Rocket Companies (RKT) Stock Analysis & Winston Score

Rocket Companies is one of the largest mortgage lenders in the United States. It helps people borrow money to buy or refinance homes, mostly through its well-known Rocket Mortgage brand. The company operates almost entirely online, making it one of the biggest digital mortgage platforms in the country.

Rocket makes money by originating home loans and then selling most of them to investors, keeping a fee in the process. It also earns revenue from mortgage servicing, meaning it collects monthly payments on behalf of loan owners and charges a small fee for that service. Rocket operates almost exclusively in the U.S. and its main competitive edge is its technology platform, which makes applying for a mortgage faster and easier than traditional banks. The biggest risk the company faces is interest rate sensitivity — when rates rise, fewer people refinance their homes, which can sharply reduce loan volume and revenue.

Winston Score History

Politician Trades

2 trades / 12mo

0 Congressional buys and 2 sells on RKT in the last 12 months.

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Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+148.6% YoY

YoY Growth Rate

Revenue accelerating

EPS Growth

+256.5% YoY

YoY Growth Rate

EPS growth accelerating

Insider Activity

75.9%ownership

Insiders own a meaningful stake in the company

Cash Position

Cash flow positive

$2.7B cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Revenue accelerating

Rocket Companies grew revenue 149% year-over-year and the growth rate is speeding up. That's the kind of momentum growth investors look for — the question is whether margins can follow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Gross Margin

89.3%

Premium pricing power — 89.3% gross margin

Operating Margin

27.4%

Excellent — 27.4% operating margin

ROCE

1.4%

Weak — 1.4% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY

+67.3%

Fast-growing sales (67.3% YoY)

EPS YoY

+569.1%

Earnings growing fast (569.1% YoY)

Earnings growing 25%+ a year. The compounder zone.

EPS Consistency

2/8 quarters

Earnings rarely grow — volatile business

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Cash Flow

Cash Conversion

-532%

Weak — only -532% of profit becomes cash

FCF Margin

-16.4%

Burning cash (-16.4%)

Free cash flow is negative. They are burning cash, not generating it.

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Stability

Debt / Equity

1.36

Elevated debt (1.36)

Interest Cover

1.25x

Dangerous — barely covers interest (1.2x)

Interest coverage between 1 and 3. Profits cover interest, but with little room to spare.

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Valuation

P/E Ratio (TTM)

225.0x

no trend

Expensive — P/E 225.0

P/E over 35. The market is pricing in heavy, sustained growth.

P/E vs Forward

+205.5

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (225.0 → 19.5)

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Dividends

Not applicable for this business.

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