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REAL BROKERAGE INC/THE (REAX) Stock Fundamental Analysis

NASDAQ:REAX - Nasdaq - CA75585H2063 - Common Stock - Currency: USD

5.24  -0.27 (-4.9%)

After market: 5.3 +0.06 (+1.15%)

Fundamental Rating

4

Overall REAX gets a fundamental rating of 4 out of 10. We evaluated REAX against 64 industry peers in the Real Estate Management & Development industry. The financial health of REAX is average, but there are quite some concerns on its profitability. REAX shows excellent growth, but is valued quite expensive already.


Dividend Valuation Growth Profitability Health

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1

1. Profitability

1.1 Basic Checks

REAX had negative earnings in the past year.
In the past year REAX had a positive cash flow from operations.
In the past 5 years REAX always reported negative net income.
In multiple years REAX reported negative operating cash flow during the last 5 years.
REAX Yearly Net Income VS EBIT VS OCF VS FCFREAX Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2018 2019 2020 2021 2022 2023 0 10M -10M -20M

1.2 Ratios

REAX has a worse Return On Assets (-31.09%) than 83.33% of its industry peers.
REAX's Return On Equity of -106.91% is on the low side compared to the rest of the industry. REAX is outperformed by 83.33% of its industry peers.
Industry RankSector Rank
ROA -31.09%
ROE -106.91%
ROIC N/A
ROA(3y)-39.64%
ROA(5y)-139.27%
ROE(3y)-70.3%
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
REAX Yearly ROA, ROE, ROICREAX Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2018 2019 2020 2021 2022 2023 0 500 -500 1K

1.3 Margins

With a Gross Margin value of 9.16%, REAX is not doing good in the industry: 71.67% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of REAX has declined.
REAX does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM 9.16%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-11.7%
GM growth 5Y-10.03%
REAX Yearly Profit, Operating, Gross MarginsREAX Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2018 2019 2020 2021 2022 2023 0 10 -10 -20

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6

2. Health

2.1 Basic Checks

REAX does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, REAX has more shares outstanding
The number of shares outstanding for REAX has been increased compared to 5 years ago.
There is no outstanding debt for REAX. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
REAX Yearly Shares OutstandingREAX Yearly Shares OutstandingYearly Shares Outstanding 2018 2019 2020 2021 2022 2023 50M 100M 150M
REAX Yearly Total Debt VS Total AssetsREAX Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2018 2019 2020 2021 2022 2023 20M 40M 60M

2.2 Solvency

An Altman-Z score of 17.86 indicates that REAX is not in any danger for bankruptcy at the moment.
REAX has a better Altman-Z score (17.86) than 93.33% of its industry peers.
There is no outstanding debt for REAX. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 17.86
ROIC/WACCN/A
WACC9.06%
REAX Yearly LT Debt VS Equity VS FCFREAX Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2018 2019 2020 2021 2022 2023 0 10M 20M 30M

2.3 Liquidity

A Current Ratio of 1.22 indicates that REAX should not have too much problems paying its short term obligations.
The Current ratio of REAX (1.22) is worse than 61.67% of its industry peers.
A Quick Ratio of 1.22 indicates that REAX should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.22, REAX perfoms like the industry average, outperforming 45.00% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.22
Quick Ratio 1.22
REAX Yearly Current Assets VS Current LiabilitesREAX Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2018 2019 2020 2021 2022 2023 10M 20M 30M 40M 50M

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7

3. Growth

3.1 Past

The earnings per share for REAX have decreased strongly by -50.00% in the last year.
Looking at the last year, REAX shows a very strong growth in Revenue. The Revenue has grown by 81.40%.
Measured over the past years, REAX shows a very strong growth in Revenue. The Revenue has been growing by 141.44% on average per year.
EPS 1Y (TTM)-50%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%50%
Revenue 1Y (TTM)81.4%
Revenue growth 3Y246.26%
Revenue growth 5Y141.44%
Sales Q2Q%73.54%

3.2 Future

REAX is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.55% yearly.
The Revenue is expected to grow by 40.98% on average over the next years. This is a very strong growth
EPS Next Y-0.3%
EPS Next 2Y23.45%
EPS Next 3Y21.55%
EPS Next 5YN/A
Revenue Next Year81.43%
Revenue Next 2Y53.37%
Revenue Next 3Y40.98%
Revenue Next 5YN/A

3.3 Evolution

The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
REAX Yearly Revenue VS EstimatesREAX Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2018 2019 2020 2021 2022 2023 2024 2025 2026 500M 1B 1.5B
REAX Yearly EPS VS EstimatesREAX Yearly EPS VS EstimatesYearly EPS VS Estimates 2018 2019 2020 2021 2022 2023 2024 2025 2026 -0.05 -0.1 -0.15

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2

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for REAX. In the last year negative earnings were reported.
Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for REAX. No positive earnings are expected for the next year.
Industry RankSector Rank
PE N/A
Fwd PE N/A
REAX Price Earnings VS Forward Price EarningsREAX Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 50 -50

4.2 Price Multiples

Compared to the rest of the industry, the Price/Free Cash Flow ratio of REAX indicates a rather cheap valuation: REAX is cheaper than 81.67% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 27.21
EV/EBITDA N/A
REAX Per share dataREAX EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 1 2 3 4 5

4.3 Compensation for Growth

A more expensive valuation may be justified as REAX's earnings are expected to grow with 21.55% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y23.45%
EPS Next 3Y21.55%

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0

5. Dividend

5.1 Amount

No dividends for REAX!.
Industry RankSector Rank
Dividend Yield N/A

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REAL BROKERAGE INC/THE

NASDAQ:REAX (2/21/2025, 8:00:01 PM)

After market: 5.3 +0.06 (+1.15%)

5.24

-0.27 (-4.9%)

Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryReal Estate Management & Development
Earnings (Last)11-07 2024-11-07/bmo
Earnings (Next)03-06 2025-03-06/bmo
Inst Owners45.44%
Inst Owner Change-30.94%
Ins Owners13.08%
Ins Owner ChangeN/A
Market Cap1.02B
Analysts86
Price Target6.8 (29.77%)
Short Float %1.63%
Short Ratio2.95
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)59.15%
Min EPS beat(2)50.98%
Max EPS beat(2)67.32%
EPS beat(4)2
Avg EPS beat(4)-14.23%
Min EPS beat(4)-103.64%
Max EPS beat(4)67.32%
EPS beat(8)4
Avg EPS beat(8)-5.56%
EPS beat(12)7
Avg EPS beat(12)-3.25%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)15.82%
Min Revenue beat(2)5.3%
Max Revenue beat(2)26.33%
Revenue beat(4)4
Avg Revenue beat(4)15.26%
Min Revenue beat(4)5.3%
Max Revenue beat(4)26.33%
Revenue beat(8)8
Avg Revenue beat(8)16.4%
Revenue beat(12)12
Avg Revenue beat(12)23.83%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-2.44%
PT rev (3m)-8.05%
EPS NQ rev (1m)3.58%
EPS NQ rev (3m)3.58%
EPS NY rev (1m)1.67%
EPS NY rev (3m)5.85%
Revenue NQ rev (1m)1.42%
Revenue NQ rev (3m)1.42%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.06%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE N/A
P/S 0.93
P/FCF 27.21
P/OCF 26.4
P/B 34.36
P/tB 56.82
EV/EBITDA N/A
EPS(TTM)-0.18
EYN/A
EPS(NY)-0.07
Fwd EYN/A
FCF(TTM)0.19
FCFY3.68%
OCF(TTM)0.2
OCFY3.79%
SpS5.61
BVpS0.15
TBVpS0.09
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -31.09%
ROE -106.91%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 9.16%
FCFM 3.44%
ROA(3y)-39.64%
ROA(5y)-139.27%
ROE(3y)-70.3%
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-11.7%
GM growth 5Y-10.03%
F-Score6
Asset Turnover10.69
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Debt/EBITDA N/A
Cap/Depr 86.42%
Cap/Sales 0.1%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 1.22
Quick Ratio 1.22
Altman-Z 17.86
F-Score6
WACC9.06%
ROIC/WACCN/A
Cap/Depr(3y)188%
Cap/Depr(5y)117.24%
Cap/Sales(3y)0.2%
Cap/Sales(5y)0.14%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-50%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%50%
EPS Next Y-0.3%
EPS Next 2Y23.45%
EPS Next 3Y21.55%
EPS Next 5YN/A
Revenue 1Y (TTM)81.4%
Revenue growth 3Y246.26%
Revenue growth 5Y141.44%
Sales Q2Q%73.54%
Revenue Next Year81.43%
Revenue Next 2Y53.37%
Revenue Next 3Y40.98%
Revenue Next 5YN/A
EBIT growth 1Y-38.94%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year271.23%
EBIT Next 3Y69.67%
EBIT Next 5YN/A
FCF growth 1Y267.18%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y243.8%
OCF growth 3YN/A
OCF growth 5YN/A