Recent News
On October 1, 2025 Rocket Companies announced the closing of the $14.2 billion acquisition of Mr. Cooper, completing a strategic consolidation of mortgage servicing and origination assets intended to expand recurring revenue and client scale.
Technical Analysis
ADX at 10.74 indicates no strong underlying trend; momentum rather than trend strength currently drives price movement.
Directional indicators favor the upside: DI+ at 24.93 is increasing while DI- at 21.92 is decreasing, a bullish alignment that supports near-term upside bias despite the weak ADX reading.
MACD reads 0.30 and shows an increasing trend with the MACD line at parity with its signal line; the positive, rising MACD reflects bullish momentum, though it sits at the signal line rather than producing a decisive crossover.
MRO at 29.14 with a peak-and-reversal pattern places the market price above the model target and indicates elevated probability of a pullback from current levels if momentum softens.
RSI at 53.34 and rising signals neutral-to-constructive momentum without overbought conditions, supporting further consolidation around recent highs rather than an immediate extended rally.
Price sits above short-, medium- and long-term averages: close $19.37 versus 12-day EMA $19.07, 20-day average $18.94, 50-day $18.01 and 200-day $15.95, a bullish moving-average alignment that increases the likelihood of continued short-term strength while the price remains above the super-trend lower support at $18.04.
Price trades just below the 1x upper Bollinger band ($19.47), indicating proximity to short-term resistance; low ADX and reduced 10-day volume relative to longer-term averages suggest rallies may require higher participation to extend. Short-term beta (42-day) of 2.59 implies elevated volatility versus the stock’s 52-week beta of 0.71.
Fundamental Analysis
Earnings metrics show pressure: GAAP EPS stands at $-0.06 with an EPS surprise of -18.67%, and forward EPS of $0.2044 implies material improvement expected ahead but current reported earnings remain negative.
Top-line dynamics present conflicting signals: reported revenue growth (latest) at 12.71% contrasts with a year-over-year revenue growth metric of -124.53% and a quarter-over-quarter change of -58.17%, indicating volatile period-to-period comparisons and significant timing or base effects in revenue recognition.
Cash generation weakened: free cash flow equals $-82,441,000 and free cash flow yield equals -0.223%, with free cash growth down about -95.97% year-over-year and operating cash flow at $-50,270,000. Cash on hand stands at $5,836,104,000 while net debt totals $3,630,013,000.
Leverage and capital structure present measurable leverage: total debt $9,760,777,000, debt-to-assets 29.07% with a QoQ decrease of 10.86% and a large year-over-year increase of 4,318.09% as reported. Debt-to-equity equals 1.1027 with a QoQ decline of 17.03%.
Profitability ratios remain negative: return on assets -0.387% (improving YoY) and return on equity -1.399% despite a QoQ ROE uptick of 57.29%. DuPont ROE registers -1.519% reflecting operating losses and leverage effects.
Valuation multiples convey elevated expectations: trailing P/E at 250.52 and forward P/E at 108.31 sit well above the industry peer mean and median where provided; price-to-sales at 25.21 also exceeds the industry peer mean of 12.22 and median of 12.00. Price-to-book at 4.18 sits below the industry peer mean of 5.14 and below the median of 6.82.
WMDST values the stock as over-valued. The designation reflects negative current earnings, weak free-cash conversion, and stretched multiples relative to typical operating cash performance; forward EPS and expected synergies from completed acquisitions provide a countervailing factor but do not eliminate present valuation elevation.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-09-30 |
| REPORT DATE: | 2025-10-30 |
| NEXT REPORT DATE: | 2026-01-29 |
| CASH FLOW | Begin Period Cash Flow | $ 5.1 B |
| Operating Cash Flow | $ -50.27 M | |
| Capital Expenditures | $ -32.17 M | |
| Change In Working Capital | $ 391.1 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ 743.8 M | |
| End Period Cash Flow | $ 5.9 B | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 1.5 B | |
| Forward Revenue | $ -1.28 B | |
| COSTS | ||
| Cost Of Revenue | — | |
| Depreciation | $ 78.3 M | |
| Depreciation and Amortization | $ 78.3 M | |
| Research and Development | — | |
| Total Operating Expenses | — | |
| PROFITABILITY | ||
| Gross Profit | — | |
| EBITDA | — | |
| EBIT | — | |
| Operating Income | — | |
| Interest Income | $ 126.5 M | |
| Interest Expense | $ 228.0 M | |
| Net Interest Income | $ -101.51 M | |
| Income Before Tax | $ -184.20 M | |
| Tax Provision | $ -60.34 M | |
| Tax Rate | 24.8 % | |
| Net Income | $ -123.85 M | |
| Net Income From Continuing Operations | $ -123.85 M | |
| EARNINGS | ||
| EPS Estimate | — | |
| EPS Actual | $ -0.06 | |
| EPS Difference | $ 0.00 | |
| EPS Surprise | -1867.21 % | |
| Forward EPS | $ 0.20 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 33.6 B | |
| Intangible Assets | $ 10.6 B | |
| Net Tangible Assets | $ -1.80 B | |
| Total Current Assets | — | |
| Cash and Short-Term Investments | — | |
| Cash | $ 5.8 B | |
| Net Receivables | — | |
| Inventory | — | |
| Long-Term Investments | — | |
| LIABILITIES | ||
| Accounts Payable | $ 297.5 M | |
| Short-Term Debt | $ 368.4 M | |
| Total Current Liabilities | — | |
| Net Debt | $ 3.6 B | |
| Total Debt | $ 9.8 B | |
| Total Liabilities | $ 24.7 B | |
| EQUITY | ||
| Total Equity | $ 8.9 B | |
| Retained Earnings | $ 55.2 M | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 4.19 | |
| Shares Outstanding | 2.110 B | |
| Revenue Per-Share | $ 0.70 | |
| VALUATION | Market Capitalization | $ 37.0 B |
| Enterprise Value | $ 46.8 B | |
| Enterprise Multiple | — | |
| Enterprise Multiple QoQ | — | |
| Enterprise Multiple YoY | — | |
| Enterprise Multiple IPRWA | — | |
| EV/R | 31.854 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 3.793 | |
| Asset To Liability | 1.358 | |
| Debt To Capital | 0.524 | |
| Debt To Assets | 0.291 | |
| Debt To Assets QoQ | -10.855 % | |
| Debt To Assets YoY | 4318.085 % | |
| Debt To Assets IPRWA | high: 1.312 RKT: 0.291 mean: 0.267 median: 0.174 low: 0.002 |
|
| Debt To Equity | 1.103 | |
| Debt To Equity QoQ | -17.035 % | |
| Debt To Equity YoY | 334.95 % | |
| Debt To Equity IPRWA | high: 13.211 mean: 1.78 median: 1.21 RKT: 1.103 low: -1.932 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 4.181 | |
| Price To Book QoQ | -2.423 % | |
| Price To Book YoY | 9.211 % | |
| Price To Book IPRWA | high: 10.089 median: 6.822 mean: 5.14 RKT: 4.181 low: -2.248 |
|
| Price To Earnings (P/E) | 250.519 | |
| Price To Earnings QoQ | -27.545 % | |
| Price To Earnings YoY | 16.3 % | |
| Price To Earnings IPRWA | RKT: 250.519 high: 109.962 median: 77.528 mean: 64.979 low: -71.915 |
|
| PE/G Ratio | 3.34 | |
| Price To Sales (P/S) | 25.206 | |
| Price To Sales QoQ | 2.874 % | |
| Price To Sales YoY | 513.98 % | |
| Price To Sales IPRWA | high: 31.99 RKT: 25.206 mean: 12.22 median: 12.002 low: 0.799 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 108.313 | |
| Forward PE/G | 1.444 | |
| Forward P/S | -35.865 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | — | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.046 | |
| Asset Turnover Ratio QoQ | -1.964 % | |
| Asset Turnover Ratio YoY | 84.048 % | |
| Asset Turnover Ratio IPRWA | high: 0.444 median: 0.062 mean: 0.06 RKT: 0.046 low: -0.011 |
|
| Receivables Turnover | — | |
| Receivables Turnover Ratio QoQ | — | |
| Receivables Turnover Ratio YoY | — | |
| Receivables Turnover Ratio IPRWA | — | |
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | — | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | — | |
| Cash Conversion Cycle Days QoQ | — | |
| Cash Conversion Cycle Days YoY | — | |
| Cash Conversion Cycle Days IPRWA | high: 108.433 median: 33.593 mean: 14.932 RKT: 0 low: -156.826 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | — | |
| CapEx To Revenue | -0.022 | |
| CapEx To Depreciation | -0.411 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 17.9 B | |
| Net Invested Capital | $ 18.3 B | |
| Invested Capital | $ 18.3 B | |
| Net Tangible Assets | $ -1.80 B | |
| Net Working Capital | — | |
| LIQUIDITY | ||
| Cash Ratio | — | |
| Current Ratio | — | |
| Current Ratio QoQ | — | |
| Current Ratio YoY | — | |
| Current Ratio IPRWA | — | |
| Quick Ratio | — | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | — | |
| Cost Of Debt | 1.744 % | |
| Interest Coverage Ratio | — | |
| Interest Coverage Ratio QoQ | — | |
| Interest Coverage Ratio YoY | — | |
| Interest Coverage Ratio IPRWA | — | |
| Operating Cash Flow Ratio | — | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | — | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 10.592 % | |
| Revenue Growth | 12.71 % | |
| Revenue Growth QoQ | -58.173 % | |
| Revenue Growth YoY | -124.532 % | |
| Revenue Growth IPRWA | high: 35.204 % RKT: 12.71 % mean: 10.616 % median: 1.307 % low: -29.515 % |
|
| Earnings Growth | 75.0 % | |
| Earnings Growth QoQ | -130.0 % | |
| Earnings Growth YoY | 125.002 % | |
| Earnings Growth IPRWA | high: 169.231 % RKT: 75.0 % mean: 16.624 % median: 1.471 % low: -125.455 % |
|
| MARGINS | ||
| Gross Margin | — | |
| Gross Margin QoQ | — | |
| Gross Margin YoY | — | |
| Gross Margin IPRWA | — | |
| EBIT Margin | — | |
| EBIT Margin QoQ | — | |
| EBIT Margin YoY | — | |
| EBIT Margin IPRWA | — | |
| Return On Sales (ROS) | — | |
| Return On Sales QoQ | — | |
| Return On Sales YoY | — | |
| Return On Sales IPRWA | — | |
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ -82.44 M | |
| Free Cash Flow Yield | -0.223 % | |
| Free Cash Flow Yield QoQ | -96.517 % | |
| Free Cash Flow Yield YoY | -99.666 % | |
| Free Cash Flow Yield IPRWA | high: 35.603 % median: 2.522 % mean: 2.479 % RKT: -0.223 % low: -20.828 % |
|
| Free Cash Growth | -95.966 % | |
| Free Cash Growth QoQ | -170.699 % | |
| Free Cash Growth YoY | -135.772 % | |
| Free Cash Growth IPRWA | high: 247.438 % median: 29.088 % mean: -12.068 % RKT: -95.966 % low: -200.489 % |
|
| Free Cash To Net Income | 0.666 | |
| Cash Flow Margin | -1.786 % | |
| Cash Flow To Earnings | 0.212 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | -0.387 % | |
| Return On Assets QoQ | — | |
| Return On Assets YoY | 330.0 % | |
| Return On Assets IPRWA | high: 5.974 % mean: 1.101 % median: 0.979 % RKT: -0.387 % low: -5.607 % |
|
| Return On Capital Employed (ROCE) | — | |
| Return On Equity (ROE) | -0.014 | |
| Return On Equity QoQ | 5729.167 % | |
| Return On Equity YoY | -58.536 % | |
| Return On Equity IPRWA | high: 0.206 mean: 0.07 median: 0.065 RKT: -0.014 low: -0.123 |
|
| DuPont ROE | -1.519 % | |
| Return On Invested Capital (ROIC) | — | |
| Return On Invested Capital QoQ | — | |
| Return On Invested Capital YoY | — | |
| Return On Invested Capital IPRWA | — | |