RMR GROUP INC/THE - A (RMR) Stock Fundamental Analysis
USA - NASDAQ:RMR - US74967R1068 - Common Stock
15.64 USD
+0.14 (+0.9%)
Overall RMR gets a fundamental rating of 5 out of 10. We evaluated RMR against 63 industry peers in the Real Estate Management & Development industry. RMR scores excellent on profitability, but 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
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.
Each year in the past 5 years RMR had a positive operating cash flow.
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.
RMR has a Return On Invested Capital of 7.72%. This is amongst the best in the industry. RMR outperforms 92.06% of its industry peers.
RMR had an Average Return On Invested Capital over the past 3 years of 15.75%. This is significantly above the industry average of 6.25%.
The last Return On Invested Capital (7.72%) for RMR is well below the 3 year average (15.75%), which needs to be investigated, but indicates that RMR had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.95% | ||
| 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 has a Profit Margin of 2.54%. This is in the better half of the industry: RMR outperforms 69.84% of its industry peers.
In the last couple of years the Profit Margin of RMR has declined.
Looking at the Operating Margin, with a value of 6.72%, RMR is in the better half of 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.
Looking at the Gross Margin, with a value of 37.76%, RMR is in the better half of 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
RMR has more shares outstanding than it did 5 years ago.
The debt/assets ratio for RMR is higher compared to a year ago.
2.2 Solvency
RMR has an Altman-Z score of 2.60. 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 2.60, RMR is in the better half of the industry, outperforming 68.25% of the companies in the same industry.
A Debt/Equity ratio of 0.40 indicates that RMR is not too dependend on debt financing.
The Debt to Equity ratio of RMR (0.40) is better 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
WACC8.11%
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.
A Quick Ratio of 2.27 indicates that RMR has no problem at all paying its short term obligations.
RMR has a better Quick ratio (2.27) than 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.
Measured over the past years, RMR shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -19.11% on average per year.
The Revenue for RMR has decreased by -16.99% in the past year. This is quite bad
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
The Earnings Per Share is expected to decrease by -12.87% on average over the next years. This is quite bad
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.
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
Based on the Price/Earnings ratio of 12.51, the valuation of RMR can be described as correct.
RMR's Price/Earnings ratio is rather cheap when compared to the industry. RMR is cheaper than 87.30% of the companies in the same industry.
When comparing the Price/Earnings ratio of RMR to the average of the S&P500 Index (26.51), we can say RMR is valued rather cheaply.
A Price/Forward Earnings ratio of 12.96 indicates a correct valuation of RMR.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RMR indicates a rather cheap valuation: RMR is cheaper than 92.06% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.53. RMR is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.51 | ||
| Fwd PE | 12.96 |
4.2 Price Multiples
96.83% 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 | 7.71 |
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 -12.87% in the coming years. This may justify a cheaper valuation.
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 12.28%, RMR is a good candidate for dividend investing.
RMR's Dividend Yield is rather good when compared to the industry average which is at 3.63. RMR pays more dividend than 100.00% of the companies in the same industry.
RMR's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| 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
RMR pays out 160.52% of its income as dividend. 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 (11/4/2025, 10:06:12 AM)
15.64
+0.14 (+0.9%)
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 Cap498.45M
Revenue(TTM)753.59M
Net Income(TTM)19.12M
Analysts74.29
Price Target24.48 (56.52%)
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 | 12.51 | ||
| Fwd PE | 12.96 | ||
| P/S | 0.66 | ||
| P/FCF | N/A | ||
| P/OCF | 9.16 | ||
| P/B | 2.15 | ||
| P/tB | 3.62 | ||
| EV/EBITDA | 7.71 |
EPS(TTM)1.25
EY7.99%
EPS(NY)1.21
Fwd EY7.72%
FCF(TTM)-1.3
FCFYN/A
OCF(TTM)1.71
OCFY10.92%
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
WACC8.11%
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 12.51 and the Price/Book (PB) ratio is 2.15.
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.