15.39 USD
-0.66 (-4.11%)
15.39 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to RMR. RMR was compared to 62 industry peers in the Real Estate Management & Development industry. While RMR belongs to the best of the industry regarding profitability, there are 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.
- RMR had a positive operating cash flow in the past year.
- In the past 5 years RMR has always been profitable.
- Each year in the past 5 years RMR had a positive operating cash flow.
1.2 Ratios
- RMR has a better Return On Assets (2.39%) than 74.19% of its industry peers.
- RMR's Return On Equity of 7.55% is fine compared to the rest of the industry. RMR outperforms 75.81% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 6.91%, RMR belongs to the top of the industry, outperforming 87.10% 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 5.44%.
- The last Return On Invested Capital (6.91%) for RMR is well below the 3 year average (12.13%), which needs to be investigated, but indicates that RMR had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.39% | ||
| ROE | 7.55% | ||
| ROIC | 6.91% |
ROA(3y)5.12%
ROA(5y)5.73%
ROE(3y)13.56%
ROE(5y)15.03%
ROIC(3y)12.13%
ROIC(5y)13.81%
1.3 Margins
- Looking at the Profit Margin, with a value of 2.46%, RMR is in the better half of the industry, outperforming 61.29% of the companies in the same industry.
- RMR's Profit Margin has declined in the last couple of years.
- RMR has a better Operating Margin (7.14%) than 74.19% of its industry peers.
- RMR's Operating Margin has declined in the last couple of years.
- With a decent Gross Margin value of 39.74%, RMR is doing good in the industry, outperforming 67.74% of the companies in the same industry.
- In the last couple of years the Gross Margin of RMR has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.14% | ||
| PM (TTM) | 2.46% | ||
| GM | 39.74% |
OM growth 3Y-12.85%
OM growth 5Y-10.23%
PM growth 3Y-15.35%
PM growth 5Y-12.73%
GM growth 3Y7.85%
GM growth 5Y0.46%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), RMR is creating some 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.
- RMR has a worse debt/assets ratio than last year.
2.2 Solvency
- RMR has an Altman-Z score of 2.17. 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's Altman-Z score of 2.17 is fine compared to the rest of the industry. RMR outperforms 62.90% of its industry peers.
- A Debt/Equity ratio of 0.68 indicates that RMR is somewhat dependend on debt financing.
- RMR has a Debt to Equity ratio (0.68) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.17 |
ROIC/WACC0.87
WACC7.92%
2.3 Liquidity
- RMR has a Current Ratio of 1.64. This is a normal value and indicates that RMR is financially healthy and should not expect problems in meeting its short term obligations.
- The Current ratio of RMR (1.64) is comparable to the rest of the industry.
- A Quick Ratio of 1.64 indicates that RMR should not have too much problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 1.64, RMR is in line with its industry, outperforming 54.84% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.64 | ||
| Quick Ratio | 1.64 |
3. Growth
3.1 Past
- RMR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -28.93%.
- RMR shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -8.48% yearly.
- Looking at the last year, RMR shows a very negative growth in Revenue. The Revenue has decreased by -21.98% in the last year.
- Measured over the past years, RMR shows a small growth in Revenue. The Revenue has been growing by 3.50% on average per year.
EPS 1Y (TTM)-28.93%
EPS 3Y-16.05%
EPS 5Y-8.48%
EPS Q2Q%-35.29%
Revenue 1Y (TTM)-21.98%
Revenue growth 3Y-5.6%
Revenue growth 5Y3.5%
Sales Q2Q%-24.91%
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 -13.87% yearly.
- Based on estimates for the next years, RMR will show a decrease in Revenue. The Revenue will decrease by -6.20% on average per year.
EPS Next Y-26.26%
EPS Next 2Y-13.87%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-14.73%
Revenue Next 2Y-6.2%
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 decreasing.
- 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
- RMR is valuated correctly with a Price/Earnings ratio of 13.62.
- Based on the Price/Earnings ratio, RMR is valued cheaper than 82.26% 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 27.25.
- With a Price/Forward Earnings ratio of 18.47, RMR is valued on the expensive side.
- RMR's Price/Forward Earnings ratio is rather cheap when compared to the industry. RMR is cheaper than 87.10% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, RMR is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.62 | ||
| Fwd PE | 18.47 |
4.2 Price Multiples
- 90.32% of the companies in the same industry are more expensive than RMR, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.28 |
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 -13.87% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-13.87%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 11.08%, RMR is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 0.85, 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 1.82, RMR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.08% |
5.2 History
- The dividend of RMR has a limited annual growth rate of 3.64%.
- RMR has paid a dividend for at least 10 years, which is a reliable track record.
- The dividend of RMR decreased in the last 3 years.
Dividend Growth(5Y)3.64%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
- 178.86% 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.
DP178.86%
EPS Next 2Y-13.87%
EPS Next 3YN/A
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 4 / 10 to RMR.
What is the valuation status of RMR GROUP INC/THE - A (RMR) stock?
ChartMill assigns a valuation rating of 4 / 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 financial health for RMR stock?
The financial health rating of RMR GROUP INC/THE - A (RMR) is 3 / 10.
How sustainable is the dividend of RMR GROUP INC/THE - A (RMR) stock?
The dividend rating of RMR GROUP INC/THE - A (RMR) is 5 / 10 and the dividend payout ratio is 178.86%.