NasdaqCM:RMR

Stock Analysis Report

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Executive Summary

The RMR Group Inc., through its subsidiary, The RMR Group LLC, provides business and property management services in the United States. More Details


Snowflake Analysis

Flawless balance sheet average dividend payer.

Share Price & News

How has RMR Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: RMR is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: RMR's weekly volatility (7%) has been stable over the past year.


Market Performance


7 Day Return

16.5%

RMR

-1.1%

US Real Estate

1.8%

US Market


1 Year Return

-23.4%

RMR

-3.0%

US Real Estate

20.4%

US Market

Return vs Industry: RMR underperformed the US Real Estate industry which returned -4.3% over the past year.

Return vs Market: RMR underperformed the US Market which returned 19% over the past year.


Shareholder returns

RMRIndustryMarket
7 Day16.5%-1.1%1.8%
30 Day29.6%4.0%6.0%
90 Day26.4%27.6%6.8%
1 Year-19.7%-23.4%-0.5%-3.0%23.2%20.4%
3 Year-33.9%-39.6%3.6%-3.6%47.4%37.6%
5 Yearn/a4.4%-6.2%91.9%70.8%

Long-Term Price Volatility Vs. Market

How volatile is RMR Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is RMR Group undervalued compared to its fair value and its price relative to the market?

20.55x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: RMR ($35.76) is trading above our estimate of fair value ($16.6)

Significantly Below Fair Value: RMR is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: RMR is good value based on its PE Ratio (20.3x) compared to the US Real Estate industry average (36.3x).

PE vs Market: RMR is poor value based on its PE Ratio (20.3x) compared to the US market (19.5x).


Price to Earnings Growth Ratio

PEG Ratio: RMR is poor value based on its PEG Ratio (3.6x)


Price to Book Ratio

PB vs Industry: RMR is overvalued based on its PB Ratio (2x) compared to the US Real Estate industry average (1.1x).


Next Steps

Future Growth

How is RMR Group forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

5.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RMR's forecast earnings growth (5.6% per year) is above the savings rate (2.2%).

Earnings vs Market: RMR's earnings (5.6% per year) are forecast to grow slower than the US market (21.9% per year).

High Growth Earnings: RMR's earnings are forecast to grow, but not significantly.

Revenue vs Market: RMR's revenue (36.8% per year) is forecast to grow faster than the US market (10.2% per year).

High Growth Revenue: RMR's revenue (36.8% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RMR's Return on Equity is forecast to be low in 3 years time (11.6%).


Next Steps

Past Performance

How has RMR Group performed over the past 5 years?

11.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RMR has high quality earnings.

Growing Profit Margin: RMR's current net profit margins (16.6%) are lower than last year (24.5%).


Past Earnings Growth Analysis

Earnings Trend: RMR's earnings have grown by 11.3% per year over the past 5 years.

Accelerating Growth: RMR's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: RMR had negative earnings growth (-61.2%) over the past year, making it difficult to compare to the Real Estate industry average (-2.3%).


Return on Equity

High ROE: RMR's Return on Equity (12.3%) is considered low.


Next Steps

Financial Health

How is RMR Group's financial position?


Financial Position Analysis

Short Term Liabilities: RMR's short term assets ($456.1M) exceed its short term liabilities ($81.8M).

Long Term Liabilities: RMR's short term assets ($456.1M) exceed its long term liabilities ($67.6M).


Debt to Equity History and Analysis

Debt Level: RMR is debt free.

Reducing Debt: RMR has not had any debt for past 5 years.

Debt Coverage: RMR has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: RMR has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is RMR Group current dividend yield, its reliability and sustainability?

4.19%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: RMR's dividend (4.25%) is higher than the bottom 25% of dividend payers in the US market (1.5%).

High Dividend: RMR's dividend (4.25%) is in the top 25% of dividend payers in the US market (4.15%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, RMR has been paying a dividend for less than 10 years.

Growing Dividend: RMR's dividend payments have increased, but the company has only paid a dividend for 5 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (86.1%), RMR's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: RMR's dividends in 3 years are forecast to be covered by earnings (87.4% payout ratio).


Next Steps

  • Explore strong dividend paying companies in the Real Estate industry.

Management

How experienced are the management team and are they aligned to shareholders interests?

5.8yrs

Average management tenure


CEO

Adam Portnoy (50 yo)

5.83yrs

Tenure

US$4,103,231

Compensation

Mr. Adam David Portnoy has been Managing Trustee at Industrial Logistics Properties Trust since May 28, 2020. Mr. Portnoy served as Chairman of the Board of Trustees at Industrial Logistics Properties Trus...


CEO Compensation Analysis

Compensation vs Market: Adam's total compensation ($USD4.10M) is above average for companies of similar size in the US market ($USD2.59M).

Compensation vs Earnings: Adam's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Adam Portnoy
CEO, President5.83yrsUS$4.10m0.41%
$ 4.6m
Matthew Jordan
Executive VP5.83yrsUS$2.78m0.14%
$ 1.5m
Jennifer Clark
MD, Executive VP5.83yrsUS$4.70m0.16%
$ 1.8m
David Blackman
Executive Vice President of RMR Group LLC7.83yrsUS$3.85m0.11%
$ 1.2m
John Murray
Executive Vice President of RMR Group LLC19.83yrsUS$3.92m0.11%
$ 1.2m
Stephen Miano
Vice President of Accounting- RMR Group LLCno datano datano data
Gregory Carey
Senior VP & Chief Information Officer - RMR Group LLC1.83yrsno datano data
Michael Kodesch
Director of Investor Relationsno datano datano data
Diane Proctor
Vice President of Human Resourcesno datano datano data
Christopher Bilotto
Senior Vice President0.83yrno datano data
Jared Lewis
Vice President of Underwriting - RMR Group LLC2.08yrsno datano data
Yael Duffy
Vice President of Asset Management1.42yrsno datano data

5.8yrs

Average Tenure

50yo

Average Age

Experienced Management: RMR's management team is seasoned and experienced (5.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Adam Portnoy
CEO, President5.83yrsUS$4.10m0.41%
$ 4.6m
Jennifer Clark
MD, Executive VP5.83yrsUS$4.70m0.16%
$ 1.8m
Walter Watkins
Independent Director5yrsUS$263.13k0.073%
$ 821.7k
Ann Logan
Independent Director5yrsUS$268.13k0.083%
$ 928.3k
Rosen Plevneliev
Independent Director3.67yrsUS$263.13k0.054%
$ 611.2k
Jonathan Veitch
Independent Director0.42yrno data0.018%
$ 205.5k

5.0yrs

Average Tenure

58yo

Average Age

Experienced Board: RMR's board of directors are considered experienced (5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

The RMR Group Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: The RMR Group Inc.
  • Ticker: RMR
  • Exchange: NasdaqCM
  • Founded: 1986
  • Industry: Diversified Real Estate Activities
  • Sector: Real Estate
  • Implied Market Cap: US$1.123b
  • Market Cap: US$586.308m
  • Shares outstanding: 31.40m
  • Website: https://www.rmrgroup.com

Number of Employees


Location

  • The RMR Group Inc.
  • Two Newton Place
  • Suite 300
  • Newton
  • Massachusetts
  • 02458-1634
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RMRNasdaqCM (Nasdaq Capital Market)YesClass A Common SharesUSUSDNov 2015
26RDB (Deutsche Boerse AG)YesClass A Common SharesDEEURNov 2015
RMR *BMV (Bolsa Mexicana de Valores)YesClass A Common SharesMXMXNNov 2015

Biography

The RMR Group Inc., through its subsidiary, The RMR Group LLC, provides business and property management services in the United States. It provides management services to its four publicly traded real esta...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/25 23:57
End of Day Share Price2020/11/25 00:00
Earnings2020/09/30
Annual Earnings2020/09/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.