Rmr Group Inc. (NASDAQ: RMR)

Sector: Real Estate Industry: Real Estate Services CIK: 0001644378
Market Cap 291.81 Mn
P/B 1.25
P/E 12.47
P/S 0.44
ROIC (Qtr) 10.64
Div Yield % 13.17
Rev 1y % (Qtr) -17.79
Total Debt (Qtr) 158.23 Mn
Debt/Equity (Qtr) 0.68
Add ratio to table...

About

RMR Group Inc., a Maryland-based corporation, is a prominent player in the alternative asset management industry, often represented by the stock symbol RMR. The company's primary business involves managing four publicly traded equity real estate investment trusts (REITs) and several private capital vehicles. The RMR Group's operations span across various sectors, with a focus on real estate management. The company's services extend to several countries and regions, primarily in the United States, where it manages a diverse portfolio of properties....

Read more

Investment thesis

Bull case

  • Healthy cash reserves of 49.31M provide 8.93x coverage of short-term debt 5.52M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 591.42M provides 3.74x coverage of total debt 158.23M, indicating robust asset backing and low credit risk.
  • Strong free cash flow of (103.58M) provides 2.88x coverage of acquisition spending (35.96M), indicating disciplined M&A strategy.
  • Free cash flow of (103.58M) provides excellent 3.40x coverage of dividends (30.44M), indicating sustainable shareholder returns.
  • Robust tangible asset base of 591.42M provides 7.63x coverage of working capital 77.54M, indicating strong operational backing.

Bear case

  • Operating cash flow of 61.46M barely covers its investment activities of (144.37M), with a coverage ratio of -0.43, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 61.46M provides thin coverage of dividend payments of (30.44M) with a -2.02 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Cash reserves of 49.31M provide limited coverage of acquisition spending of (35.96M), which is -1.37x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Free cash flow of (103.58M) provides weak coverage of capital expenditures of 165.04M, with a -0.63 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of 39.52M show weak coverage of depreciation charges of 13.89M, with a 2.84 ratio indicating high capital intensity and potential reinvestment needs.

Related and Nonrelated Parties Breakdown of Revenue (2025)

Peer comparison

Companies in the Real Estate Services
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 CBRE Cbre Group, Inc. 42.12 Bn 36.40 1.04 9.99 Bn
2 BEKE KE Holdings Inc. 19.37 Bn 39.77 1.33 2.96 Bn
3 CSGP Costar Group, Inc. 18.57 Bn 914.80 6.08 1.18 Bn
4 JLL Jones Lang Lasalle Inc 13.60 Bn 21.53 0.54 3.48 Bn
5 FSV FirstService Corp 7.02 Bn 48.37 1.28 1.38 Bn
6 CIGI Colliers International Group Inc. 5.59 Bn 54.27 1.01 2.29 Bn
7 COMP Compass, Inc. 5.18 Bn -91.82 0.78 0.48 Bn
8 OPEN Opendoor Technologies Inc. 3.12 Bn -9.84 0.66 1.79 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.63 1.18
EV to Cash from Ops. EV/CFO 7.05 -6.57
EV to Debt EV to Debt 2.74 5.19
EV to EBIT EV/EBIT 10.97 4.86
EV to EBITDA EV/EBITDA 5.83 13.56
EV to Free Cash Flow [EV/FCF] EV/FCF -4.19 -11.14
EV to Market Cap EV to Market Cap 1.49 7.70
EV to Revenue EV/Rev 0.66 3.49
Price to Book Value [P/B] P/B 1.25 1.76
Price to Earnings [P/E] P/E 12.47 40.59
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.77 0.36
Dividend Payout Ratio % Div Payout % (Qtr) 131.40 -7.05
Dividend per Basic Share Div per Share (Qtr) 1.80 0.22
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) -29.10 0.46
Interest Coverage Int. cover (Qtr) 6.32 -2.20
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -120.88 -12,527.01
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -66.58 24.62
Dividend Growth (1y) % Div 1y % (Qtr) 0.00 1.26
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 18.35 10.86
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 36.74 33.08
EBIT Growth (1y) % EBIT 1y % (Qtr) 12.46 19.37
EBT Growth (1y) % EBT 1y % (Qtr) -1.21 28.48
EPS Growth (1y) % EPS 1y % (Qtr) 2.24 29.29
FCF Growth (1y) % FCF 1y % (Qtr) -467.67 67.74
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 12.35 33.25
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.96 1.44
Cash Payout Ratio Cash Payout (Qtr) 0.13 -0.01
Cash Ratio Cash Ratio (Qtr) 0.52 1.45
Current Ratio Curr Ratio (Qtr) 1.82 2.16
Debt to Equity Ratio Debt/Equity (Qtr) 0.68 -0.07
Interest Cover Ratio Int Coverage (Qtr) 6.32 -2.20
Times Interest Earned Times Interest Earned (Qtr) 6.32 -2.20
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 8.10 -120.34
EBIT Margin % EBIT Margin % (Qtr) 5.98 -135.17
EBT Margin % EBT Margin % (Qtr) 5.03 -142.98
Gross Margin % Gross Margin % (Qtr) 17.70 32.99
Net Profit Margin % Net Margin % (Qtr) 3.50 -138.31