RE/MAX HOLDINGS INC-CL A (RMAX) Stock Fundamental Analysis
NYSE:RMAX - US75524W1080 - Common Stock
9.42 USD
+0.06 (+0.64%)
9.38 USD
-0.04 (-0.42%)
RMAX gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 65 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.
RMAX had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: RMAX reported negative net income in multiple years.
In the past 5 years RMAX always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 1.65%, RMAX is doing good in the industry, outperforming 70.77% of the companies in the same industry.
RMAX has a Return On Equity of 2.15%. This is in the better half of the industry: RMAX outperforms 70.77% of its industry peers.
With an excellent Return On Invested Capital value of 8.40%, RMAX belongs to the best of the industry, outperforming 95.38% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for RMAX is in line with the industry average of 6.48%.
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
With a decent Profit Margin value of 3.19%, RMAX is doing good in the industry, outperforming 73.85% of the companies in the same industry.
RMAX's Profit Margin has declined in the last couple of years.
The Operating Margin of RMAX (15.48%) is better than 81.54% of its industry peers.
In the last couple of years the Operating Margin of RMAX has declined.
| 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
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.
The number of shares outstanding for RMAX has been increased compared to 5 years ago.
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.
RMAX has a Altman-Z score (1.49) which is in line with its industry peers.
The Debt to FCF ratio of RMAX is 11.20, which is on the high side as it means it would take RMAX, 11.20 years of fcf income to pay off all of its debts.
RMAX's Debt to FCF ratio of 11.20 is fine compared to the rest of the industry. RMAX outperforms 67.69% 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.
The Debt to Equity ratio of RMAX (0.98) is worse than 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | 11.2 | ||
| Altman-Z | 1.49 |
ROIC/WACC0.91
WACC9.18%
2.3 Liquidity
A Current Ratio of 1.57 indicates that RMAX should not have too much problems paying its short term obligations.
RMAX has a Current ratio (1.57) which is in line with its industry peers.
RMAX has a Quick 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.
With a Quick ratio value of 1.57, RMAX perfoms like the industry average, outperforming 58.46% of the companies in the same industry.
| 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.
Measured over the past years, RMAX shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -10.21% on average per year.
RMAX shows a decrease in Revenue. In the last year, the revenue decreased by -5.21%.
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
The Earnings Per Share is expected to grow by 7.93% on average over the next years.
Based on estimates for the next years, RMAX will show a small growth in Revenue. The Revenue will grow by 0.25% on average per year.
EPS Next Y4.17%
EPS Next 2Y5.02%
EPS Next 3Y7.93%
EPS Next 5YN/A
Revenue Next Year-5.56%
Revenue Next 2Y-2.12%
Revenue Next 3Y0.25%
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
A Price/Earnings ratio of 7.19 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 96.92% of the companies listed in the same industry.
RMAX is valuated cheaply when we compare the Price/Earnings ratio to 27.13, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 6.62, the valuation of RMAX can be described as very cheap.
Based on the Price/Forward Earnings ratio, RMAX is valued cheaper than 100.00% of the companies in the same industry.
RMAX is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.19 | ||
| Fwd PE | 6.62 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RMAX is valued cheaper than 98.46% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, RMAX is valued cheaply inside the industry as 95.38% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.82 | ||
| 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)1.72
PEG (5Y)N/A
EPS Next 2Y5.02%
EPS Next 3Y7.93%
5. Dividend
5.1 Amount
RMAX has a Yearly Dividend Yield of 10.10%, which is a nice return.
Compared to an average industry Dividend Yield of 3.43, RMAX pays a better dividend. On top of this RMAX pays more dividend than 98.46% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, RMAX pays a better dividend.
| 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 2Y5.02%
EPS Next 3Y7.93%
9.42
+0.06 (+0.64%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryReal Estate Management & Development
Earnings (Last)
Earnings (Next)
Inst Owners88.05%
Inst Owner Change-0.83%
Ins Owners7.65%
Ins Owner Change8.91%
Market Cap188.68M
Analysts46.67
Price Target9.18 (-2.55%)
Short Float %4.18%
Short Ratio2.89
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)2.01%
EPS NQ rev (3m)-1.04%
EPS NY rev (1m)0.19%
EPS NY rev (3m)0.19%
Revenue NQ rev (1m)-0.54%
Revenue NQ rev (3m)-5.18%
Revenue NY rev (1m)-0.7%
Revenue NY rev (3m)-1.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.19 | ||
| Fwd PE | 6.62 | ||
| P/S | 0.63 | ||
| P/FCF | 4.82 | ||
| P/OCF | 4.23 | ||
| P/B | 0.43 | ||
| P/tB | 1.62 | ||
| EV/EBITDA | 7.24 |
EPS(TTM)1.31
EY13.91%
EPS(NY)1.42
Fwd EY15.11%
FCF(TTM)1.96
FCFY20.77%
OCF(TTM)2.23
OCFY23.64%
SpS14.89
BVpS22.09
TBVpS5.8
PEG (NY)1.72
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
WACC9.18%
ROIC/WACC0.91
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 Y4.17%
EPS Next 2Y5.02%
EPS Next 3Y7.93%
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-5.56%
Revenue Next 2Y-2.12%
Revenue Next 3Y0.25%
Revenue Next 5YN/A
EBIT growth 1Y19.95%
EBIT growth 3Y9.1%
EBIT growth 5Y-7.44%
EBIT Next Year101.53%
EBIT Next 3Y32.11%
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%