is proportionally lower. Share buybacks can also inflate EPS growth without reflecting underlying business improvement.
"A minimum increase of at least one-third in per-share earnings over ten years."
✅ Moderate P/E Ratio — 13.5xvs P/E ≤ 15.0x
Graham's 15x P/E threshold was calibrated to 1960s market averages when interest rates were higher. Today's lower rate environment structurally supports higher multiples — the S&P 500 long-run average P/E is now closer to 20–25x. A stock trading at 20x is not automatically speculative in the modern context.
"The price-earnings ratio should be no more than 15 times average earnings."
Graham's 1.5x P/B threshold made sense when most company value was tangible. Today, intangible assets — brand, software, patents, network effects — rarely appear on the balance sheet. A high P/B in tech, pharma, or consumer brands often reflects intangible value, not overvaluation. P/FCF or EV/EBITDA are more reliable for asset-light businesses.
"The price should not be more than 1½ times book value. P/E × P/B ≤ 22.5."
These metrics estimate what Rocket Companies, Inc. is worth based on fundamentals — independent of what the market prices it at.
Graham's Fair Value and NCAV are conservative floors.
EPV assumes zero growth. These are reference points, not price targets.
Net Current Asset Value
N/A
"Buy at two-thirds of net current assets." — Graham
Earnings Power Value
N/A
Per share, no-growth floor. Compare to current price.
ROIC — Return on Invested Capital
N/A
Cash Flow Analysis
Metric
2025
2024
2023
2022
2021
Capital Expenditure % of Net Income
N/A
2,779.3%
N/A
232.1%
N/A
Repurchase of Capital Stock
N/A
$0M
$0M
-$178M
-$232M
Free Cash Flow
-$4.6B▼
-$3.4B▼
-$50M▼
$10.7B•
N/A•
Warren's Owner Earnings
$863M
$948M
$255M
$248M
N/A
Peers & Industry
No auto-detected peers for Mortgage Finance. You can manually compare RKT against any stock using the Compare tool.
"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
1.28%
Low — management has little skin in the game
Return on Equity (ROE)
-0.3%
Weak — poor returns on equity
Return on Assets (ROA)
-0.1%
Poor — assets are not generating adequate returns
Debt Trend YoY
+218.1% YoY
Debt is growing — management is leveraging up
Leadership Team
Daniel Gilbert
Founder & Chairman of the Board
Age 63
Varun Krishna
CEO & Director
Age 42
Pay: $5,889,829
Brian Nicholas Brown
President, CFO & Treasurer
Age 45
Pay: $2,133,338
Heather Lovier
Chief Operating Officer
Age 51
Pay: $1,309,174
Sharon Ng
Vice President of Investor Relations
Top Institutional Holders
Institution
% Owned
Shares
Blackrock Inc.
6.79%
66,592,158
Vanguard Capital Management LLC
4.25%
41,675,711
Vanguard Portfolio Management LLC
4.03%
39,552,250
Price (T.Rowe) Associates Inc
4.03%
39,523,426
FMR, LLC
3.23%
31,677,674
ValueAct Holdings, L.P.
2.88%
28,214,724
Slate Path Capital, LP
2.36%
23,152,887
Morgan Stanley
2.30%
22,593,656
⚠️Very high beta — extreme price volatility
Risk Analysis
Beta (Market Risk)
2.20
High volatility — moves more than the market
Short Interest
8.7% of float
Moderate short interest
Debt-to-Equity
1.36x
Moderate leverage
Current Ratio
2.48x
Strong liquidity — Graham approved
52-Week Price Range
Low: $12.17Current: $14.42High: $24.36
Currently at 18% of 52-week range
Rocket Companies, Inc. (RKT) fundamental analysis — Overall grade F based on profitability, financial health, valuation and cash flow. Graham's
Fair Value: N/A (negative EPS). Gross profit margin: N/A. Operating margin: N/A. Net margin: -1.1%. Market cap: $40.8B. Sector: Financial Services. Industry: Mortgage Finance. Analysis powered by 360investing — free fundamental stock analysis based on Benjamin Graham and Warren Buffett
principles.
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