RMR GROUP INC/THE - A (RMR) Stock Fundamental Analysis
NASDAQ:RMR - US74967R1068 - Common Stock
16.86 USD
+0.01 (+0.06%)
16.86 USD
0 (0%)
RMR gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 63 industry peers in the Real Estate Management & Development industry. While RMR belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. RMR has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year RMR was profitable.
In the past year RMR had a positive cash flow from operations.
In the past 5 years RMR has always been profitable.
RMR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.95%, RMR belongs to the top of the industry, outperforming 80.95% of the companies in the same industry.
RMR has a Return On Equity of 8.26%. This is amongst the best in the industry. RMR outperforms 82.54% of its industry peers.
RMR has a better Return On Invested Capital (7.72%) than 92.06% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for RMR is significantly above the industry average of 6.46%.
The 3 year average ROIC (15.75%) for RMR is well above the current ROIC(7.72%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.95% | ||
| ROE | 8.26% | ||
| ROIC | 7.72% |
ROA(3y)6.39%
ROA(5y)6.08%
ROE(3y)16.48%
ROE(5y)15.45%
ROIC(3y)15.75%
ROIC(5y)14.56%
1.3 Margins
RMR has a better Profit Margin (2.54%) than 68.25% of its industry peers.
In the last couple of years the Profit Margin of RMR has declined.
With a decent Operating Margin value of 6.72%, RMR is doing good in the industry, outperforming 69.84% of the companies in the same industry.
In the last couple of years the Operating Margin of RMR has declined.
With a decent Gross Margin value of 37.76%, RMR is doing good in the industry, outperforming 66.67% of the companies in the same industry.
RMR's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.72% | ||
| PM (TTM) | 2.54% | ||
| GM | 37.76% |
OM growth 3Y-19.87%
OM growth 5Y-25.59%
PM growth 3Y-24.18%
PM growth 5Y-24.54%
GM growth 3Y-6.25%
GM growth 5Y-8.54%
2. Health
2.1 Basic Checks
RMR has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for RMR has been increased compared to 1 year ago.
Compared to 5 years ago, RMR has more shares outstanding
RMR has a worse debt/assets ratio than last year.
2.2 Solvency
RMR has an Altman-Z score of 2.66. This is not the best score and indicates that RMR is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.66, RMR is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
A Debt/Equity ratio of 0.40 indicates that RMR is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.40, RMR perfoms like the industry average, outperforming 58.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.66 |
ROIC/WACC0.87
WACC8.91%
2.3 Liquidity
A Current Ratio of 2.27 indicates that RMR has no problem at all paying its short term obligations.
RMR has a Current ratio of 2.27. This is in the better half of the industry: RMR outperforms 68.25% of its industry peers.
RMR has a Quick Ratio of 2.27. This indicates that RMR is financially healthy and has no problem in meeting its short term obligations.
With a decent Quick ratio value of 2.27, RMR is doing good in the industry, outperforming 73.02% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.27 | ||
| Quick Ratio | 2.27 |
3. Growth
3.1 Past
The earnings per share for RMR have decreased strongly by -27.75% in the last year.
Measured over the past years, RMR shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -19.11% on average per year.
The Revenue for RMR has decreased by -16.99% in the past year. This is quite bad
The Revenue has been growing slightly by 4.70% on average over the past years.
EPS 1Y (TTM)-27.75%
EPS 3Y-9.71%
EPS 5Y-19.11%
EPS Q2Q%-24.32%
Revenue 1Y (TTM)-16.99%
Revenue growth 3Y13.92%
Revenue growth 5Y4.7%
Sales Q2Q%-77.23%
3.2 Future
The Earnings Per Share is expected to decrease by -12.87% on average over the next years. This is quite bad
Based on estimates for the next years, RMR will show a decrease in Revenue. The Revenue will decrease by -4.07% on average per year.
EPS Next Y-22.19%
EPS Next 2Y-12.87%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-8.95%
Revenue Next 2Y-4.07%
Revenue Next 3YN/A
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 13.49, which indicates a correct valuation of RMR.
Compared to the rest of the industry, the Price/Earnings ratio of RMR indicates a rather cheap valuation: RMR is cheaper than 88.89% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.07, RMR is valued rather cheaply.
With a Price/Forward Earnings ratio of 13.97, RMR is valued correctly.
RMR's Price/Forward Earnings ratio is rather cheap when compared to the industry. RMR is cheaper than 90.48% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.59, RMR is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.49 | ||
| Fwd PE | 13.97 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RMR is valued cheaper than 96.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.43 |
4.3 Compensation for Growth
The decent profitability rating of RMR may justify a higher PE ratio.
RMR's earnings are expected to decrease with -12.87% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-12.87%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 10.71%, RMR is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.54, RMR pays a better dividend. On top of this RMR pays more dividend than 100.00% of the companies listed in the same industry.
RMR's Dividend Yield is rather good when compared to the S&P500 average which is at 2.46.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.71% |
5.2 History
The dividend of RMR has a limited annual growth rate of 3.94%.
RMR has been paying a dividend for at least 10 years, so it has a reliable track record.
RMR has decreased its dividend in the last 3 years.
Dividend Growth(5Y)3.94%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
RMR pays out 160.52% of its income as dividend. This is not a sustainable payout ratio.
RMR's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP160.52%
EPS Next 2Y-12.87%
EPS Next 3YN/A
16.86
+0.01 (+0.06%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryReal Estate Management & Development
Earnings (Last)
Earnings (Next)
Inst Owners72.64%
Inst Owner Change1.26%
Ins Owners2.58%
Ins Owner Change0%
Market Cap537.33M
Analysts74.29
Price Target24.48 (45.2%)
Short Float %2.13%
Short Ratio2.93
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.71% |
Yearly Dividend1.69
Dividend Growth(5Y)3.94%
DP160.52%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-8.3%
Min EPS beat(2)-10.57%
Max EPS beat(2)-6.02%
EPS beat(4)1
Avg EPS beat(4)-6.89%
Min EPS beat(4)-11.41%
Max EPS beat(4)0.44%
EPS beat(8)3
Avg EPS beat(8)-3.1%
EPS beat(12)5
Avg EPS beat(12)-2.39%
EPS beat(16)6
Avg EPS beat(16)-1.36%
Revenue beat(2)0
Avg Revenue beat(2)-50.13%
Min Revenue beat(2)-77.26%
Max Revenue beat(2)-23%
Revenue beat(4)0
Avg Revenue beat(4)-30.99%
Min Revenue beat(4)-77.26%
Max Revenue beat(4)-4.61%
Revenue beat(8)1
Avg Revenue beat(8)-17.45%
Revenue beat(12)4
Avg Revenue beat(12)-9.05%
Revenue beat(16)8
Avg Revenue beat(16)-3.67%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-31.33%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.89%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.49 | ||
| Fwd PE | 13.97 | ||
| P/S | 0.71 | ||
| P/FCF | N/A | ||
| P/OCF | 9.87 | ||
| P/B | 2.32 | ||
| P/tB | 3.9 | ||
| EV/EBITDA | 8.43 |
EPS(TTM)1.25
EY7.41%
EPS(NY)1.21
Fwd EY7.16%
FCF(TTM)-1.3
FCFYN/A
OCF(TTM)1.71
OCFY10.13%
SpS23.65
BVpS7.26
TBVpS4.32
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.95% | ||
| ROE | 8.26% | ||
| ROCE | 9.2% | ||
| ROIC | 7.72% | ||
| ROICexc | 9.9% | ||
| ROICexgc | 12.67% | ||
| OM | 6.72% | ||
| PM (TTM) | 2.54% | ||
| GM | 37.76% | ||
| FCFM | N/A |
ROA(3y)6.39%
ROA(5y)6.08%
ROE(3y)16.48%
ROE(5y)15.45%
ROIC(3y)15.75%
ROIC(5y)14.56%
ROICexc(3y)30.24%
ROICexc(5y)28.29%
ROICexgc(3y)31.55%
ROICexgc(5y)29.16%
ROCE(3y)18.76%
ROCE(5y)17.35%
ROICexcg growth 3Y-16.53%
ROICexcg growth 5Y-29.02%
ROICexc growth 3Y-22.84%
ROICexc growth 5Y-32.26%
OM growth 3Y-19.87%
OM growth 5Y-25.59%
PM growth 3Y-24.18%
PM growth 5Y-24.54%
GM growth 3Y-6.25%
GM growth 5Y-8.54%
F-Score5
Asset Turnover1.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.53 | ||
| Cap/Depr | 993.81% | ||
| Cap/Sales | 12.72% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 90.25% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.27 | ||
| Quick Ratio | 2.27 | ||
| Altman-Z | 2.66 |
F-Score5
WACC8.91%
ROIC/WACC0.87
Cap/Depr(3y)683.9%
Cap/Depr(5y)444.34%
Cap/Sales(3y)2.94%
Cap/Sales(5y)1.82%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-27.75%
EPS 3Y-9.71%
EPS 5Y-19.11%
EPS Q2Q%-24.32%
EPS Next Y-22.19%
EPS Next 2Y-12.87%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-16.99%
Revenue growth 3Y13.92%
Revenue growth 5Y4.7%
Sales Q2Q%-77.23%
Revenue Next Year-8.95%
Revenue Next 2Y-4.07%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-21.56%
EBIT growth 3Y-8.72%
EBIT growth 5Y-22.09%
EBIT Next Year63.78%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-134.02%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-56.5%
OCF growth 3Y-5.1%
OCF growth 5Y-20.9%