Rocket Lab USA, Inc.
Rocket Lab USA, Inc. Fundamental Analysis
Rocket Lab USA, Inc. (RKLB) shows moderate financial fundamentals with a PE ratio of -186.98, profit margin of -35.64%, and ROE of -28.40%. The company generates $0.6B in annual revenue with strong year-over-year growth of 78.34%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -9.8/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze RKLB's fundamental strength across five key dimensions:
Efficiency Score
WeakRKLB struggles to generate sufficient returns from assets.
Valuation Score
ExcellentRKLB trades at attractive valuation levels.
Growth Score
ModerateRKLB shows steady but slowing expansion.
Financial Health Score
ExcellentRKLB maintains a strong and stable balance sheet.
Profitability Score
WeakRKLB struggles to sustain strong margins.
Key Financial Metrics
Is RKLB Expensive or Cheap?
P/E Ratio
RKLB trades at -186.98 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, RKLB's PEG of -12.02 indicates potential undervaluation.
Price to Book
The market values Rocket Lab USA, Inc. at 28.85 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at -197.61 times EBITDA. This is generally considered low.
How Well Does RKLB Make Money?
Net Profit Margin
For every $100 in sales, Rocket Lab USA, Inc. keeps $-35.64 as profit after all expenses.
Operating Margin
Core operations generate -41.36 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-28.40 in profit for every $100 of shareholder equity.
ROA
Rocket Lab USA, Inc. generates $-8.90 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Rocket Lab USA, Inc. generates limited operating cash flow of $-104.44M, signaling weaker underlying cash strength.
Free Cash Flow
Rocket Lab USA, Inc. generates weak or negative free cash flow of $-233.94M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.44 in free cash annually.
FCF Yield
RKLB converts -0.61% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-186.98
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-12.02
vs 25 benchmark
P/B Ratio
Price to book value ratio
28.85
vs 25 benchmark
P/S Ratio
Price to sales ratio
67.32
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.40
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.18
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.28
vs 25 benchmark
ROA
Return on assets percentage
-0.09
vs 25 benchmark
ROCE
Return on capital employed
-0.13
vs 25 benchmark
How RKLB Stacks Against Its Sector Peers
| Metric | RKLB Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -186.98 | 26.49 | Better (Cheaper) |
| ROE | -28.40% | 1307.00% | Weak |
| Net Margin | -35.64% | -5131.00% (disorted) | Weak |
| Debt/Equity | 0.40 | 0.81 | Strong (Low Leverage) |
| Current Ratio | 3.18 | 10.48 | Strong Liquidity |
| ROA | -8.90% | -1549793.00% (disorted) | Weak |
RKLB outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Rocket Lab USA, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
628.45%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
-406.28%
Industry Style: Cyclical, Value, Infrastructure
DecliningFCF CAGR
-82.89%
Industry Style: Cyclical, Value, Infrastructure
Declining