RE/MAX HOLDINGS INC-CL A (RMAX)
US75524W1080 - Common Stock
RMAX gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 65 industry peers in the Real Estate Management & Development industry. While RMAX is still in line with the averages on profitability rating, there are concerns on its financial health. RMAX is valued quite cheap, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
RMAX had positive earnings in the past year.
RMAX had a positive operating cash flow in the past year.
In multiple years RMAX reported negative net income over the last 5 years.
In the past 5 years RMAX always reported a positive cash flow from operatings.
1.2 Ratios
RMAX has a Return On Assets of -11.96%. This is in the lower half of the industry: RMAX underperforms 64.06% of its industry peers.
The Return On Equity of RMAX (-16.79%) is comparable to the rest of the industry.
The Return On Invested Capital of RMAX (5.23%) is better than 87.50% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for RMAX is in line with the industry average of 5.41%.
The 3 year average ROIC (4.72%) for RMAX is below the current ROIC(5.23%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -11.96% | ||
| ROE | -16.79% | ||
| ROIC | 5.23% |
ROA(3y)-4.36%
ROA(5y)-1.27%
ROE(3y)-6.2%
ROE(5y)-2.27%
ROIC(3y)4.72%
ROIC(5y)5.99%
1.3 Margins
RMAX has a Operating Margin of 11.62%. This is amongst the best in the industry. RMAX outperforms 81.25% of its industry peers.
In the last couple of years the Operating Margin of RMAX has declined.
RMAX does not have Profit Margin and Gross Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.62% | ||
| PM (TTM) | N/A | ||
| GM | N/A |
OM growth 3Y-12.72%
OM growth 5Y-19.33%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so RMAX is destroying value.
RMAX has more shares outstanding than it did 1 year ago.
RMAX has more shares outstanding than it did 5 years ago.
The debt/assets ratio for RMAX is higher compared to a year ago.
2.2 Solvency
RMAX has an Altman-Z score of 1.15. This is a bad value and indicates that RMAX is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.15, RMAX is in line with its industry, outperforming 43.75% of the companies in the same industry.
The Debt to FCF ratio of RMAX is 20.35, which is on the high side as it means it would take RMAX, 20.35 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 20.35, RMAX is doing good in the industry, outperforming 64.06% of the companies in the same industry.
RMAX has a Debt/Equity ratio of 1.07. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of RMAX (1.07) is worse than 64.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | 20.35 | ||
| Altman-Z | 1.15 |
ROIC/WACC0.69
WACC7.58%
2.3 Liquidity
A Current Ratio of 1.18 indicates that RMAX should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.18, RMAX is doing worse than 60.94% of the companies in the same industry.
RMAX has a Quick Ratio of 1.18. This is a normal value and indicates that RMAX is financially healthy and should not expect problems in meeting its short term obligations.
RMAX has a Quick ratio (1.18) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.18 | ||
| Quick Ratio | 1.18 |
3. Growth
3.1 Past
The earnings per share for RMAX have decreased strongly by -37.04% in the last year.
RMAX shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -9.58% yearly.
The Revenue has decreased by -7.84% in the past year.
RMAX shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.90% yearly.
EPS 1Y (TTM)-37.04%
EPS 3Y-10.23%
EPS 5Y-9.58%
EPS growth Q2Q-26.83%
Revenue 1Y (TTM)-7.84%
Revenue growth 3Y6.98%
Revenue growth 5Y8.9%
Revenue growth Q2Q-5.75%
3.2 Future
Based on estimates for the next years, RMAX will show a small growth in Earnings Per Share. The EPS will grow by 4.00% on average per year.
The Revenue is expected to grow by 5.14% on average over the next years.
EPS Next Y-5.05%
EPS Next 2Y4%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-4.28%
Revenue Next 2Y-1.23%
Revenue Next 3Y5.14%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
RMAX is valuated cheaply with a Price/Earnings ratio of 7.08.
Based on the Price/Earnings ratio, RMAX is valued cheaper than 93.75% of the companies in the same industry.
RMAX is valuated cheaply when we compare the Price/Earnings ratio to 28.91, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 7.46 indicates a rather cheap valuation of RMAX.
Based on the Price/Forward Earnings ratio, RMAX is valued cheaply inside the industry as 95.31% of the companies are valued more expensively.
RMAX is valuated cheaply when we compare the Price/Forward Earnings ratio to 20.51, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.08 | ||
| Fwd PE | 7.46 |
4.2 Price Multiples
93.75% of the companies in the same industry are more expensive than RMAX, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, RMAX is valued cheaply inside the industry as 89.06% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.31 | ||
| EV/EBITDA | 7.71 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y4%
EPS Next 3YN/A
5. Dividend
5.1 Amount
RMAX has a Yearly Dividend Yield of 10.54%, which is a nice return.
Compared to an average industry Dividend Yield of 4.09, RMAX pays a better dividend. On top of this RMAX pays more dividend than 98.44% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, RMAX pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.54% |
5.2 History
The dividend of RMAX decreases each year by -1.45%.
RMAX has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-1.45%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
RMAX has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-19.64%
EPS Next 2Y4%
EPS Next 3YN/A
RE/MAX HOLDINGS INC-CL A
NYSE:RMAX (5/15/2024, 7:06:12 PM)
After market: 9.63 0 (0%)9.63
+0.11 (+1.16%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryReal Estate Management & Development
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap181.53M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.54% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.08 | ||
| Fwd PE | 7.46 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -11.96% | ||
| ROE | -16.79% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 11.62% | ||
| PM (TTM) | N/A | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.56
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.18 | ||
| Quick Ratio | 1.18 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-37.04%
EPS 3Y-10.23%
EPS 5Y
EPS growth Q2Q
EPS Next Y-5.05%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-7.84%
Revenue growth 3Y6.98%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y