RMR GROUP INC/THE - A (RMR) Stock Fundamental Analysis
USA - NASDAQ:RMR - US74967R1068 - Common Stock
15.535 USD
+0.06 (+0.42%)
Taking everything into account, RMR scores 5 out of 10 in our fundamental rating. RMR was compared to 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
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.
RMR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
RMR's Return On Assets of 2.95% is fine compared to the rest of the industry. RMR outperforms 79.37% of its industry peers.
RMR has a Return On Equity of 8.26%. This is amongst the best in the industry. RMR outperforms 80.95% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.72%, RMR belongs to the top of the industry, outperforming 92.06% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for RMR is significantly above the industry average of 6.24%.
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's Profit Margin of 2.54% is fine compared to the rest of the industry. RMR outperforms 69.84% of its industry peers.
RMR's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 6.72%, RMR is doing good in the industry, outperforming 71.43% 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 65.08% 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 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.
2.2 Solvency
An Altman-Z score of 2.60 indicates that RMR is not a great score, but indicates only limited risk for bankruptcy at the moment.
RMR has a Altman-Z score of 2.60. This is in the better half of the industry: RMR outperforms 66.67% 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 better Debt to Equity ratio (0.40) than 61.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.6 |
ROIC/WACC0.95
WACC8.1%
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.
The Current ratio of RMR (2.27) is better than 66.67% 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.
RMR has a Quick ratio of 2.27. This is in the better half of the industry: RMR outperforms 71.43% 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.
RMR shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -19.11% yearly.
RMR shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -16.99%.
RMR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.70% yearly.
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 -4.95% on average over the next years.
EPS Next Y-23.77%
EPS Next 2Y-12.87%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-8.95%
Revenue Next 2Y-4.95%
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
The Price/Earnings ratio is 12.43, which indicates a correct valuation of RMR.
Based on the Price/Earnings ratio, RMR is valued cheaper than 87.30% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.11, RMR is valued rather cheaply.
With a Price/Forward Earnings ratio of 12.87, RMR is valued correctly.
92.06% of the companies in the same industry are more expensive than RMR, based on the Price/Forward Earnings ratio.
RMR is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.55, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.43 | ||
| Fwd PE | 12.87 |
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 | 7.69 |
4.3 Compensation for Growth
The decent profitability rating of RMR 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
5. Dividend
5.1 Amount
RMR has a Yearly Dividend Yield of 12.28%, which is a nice return.
Compared to an average industry Dividend Yield of 3.64, 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 2.37, RMR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 12.28% |
5.2 History
The dividend of RMR has a limited annual growth rate of 3.94%.
RMR has paid a dividend for at least 10 years, which is 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
160.52% of the earnings are spent on dividend by RMR. 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 (11/3/2025, 3:49:38 PM)
15.535
+0.06 (+0.42%)
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 Change0.16%
Ins Owners3.1%
Ins Owner Change-10.42%
Market Cap495.10M
Revenue(TTM)753.59M
Net Income(TTM)19.12M
Analysts74.29
Price Target24.48 (57.58%)
Short Float %2.63%
Short Ratio4.29
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 12.28% |
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)-10.53%
EPS NQ rev (3m)-10.53%
EPS NY rev (1m)-2.04%
EPS NY rev (3m)-2.04%
Revenue NQ rev (1m)0.85%
Revenue NQ rev (3m)0.85%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.43 | ||
| Fwd PE | 12.87 | ||
| P/S | 0.66 | ||
| P/FCF | N/A | ||
| P/OCF | 9.1 | ||
| P/B | 2.14 | ||
| P/tB | 3.6 | ||
| EV/EBITDA | 7.69 |
EPS(TTM)1.25
EY8.05%
EPS(NY)1.21
Fwd EY7.77%
FCF(TTM)-1.3
FCFYN/A
OCF(TTM)1.71
OCFY10.99%
SpS23.65
BVpS7.26
TBVpS4.32
PEG (NY)N/A
PEG (5Y)N/A
Graham Number14.29
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%
ROICexgc growth 3Y-16.53%
ROICexgc 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 | 2.6 |
F-Score5
WACC8.1%
ROIC/WACC0.95
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-23.77%
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-4.95%
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%
RMR GROUP INC/THE - A / RMR FAQ
What is the ChartMill fundamental rating of RMR GROUP INC/THE - A (RMR) stock?
ChartMill assigns a fundamental rating of 5 / 10 to RMR.
Can you provide the valuation status for RMR GROUP INC/THE - A?
ChartMill assigns a valuation rating of 5 / 10 to RMR GROUP INC/THE - A (RMR). This can be considered as Fairly Valued.
How profitable is RMR GROUP INC/THE - A (RMR) stock?
RMR GROUP INC/THE - A (RMR) has a profitability rating of 7 / 10.
Can you provide the PE and PB ratios for RMR stock?
The Price/Earnings (PE) ratio for RMR GROUP INC/THE - A (RMR) is 12.43 and the Price/Book (PB) ratio is 2.14.
What is the financial health of RMR GROUP INC/THE - A (RMR) stock?
The financial health rating of RMR GROUP INC/THE - A (RMR) is 5 / 10.