RMR GROUP INC/THE - A (RMR) Stock Fundamental Analysis
USA - NASDAQ:RMR - US74967R1068 - Common Stock
15.6 USD
-0.13 (-0.83%)
Overall RMR gets a fundamental rating of 5 out of 10. We evaluated RMR against 64 industry peers in the Real Estate Management & Development industry. RMR has an excellent profitability rating, but there are some minor concerns on its financial health. RMR has a valuation in line with the averages, but it does not seem to be growing.
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.
Each year in the past 5 years RMR has been profitable.
Each year in the past 5 years RMR had a positive operating cash flow.
1.2 Ratios
The Return On Assets of RMR (2.95%) is better than 79.69% of its industry peers.
RMR's Return On Equity of 8.26% is amongst the best of the industry. RMR outperforms 82.81% of its industry peers.
RMR has a Return On Invested Capital of 7.72%. This is amongst the best in the industry. RMR outperforms 92.19% of its industry peers.
The Average Return On Invested Capital over the past 3 years for RMR is significantly above the industry average of 6.56%.
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
The Profit Margin of RMR (2.54%) is better than 67.19% of its industry peers.
In the last couple of years the Profit Margin of RMR has declined.
RMR has a better Operating Margin (6.72%) than 70.31% of its industry peers.
In the last couple of years the Operating Margin of RMR has declined.
RMR has a better Gross Margin (37.76%) than 65.63% of its industry peers.
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so RMR is creating value.
RMR has more shares outstanding than it did 1 year ago.
The number of shares outstanding for RMR has been increased compared to 5 years ago.
Compared to 1 year ago, RMR has a worse debt to assets ratio.
2.2 Solvency
RMR has an Altman-Z score of 2.61. 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.
RMR has a better Altman-Z score (2.61) than 67.19% of its industry peers.
RMR has a Debt/Equity ratio of 0.40. This is a healthy value indicating a solid balance between debt and equity.
RMR has a Debt to Equity ratio (0.40) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.61 |
ROIC/WACC0.89
WACC8.72%
2.3 Liquidity
RMR has a Current Ratio of 2.27. This indicates that RMR is financially healthy and has no problem in meeting its short term obligations.
RMR has a Current ratio of 2.27. This is in the better half of the industry: RMR outperforms 68.75% of its industry peers.
A Quick Ratio of 2.27 indicates that RMR has no problem at all paying its short term obligations.
RMR's Quick ratio of 2.27 is fine compared to the rest of the industry. RMR outperforms 73.44% of its industry peers.
| 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.
The earnings per share for RMR have been decreasing by -19.11% on average. This is quite bad
RMR shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -16.99%.
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
RMR is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -12.87% yearly.
The Revenue is expected to decrease by -4.07% on average over the next years.
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.
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
RMR is valuated correctly with a Price/Earnings ratio of 12.48.
Based on the Price/Earnings ratio, RMR is valued cheaper than 89.06% of the companies in the same industry.
RMR's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.76.
With a Price/Forward Earnings ratio of 12.93, RMR is valued correctly.
RMR's Price/Forward Earnings ratio is rather cheap when compared to the industry. RMR is cheaper than 92.19% of the companies in the same industry.
RMR's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.18.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.48 | ||
| Fwd PE | 12.93 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RMR is valued cheaply inside the industry as 96.88% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.83 |
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
RMR has a Yearly Dividend Yield of 11.21%, which is a nice return.
Compared to an average industry Dividend Yield of 3.46, RMR pays a better dividend. On top of this RMR pays more dividend than 100.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, RMR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.21% |
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
NASDAQ:RMR (10/1/2025, 1:31:29 PM)
15.6
-0.13 (-0.83%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryReal Estate Management & Development
Earnings (Last)
Earnings (Next)
Inst Owners75.66%
Inst Owner Change1.26%
Ins Owners3.1%
Ins Owner Change-10.42%
Market Cap497.17M
Analysts74.29
Price Target24.48 (56.92%)
Short Float %2.08%
Short Ratio3.5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.21% |
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)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.48 | ||
| Fwd PE | 12.93 | ||
| P/S | 0.66 | ||
| P/FCF | N/A | ||
| P/OCF | 9.14 | ||
| P/B | 2.15 | ||
| P/tB | 3.61 | ||
| EV/EBITDA | 7.83 |
EPS(TTM)1.25
EY8.01%
EPS(NY)1.21
Fwd EY7.74%
FCF(TTM)-1.3
FCFYN/A
OCF(TTM)1.71
OCFY10.95%
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 | 2.61 |
F-Score5
WACC8.72%
ROIC/WACC0.89
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%