RE/MAX HOLDINGS INC-CL A (RMAX) Stock Fundamental Analysis
USA - NYSE:RMAX - US75524W1080 - Common Stock
9.36 USD
-0.07 (-0.74%)
9.36 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to RMAX. RMAX was compared to 64 industry peers in the Real Estate Management & Development industry. There are concerns on the financial health of RMAX while its profitability can be described as average. RMAX has a bad growth rate and is valued cheaply.
1. Profitability
1.1 Basic Checks
RMAX had positive earnings in the past year.
In the past year RMAX had a positive cash flow from operations.
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 1.65%. This is in the better half of the industry: RMAX outperforms 68.75% of its industry peers.
RMAX has a Return On Equity of 2.15%. This is in the better half of the industry: RMAX outperforms 68.75% of its industry peers.
With an excellent Return On Invested Capital value of 8.40%, RMAX belongs to the best of the industry, outperforming 93.75% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for RMAX is in line with the industry average of 6.56%.
The 3 year average ROIC (7.69%) for RMAX is below the current ROIC(8.40%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.65% | ||
| ROE | 2.15% | ||
| ROIC | 8.4% |
ROA(3y)-3.29%
ROA(5y)-1.96%
ROE(3y)-4.62%
ROE(5y)-2.95%
ROIC(3y)7.69%
ROIC(5y)7.23%
1.3 Margins
RMAX's Profit Margin of 3.19% is fine compared to the rest of the industry. RMAX outperforms 71.88% of its industry peers.
In the last couple of years the Profit Margin of RMAX has declined.
RMAX has a Operating Margin of 15.48%. This is amongst the best in the industry. RMAX outperforms 81.25% of its industry peers.
RMAX's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.48% | ||
| PM (TTM) | 3.19% | ||
| GM | N/A |
OM growth 3Y11.65%
OM growth 5Y-9.02%
PM growth 3YN/A
PM growth 5Y-23.72%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
RMAX has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
RMAX has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, RMAX has more shares outstanding
The debt/assets ratio for RMAX has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.49, we must say that RMAX is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.49, RMAX perfoms like the industry average, outperforming 48.44% of the companies in the same industry.
RMAX has a debt to FCF ratio of 11.20. This is a negative value and a sign of low solvency as RMAX would need 11.20 years to pay back of all of its debts.
RMAX has a Debt to FCF ratio of 11.20. This is in the better half of the industry: RMAX outperforms 67.19% of its industry peers.
RMAX has a Debt/Equity ratio of 0.98. This is a neutral value indicating RMAX is somewhat dependend on debt financing.
RMAX has a Debt to Equity ratio of 0.98. This is in the lower half of the industry: RMAX underperforms 60.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | 11.2 | ||
| Altman-Z | 1.49 |
ROIC/WACC0.92
WACC9.14%
2.3 Liquidity
RMAX has a Current Ratio of 1.57. This is a normal value and indicates that RMAX is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of RMAX (1.57) is comparable to the rest of the industry.
A Quick Ratio of 1.57 indicates that RMAX should not have too much problems paying its short term obligations.
RMAX's Quick ratio of 1.57 is in line compared to the rest of the industry. RMAX outperforms 56.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.57 | ||
| Quick Ratio | 1.57 |
3. Growth
3.1 Past
The earnings per share for RMAX have decreased by 0.00% in the last year.
RMAX shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -10.21% yearly.
Looking at the last year, RMAX shows a decrease in Revenue. The Revenue has decreased by -5.21% in the last year.
Measured over the past years, RMAX shows a small growth in Revenue. The Revenue has been growing by 1.74% on average per year.
EPS 1Y (TTM)0%
EPS 3Y-18.69%
EPS 5Y-10.21%
EPS Q2Q%-4.88%
Revenue 1Y (TTM)-5.21%
Revenue growth 3Y-2.28%
Revenue growth 5Y1.74%
Sales Q2Q%-7.27%
3.2 Future
RMAX is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.90% yearly.
Based on estimates for the next years, RMAX will show a decrease in Revenue. The Revenue will decrease by -1.47% on average per year.
EPS Next Y4.64%
EPS Next 2Y4.33%
EPS Next 3Y6.9%
EPS Next 5YN/A
Revenue Next Year-5.77%
Revenue Next 2Y-2.96%
Revenue Next 3Y-1.47%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
The Price/Earnings ratio is 7.15, which indicates a rather cheap valuation of RMAX.
Compared to the rest of the industry, the Price/Earnings ratio of RMAX indicates a rather cheap valuation: RMAX is cheaper than 96.88% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.79, RMAX is valued rather cheaply.
RMAX is valuated cheaply with a Price/Forward Earnings ratio of 6.67.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RMAX indicates a rather cheap valuation: RMAX is cheaper than 100.00% of the companies listed in the same industry.
RMAX is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.21, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.15 | ||
| Fwd PE | 6.67 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RMAX indicates a rather cheap valuation: RMAX is cheaper than 98.44% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, RMAX is valued cheaper than 96.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.79 | ||
| EV/EBITDA | 7.24 |
4.3 Compensation for Growth
RMAX's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of RMAX may justify a higher PE ratio.
PEG (NY)1.54
PEG (5Y)N/A
EPS Next 2Y4.33%
EPS Next 3Y6.9%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 10.10%, RMAX is a good candidate for dividend investing.
RMAX's Dividend Yield is rather good when compared to the industry average which is at 3.46. RMAX pays more dividend than 98.44% of the companies in the same industry.
RMAX's Dividend Yield is rather good when compared to the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.1% |
5.2 History
The dividend of RMAX decreases each year by -48.00%.
RMAX has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-48%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
3.60% of the earnings are spent on dividend by RMAX. This is a low number and sustainable payout ratio.
DP3.6%
EPS Next 2Y4.33%
EPS Next 3Y6.9%
9.36
-0.07 (-0.74%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryReal Estate Management & Development
Earnings (Last)
Earnings (Next)
Inst Owners80.63%
Inst Owner Change-0.83%
Ins Owners8.03%
Ins Owner Change-4.44%
Market Cap187.48M
Analysts46.67
Price Target9.18 (-1.92%)
Short Float %3.55%
Short Ratio2.58
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.1% |
Yearly Dividend0.03
Dividend Growth(5Y)-48%
DP3.6%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)19.26%
Min EPS beat(2)9.24%
Max EPS beat(2)29.28%
EPS beat(4)4
Avg EPS beat(4)11.3%
Min EPS beat(4)2.01%
Max EPS beat(4)29.28%
EPS beat(8)8
Avg EPS beat(8)8.99%
EPS beat(12)8
Avg EPS beat(12)4.84%
EPS beat(16)11
Avg EPS beat(16)4.86%
Revenue beat(2)0
Avg Revenue beat(2)-2.04%
Min Revenue beat(2)-3.93%
Max Revenue beat(2)-0.14%
Revenue beat(4)0
Avg Revenue beat(4)-2.53%
Min Revenue beat(4)-4.45%
Max Revenue beat(4)-0.14%
Revenue beat(8)0
Avg Revenue beat(8)-2.07%
Revenue beat(12)1
Avg Revenue beat(12)-2.01%
Revenue beat(16)2
Avg Revenue beat(16)-1.72%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.18%
EPS NY rev (1m)0.44%
EPS NY rev (3m)-0.13%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.76%
Revenue NY rev (1m)-0.22%
Revenue NY rev (3m)-1.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.15 | ||
| Fwd PE | 6.67 | ||
| P/S | 0.63 | ||
| P/FCF | 4.79 | ||
| P/OCF | 4.2 | ||
| P/B | 0.42 | ||
| P/tB | 1.61 | ||
| EV/EBITDA | 7.24 |
EPS(TTM)1.31
EY14%
EPS(NY)1.4
Fwd EY15%
FCF(TTM)1.96
FCFY20.9%
OCF(TTM)2.23
OCFY23.79%
SpS14.89
BVpS22.09
TBVpS5.8
PEG (NY)1.54
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.65% | ||
| ROE | 2.15% | ||
| ROCE | 10.63% | ||
| ROIC | 8.4% | ||
| ROICexc | 10.73% | ||
| ROICexgc | 266.32% | ||
| OM | 15.48% | ||
| PM (TTM) | 3.19% | ||
| GM | N/A | ||
| FCFM | 13.14% |
ROA(3y)-3.29%
ROA(5y)-1.96%
ROE(3y)-4.62%
ROE(5y)-2.95%
ROIC(3y)7.69%
ROIC(5y)7.23%
ROICexc(3y)9.67%
ROICexc(5y)9.18%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)9.74%
ROCE(5y)9.16%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y25.58%
ROICexc growth 5Y-6.23%
OM growth 3Y11.65%
OM growth 5Y-9.02%
PM growth 3YN/A
PM growth 5Y-23.72%
GM growth 3YN/A
GM growth 5YN/A
F-Score7
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | 11.2 | ||
| Debt/EBITDA | 5.9 | ||
| Cap/Depr | 19.71% | ||
| Cap/Sales | 1.82% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 60.55% | ||
| Profit Quality | 412.51% | ||
| Current Ratio | 1.57 | ||
| Quick Ratio | 1.57 | ||
| Altman-Z | 1.49 |
F-Score7
WACC9.14%
ROIC/WACC0.92
Cap/Depr(3y)23.32%
Cap/Depr(5y)28.89%
Cap/Sales(3y)2.31%
Cap/Sales(5y)2.83%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)0%
EPS 3Y-18.69%
EPS 5Y-10.21%
EPS Q2Q%-4.88%
EPS Next Y4.64%
EPS Next 2Y4.33%
EPS Next 3Y6.9%
EPS Next 5YN/A
Revenue 1Y (TTM)-5.21%
Revenue growth 3Y-2.28%
Revenue growth 5Y1.74%
Sales Q2Q%-7.27%
Revenue Next Year-5.77%
Revenue Next 2Y-2.96%
Revenue Next 3Y-1.47%
Revenue Next 5YN/A
EBIT growth 1Y19.95%
EBIT growth 3Y9.1%
EBIT growth 5Y-7.44%
EBIT Next Year101.02%
EBIT Next 3Y29.95%
EBIT Next 5YN/A
FCF growth 1Y40.73%
FCF growth 3Y24.93%
FCF growth 5Y-4.21%
OCF growth 1Y29.42%
OCF growth 3Y12.02%
OCF growth 5Y-5.46%