Rocket Lab USA (RKLB) AI Stock Analysis

• Market Cap: $18.34B
• Dividend Yield: N/A
• Average Volume (3M): 24.13M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.25
• Revenue Growth: 64.98%
• EPS Growth: -10.52%
• Country: US
• Employees: 2,100
• Sector: Industrials
• Sector Strength: 91
• Industry: Aerospace & Defense
• EPS (TTM): -0.12
• Shares Outstanding: 470,017,120
• 10 Day Avg. Volume: 17,757,249
• 30 Day Avg. Volume: 24,133,754
• PEG Ratio: 13.05
• Price to Book (P/B): 50.66
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -114.66
• Enterprise Value/Market Cap: 1.12
• Enterprise Value/Revenue: 12.87
• Enterprise Value/Gross Profit: 164.92
• Enterprise Value/Ebitda: -33.48
• 1Y Price Target: $33.80
• Price Target Upside: -13.40% Downside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 12

• Rating: 62 Neutral
• Price Target: $42.00 ▲(7.61%Upside)

Rocket Lab's stock score is driven by strong technical indicators and positive corporate events, tempered by financial challenges and unfavorable valuation metrics. Significant revenue growth and strategic initiatives offer promise, though profitability and cash flow remain key areas for improvement.

Positive Factors

Government Contracts

Selection for the NSSL Ph 3 Lane 1 $5.6B program opens the door for Neutron to deliver national security missions and compete against top U.S. launch providers.

Market Position

Their deep vertical integration differentiates the company and puts RKLB in a prime position to challenge market leader SpaceX.

Strategic Acquisition

Rocket Lab's acquisition of Geost enhances its capabilities in national security space priorities, adding critical payload systems to its portfolio.

Negative Factors

National Security Programs

The ongoing debate about the potential cancellation of the Transport Layer program and the consideration of commercial services creates uncertainty for RKLB shares.

Space Force Acquisition Strategy

The Space Force is exploring new acquisition approaches, including purchasing services where a commercial capability exists, which could negatively impact RKLB's future opportunities.

Rocket Lab USA Business Overview & Revenue Model

Company Description

Rocket Lab USA, Inc., a space company, provides launch services and space systems solutions for the space and defense industries. The company provides launch services, spacecraft engineering and design services, spacecraft components, spacecraft manufacturing, and other spacecraft and on-orbit management solutions; and constellation management services, as well as designs and manufactures small and medium-class rockets. It also designs, manufactures, and sells Electron small orbital launch vehicles and the Photon satellite platforms, as well as developing the Neutron 8-ton payload class launch vehicle; conducts remote launch activities; and designs and manufactures a range of components and subsystems for the Photon family of spacecraft and broader merchant spacecraft components. The company serves commercial, aerospace prime contractors, and government customers. The company was founded in 2006 and is headquartered in Long Beach, California.

How the Company Makes Money

Rocket Lab USA generates revenue primarily through its space launch services, which involve launching satellites into orbit using its Electron rocket. The company charges clients, including commercial enterprises, government agencies, and research organizations, for delivering their payloads to specific orbits. Rocket Lab's Photon satellite platform also contributes to its revenue by providing satellite design, manufacturing, and operational services. Furthermore, Rocket Lab earns income from providing spacecraft components, such as reaction wheels and star trackers, which are essential for satellite functionality, to various satellite manufacturers. Strategic partnerships and contracts with government entities, including NASA and the U.S. Department of Defense, play a significant role in the company's earnings, securing a steady stream of revenue through long-term agreements.

Rocket Lab USA Financial Statement Overview

Summary

Rocket Lab USA shows strong revenue growth but struggles with profitability and cash flow, as indicated by negative EBIT, net margins, and free cash flow. The balance sheet indicates moderate debt levels, but ongoing losses suggest a need for improved operational efficiency.

Income Statement

Rocket Lab USA has shown consistent revenue growth, with a TTM revenue increase of 6.84% over the previous year. However, the company struggles with profitability, reflected in negative EBIT and Net Profit Margins, indicating significant operating and net losses. The gross profit margin is positive at 26.66%, but overall, profitability remains a challenge.

Balance Sheet

The company's balance sheet shows moderate financial leverage with a Debt-to-Equity ratio of 1.13, suggesting manageable debt levels relative to equity. However, the equity ratio is 34.36%, indicating a lower proportion of financing through equity. The return on equity is negative due to net losses, highlighting a need for improvement in profitability.

Cash Flow

Rocket Lab USA's cash flow analysis reflects negative free cash flow, which has worsened over the periods, highlighting ongoing cash burn. The operating cash flow to net income ratio is negative, indicating challenges in converting income into cash. The company may need to improve cash management to sustain operations.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	436.21M	244.59M	211.00M	62.24M	35.16M
Gross Profit	116.15M	51.41M	18.99M	-1.89M	-11.82M
EBITDA	-153.02M	-148.78M	-105.26M	-91.20M	-44.59M
Net Income	-190.18M	-182.57M	-135.94M	-117.32M	-55.01M
Balance Sheet
Total Assets	1.18B	941.21M	989.12M	980.85M	187.87M
Cash, Cash Equivalents and Short-Term Investments	418.99M	244.77M	471.79M	690.96M	52.79M
Total Debt	468.42M	176.69M	152.78M	128.43M	27.30M
Total Liabilities	801.89M	386.67M	315.92M	282.40M	354.58M
Stockholders Equity	382.45M	554.54M	673.21M	698.45M	-166.71M
Cash Flow
Free Cash Flow	-115.98M	-153.57M	-148.95M	-97.49M	-52.88M
Operating Cash Flow	-48.89M	-98.87M	-106.54M	-71.79M	-27.76M
Investing Cash Flow	-98.33M	12.02M	-346.08M	-92.13M	-37.33M
Financing Cash Flow	256.68M	7.37M	2.04M	799.94M	21.48M

Rocket Lab USA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 39.03
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RKLB, the sentiment is Positive. The current price of 39.03 is above the 20-day moving average (MA) of 34.30, above the 50-day MA of 28.92, and above the 200-day MA of 22.34, indicating a bullish trend. The MACD of 3.55 indicates Negative momentum. The RSI at 79.57 is Negative, neither overbought nor oversold. The STOCH value of 88.16 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RKLB.

Rocket Lab USA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AVAV	74 Outperform	$13.02B	171.70	5.10%	―	14.50%	-29.76%
DCO	68 Neutral	$1.28B	36.75	5.25%	―	3.02%	95.76%
Sector *	67 Neutral	€2.71B	19.10	7.73%	3.01%	-1.49%	-31.61%
RKLB	62 Neutral	$18.34B	―	-45.38%	―	64.98%	-10.52%
RDW	54 Neutral	$2.37B	―	-451.56%	―	1.36%	-213.86%
SPCE	48 Neutral	$129.71M	―	-95.46%	―	-34.33%	52.30%
EVEX	43 Neutral	$2.10B	―	-148.98%	―	―	-2.94%

Rocket Lab USA Corporate Events

Rocket Lab USA Announces 2025 Annual Meeting Date

Rocket Lab USA has announced that its 2025 annual meeting of stockholders will be held on August 27, 2025, a change of more than 30 days from the previous year’s meeting. Stockholders must submit proposals by June 19, 2025, to be included in the proxy materials, adhering to the company’s bylaws and SEC rules. This change in meeting date requires stockholders to adjust their proposal submission timelines, impacting their participation in the company’s governance.

The most recent analyst rating on (RKLB) stock is a Buy with a $7.00 price target. To see the full list of analyst forecasts on Rocket Lab USA stock, see the RKLB Stock Forecast page.

Rocket Lab USA Acquires LightRidge for $275 Million

On May 22, 2025, Rocket Lab USA entered into a Stock Purchase Agreement to acquire all shares of LightRidge Interco Solutions Holdings, Inc., the owner of GEOST LLC, for $275 million. This acquisition marks Rocket Lab’s entry into the satellite payload segment, enhancing its position as a provider of end-to-end national security space solutions. The deal, expected to close in the second half of 2025, includes potential additional earnout payments tied to revenue targets. By integrating GEOST’s advanced electro-optical and infrared payloads, Rocket Lab aims to deliver complete, mission-critical space solutions, strengthening its role as a disruptor in national security space.

The most recent analyst rating on (RKLB) stock is a Buy with a $7.00 price target. To see the full list of analyst forecasts on Rocket Lab USA stock, see the RKLB Stock Forecast page.

Rocket Lab USA Announces Holding Company Reorganization

On May 8, 2025, Rocket Lab USA announced a holding company reorganization to be effective by June 1, 2025, aiming to create a more efficient structure for growth and risk management. This reorganization will involve a tax-free merger, with Rocket Lab Corporation becoming the successor issuer, and is expected to streamline operations and align with U.S. Government security requirements. Additionally, Rocket Lab reported strong financial results for Q1 2025, with a 32% year-on-year revenue growth to $123 million, and provided a positive outlook for Q2 2025, highlighting its resilience and strategic expansions into new markets and acquisitions.