Rocket Lab (RKLB, Financial) stock experienced a notable gain of 4.3% today, attributed to a successful space launch over the weekend.
Rocket Lab recently completed its second launch for the Japanese customer Institute for Q-shu Pioneers of Space, Inc. (iQPS), successfully deploying the QPS-SAR-9 synthetic aperture radar satellite into orbit using an Electron rocket. This marks the first of eight contracted launches for iQPS, with six more scheduled this year and two in 2026. The total contract is estimated at approximately $67 million, positioning Rocket Lab to potentially account for around half of its launch services revenue in 2024.
Furthermore, Rocket Lab announced the deployment of a Pioneer spacecraft built for Varda Space Industries, though this was conducted by SpaceX utilizing a Falcon 9 rocket. Even as Rocket Lab was not directly involved in the launch, it still benefits financially from manufacturing satellites for other missions.
With a market capitalization of $8.9 billion (approximate), Rocket Lab (RKLB, Financial) stands as a significant player in the Aerospace & Defense sector. However, the GF Value rating indicates that RKLB is "Significantly Overvalued" with a GF Value of $10.7. Investors can reference the complete GF Value for a more comprehensive valuation.
Despite Rocket Lab's recent success in space missions, the financial indicators present a mixed picture. While the company's Altman Z-Score of 5.63 suggests a strong financial position, the Piotroski F-Score highlights some operational weaknesses with a low score of 3.
Rocket Lab's price-to-book ratio is notably high at 25.83, while the price-to-sales ratio is at 22.33. The ongoing revenue growth is impressive with a 73.2% increase over the past year. However, the company's profitability metrics such as return on equity and net margins are negative, indicating challenges in achieving profitability in the near term.
Investors should weigh the significant growth prospects and Rocket Lab's leadership in the Aerospace & Defense industry against the current valuation and financial health indicators.
