Rmr Group Inc. (NASDAQ: RMR)

Sector: Real Estate Industry: Real Estate Services CIK: 0001644378
Market Cap 241.53 Mn
P/B 2.09
P/E 7.93
P/S 0.95
ROIC (Qtr) 6.68
Div Yield % 4.95
Rev 1y % (Qtr) -24.91
Total Debt (Qtr) 204.04 Mn
Debt/Equity (Qtr) 0.90

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....

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Price action

Investment thesis

Bull case

  • Strong tangible asset base of 620.35M provides 3.04x coverage of total debt 204.04M, indicating robust asset backing and low credit risk.
  • Operating cash flow of 75.75M provides exceptional 17.58x coverage of interest expenses 4.31M, showing strong debt service capability.
  • Strong operating cash flow of 75.75M provides 1.78x coverage of SG&A expenses 42.50M, showing efficient operational cost management.
  • Strong free cash flow of (89.71M) provides 8.06x coverage of acquisition spending (11.13M), indicating disciplined M&A strategy.
  • Robust tangible asset base of 620.35M provides 8.29x coverage of working capital 74.87M, indicating strong operational backing.

Bear case

  • Operating cash flow of 75.75M barely covers its investment activities of (183.86M), with a coverage ratio of -0.41, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 75.75M provides thin coverage of dividend payments of (30.35M) with a -2.50 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Cash reserves of 62.30M provide limited coverage of acquisition spending of (11.13M), which is -5.60x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Free cash flow of (89.71M) provides weak coverage of capital expenditures of 165.46M, with a -0.54 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of 29.57M show weak coverage of depreciation charges of 11.55M, with a 2.56 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. 51.14 Bn 41.65 1.30 9.48 Bn
2 CSGP Costar Group, Inc. 26.47 Bn 1,304.00 8.66 1.18 Bn
3 BEKE KE Holdings Inc. 21.08 Bn 43.29 1.45 2.96 Bn
4 JLL Jones Lang Lasalle Inc 16.90 Bn 26.75 0.67 3.48 Bn
5 FSV FirstService Corp 7.01 Bn 56.92 1.78 1.51 Bn
6 COMP Compass, Inc. 6.69 Bn -118.64 1.01 0.48 Bn
7 CIGI Colliers International Group Inc. 5.39 Bn 69.70 2.00 2.50 Bn
8 OPEN Opendoor Technologies Inc. 4.15 Bn -13.09 0.88 1.79 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.30 1.34
EV to Cash from Ops. EV/CFO 2.20 2.97
EV to Debt EV to Debt 1.06 6.15
EV to EBIT EV/EBIT 4.27 5.23
EV to EBITDA EV/EBITDA 1.52 18.71
EV to Free Cash Flow [EV/FCF] EV/FCF 2.21 -9.39
EV to Market Cap EV to Market Cap 0.90 4.27
EV to Revenue EV/Rev 0.85 3.62
Price to Book Value [P/B] P/B 2.09 2.10
Price to Earnings [P/E] P/E 7.93 45.45
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.58 0.38
Dividend Payout Ratio % Div Payout % (Qtr) 174.80 -6.05
Dividend per Basic Share Div per Share (Qtr) 1.80 0.22
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) -33.40 0.42
Interest Coverage Int. cover (Qtr) 6.87 -2.22
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -122.47 -12,525.88
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -56.00 23.84
Dividend Growth (1y) % Div 1y % (Qtr) 2.86 1.27
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -12.93 4.69
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 7.33 26.73
EBIT Growth (1y) % EBIT 1y % (Qtr) -16.06 12.80
EBT Growth (1y) % EBT 1y % (Qtr) -26.65 21.27
EPS Growth (1y) % EPS 1y % (Qtr) -25.36 22.42
FCF Growth (1y) % FCF 1y % (Qtr) -590.16 54.29
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -4.16 39.11
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.97 1.45
Cash Payout Ratio Cash Payout (Qtr) 0.13 -0.01
Cash Ratio Cash Ratio (Qtr) 0.53 1.45
Current Ratio Curr Ratio (Qtr) 1.64 2.16
Debt to Equity Ratio Debt/Equity (Qtr) 0.90 -0.06
Interest Cover Ratio Int Coverage (Qtr) 6.87 -2.22
Times Interest Earned Times Interest Earned (Qtr) 6.87 -2.22
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 5.90 -121.98
EBIT Margin % EBIT Margin % (Qtr) 4.22 -136.76
EBT Margin % EBT Margin % (Qtr) 3.61 -144.54
Gross Margin % Gross Margin % (Qtr) 13.80 32.87
Net Profit Margin % Net Margin % (Qtr) 2.50 -139.89