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RMR Group

Nasdaq:RMR
Snowflake Description

Flawless balance sheet and fair value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
RMR
Nasdaq
$2B
Imp Market Cap
  1. Home
  2. US
  3. Real Estate
Company description

The RMR Group Inc., through its subsidiary, The RMR Group LLC, provides business and property management services in the United States. The last earnings update was 6 days ago. More info.


Add to Portfolio Compare Print
  • RMR Group has significant price volatility in the past 3 months.
RMR Share Price and Events
7 Day Returns
-7%
NasdaqCM:RMR
-5.8%
US Real Estate
-3.9%
US Market
1 Year Returns
-34.8%
NasdaqCM:RMR
-14.8%
US Real Estate
1.4%
US Market
RMR Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
RMR Group (RMR) -7% -13.1% -30% -34.8% 76.7% -
US Real Estate -5.8% -8.3% -7.1% -14.8% 21.3% 4.4%
US Market -3.9% -3.6% 1.8% 1.4% 35.8% 40.8%
1 Year Return vs Industry and Market
  • RMR underperformed the Real Estate industry which returned -14.8% over the past year.
  • RMR underperformed the Market in United States of America which returned 1.4% over the past year.
Price Volatility
RMR
Industry
5yr Volatility vs Market

RMR Value

 Is RMR Group undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of RMR Group to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for RMR Group.

NasdaqCM:RMR Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 2 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.2%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqCM:RMR
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Real Estate Unlevered Beta Simply Wall St/ S&P Global 1.12
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.124 (1 + (1- 21%) (0%))
1.083
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.08
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.083 * 5.96%)
9.19%

Discounted Cash Flow Calculation for NasdaqCM:RMR using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for RMR Group is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NasdaqCM:RMR DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.19%)
2019 178.00 Est @ -9.9% 163.02
2020 167.12 Est @ -6.11% 140.18
2021 161.34 Est @ -3.46% 123.95
2022 158.75 Est @ -1.6% 111.70
2023 158.27 Est @ -0.3% 101.99
2024 159.23 Est @ 0.61% 93.98
2025 161.21 Est @ 1.24% 87.14
2026 163.93 Est @ 1.69% 81.16
2027 167.22 Est @ 2% 75.82
2028 170.93 Est @ 2.22% 70.98
Present value of next 10 years cash flows $1,049.93
NasdaqCM:RMR DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $170.93 × (1 + 2.73%) ÷ (9.19% – 2.73%)
$2,720.01
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $2,720.01 ÷ (1 + 9.19%)10
$1,129.57
NasdaqCM:RMR Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $1,049.93 + $1,129.57
$2,179.50
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $2,179.50 / 31.24
$69.77
NasdaqCM:RMR Discount to Share Price
Calculation Result
Value per share (USD) From above. $69.77
Current discount Discount to share price of $51.60
= -1 x ($51.60 - $69.77) / $69.77
26%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price RMR Group is available for.
Intrinsic value
26%
Share price is $51.6 vs Future cash flow value of $69.77
Current Discount Checks
For RMR Group to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • RMR Group's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • RMR Group's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for RMR Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are RMR Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqCM:RMR PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $4.75
NasdaqCM:RMR Share Price ** NasdaqCM (2019-05-15) in USD $51.6
United States of America Real Estate Industry PE Ratio Median Figure of 27 Publicly-Listed Real Estate Companies 16x
United States of America Market PE Ratio Median Figure of 3,087 Publicly-Listed Companies 17.79x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of RMR Group.

NasdaqCM:RMR PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqCM:RMR Share Price ÷ EPS (both in USD)

= 51.6 ÷ 4.75

10.87x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • RMR Group is good value based on earnings compared to the US Real Estate industry average.
  • RMR Group is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does RMR Group's expected growth come at a high price?
Raw Data
NasdaqCM:RMR PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 10.87x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts
-37.9%per year
United States of America Real Estate Industry PEG Ratio Median Figure of 12 Publicly-Listed Real Estate Companies 0.34x
United States of America Market PEG Ratio Median Figure of 2,113 Publicly-Listed Companies 1.52x

*Line of best fit is calculated by linear regression .

NasdaqCM:RMR PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 10.87x ÷ -37.9%

-0.29x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • RMR Group earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on RMR Group's assets?
Raw Data
NasdaqCM:RMR PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $17.51
NasdaqCM:RMR Share Price * NasdaqCM (2019-05-15) in USD $51.6
United States of America Real Estate Industry PB Ratio Median Figure of 53 Publicly-Listed Real Estate Companies 1.45x
United States of America Market PB Ratio Median Figure of 5,195 Publicly-Listed Companies 1.83x
NasdaqCM:RMR PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqCM:RMR Share Price ÷ Book Value per Share (both in USD)

= 51.6 ÷ 17.51

2.95x

* Primary Listing of RMR Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • RMR Group is overvalued based on assets compared to the US Real Estate industry average.
X
Value checks
We assess RMR Group's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Real Estate industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Real Estate industry average (and greater than 0)? (1 check)
  5. RMR Group has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

RMR Future Performance

 How is RMR Group expected to perform in the next 1 to 3 years based on estimates from 2 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-37.9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is RMR Group expected to grow at an attractive rate?
  • RMR Group's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.7%.
Growth vs Market Checks
  • RMR Group's earnings are expected to decrease over the next 1-3 years, this is below the United States of America market average.
  • RMR Group's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqCM:RMR Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqCM:RMR Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts -37.9%
NasdaqCM:RMR Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 2 Analysts 4.7%
United States of America Real Estate Industry Earnings Growth Rate Market Cap Weighted Average 6.3%
United States of America Real Estate Industry Revenue Growth Rate Market Cap Weighted Average 7.1%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqCM:RMR Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqCM:RMR Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-09-30 551 38 1
2020-09-30 535 36 2
2019-09-30 676 78 2
NasdaqCM:RMR Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 310 198 76
2018-12-31 314 242 77
2018-09-30 352 228 95
2018-06-30 347 232 92
2018-03-31 344 231 91
2017-12-31 341 142 89
2017-09-30 231 126 42
2017-06-30 231 125 44
2017-03-31 227 129 44
2016-12-31 223 110 44
2016-09-30 229 100 37
2016-06-30 225 106 36

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • RMR Group's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • RMR Group's revenue is expected to grow by 4.7% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqCM:RMR Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below

All data from RMR Group Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqCM:RMR Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-09-30 2.32 2.32 2.32 1.00
2020-09-30 2.18 2.27 2.09 3.00
2019-09-30 4.82 4.87 4.79 3.00
NasdaqCM:RMR Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 4.75
2018-12-31 4.76
2018-09-30 5.94
2018-06-30 5.75
2018-03-31 5.65
2017-12-31 5.57
2017-09-30 2.63
2017-06-30 2.78
2017-03-31 2.77
2016-12-31 2.72
2016-09-30 2.33
2016-06-30 2.26

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if RMR Group will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess RMR Group's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
RMR Group has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

RMR Past Performance

  How has RMR Group performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare RMR Group's growth in the last year to its industry (Real Estate).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • RMR Group has delivered over 20% year on year earnings growth in the past 5 years.
  • RMR Group's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • RMR Group's 1-year earnings growth is negative, it can't be compared to the US Real Estate industry average.
Earnings and Revenue History
RMR Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from RMR Group Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqCM:RMR Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 310.10 76.46 149.59
2018-12-31 314.36 76.67 148.11
2018-09-30 351.83 95.48 146.59
2018-06-30 347.16 92.35 141.50
2018-03-31 344.45 90.76 135.55
2017-12-31 341.09 89.37 130.72
2017-09-30 231.40 42.14 124.17
2017-06-30 230.67 44.48 122.08
2017-03-31 227.47 44.43 119.20
2016-12-31 222.78 43.61 116.24
2016-09-30 229.28 37.23 115.15
2016-06-30 225.10 36.20 111.87
2016-03-31 224.38 30.47 112.77
2015-12-31 227.54 4.71 110.11
2015-09-30 164.71 7.30 104.54
2015-06-30 192.15 -77.55 240.42
2015-03-31 201.80 -49.47 245.92
2014-12-31 209.93 0.06 257.10
2014-09-30 221.00 10.29 265.80
2013-09-30 199.59 -31.83 289.75

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • RMR Group has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • RMR Group used its assets more efficiently than the US Real Estate industry average last year based on Return on Assets.
  • RMR Group's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess RMR Group's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Real Estate industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
RMR Group has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

RMR Health

 How is RMR Group's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up RMR Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • RMR Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • RMR Group's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of RMR Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • RMR Group has no debt, it does not need to be covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from RMR Group Company Filings, last reported 1 month ago.

NasdaqCM:RMR Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 533.78 0.00 384.11
2018-12-31 536.09 0.00 284.16
2018-09-30 434.66 0.00 256.85
2018-06-30 434.38 0.00 280.52
2018-03-31 432.78 0.00 276.36
2017-12-31 426.48 0.00 125.97
2017-09-30 289.66 0.00 108.64
2017-06-30 292.50 0.00 137.71
2017-03-31 291.56 0.00 133.06
2016-12-31 291.37 0.00 74.83
2016-09-30 246.39 0.00 65.83
2016-06-30 240.98 0.00 81.14
2016-03-31 238.47 0.00 70.57
2015-12-31 234.35 0.00 25.08
2015-09-30 213.65 0.00 34.50
2015-06-30 197.81 0.00 26.53
2015-03-31 256.94 0.00 199.42
2014-12-31 230.24 0.00 141.73
2014-09-30 230.24 0.00 141.73
2013-09-30 109.51 0.00 14.57
  • RMR Group has no debt.
  • RMR Group has not taken on any debt in the past 5 years.
  • RMR Group has no debt, it does not need to be covered by operating cash flow.
  • RMR Group has no debt, therefore coverage of interest payments is not a concern.
X
Financial health checks
We assess RMR Group's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. RMR Group has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

RMR Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.71%
Current annual income from RMR Group dividends. Estimated to be 2.71% next year.
If you bought $2,000 of RMR Group shares you are expected to receive $54 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • RMR Group's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.46%).
  • RMR Group's dividend is below the markets top 25% of dividend payers in United States of America (3.71%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqCM:RMR Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
United States of America Real Estate Industry Average Dividend Yield Market Cap Weighted Average of 16 Stocks 2.8%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1997 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqCM:RMR Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-09-30 1.40 1.00
2020-09-30 1.40 2.00
2019-09-30 1.40 2.00
NasdaqCM:RMR Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-04-18 1.400 2.487
2019-01-18 1.400 2.124
2018-10-18 1.400 2.160
2018-07-19 1.000 1.137
2018-04-19 1.000 1.280
2018-01-19 1.000 1.497
2017-10-12 1.000 1.739
2017-07-12 1.000 2.008
2017-04-11 1.000 1.985
2017-01-13 1.000 2.060
2016-10-11 1.000 2.574
2016-07-12 1.000 2.708
2016-04-13 1.000 3.529
2016-02-09 1.000 4.253

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, RMR Group has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but RMR Group only paid a dividend in the past 3 years.
Current Payout to shareholders
What portion of RMR Group's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (3.7x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.6x coverage).
X
Income/ dividend checks
We assess RMR Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can RMR Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. RMR Group has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

RMR Management

 What is the CEO of RMR Group's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Adam Portnoy
COMPENSATION $3,984,250
AGE 48
TENURE AS CEO 4.3 years
CEO Bio

Mr. Adam David Portnoy has been Managing Director and Director at Five Star Senior Living Inc., since March 20, 2018. Mr. Portnoy serves as the Honorary Consul General of the Republic of Bulgaria in Massachusetts and previously served on the Board of trustees of Occidental College. Mr. Portnoy is one of Managing Trustees of Industrial Logistics Properties Trust since 2017. Mr. Portnoy has been a Managing Director, President and Chief Executive Officer of The RMR Group Inc. (“RMR Group”) since 2015 and Director of Pioneer Institute. Mr. Portnoy has been President and Chief Executive Officer of RMR Group LLC ("RMR LLC") since 2005 and was a Director of RMR LLC from 2006 until June 5, 2015 when RMR became a majority owned subsidiary of RMR Group and RMR Group became RMR’s managing member. Mr. Portnoy is an owner, Trustee and officer of ABP Trust, the controlling shareholder of RMR. Group Mr. Portnoy has been a director of RMR Advisors LLC since 2007 and served as its president from 2007 to September 2017 and its chief executive officer from 2015 to September 2017. He is the managing director, president and chief executive officer of RMR Inc. and serves as its director. Mr. Portnoy has been a director of Tremont Realty Advisors LLC since March 2016 and he was its president and chief executive officer from March 2016 through December 2017. Mr. Portnoy served as president and chief executive officer of RMR Real Estate Income Fund from 2007 to 2015. Mr. Portnoy serves as a Managing Trustee of Hospitality Properties Trust since January 11, 2007, Senior Housing Properties Trust since 2007, Office Properties Income Trust (formerly Government Properties Income Trust) since 2009, The RMR Group Inc. since 2015, RMR Real Estate Income Fund (“RIF”), including its predecessor funds since 2009 and Tremont Mortgage Trust since 2017. Mr. Portnoy has been an owner and Director of Sonesta International Hotels Corporation since 2012 and served as President of RIF from 2007 to 2015 and as President of Government Properties Income Trust from 2009 to 2011. He served on the board of governors for the National Association of Real Estate Investment Trusts. He has been a Director of TravelCenters of America LLC since 2018. Mr. Portnoy was a managing Trustee of Equity Commonwealth from 2006 until 2014 and served as its President from 2011 to 2014. Prior to joining RMR LLC in 2003, Mr. Portnoy held various positions in the finance industry and public sector, including working as an investment banker at Donaldson, Lufkin & Jenrette and ABN AMRO as well as working in private equity at DLJ Merchant Banking Partners and at the International Finance Corporation (a Member of The World Bank Group). His Specific Qualifications, Attributes, Skills and Experience includes; extensive experience in and knowledge of, the asset management and commercial real estate industries and REITs, public company director service, experience in investment banking and private equity, institutional knowledge earned through service in leadership positions with RMR LLC. Mr. Portnoy was a managing trustee of Select Income REIT from 2011 until it merged with a wholly owned subsidiary of Office Properties Income Trust (then known as Government Properties Income Trust) in December 2018. Mr. Portnoy serves as Managing Director of TravelCenters of America LLC since 2018. Mr. Portnoy previously founded and served as chief executive officer of a privately financed telecommunications company.

CEO Compensation
  • Adam's compensation has been consistent with company performance over the past year.
  • Adam's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the RMR Group management team in years:

4.3
Average Tenure
51
Average Age
  • The tenure for the RMR Group management team is about average.
Management Team

Adam Portnoy

TITLE
CEO, President
COMPENSATION
$4M
AGE
48
TENURE
4.3 yrs

Jennifer Clark

TITLE
MD, Executive VP
COMPENSATION
$5M
AGE
56
TENURE
4.3 yrs

Matthew Jordan

TITLE
Executive VP
AGE
43
TENURE
4.3 yrs

Gregory Carey

TITLE
Senior VP and Chief Information Officer
TENURE
0.3 yrs

Eileen Kiley

TITLE
Senior VP & Chief Human Resources Officer of RMR Group LLC

John Murray

TITLE
Executive Vice President of RMR Group LLC
AGE
57
TENURE
18.3 yrs

Richard Doyle

TITLE
Senior Vice President of RMR Group LLC
AGE
49

Carlos Flores

TITLE
Senior Vice President of RMR Group LLC

Jennifer Francis

TITLE
Senior Vice President of RMR Group LLC

Andrew Rebholz

TITLE
Executive Vice President of RMR Group LLC
AGE
53
Board of Directors Tenure

Average tenure and age of the RMR Group board of directors in years:

3.5
Average Tenure
56
Average Age
  • The tenure for the RMR Group board of directors is about average.
Board of Directors

Adam Portnoy

TITLE
CEO, President
COMPENSATION
$4M
AGE
48
TENURE
4.3 yrs

Jennifer Clark

TITLE
MD, Executive VP
COMPENSATION
$5M
AGE
56
TENURE
1.2 yrs

Ann Logan

TITLE
Independent Director
COMPENSATION
$282K
AGE
63
TENURE
3.5 yrs

Walter Watkins

TITLE
Independent Director
COMPENSATION
$267K
AGE
71
TENURE
3.5 yrs

Rosen Plevneliev

TITLE
Independent Director
COMPENSATION
$265K
AGE
53
TENURE
2.2 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
X
Management checks
We assess RMR Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. RMR Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

RMR News

Simply Wall St News

Does The RMR Group Inc. (NASDAQ:RMR) Have A Particularly Volatile Share Price?

Beta can be a useful tool to understand how much a stock is influenced by market risk (volatility). … To use beta as an investor, you must first understand that the overall market has a beta of one. … A stock with a beta below one is either less volatile than the market, or more volatile but not corellated with the overall market.

Simply Wall St -

What Did The RMR Group Inc.'s (NASDAQ:RMR) CEO Take Home Last Year?

This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. … How Does Adam Portnoy's Compensation Compare With Similar Sized Companies. … is worth US$1.9b, and total annual CEO compensation is US$4.0m.

Simply Wall St -

Is The RMR Group Inc. (NASDAQ:RMR) A High Quality Stock To Own?

While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … That means that for every $1 worth of shareholders' equity, it generated $0.33 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Shareholders Are Thrilled That The RMR Group Share Price Increased 205%

(NASDAQ:RMR) share price has soared 205% in the last three years. … One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). … The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers)

Simply Wall St -

Should You Investigate The RMR Group Inc. (NASDAQ:RMR) At US$73.70?

saw a significant share price rise of over 20% in the past couple of months on the NASDAQCM. … As a US$2.3b market-cap stock, it seems odd RMR Group is not more well-covered by analysts. … So, could the stock still be trading at a low price relative to its actual value

Simply Wall St -

Is The RMR Group Inc. (NASDAQ:RMR) A Financially Strong Company?

Let’s take a look at RMR’s debt concentration and assess their financial liquidity to get an idea of their ability to fund strategic acquisitions and grow through cyclical pressures. … Don’t forget that this is a general and concentrated examination of RMR Group's financial health, so you should conduct further analysis. … Participate in a short research study and receive a 6-month subscription to the award winning Simply Wall St research tool (valued at $60)

Simply Wall St -

Does The Data Make The RMR Group Inc. (NASDAQ:RMR) An Attractive Investment?

As an investor, I look for investments which does not compromise one fundamental factor for another. … By this I mean, I look at stocks holistically, from their financial health to their future outlook.

Simply Wall St -

Is There An Opportunity With The RMR Group Inc's (NASDAQ:RMR) 45.82% Undervaluation?

Today, I will calculate the stock's intrinsic value. … by estimating the company's future cash flows and discounting them to their present value. … If you are reading this and its not December 2018 then I highly recommend you check out the latest calculation for RMR Group by following the link below

Simply Wall St -

Is The RMR Group Inc's (NASDAQ:RMR) 49% Better Than Average?

While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … That means that for every $1 worth of shareholders' equity, it generated $0.49 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Can The RMR Group Inc (NASDAQ:RMR) Save Your Portfolio?

Longstanding stocks such as The RMR Group Inc has fared well over time in a volatile stock market, which is why it’s my top pick to invest in. … View our latest analysis for RMR Group. … The RMR Group Inc., through its subsidiary, The RMR Group LLC, provides business and property management services in the United States

Simply Wall St -

RMR Company Info

Description

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 five publicly traded real estate investment trusts (REITs) and three real estate operating companies. As of September 30, 2018, the company had approximately 1,700 properties under management, which are primarily owned by its Managed Equity REITs. It also provides investment advisory services. The company was formerly known as REIT Management & Research Inc. and changed its name to The RMR Group Inc. in September 2015. The RMR Group Inc. was founded in 1986 and is headquartered in Newton, Massachusetts.

Details
Name: The RMR Group Inc.
RMR
Exchange: NasdaqCM
Founded: 1986
$1,635,086,578
$837,969,190
31,239,713
Website: http://www.rmrgroup.com
Address: The RMR Group Inc.
Two Newton Place,
Suite 300,
Newton,
Massachusetts, 02458,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqCM RMR Class A Common Shares Nasdaq Capital Market US USD 27. Nov 2015
DB 26R Class A Common Shares Deutsche Boerse AG DE EUR 27. Nov 2015
Number of employees
Current staff
Staff numbers
600
RMR Group employees.
Industry
Diversified Real Estate Activities
Real Estate
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/16 02:44
End of day share price update: 2019/05/15 00:00
Last estimates confirmation: 2019/05/13
Last earnings filing: 2019/05/10
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/09/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.