NYSE · Financial Services

Rocket Companies, Inc.

RKT · Mortgage Finance

$14.42

▲ 1.2 (9.08%)

Cached · 10 min

Overall Grade

Defensive

Enterprising

Profitability

C⤢

Net Income Margin 11.5%

Fin. Health

F⤢

Years to Pay Off Debt 88.6 yrs

Valuation

D⤢

Margin of Safety 0.0%

Price-to-Book 0.61x

Cash Flow

C⤢

Free Cash Flow $1.6B

CapEx % of Net Income 77.8%

Owner Earnings $674M

Cash Flow

Free Cash Flow $1.6B

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.

CapEx % of Net Income 77.8%

Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.

Owner Earnings $674M

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.

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

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.

Metric Explanations

What each dimension measures and where the thresholds come from.

Market Data

Market Cap $40.8B

Enterprise Value $68.4B

P/E (TTM) 13.45

Dividend Yield N/A

Exchange NYSE

Key Margins

Gross Profit N/A

Operating Margin N/A

Net Margin 11.5%

Company Info

Sector Financial Services

Industry Mortgage Finance

Employees 23500

Country United States

Visit website

📖

Full Graham Analysis

Mr. Market is currently offering Rocket Companies, Inc. at $14.42.

The business passes 4 of 6 of Graham's defensive criteria — adequate but not exceptional.

At $14.42, the stock trades at a 98% premium to its Graham Number of $7.30. Graham would consider this price speculative.

There is no margin of safety at the current price. Graham would advise patience and waiting for a better entry point.

Conclusion: This stock is better suited for Graham's Enterprising investor — one willing to devote time and skill to security selection.

Showing Key Metrics

Income Highlights

Metric	Q1 2026	Q4 2025	Q3 2024
Gross Profit %	N/A•	N/A•	N/A
Operating Margin %	N/A•	N/A•	N/A
Net Income %	11.5%▲	2.7%•	N/A
Diluted EPS	0.10▲	0.02•	N/A

Balance Sheet Highlights

Metric	Q1 2026	Q4 2025	Q4 2024
Total Assets	$59.4B	$60.7B	N/A
Total Debt	$26.3B▲	$15.6B•	N/A
Working Capital	N/A•	N/A•	N/A
Years to Pay Debt	88.59	228.76	N/A

Cash Flow Highlights

Metric	Q1 2026	Q4 2025	Q4 2024
Free Cash Flow	$1.6B▲	-$1.6B•	N/A
Owner Earnings	$674M	$571M	N/A
CapEx % of Net Income	77.8%	508.2%	N/A

Income Statement

	2026	2025	2024
Tax Effect Of Unusual Items	0	-40,443
Tax Rate For Calcs	0	0
Total Unusual Items		-192,584	0
Total Unusual Items Excluding Goodwill		-192,584	0
Net Income From Continuing Operation Net Minority Interest	297,000	68,022
Reconciled Depreciation	146,000	157,224
Net Interest Income	158,000	-176,155
Interest Expense	349,000	335,104
Interest Income	507,000	158,949
Normalized Income	297,000	220,163
Net Income From Continuing And Discontinued Operation	297,000	68,022
Diluted Average Shares	2,846,975	2,842,726
Basic Average Shares	2,828,455	2,826,022
Diluted EPS	0	0
Basic EPS	0	0
Diluted NI Availto Com Stockholders	297,000	68,022
Average Dilution Earnings	0	0
Net Income Common Stockholders	297,000	68,022
Net Income	297,000	68,022
Minority Interests	0	-189
Net Income Including Noncontrolling Interests	297,000	68,211
Net Income Continuous Operations	297,000	68,211
Tax Provision	103,000	100,826
Pretax Income	400,000	169,037
Special Income Charges		-192,584	0
Other Special Charges			19,500
Restructuring And Mergern Acquisition		192,584
Depreciation Amortization Depletion Income Statement	146,000	157,224
Depreciation And Amortization In Income Statement	146,000	157,224
Selling General And Administration	1,959,000	1,664,423
Selling And Marketing Expense	345,000	262,054
General And Administrative Expense	1,614,000	1,402,369
Other Gand A	535,000	203,210
Salaries And Wages	1,079,000	1,199,159
Total Revenue	2,592,000	2,487,401
Operating Revenue	2,592,000	2,487,401
Other Non Interest Expense	87,000	304,133

Balance Sheet

	2026	2025	2024
Ordinary Shares Number	2,827,584	2,818,157
Share Issued	2,827,584	2,818,157
Net Debt	23,625,000	12,865,000
Total Debt	26,312,000	15,561,000
Tangible Book Value	-8,867,000	-9,379,000
Invested Capital	49,542,000	38,459,000
Net Tangible Assets	-8,867,000	-9,379,000
Capital Lease Obligations			319,296
Common Stock Equity	23,230,000	22,898,000
Total Capitalization	49,542,000	35,180,000
Total Equity Gross Minority Interest	23,230,000	22,898,000
Minority Interest	0	0
Stockholders Equity	23,230,000	22,898,000
Gains Losses Not Affecting Retained Earnings			-48
Retained Earnings	421,000	124,000
Additional Paid In Capital	22,809,000	22,774,000
Capital Stock		0	0
Common Stock			20
Total Liabilities Net Minority Interest	36,209,000	37,787,000
Derivative Product Liabilities	360,000	145,000
Non Current Deferred Liabilities
Non Current Deferred Taxes Liabilities
Long Term Debt And Capital Lease Obligation	26,312,000	12,282,000
Long Term Capital Lease Obligation			319,296
Long Term Debt	26,312,000	12,282,000
Long Term Provisions			99,998
Current Debt And Capital Lease Obligation		3,279,000	160,000
Current Debt		3,279,000	160,000
Other Current Borrowings			92,949
Line Of Credit		3,279,000	160,000
Payables And Accrued Expenses		285,000	182,000
Payables		285,000	182,000
Total Tax Payable			581,183
Income Tax Payable			581,183
Accounts Payable		285,000	182,000
Total Assets	59,439,000	60,685,000
Investments And Advances		268,000	41,000
Available For Sale Securities		43,000	41,000
Long Term Equity Investment		225,000	0
Goodwill And Other Intangible Assets	32,097,000	32,277,000
Other Intangible Assets	21,486,000	21,666,000
Goodwill	10,611,000	10,611,000
Net PPE	273,000	552,000
Accumulated Depreciation	-726,000	-695,000
Gross PPE	999,000	1,247,000
Leases		265,000	265,000
Construction In Progress		65,000	19,000
Other Properties	999,000	292,000
Machinery Furniture Equipment		625,000	550,000
Prepaid Assets		186,000	94,000
Receivables		356,000	61,000
Other Receivables		356,000	61,000
Notes Receivable			14,245
Cash And Cash Equivalents	2,687,000	2,696,000
Cash Cash Equivalents And Federal Funds Sold	8,052,000	8,059,000

Cash Flow

	2026	2025	2024
Free Cash Flow	1,626,000	-1,575,258
Repayment Of Debt	-2,054,000	-36,126
Issuance Of Debt		1,178,337	-1,841,887
Issuance Of Capital Stock	19,000	16,417
Capital Expenditure	-231,000	-345,658
Interest Paid Supplemental Data		595,722	479,778
End Cash Position	2,973,000	2,934,000
Beginning Cash Position	2,932,000	5,857,140
Effect Of Exchange Rate Changes		709	-1,525
Changes In Cash	41,000	-2,923,528
Financing Cash Flow	-2,151,000	780,431
Cash Flow From Continuing Financing Activities	-2,151,000	780,431
Net Other Financing Charges	-116,000	-378,197
Net Common Stock Issuance	19,000	16,417
Common Stock Issuance	19,000	16,417
Net Issuance Payments Of Debt	-2,054,000	1,142,211
Net Short Term Debt Issuance
Short Term Debt Payments
Net Long Term Debt Issuance	-2,054,000	1,142,211
Long Term Debt Payments	-2,054,000	-36,126
Long Term Debt Issuance		1,178,337	-1,841,887
Investing Cash Flow	335,000	-2,474,359
Cash Flow From Continuing Investing Activities	335,000	-2,474,359
Net Other Investing Changes	-10,000
Net Business Purchase And Sale		-2,244,457
Purchase Of Business		-2,244,457
Net Intangibles Purchase And Sale	388,000	-190,647
Sale Of Intangibles	576,000	115,023
Purchase Of Intangibles	-188,000	-305,670
Net PPE Purchase And Sale	-43,000	-39,988
Purchase Of PPE	-43,000	-39,988
Operating Cash Flow	1,857,000	-1,229,600
Cash Flow From Continuing Operating Activities	1,857,000	-1,229,600
Change In Working Capital	62,000	254,754
Change In Other Current Liabilities	48,000	35,770
Change In Other Current Assets	-329,000	728,585
Change In Payables And Accrued Expense	-72,000	-76,789
Change In Payable	-72,000	-76,789
Change In Account Payable	-72,000	-76,715
Change In Receivables			981
Other Non Cash Items	1,855,000	-1,524,131
Stock Based Compensation	88,000	181,369
Deferred Tax	97,000	97,678
Deferred Income Tax	97,000	97,678
Depreciation Amortization Depletion	146,000	157,224
Depreciation And Amortization	146,000	157,224
Operating Gains Losses	-688,000	-464,705
Net Income From Continuing Operations	297,000	68,211

📊 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: $992M ▲ $2.6B +161.3%

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

Net Margin

Prior year: -1.0% ▲ 11.5% +12.5pp

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.

$2.6B/qtr (≈$10.4B ann.)

vs > $1.5B annualised revenue

✅ 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.

$1.6B

vs Positive

Operating Cash Flow

$1.9B

Latest quarter · Buffett's cash reality check

ROIC

N/A

Based on latest annual operating income

Market Cap / Net Assets

0.6x

Net Assets: $23.2B

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)

1.3%

Weak — poor returns on equity

Return on Assets (ROA)

0.5%

Poor — assets are not generating adequate returns

Debt Trend YoY

+69.1% 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

1.983% of net income

Brian Nicholas Brown

President, CFO & Treasurer

Age 45

Pay: $2,133,338

0.718% of net income

Heather Lovier

Chief Operating Officer

Age 51

Pay: $1,309,174

0.441% of net income

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: $12.17 Current: $14.42 High: $24.36

Currently at 18% of 52-week range