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RMR GROUP INC/THE - A (RMR) Stock Fundamental Analysis

NASDAQ:RMR - Nasdaq - US74967R1068 - Common Stock - Currency: USD

15.2  +0.1 (+0.66%)

After market: 15.2 0 (0%)

Fundamental Rating

5

Overall RMR gets a fundamental rating of 5 out of 10. We evaluated RMR against 65 industry peers in the Real Estate Management & Development industry. RMR scores excellent on profitability, 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.


Dividend Valuation Growth Profitability Health

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7

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.
RMR had positive earnings in each of the past 5 years.
Each year in the past 5 years RMR had a positive operating cash flow.
RMR Yearly Net Income VS EBIT VS OCF VS FCFRMR Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50M 100M 150M 200M 250M

1.2 Ratios

With an excellent Return On Assets value of 3.06%, RMR belongs to the best of the industry, outperforming 86.15% of the companies in the same industry.
The Return On Equity of RMR (8.49%) is better than 81.54% of its industry peers.
The Return On Invested Capital of RMR (7.87%) is better than 93.85% of its industry peers.
The Average Return On Invested Capital over the past 3 years for RMR is significantly above the industry average of 5.45%.
The 3 year average ROIC (15.75%) for RMR is well above the current ROIC(7.87%). The reason for the recent decline needs to be investigated.
Industry RankSector Rank
ROA 3.06%
ROE 8.49%
ROIC 7.87%
ROA(3y)6.39%
ROA(5y)6.08%
ROE(3y)16.48%
ROE(5y)15.45%
ROIC(3y)15.75%
ROIC(5y)14.56%
RMR Yearly ROA, ROE, ROICRMR Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30 40

1.3 Margins

The Profit Margin of RMR (2.47%) is better than 70.77% of its industry peers.
RMR's Profit Margin has declined in the last couple of years.
RMR's Operating Margin of 6.45% is fine compared to the rest of the industry. RMR outperforms 75.38% of its industry peers.
RMR's Operating Margin has declined in the last couple of years.
RMR has a better Gross Margin (36.18%) than 66.15% of its industry peers.
In the last couple of years the Gross Margin of RMR has declined.
Industry RankSector Rank
OM 6.45%
PM (TTM) 2.47%
GM 36.18%
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%
RMR Yearly Profit, Operating, Gross MarginsRMR Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60

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5

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.
Compared to 1 year ago, RMR has more shares outstanding
Compared to 5 years ago, RMR has more shares outstanding
RMR has a worse debt/assets ratio than last year.
RMR Yearly Shares OutstandingRMR Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5M 10M 15M
RMR Yearly Total Debt VS Total AssetsRMR Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M

2.2 Solvency

RMR has an Altman-Z score of 2.72. 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.
The Altman-Z score of RMR (2.72) is better than 72.31% of its industry peers.
A Debt/Equity ratio of 0.37 indicates that RMR is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.37, RMR perfoms like the industry average, outperforming 58.46% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.37
Debt/FCF N/A
Altman-Z 2.72
ROIC/WACC0.94
WACC8.37%
RMR Yearly LT Debt VS Equity VS FCFRMR Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 100M 200M

2.3 Liquidity

RMR has a Current Ratio of 2.51. This indicates that RMR is financially healthy and has no problem in meeting its short term obligations.
RMR's Current ratio of 2.51 is fine compared to the rest of the industry. RMR outperforms 70.77% of its industry peers.
RMR has a Quick Ratio of 2.51. This indicates that RMR is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of RMR (2.51) is better than 76.92% of its industry peers.
Industry RankSector Rank
Current Ratio 2.51
Quick Ratio 2.51
RMR Yearly Current Assets VS Current LiabilitesRMR Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M

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1

3. Growth

3.1 Past

The earnings per share for RMR have decreased strongly by -27.17% in the last year.
RMR shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -19.11% yearly.
Looking at the last year, RMR shows a very negative growth in Revenue. The Revenue has decreased by -18.14% in the last year.
The Revenue has been growing slightly by 4.70% on average over the past years.
EPS 1Y (TTM)-27.17%
EPS 3Y-9.71%
EPS 5Y-19.11%
EPS Q2Q%-28.21%
Revenue 1Y (TTM)-18.14%
Revenue growth 3Y13.92%
Revenue growth 5Y4.7%
Sales Q2Q%-23.46%

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.
RMR is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -4.07% yearly.
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

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.
RMR Yearly Revenue VS EstimatesRMR Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 200M 400M 600M 800M
RMR Yearly EPS VS EstimatesRMR Yearly EPS VS EstimatesYearly EPS VS Estimates 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2 4 6

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5

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 11.34, the valuation of RMR can be described as reasonable.
Based on the Price/Earnings ratio, RMR is valued cheaply inside the industry as 86.15% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of RMR to the average of the S&P500 Index (26.29), we can say RMR is valued rather cheaply.
The Price/Forward Earnings ratio is 12.59, which indicates a correct valuation of RMR.
RMR's Price/Forward Earnings ratio is rather cheap when compared to the industry. RMR is cheaper than 92.31% 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 22.17.
Industry RankSector Rank
PE 11.34
Fwd PE 12.59
RMR Price Earnings VS Forward Price EarningsRMR Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

93.85% of the companies in the same industry are more expensive than RMR, based on the Enterprise Value to EBITDA ratio.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 7.26
RMR Per share dataRMR EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 10 15 20 25

4.3 Compensation for Growth

RMR has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as RMR's earnings are expected to decrease with -12.87% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-12.87%
EPS Next 3YN/A

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5

5. Dividend

5.1 Amount

RMR has a Yearly Dividend Yield of 12.00%, which is a nice return.
Compared to an average industry Dividend Yield of 3.60, 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 2.38, RMR pays a better dividend.
Industry RankSector Rank
Dividend Yield 12%

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.
The dividend of RMR decreased in the last 3 years.
Dividend Growth(5Y)3.94%
Div Incr Years2
Div Non Decr Years2
RMR Yearly Dividends per shareRMR Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2 4 6 8

5.3 Sustainability

RMR pays out 153.94% of its income as dividend. This is not a sustainable payout ratio.
The Dividend Rate of RMR has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP153.94%
EPS Next 2Y-12.87%
EPS Next 3YN/A
RMR Yearly Income VS Free CF VS DividendRMR Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50M 100M 150M 200M
RMR Dividend Payout.RMR Dividend Payout, showing the Payout Ratio.RMR Dividend Payout.PayoutRetained Earnings

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RMR GROUP INC/THE - A

NASDAQ:RMR (6/2/2025, 8:00:02 PM)

After market: 15.2 0 (0%)

15.2

+0.1 (+0.66%)

Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryReal Estate Management & Development
Earnings (Last)05-06 2025-05-06/amc
Earnings (Next)07-30 2025-07-30/amc
Inst Owners78.83%
Inst Owner Change-5.36%
Ins Owners2.36%
Ins Owner Change0%
Market Cap484.58M
Analysts74.29
Price Target24.48 (61.05%)
Short Float %2.2%
Short Ratio1.84
Dividend
Industry RankSector Rank
Dividend Yield 12%
Yearly Dividend1.69
Dividend Growth(5Y)3.94%
DP153.94%
Div Incr Years2
Div Non Decr Years2
Ex-Date04-22 2025-04-22 (0.45)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-2.79%
Min EPS beat(2)-6.02%
Max EPS beat(2)0.44%
EPS beat(4)1
Avg EPS beat(4)-5.56%
Min EPS beat(4)-11.41%
Max EPS beat(4)0.44%
EPS beat(8)4
Avg EPS beat(8)-1.77%
EPS beat(12)5
Avg EPS beat(12)-3.18%
EPS beat(16)7
Avg EPS beat(16)-0.34%
Revenue beat(2)0
Avg Revenue beat(2)-21.04%
Min Revenue beat(2)-23%
Max Revenue beat(2)-19.07%
Revenue beat(4)0
Avg Revenue beat(4)-14.6%
Min Revenue beat(4)-23%
Max Revenue beat(4)-4.61%
Revenue beat(8)2
Avg Revenue beat(8)-5.05%
Revenue beat(12)5
Avg Revenue beat(12)-1.45%
Revenue beat(16)8
Avg Revenue beat(16)1.02%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)-10.14%
EPS NQ rev (3m)-20.51%
EPS NY rev (1m)-13.12%
EPS NY rev (3m)-18.6%
Revenue NQ rev (1m)0.59%
Revenue NQ rev (3m)-2.07%
Revenue NY rev (1m)-2.84%
Revenue NY rev (3m)-10.31%
Valuation
Industry RankSector Rank
PE 11.34
Fwd PE 12.59
P/S 0.6
P/FCF N/A
P/OCF 7.53
P/B 2.07
P/tB 3.35
EV/EBITDA 7.26
EPS(TTM)1.34
EY8.82%
EPS(NY)1.21
Fwd EY7.94%
FCF(TTM)-0.32
FCFYN/A
OCF(TTM)2.02
OCFY13.28%
SpS25.23
BVpS7.35
TBVpS4.53
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 3.06%
ROE 8.49%
ROCE 9.38%
ROIC 7.87%
ROICexc 10.47%
ROICexgc 13.36%
OM 6.45%
PM (TTM) 2.47%
GM 36.18%
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 Turnover1.24
Health
Industry RankSector Rank
Debt/Equity 0.37
Debt/FCF N/A
Debt/EBITDA 1.45
Cap/Depr 948.19%
Cap/Sales 9.28%
Interest Coverage 250
Cash Conversion 107.77%
Profit Quality N/A
Current Ratio 2.51
Quick Ratio 2.51
Altman-Z 2.72
F-Score5
WACC8.37%
ROIC/WACC0.94
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)-27.17%
EPS 3Y-9.71%
EPS 5Y-19.11%
EPS Q2Q%-28.21%
EPS Next Y-22.19%
EPS Next 2Y-12.87%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-18.14%
Revenue growth 3Y13.92%
Revenue growth 5Y4.7%
Sales Q2Q%-23.46%
Revenue Next Year-8.95%
Revenue Next 2Y-4.07%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-54.49%
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-111.33%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-30.88%
OCF growth 3Y-5.1%
OCF growth 5Y-20.9%