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Rocket Lab (RKLB) Stock Analysis

This is a peer-relative look at Rocket Lab (RKLB): its performance, risk, profitability, growth, financial strength, dividend, and valuation are each measured against its Capital Goods peers, so every number reads in context rather than in isolation.

Company Profile

Company profile fields for Rocket Lab (RKLB)
Profile ItemRKLB
NameRocket Lab Corporation
Country/RegionUnited States
GICS SectorIndustrials
GICS Industry GroupCapital Goods
GICS IndustryAerospace & Defense
GICS Sub-IndustryAerospace & Defense
Market Capitalization33.93 billion USD
CurrencyUSD
ExchangeNasdaq
Listing DateNovember 24, 2020
Security TypeCommon Stock

Price Performance

Cumulative Growth

RKLB
GSPC
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Rocket Lab (RKLB) vs. S&P 500 (GSPC): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Rocket Lab (RKLB) and S&P 500 (GSPC). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Rocket Lab (RKLB) and S&P 500 (GSPC). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Rocket Lab (RKLB) metric values compared with Capital Goods industry-group medians
MetricCurrent stock: RKLBIndustry group median
Total Return (1Y)12.96%6.84%
Total Return (3Y, Annualized)138.86%17.66%
Total Return (5Y, Annualized)31.49%9.09%

Risk Profile

Drawdown History

RKLB
GSPC
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Rocket Lab (RKLB) vs. S&P 500 (GSPC): Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for Rocket Lab (RKLB) and S&P 500 (GSPC). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Rocket Lab (RKLB) metric values compared with Capital Goods industry-group medians
MetricCurrent stock: RKLBIndustry group median
Volatility (1Y, Annualized)95.71%44.38%
Beta (5Y)3.141.19
Max Drawdown (5Y)-78.32%-49.95%

Risk-Adjusted Performance

Risk-Return Positioning

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Each dot is a stock plotted by 1-year volatility (risk) and 1-year return. RKLB is highlighted; the dashed line is the Capital Allocation Line from the risk-free rate through the industry median — dots above it are stronger on a risk-adjusted basis.

Risk-Adjusted Metrics

Rocket Lab (RKLB) metric values compared with Capital Goods industry-group medians
MetricCurrent stock: RKLBIndustry group median
Sharpe Ratio (1Y)0.090.06
Sortino Ratio (1Y)0.140.09

Profitability

ROE (TTM)

Rocket Lab (RKLB) has negative ROE of -7.92%. That can come from trailing losses or negative book equity, so it is a warning state rather than a clean capital-efficiency measure.

RKLB

Capital Goods industry group

-7.92%

Group distribution
Max
40.55%
Q3
19.29%
Median
12.12%
Q1
4.08%
RKLB
-7.92%
Min
-17.12%
Largest peers
GEV
93.04%
CAT
56.14%
GE
50.17%
DE
18.24%
RTX
12.85%
RKLB
-7.92%
BA
--
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Where Rocket Lab (RKLB) stands on ROE within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

Net Margin (TTM)

Rocket Lab (RKLB) has negative net margin of -21.51%. The trailing period ended in a net loss, so the bottom-line conversion read is a warning rather than a profitability strength.

RKLB

Capital Goods industry group

-21.51%

Group distribution
Max
27.47%
Q3
12.10%
Median
6.30%
Q1
1.40%
Min
-12.89%
RKLB
-21.51%
Largest peers
GEV
23.54%
GE
17.31%
CAT
15.21%
DE
10.17%
RTX
8.75%
BA
8.07%
RKLB
-21.51%
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Where Rocket Lab (RKLB) stands on net margin within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

Operating Margin (TTM)

Rocket Lab (RKLB) has negative operating margin of -24.57%. Core operations were loss-making before interest and taxes over the trailing period.

RKLB

Capital Goods industry group

-24.57%

Group distribution
Max
36.60%
Q3
18.33%
Median
11.12%
Q1
5.14%
Min
-12.63%
RKLB
-24.57%
Largest peers
CAT
20.19%
GE
18.49%
RTX
15.54%
DE
13.37%
GEV
12.77%
BA
0.30%
RKLB
-24.57%
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Where Rocket Lab (RKLB) stands on operating margin within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

Profitability Metrics

Rocket Lab (RKLB) metric values compared with Capital Goods industry-group medians
MetricCurrent stock: RKLBIndustry group median
ROE (TTM)-7.92%12.12%
ROA (TTM)-4.62%5.29%
Net Margin (TTM)-21.51%6.30%
Operating Margin (TTM)-24.57%11.12%
Gross Margin (TTM)37.26%29.63%

Growth

Revenue Growth

Rocket Lab (RKLB) grew revenue 37.96%, in the upper peer quartile. The top line is expanding faster than at most industry peers, which points to share gains or stronger pricing.

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Rocket Lab (RKLB): Revenue Growth across different time periods, set against Capital Goods industry-group medians.

EPS Growth

No usable EPS growth is available for Rocket Lab (RKLB) this period, so the earnings-momentum read is skipped.

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Rocket Lab (RKLB) doesn't report EPS Growth this period; the bars show the Capital Goods industry-group medians on their own.

Growth Metrics

Rocket Lab (RKLB) metric values compared with Capital Goods industry-group medians
MetricCurrent stock: RKLBIndustry group median
Revenue Growth (YoY)37.96%8.11%
Revenue Growth (3Y CAGR)41.82%6.45%
EPS Growth (YoY)--5.45%
EPS Growth (3Y CAGR)--7.15%

Financial Strength

Current Ratio (MRQ)

Rocket Lab (RKLB) has current ratio of 5.48, above the industry’s typical middle range. Liquidity looks ample versus peers, though an unusually high cushion can also mean idle current assets or inefficient working capital.

RKLB

Capital Goods industry group

5.48

Group distribution
RKLB
5.48
Max
5.22
Q3
2.95
Median
2.08
Q1
1.43
Min
0.36
Largest peers
RKLB
5.48
DE
2.13
CAT
1.42
BA
1.13
RTX
1.05
GE
0.98
GEV
0.83
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Where Rocket Lab (RKLB) stands on current ratio within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

Debt / Equity (MRQ)

Rocket Lab (RKLB) has debt-to-equity ratio of 0.04, in the lower-leverage quartile for its industry. Borrowing is modest relative to equity compared with most peers, which can leave more flexibility through a cycle.

RKLB

Capital Goods industry group

0.04

Group distribution
Max
2.33
Q3
1.12
Median
0.60
Q1
0.29
RKLB
0.04
Min
0.00
Largest peers
BA
7.39
DE
2.30
CAT
2.10
GE
1.16
RTX
0.55
GEV
0.30
RKLB
0.04
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Where Rocket Lab (RKLB) stands on debt-to-equity ratio within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

Financial Strength Metrics

Rocket Lab (RKLB) metric values compared with Capital Goods industry-group medians
MetricCurrent stock: RKLBIndustry group median
Current Ratio (MRQ)5.482.08
Debt / Equity (MRQ)0.040.60
Net Debt / EBITDA--1.78

Dividends

Dividend Yield (TTM)

Rocket Lab (RKLB) pays no dividend, leaving dividend yield at 0.00% this period. Shareholders may still receive value through reinvestment or buybacks, but there is no dividend income to compare here.

RKLB

Capital Goods industry group

0.00%

Group distribution
Max
2.66%
Q3
1.14%
Median
0.24%
RKLB
0.00%
Q1
0.00%
Min
0.00%
Largest peers
RTX
1.47%
CAT
1.13%
DE
0.98%
GE
0.56%
GEV
0.26%
RKLB
0.00%
BA
0.00%
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Where Rocket Lab (RKLB) stands on dividend yield within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

Dividend Payout Ratio (TTM)

Rocket Lab (RKLB) paid no earnings out as dividends this period, leaving payout ratio at 0.00%. There is no dividend payout to size against earnings.

RKLB

Capital Goods industry group

0.00%

Group distribution
Max
67.39%
Q3
28.02%
Median
6.86%
RKLB
0.00%
Q1
0.00%
Min
0.00%
Largest peers
RTX
45.85%
DE
36.02%
CAT
24.18%
GE
20.23%
GEV
4.59%
RKLB
0.00%
BA
0.00%
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Where Rocket Lab (RKLB) stands on payout ratio within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

Dividend Metrics

Rocket Lab (RKLB) metric values compared with Capital Goods industry-group medians
MetricCurrent stock: RKLBIndustry group median
Dividend Yield (TTM)0.00%0.24%
Dividend Payout Ratio (TTM)0.00%6.86%

Valuation

P/E Ratio (TTM)

No usable P/E ratio is available for Rocket Lab (RKLB) this period, so the trailing-earnings valuation read is skipped.

RKLB

Capital Goods industry group

--

Group distribution
Max
59.38
Q3
35.92
Median
25.41
Q1
19.47
Min
3.03
RKLB
--
Largest peers
DE
37.33
GE
36.94
RTX
30.82
CAT
21.92
GEV
20.32
BA
17.89
RKLB
--
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Rocket Lab (RKLB) doesn’t report P/E ratio this period; the box shows the Capital Goods group’s distribution and the dots its largest members.

P/S Ratio (TTM)

Rocket Lab (RKLB) trades at 44.12 on P/S ratio, above the industry benchmark range. The stock is being valued at an unusually rich price per dollar of trailing revenue.

RKLB

Capital Goods industry group

44.12

Group distribution
RKLB
44.12
Max
7.54
Q3
3.76
Median
2.15
Q1
1.03
Min
0.03
Largest peers
RKLB
44.12
GE
6.38
GEV
4.65
DE
3.78
CAT
3.29
RTX
2.66
BA
1.45
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Where Rocket Lab (RKLB) stands on P/S ratio within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

P/B Ratio (MRQ)

Rocket Lab (RKLB) trades at 9.09 on P/B ratio, in the higher book-value quartile. The market is paying a premium to book, so stronger ROE, cleaner assets, or a better growth profile need to justify it.

RKLB

Capital Goods industry group

9.09

Group distribution
Max
9.66
RKLB
9.09
Q3
5.00
Median
3.12
Q1
1.81
Min
-1.08
Largest peers
BA
20.99
GE
19.06
GEV
18.00
CAT
11.90
RKLB
9.09
DE
6.47
RTX
3.69
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Where Rocket Lab (RKLB) stands on P/B ratio within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

Valuation Metrics

Rocket Lab (RKLB) metric values compared with Capital Goods industry-group medians
MetricCurrent stock: RKLBIndustry group median
P/E Ratio (TTM)--25.41
P/S Ratio (TTM)44.122.15
P/B Ratio (MRQ)9.093.12
Free Cash Flow Yield (TTM)-0.74%3.03%