RocketRKT +0.34%68 Pretax Margin % is 15.43% as of Mar. 2026, which is 2% above its 10-year median of 15.15. GuruFocus rates RKT with a GF Score™ of 68/100 and a GF Value™ of $15.12 (Fairly Valued). The stock has 3 warning signs investors should review. Among 1,527 Banks companies, Rocket ranks worse than 93.78% on this metric.
Pre-Tax margin is calculated as Pre-Tax Income divided by its Revenue. Rocket's Pre-Tax Income for the
three
months ended in Mar. 2026 was $400 Mil. Rocket's Revenue for the
three
months ended in Mar. 2026 was $2,592 Mil. Therefore, Rocket's pretax margin for the quarter that ended in Mar. 2026 was 15.43%.
The historical rank and industry rank for Rocket's Pretax Margin % or its related term are showing as below:
RKT'
s Pretax Margin % Range Over the Past 10 Years
Min: -11.05 Med: 15.15 Max: 61.64
Current: 5.21
RKT's Pretax Margin % is ranked worse than 93.78% of 1527
companies
in the Banks industry
Industry Median: 34.88
vs RKT: 5.21
Rocket (NYSE:RKT) Pretax Margin % Explanation
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
Rocket Pretax Margin % Related Terms
Rocket Pretax Margin % Historical Data
* Premium members only.
The historical data trend for Rocket's Pretax Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
RKT vs FNMA, PFSI, FMCC: Pretax Margin % Comparison
For the Mortgage Finance subindustry, Rocket's Pretax Margin %, along with its competitors' market caps and Pretax Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Rocket Pretax Margin % vs Banks Industry
For the Banks industry and Financial Services sector, Rocket's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Rocket's Pretax Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Rocket (RKT) has a Pretax Margin % of 15.43% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Rocket and its competitors. This is near median its historical median of 15.15. According to the industry distribution chart, Rocket ranks #1432 out of 1527 companies in the Banks industry, placing it in the top 93.8%.
Is Rocket's Pretax Margin % too high?
Rocket's current Pretax Margin % of 15.43% is near median its 10-year median of 15.15. The Banks industry median Pretax Margin % is 34.88. Rocket's value of 15.43% is 55.8% below this industry median. Based on the distribution chart, Rocket ranks #1432 out of 1527 companies in the Banks industry, which is in the bottom quartile relative to peers. Overall, Rocket has a GF Score™ of 68/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Rocket's Pretax Margin % compare to FNMA and PFSI?
According to the Banks industry distribution chart, Rocket ranks #1432 out of 1527 companies for Pretax Margin %. This places Rocket in the lower half of its industry. The industry median Pretax Margin % is 34.88. Rocket's value of 15.43% is 55.8% below this benchmark. While the company's 10-year median is 15.15 vs. the industry median of 34.88, Rocket has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Pretax Margin % for a Banks company?
The median Pretax Margin % among Banks companies is 34.88, based on 1,527 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Rocket's current Pretax Margin % of 15.43% is 55.8% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Rocket and its competitors. For the Banks industry, the median Pretax Margin % is 34.88 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rocket's current Pretax Margin % is 15.43%, which is near median its own 10-year median of 15.15. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Rocket stock overvalued right now?
Based on GuruFocus' analysis, Rocket (RKT) is currently considered Fairly Valued. The stock's GF Value™ is $15.12, compared to a current price of $14.83 — trading 1.9% below its estimated fair value. The current Pretax Margin % is 15.43%, which is near median its 10-year median of 15.15 and 55.8% below the Banks industry median of 34.88. Rocket's overall GF Score™ is 68/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For Rocket (RKT), the current Pretax Margin % is 15.43% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Rocket (RKT) Overvalued in 2026?
Based on GuruFocus' analysis, Rocket stock appears to be undervalued.
The current stock price of $14.83 is trading 1.9% below its estimated GF Value™ of $15.12.
GuruFocus considers Rocket to be Fairly Valued.
Key valuation signals for RKT:
Pretax Margin %: 15.43% (near median its 10-year median of 15.15)
GF Value™: $15.12 vs. price of $14.83 (1.9% below fair value)
Industry Position: 55.8% below the Banks median (#1432 of 1527)
No single metric tells the full story. See the RKT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Rocket Companies is a financial services company that was originally founded as Rock Financial in 1985 and is currently based in Detroit. Rocket Companies offers a wide array of services and products but is best known for its Rocket Mortgage business. The company's mortgage lending operations are split between its direct-to-consumer lending, which sees borrowers accessing the company's lending arm directly through either its mobile app or website, and its partner network where mortgage brokers and other firms use Rocket's origination process to offer loans to their customers. The company has rapidly gained market share in recent years and will also be the largest mortgage servicer in the US following its acquisition of the Mr. Cooper Group.
68GF Score
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