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RMR

RMR Group NasdaqCM:RMR Stock Report

Last Price

US$24.27

Market Cap

US$772.0m

7D

-6.3%

1Y

-27.9%

Updated

26 Sep, 2022

Data

Company Financials +
RMR fundamental analysis
Snowflake Score
Valuation4/6
Future Growth2/6
Past Performance4/6
Financial Health6/6
Dividends4/6

RMR Stock Overview

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

RMR Group Competitors

Price History & Performance

Summary of all time highs, changes and price drops for RMR Group
Historical stock prices
Current Share PriceUS$24.27
52 Week HighUS$37.72
52 Week LowUS$24.06
Beta1.54
1 Month Change-10.48%
3 Month Change-14.66%
1 Year Change-27.94%
3 Year Change-46.64%
5 Year Change-53.95%
Change since IPO104.12%

Recent News & Updates

Jul 14

RMR Group declares $0.40 dividend

RMR Group (NASDAQ:RMR) declares $0.40/share quarterly dividend, in line with previous. Forward yield 5.81% Payable Aug. 18; for shareholders of record July 25; ex-div July 22. See RMR Dividend Scorecard, Yield Chart, & Dividend Growth.

Jun 17
At US$26.72, Is The RMR Group Inc. (NASDAQ:RMR) Worth Looking At Closely?

At US$26.72, Is The RMR Group Inc. (NASDAQ:RMR) Worth Looking At Closely?

The RMR Group Inc. ( NASDAQ:RMR ), might not be a large cap stock, but it received a lot of attention from a...

Shareholder Returns

RMRUS Real EstateUS Market
7D-6.3%-11.1%-6.9%
1Y-27.9%-47.7%-23.7%

Return vs Industry: RMR exceeded the US Real Estate industry which returned -46.1% over the past year.

Return vs Market: RMR underperformed the US Market which returned -23% over the past year.

Price Volatility

Is RMR's price volatile compared to industry and market?
RMR volatility
RMR Average Weekly Movement3.2%
Real Estate Industry Average Movement7.6%
Market Average Movement6.9%
10% most volatile stocks in US Market15.7%
10% least volatile stocks in US Market2.8%

Stable Share Price: RMR is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: RMR's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1986600Adam Portnoyhttps://www.rmrgroup.com

The RMR Group Inc., through its subsidiary, The RMR Group LLC, provides business and property management services in the United States. The company provides management services to its four publicly traded real estate investment trusts and three real estate operating companies. It also provides investment advisory services.

RMR Group Fundamentals Summary

How do RMR Group's earnings and revenue compare to its market cap?
RMR fundamental statistics
Market CapUS$772.02m
Earnings (TTM)US$35.30m
Revenue (TTM)US$195.10m

11.3x

P/E Ratio

2.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
RMR income statement (TTM)
RevenueUS$195.10m
Cost of RevenueUS$0
Gross ProfitUS$195.10m
Other ExpensesUS$159.80m
EarningsUS$35.30m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)2.14
Gross Margin100.00%
Net Profit Margin18.09%
Debt/Equity Ratio0%

How did RMR perform over the long term?

See historical performance and comparison

Dividends

6.6%

Current Dividend Yield

72%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is RMR undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for RMR?

Other financial metrics that can be useful for relative valuation.

RMR key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue2x
Enterprise Value/EBITDA3.9x
PEG Ratio1.5x

Price to Earnings Ratio vs Peers

How does RMR's PE Ratio compare to its peers?

RMR PE Ratio vs Peers
The above table shows the PE ratio for RMR vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average21.7x
TRC Tejon Ranch
55xn/aUS$396.8m
JOE St. Joe
23.8xn/aUS$1.8b
BBXI.A BBX Capital
3.7xn/aUS$119.8m
CHCI Comstock Holding Companies
4.6xn/aUS$40.0m
RMR RMR Group
11.3x7.4%US$772.0m

Price-To-Earnings vs Peers: RMR is good value based on its Price-To-Earnings Ratio (11.3x) compared to the peer average (21.7x).


Price to Earnings Ratio vs Industry

How does RMR's PE Ratio compare vs other companies in the US Real Estate Industry?

Price-To-Earnings vs Industry: RMR is expensive based on its Price-To-Earnings Ratio (11.3x) compared to the US Real Estate industry average (7.8x)


Price to Earnings Ratio vs Fair Ratio

What is RMR's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

RMR PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio11.3x
Fair PE Ratio30.9x

Price-To-Earnings vs Fair Ratio: RMR is good value based on its Price-To-Earnings Ratio (11.3x) compared to the estimated Fair Price-To-Earnings Ratio (30.9x).


Share Price vs Fair Value

What is the Fair Price of RMR when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: RMR ($24.27) is trading below our estimate of fair value ($70.03)

Significantly Below Fair Value: RMR is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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Future Growth

How is RMR Group forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


7.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RMR's forecast earnings growth (7.4% per year) is above the savings rate (1.9%).

Earnings vs Market: RMR's earnings (7.4% per year) are forecast to grow slower than the US market (14.6% per year).

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

Revenue vs Market: RMR's revenue (17.3% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: RMR's revenue (17.3% per year) is forecast to grow slower 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 (11.9%).


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Past Performance

How has RMR Group performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-21.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: RMR has high quality earnings.

Growing Profit Margin: RMR's current net profit margins (18.1%) are higher than last year (16.6%).


Past Earnings Growth Analysis

Earnings Trend: RMR's earnings have declined by 21.6% per year over the past 5 years.

Accelerating Growth: RMR's earnings growth over the past year (26.1%) exceeds its 5-year average (-21.6% per year).

Earnings vs Industry: RMR earnings growth over the past year (26.1%) underperformed the Real Estate industry 41.2%.


Return on Equity

High ROE: RMR's Return on Equity (22.7%) is considered high.


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Financial Health

How is RMR Group's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: RMR's short term assets ($295.9M) exceed its short term liabilities ($107.1M).

Long Term Liabilities: RMR's short term assets ($295.9M) exceed its long term liabilities ($67.0M).


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


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Dividend

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

Dividend Score

4/6

Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


6.59%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: RMR's dividend (6.59%) is higher than the bottom 25% of dividend payers in the US market (1.66%).

High Dividend: RMR's dividend (6.59%) is in the top 25% of dividend payers in the US market (4.57%)


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 7 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (72.1%), RMR's dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (57.2%), RMR's dividend payments are covered by cash flows.


Discover strong dividend paying companies

Management

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

7.7yrs

Average management tenure


CEO

Adam Portnoy (52 yo)

7.67yrs

Tenure

US$4,402,631

Compensation

Mr. Adam David Portnoy has been Managing Trustee at Industrial Logistics Properties Trust since 2017. He serves as Chair of the Board of Trustees at Seven Hills Realty Trust (formerly known as RMR Mortgage...


CEO Compensation Analysis

Adam Portnoy's Compensation vs RMR Group Earnings
How has Adam Portnoy's remuneration changed compared to RMR Group's earnings?
DateTotal Comp.SalaryCompany Earnings
Jun 30 2022n/an/a

US$35m

Mar 31 2022n/an/a

US$36m

Dec 31 2021n/an/a

US$35m

Sep 30 2021US$4mUS$350k

US$35m

Jun 30 2021n/an/a

US$28m

Mar 31 2021n/an/a

US$27m

Dec 31 2020n/an/a

US$28m

Sep 30 2020US$4mUS$350k

US$29m

Jun 30 2020n/an/a

US$31m

Mar 31 2020n/an/a

US$30m

Dec 31 2019n/an/a

US$32m

Sep 30 2019US$4mUS$325k

US$74m

Jun 30 2019n/an/a

US$74m

Mar 31 2019n/an/a

US$76m

Dec 31 2018n/an/a

US$77m

Sep 30 2018US$5mUS$300k

US$95m

Jun 30 2018n/an/a

US$92m

Mar 31 2018n/an/a

US$91m

Dec 31 2017n/an/a

US$89m

Sep 30 2017US$4mUS$300k

US$42m

Jun 30 2017n/an/a

US$44m

Mar 31 2017n/an/a

US$44m

Dec 31 2016n/an/a

US$44m

Sep 30 2016US$3mUS$300k

US$37m

Jun 30 2016n/an/a

US$36m

Mar 31 2016n/an/a

US$30m

Dec 31 2015n/an/a

US$5m

Sep 30 2015US$3mUS$300k

US$7m

Compensation vs Market: Adam's total compensation ($USD4.40M) is about average for companies of similar size in the US market ($USD4.14M).

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


Leadership Team

Experienced Management: RMR's management team is seasoned and experienced (7.7 years average tenure).


Board Members

Experienced Board: RMR's board of directors are considered experienced (6.8 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

What is the ownership structure of RMR?
Owner TypeNumber of SharesOwnership Percentage
Individual Insiders283,6401.7%
General Public1,893,23011.5%
Hedge Funds2,023,21812.3%
Institutions12,300,62874.5%

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


Top Shareholders

Top 25 shareholders own 74.86% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
14.12%
The Vanguard Group, Inc.
2,330,106$56.6m-0.5%no data
8.32%
BlackRock, Inc.
1,373,430$33.3m3.59%no data
6.61%
The RMR Group LLC
1,090,564$26.5m0%30.85%
6.38%
Hotchkis and Wiley Capital Management, LLC
1,052,595$25.5m-0.88%0.1%
5.88%
Nantahala Capital Management, LLC
970,623$23.6m0.91%2.16%
3.06%
Renaissance Technologies LLC
505,316$12.3m-5.52%0.02%
3.04%
Federated Hermes, Inc.
500,974$12.2m10.93%0.04%
2.92%
American Beacon Advisors, Inc.
482,133$11.7m0%0.17%
2.37%
The TCW Group, Inc.
390,540$9.5m4.02%0.12%
2.15%
Russell Investment Management, LLC
354,485$8.6m-15.83%0.01%
2.15%
State Street Global Advisors, Inc.
354,070$8.6m-0.07%no data
1.84%
Geode Capital Management, LLC
302,930$7.4m-1.59%no data
1.76%
Lincluden Investment Management
290,000$7.0m0%0.81%
1.74%
Royce & Associates, LP
287,266$7.0m108.08%0.07%
1.67%
EdgePoint Investment Group Inc.
275,853$6.7m0%0.04%
1.61%
Dimensional Fund Advisors LP
266,252$6.5m8.36%no data
1.56%
Victory Capital Management Inc.
257,477$6.2m-2.18%0.01%
1.35%
Garner Asset Management Corporation
222,404$5.4m147.55%2.58%
1.24%
Western Standard, LLC
204,486$5.0m-1.16%5.13%
1.08%
Northern Trust Global Investments
178,142$4.3m-0.29%no data
1.04%
Assenagon Asset Management S.A.
172,005$4.2m39.36%0.01%
0.81%
Teachers Insurance and Annuity Association-College Retirement Equities Fund
133,268$3.2m-13.39%no data
0.77%
Quinn Opportunity Partners LLC
126,803$3.1m-1.93%0.31%
0.74%
Engine Capital Management, LP
122,166$3.0m0%1.28%
0.66%
Charles Schwab Investment Management, Inc.
108,635$2.6m-2.64%no data

Company Information

The RMR Group Inc.'s 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$772.022m
  • Market Cap: US$400.472m
  • Shares outstanding: 31.50m
  • 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

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/26 00:00
End of Day Share Price2022/09/26 00:00
Earnings2022/06/30
Annual Earnings2021/09/30


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.