RMR GROUP INC/THE - A (RMR)
US74967R1068 - Common Stock
Overall RMR gets a fundamental rating of 7 out of 10. We evaluated RMR against 66 industry peers in the Real Estate Management & Development industry. RMR has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. A decent growth rate in combination with a cheap valuation! Better keep an eye on RMR. These ratings could make RMR a good candidate for value investing.
1. Profitability
1.1 Basic Checks
RMR had positive earnings in the past year.
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
RMR's Return On Assets of 9.13% is amongst the best of the industry. RMR outperforms 95.38% of its industry peers.
Looking at the Return On Equity, with a value of 23.70%, RMR belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
With an excellent Return On Invested Capital value of 20.09%, RMR belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for RMR is significantly above the industry average of 5.28%.
The 3 year average ROIC (18.37%) for RMR is below the current ROIC(20.09%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.13% | ||
| ROE | 23.7% | ||
| ROIC | 20.09% |
ROA(3y)7.67%
ROA(5y)7.68%
ROE(3y)19.33%
ROE(5y)18.66%
ROIC(3y)18.37%
ROIC(5y)19.21%
1.3 Margins
With a decent Profit Margin value of 5.87%, RMR is doing good in the industry, outperforming 72.31% of the companies in the same industry.
RMR's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 12.07%, RMR belongs to the best of the industry, outperforming 83.08% of the companies in the same industry.
In the last couple of years the Operating Margin of RMR has declined.
RMR has a Gross Margin (31.37%) which is comparable to the rest of the industry.
RMR's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.07% | ||
| PM (TTM) | 5.87% | ||
| GM | 31.37% |
OM growth 3Y0.57%
OM growth 5Y-27.81%
PM growth 3Y6.57%
PM growth 5Y-24.28%
GM growth 3Y-6.45%
GM growth 5YN/A
2. Health
2.1 Basic Checks
RMR has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, RMR has more shares outstanding
The number of shares outstanding for RMR has been increased compared to 5 years ago.
RMR has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 3.98 indicates that RMR is not in any danger for bankruptcy at the moment.
RMR has a better Altman-Z score (3.98) than 83.08% of its industry peers.
RMR has a debt to FCF ratio of 0.04. This is a very positive value and a sign of high solvency as it would only need 0.04 years to pay back of all of its debts.
RMR has a Debt to FCF ratio of 0.04. This is amongst the best in the industry. RMR outperforms 87.69% of its industry peers.
RMR has a Debt/Equity ratio of 0.02. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.02, RMR is doing good in the industry, outperforming 78.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 0.04 | ||
| Altman-Z | 3.98 |
ROIC/WACC2.2
WACC9.12%
2.3 Liquidity
A Current Ratio of 2.58 indicates that RMR has no problem at all paying its short term obligations.
RMR has a better Current ratio (2.58) than 63.08% of its industry peers.
RMR has a Quick Ratio of 2.58. This indicates that RMR is financially healthy and has no problem in meeting its short term obligations.
RMR has a better Quick ratio (2.58) than 67.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.58 | ||
| Quick Ratio | 2.58 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 0.52% over the past year.
Measured over the past years, RMR shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -19.20% on average per year.
The Revenue has been growing slightly by 7.93% in the past year.
RMR shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 18.90% yearly.
EPS 1Y (TTM)0.52%
EPS 3Y3.65%
EPS 5Y-19.2%
EPS growth Q2Q-3.92%
Revenue 1Y (TTM)7.93%
Revenue growth 3Y17.74%
Revenue growth 5Y18.9%
Revenue growth Q2Q4.38%
3.2 Future
Based on estimates for the next years, RMR will show a small growth in Earnings Per Share. The EPS will grow by 0.25% on average per year.
RMR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.82% yearly.
EPS Next Y-1.23%
EPS Next 2Y6.88%
EPS Next 3Y0.25%
EPS Next 5YN/A
Revenue Next Year1.58%
Revenue Next 2Y1.64%
Revenue Next 3Y0.82%
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 12.33, which indicates a correct valuation of RMR.
87.69% of the companies in the same industry are more expensive than RMR, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 28.31. RMR is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 10.68, the valuation of RMR can be described as very reasonable.
Based on the Price/Forward Earnings ratio, RMR is valued cheaply inside the industry as 89.23% of the companies are valued more expensively.
RMR's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 20.48.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.33 | ||
| Fwd PE | 10.68 |
4.2 Price Multiples
RMR's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. RMR is cheaper than 98.46% of the companies in the same industry.
92.31% of the companies in the same industry are more expensive than RMR, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.1 | ||
| EV/EBITDA | 4.5 |
4.3 Compensation for Growth
The decent profitability rating of RMR may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y6.88%
EPS Next 3Y0.25%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.56%, RMR is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.48, RMR pays a better dividend. On top of this RMR pays more dividend than 93.85% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, RMR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.56% |
5.2 History
The dividend of RMR is nicely growing with an annual growth rate of 9.82%!
RMR has been paying a dividend for over 5 years, so it has already some track record.
RMR has decreased its dividend recently.
Dividend Growth(5Y)9.82%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
46.72% of the earnings are spent on dividend by RMR. This is a bit on the high side, but may be sustainable.
The dividend of RMR is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP46.72%
EPS Next 2Y6.88%
EPS Next 3Y0.25%
RMR GROUP INC/THE - A
NASDAQ:RMR (5/9/2024, 7:16:02 PM)
After market: 23.92 0 (0%)23.92
+0.84 (+3.64%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryReal Estate Management & Development
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap758.50M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.56% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.33 | ||
| Fwd PE | 10.68 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.13% | ||
| ROE | 23.7% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 12.07% | ||
| PM (TTM) | 5.87% | ||
| GM | 31.37% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.56
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.58 | ||
| Quick Ratio | 2.58 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)0.52%
EPS 3Y3.65%
EPS 5Y
EPS growth Q2Q
EPS Next Y-1.23%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)7.93%
Revenue growth 3Y17.74%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y