RMR GROUP INC/THE - A (RMR) Stock Fundamental Analysis
NASDAQ:RMR - Nasdaq - US74967R1068 - Common Stock - Currency: USD
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. While RMR has a great profitability rating, 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.
1. Profitability
1.1 Basic Checks
In the past year RMR was profitable.
RMR had a positive operating cash flow in the past year.
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
With an excellent Return On Assets value of 3.06%, RMR belongs to the best of the industry, outperforming 83.08% of the companies in the same industry.
RMR's Return On Equity of 8.49% is amongst the best of the industry. RMR outperforms 83.08% of its industry peers.
RMR has a better Return On Invested Capital (7.87%) than 93.85% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for RMR is significantly above the industry average of 5.47%.
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 Rank | Sector 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%
1.3 Margins
RMR has a better Profit Margin (2.47%) than 70.77% of its industry peers.
In the last couple of years the Profit Margin of RMR has declined.
With a decent Operating Margin value of 6.45%, RMR is doing good in the industry, outperforming 72.31% of the companies in the same industry.
In the last couple of years the Operating Margin of RMR has declined.
RMR's Gross Margin of 36.18% is fine compared to the rest of the industry. RMR outperforms 66.15% of its industry peers.
RMR's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector 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%
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
RMR has more shares outstanding than it did 5 years ago.
RMR has a worse debt/assets ratio than last year.
2.2 Solvency
RMR has an Altman-Z score of 2.80. 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.
Looking at the Altman-Z score, with a value of 2.80, RMR is in the better half of the industry, outperforming 72.31% of the companies in the same industry.
A Debt/Equity ratio of 0.37 indicates that RMR is not too dependend on debt financing.
RMR has a Debt to Equity ratio of 0.37. This is comparable to the rest of the industry: RMR outperforms 56.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.8 |
ROIC/WACC0.95
WACC8.31%
2.3 Liquidity
A Current Ratio of 2.51 indicates that RMR has no problem at all paying its short term obligations.
With a decent Current ratio value of 2.51, RMR is doing good in the industry, outperforming 70.77% of the companies in the same industry.
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.
RMR's Quick ratio of 2.51 is fine compared to the rest of the industry. RMR outperforms 76.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.51 | ||
| Quick Ratio | 2.51 |
3. Growth
3.1 Past
The earnings per share for RMR have decreased strongly by -27.17% in the last year.
The earnings per share for RMR have been decreasing by -19.11% on average. This is quite bad
Looking at the last year, RMR shows a very negative growth in Revenue. The Revenue has decreased by -18.14% in the last year.
Measured over the past years, RMR shows a small growth in Revenue. The Revenue has been growing by 4.70% on average per year.
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.
The Revenue is expected to decrease by -4.07% on average over the next years.
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.
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
With a Price/Earnings ratio of 12.64, RMR is valued correctly.
Based on the Price/Earnings ratio, RMR is valued cheaply inside the industry as 87.69% of the companies are valued more expensively.
RMR's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.21.
Based on the Price/Forward Earnings ratio of 14.04, the valuation of RMR can be described as correct.
90.77% of the companies in the same industry are more expensive than RMR, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 21.70. RMR is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.64 | ||
| Fwd PE | 14.04 |
4.2 Price Multiples
RMR's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. RMR is cheaper than 92.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.19 |
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
With a Yearly Dividend Yield of 10.82%, RMR is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.67, 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 2.42, RMR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.82% |
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
5.3 Sustainability
153.94% 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.
DP153.94%
EPS Next 2Y-12.87%
EPS Next 3YN/A
16.94
+0.59 (+3.61%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryReal Estate Management & Development
Earnings (Last)
Earnings (Next)
Inst Owners74.19%
Inst Owner Change-5.36%
Ins Owners2.58%
Ins Owner Change0%
Market Cap540.05M
Analysts74.29
Price Target24.48 (44.51%)
Short Float %3.06%
Short Ratio3.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.82% |
Yearly Dividend1.69
Dividend Growth(5Y)3.94%
DP153.94%
Div Incr Years2
Div Non Decr Years2
Ex-Date
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)0%
EPS NQ rev (3m)-10.14%
EPS NY rev (1m)0%
EPS NY rev (3m)-10.26%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.59%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-10.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.64 | ||
| Fwd PE | 14.04 | ||
| P/S | 0.67 | ||
| P/FCF | N/A | ||
| P/OCF | 8.39 | ||
| P/B | 2.31 | ||
| P/tB | 3.74 | ||
| EV/EBITDA | 8.19 |
EPS(TTM)1.34
EY7.91%
EPS(NY)1.21
Fwd EY7.12%
FCF(TTM)-0.32
FCFYN/A
OCF(TTM)2.02
OCFY11.92%
SpS25.23
BVpS7.35
TBVpS4.53
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 2.8 |
F-Score5
WACC8.31%
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)-27.17%
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%