ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Rocket Lab's annualized net income for the quarter that ended in Mar. 2026 was CHF-180.1 Mil. Rocket Lab's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was CHF1,993.1 Mil. Therefore, Rocket Lab's annualized ROE % for the quarter that ended in Mar. 2026 was -9.04%.
The historical rank and industry rank for Rocket Lab's ROE % or its related term are showing as below:
XSWX:RKLB'
s ROE % Range Over the Past 10 Years
Min: -44.13 Med: -29.74 Max: -14.3
Current: -14.3
During the past 6 years, Rocket Lab's highest ROE % was -14.30%. The lowest was -44.13%. And the median was -29.74%.
XSWX:RKLB's ROE % is ranked worse than 80.4% of 347
companies
in the Aerospace & Defense industry
Industry Median: 5.91
vs XSWX:RKLB: -14.30
Rocket Lab (XSWX:RKLB) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % 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 ROE %s can be extremely high.
Rocket Lab ROE % Related Terms
Rocket Lab ROE % Historical Data
* Premium members only.
The historical data trend for Rocket Lab's ROE % 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.
For the Aerospace & Defense subindustry, Rocket Lab's ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Rocket Lab's ROE % distribution charts can be found below:
* The bar in red indicates where Rocket Lab's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder 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.
ROE % is displayed in the 30-year financial page.
Rocket Lab (XSWX:RKLB) has a ROE % of -9.04% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Rocket Lab and its competitors. According to the industry distribution chart, Rocket Lab ranks #279 out of 347 companies in the Aerospace & Defense industry, placing it in the top 80.4%.
Is Rocket Lab's ROE % too high?
Rocket Lab's current ROE % is -9.04%. Based on the distribution chart, Rocket Lab ranks #279 out of 347 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 ROE % compare to ?
According to the Aerospace & Defense industry distribution chart, Rocket Lab ranks #279 out of 347 companies for ROE %. This places Rocket Lab in the lower half of its industry. The industry median ROE % is 5.91. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROE % for an Aerospace & Defense company?
The median ROE % among Aerospace & Defense companies is 5.91, based on 347 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Rocket Lab and its competitors. For the Aerospace & Defense industry, the median ROE % is 5.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rocket Lab's current ROE % is -9.04%. 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 ROE % of -9.04%. 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 ROE % is -9.04%. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For Rocket Lab (XSWX:RKLB), the current ROE % is -9.04% 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:
ROE %: -9.04%
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
Get the complete analysis for XSWX:RKLB
ROE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
XSWX:RKLB has been successfully added to your 
