Rocket LabXSWX:RKLB 71 Return-on-Tangible-Equity is -11.52% as of Mar. 2026. GuruFocus rates XSWX:RKLB with a GF Score™ of 71/100 and a GF Value™ of CHF21.59. The stock has 1 warning sign investors should review. Among 334 Aerospace & Defense companies, Rocket Lab ranks worse than 83.23% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Rocket Lab's annualized net income for the quarter that ended in Mar. 2026 was CHF-180.1 Mil. Rocket Lab's average shareholder tangible equity for the quarter that ended in Mar. 2026 was CHF1,563.2 Mil. Therefore, Rocket Lab's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was -11.52%.
The historical rank and industry rank for Rocket Lab's Return-on-Tangible-Equity or its related term are showing as below:
XSWX:RKLB'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -56.92 Med: -38.93 Max: -18.92
Current: -18.92
During the past 6 years, Rocket Lab's highest Return-on-Tangible-Equity was -18.92%. The lowest was -56.92%. And the median was -38.93%.
XSWX:RKLB's Return-on-Tangible-Equity is ranked worse than 83.23% of 334
companies
in the Aerospace & Defense industry
Industry Median: 8.195
vs XSWX:RKLB: -18.92
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Rocket Lab Return-on-Tangible-Equity Related Terms
Rocket Lab Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Rocket Lab's Return-on-Tangible-Equity 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.
XSWX:RKLB vs : Return-on-Tangible-Equity Comparison
For the Aerospace & Defense subindustry, Rocket Lab's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Lab Return-on-Tangible-Equity vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Rocket Lab's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Rocket Lab's Return-on-Tangible-Equity 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of -11.52% mean?
Rocket Lab (XSWX:RKLB) has a Return-on-Tangible-Equity of -11.52% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Rocket Lab and its competitors. According to the industry distribution chart, Rocket Lab ranks #278 out of 334 companies in the Aerospace & Defense industry, placing it in the top 83.2%.
Is Rocket Lab's Return-on-Tangible-Equity too high?
Rocket Lab's current Return-on-Tangible-Equity is -11.52%. Based on the distribution chart, Rocket Lab ranks #278 out of 334 companies in the Aerospace & Defense industry, which is in the bottom quartile relative to peers. Overall, Rocket Lab has a GF Score™ of 71/100, reflecting its overall financial health beyond just this single metric.
How does Rocket Lab's Return-on-Tangible-Equity compare to ?
According to the Aerospace & Defense industry distribution chart, Rocket Lab ranks #278 out of 334 companies for Return-on-Tangible-Equity. This places Rocket Lab in the lower half of its industry. The industry median Return-on-Tangible-Equity is 8.20. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for an Aerospace & Defense company?
The median Return-on-Tangible-Equity among Aerospace & Defense companies is 8.20, based on 334 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Rocket Lab and its competitors. For the Aerospace & Defense industry, the median Return-on-Tangible-Equity is 8.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rocket Lab's current Return-on-Tangible-Equity is -11.52%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Rocket Lab stock overvalued right now?
Rocket Lab (XSWX:RKLB) has a current Return-on-Tangible-Equity of -11.52%. The stock's GF Value™ is CHF21.59, compared to a current price of CHF81.13 — trading 275.8% above its estimated fair value. The current Return-on-Tangible-Equity is -11.52%. Rocket Lab's overall GF Score™ is 71/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Rocket Lab (XSWX:RKLB), the current Return-on-Tangible-Equity is -11.52% 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 Lab (XSWX:RKLB) Overvalued in 2026?
Based on GuruFocus' analysis, Rocket Lab stock appears to be overvalued.
The current stock price of CHF81.13 is trading 275.8% above its estimated GF Value™ of CHF21.59.
Key valuation signals for XSWX:RKLB:
Return-on-Tangible-Equity: -11.52%
GF Value™: CHF21.59 vs. price of CHF81.13 (275.8% above fair value)
No single metric tells the full story. See the XSWX:RKLB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Rocket Lab Corp is engaged in space, building rockets, and spacecraft. It provides end-to-end mission services that provide frequent and reliable access to space for civil, defense, and commercial markets. It designs and manufactures the Electron and Neutron launch vehicles and Photon satellite platform. Rocket Lab's Electron launch vehicle has delivered multiple satellites to orbit for private and public sector organizations, enabling operations in national security, scientific research, space debris mitigation, Earth observation, climate monitoring, and communications. The business operates in two segments Launch Services and Space Systems. Geographically it serves Japan, and rest of the world and earns key revenue from the United States.
71GF Score
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