Rocket Lab USA (NASDAQ:RKLB) has experienced a stock price increase of nearly 600% over the past year, primarily due to successful rocket launches and new contracts for its upcoming Neutron rocket, which will support payloads of up to 13,000 kilograms to low-Earth orbit, compared to the current Electron rocket’s 300 kilograms.
As of June 23, 2025, Rocket Lab’s debt is $490 million, with a market cap of $17 billion, indicating a low debt-to-equity ratio of 3.4% and a solid cash-to-assets ratio of 34.1%. Despite its rapid revenue growth—averaging 85.4% annually over the past three years and a 65% increase over the last year from $282 million to $466 million—its operating income is a negative $206 million, resulting in an operating margin of -44.2%.
Rocket Lab’s stock is currently viewed as overvalued, trading at 35 times trailing revenue, compared to a price-to-sales ratio of 3.1 for the S&P 500. Additionally, Rocket Lab has shown weak resilience in downturns, with an 82.8% drop from a high of $20.72 in September 2021 to $3.56 by the end of 2022.
