RMR Group
Market Cap
US$1.4b
Last Updated
2020/01/24 00:40 UTC
Data Sources
Company Financials +
Executive Summary
The RMR Group Inc., through its subsidiary, The RMR Group LLC, provides business and property management services in the United States.
Rewards
Risk Analysis
Earnings are forecast to decline by an average of -37.3% per year for the next 3 years
Snowflake Analysis
Flawless balance sheet and good value.
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 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-0.5%
RMR
0.4%
US Real Estate
-0.09%
US Market
1 Year Return
-32.1%
RMR
18.3%
US Real Estate
23.9%
US Market
Return vs Industry: RMR underperformed the US Real Estate industry which returned 17.2% over the past year.
Return vs Market: RMR underperformed the US Market which returned 24.7% over the past year.
Shareholder returns
| RMR | Industry | Market | |
|---|---|---|---|
| 7 Day | -0.5% | 0.4% | -0.09% |
| 30 Day | -2.0% | 0.7% | 3.1% |
| 90 Day | -5.4% | 13.2% | 10.4% |
| 1 Year | -30.6%-32.1% | 19.3%18.3% | 26.6%23.9% |
| 3 Year | -1.0%-6.4% | 38.4%35.0% | 50.9%41.2% |
| 5 Year | n/a | 19.6%15.6% | 78.1%58.5% |
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
5 days ago | Simply Wall St
Here's What We Like About The RMR Group Inc. (NASDAQ:RMR)'s Upcoming Dividend2 weeks ago | Simply Wall St
Do You Like The RMR Group Inc. (NASDAQ:RMR) At This P/E Ratio?1 month ago | Simply Wall St
Here's Why RMR Group's (NASDAQ:RMR) Statutory Earnings Are Arguably Too ConservativeValuation
Is RMR Group undervalued compared to its fair value and its price relative to the market?
45.4%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: RMR ($43.97) is trading below our estimate of fair value ($82.33)
Significantly Below Fair Value: RMR is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: RMR is good value based on its PE Ratio (9.6x) compared to the Real Estate industry average (25.3x).
PE vs Market: RMR is good value based on its PE Ratio (9.6x) compared to the US market (18.9x).
Price to Earnings Growth Ratio
PEG Ratio: RMR's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: RMR is overvalued based on its PB Ratio (2.5x) compared to the US Real Estate industry average (1.5x).
Next Steps
Future Growth
How is RMR Group forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?
-37.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: RMR's earnings are forecast to decline over the next 3 years (-37.3% per year).
Earnings vs Market: RMR's earnings are forecast to decline over the next 3 years (-37.3% per year).
High Growth Earnings: RMR's earnings are forecast to decline over the next 3 years.
Revenue vs Market: RMR's revenue (23.3% per year) is forecast to grow faster than the US market (7.5% per year).
High Growth Revenue: RMR's revenue (23.3% 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 (8.4%).
Next Steps
Past Performance
How has RMR Group performed over the past 5 years?
47.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: RMR has high quality earnings.
Growing Profit Margin: RMR's current net profit margins (24.6%) are lower than last year (27.1%).
Past Earnings Growth Analysis
Earnings Trend: RMR's earnings have grown significantly by 47.4% 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 (-22.4%) over the past year, making it difficult to compare to the Real Estate industry average (-25%).
Return on Equity
High ROE: RMR's Return on Equity (32%) is considered high.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is RMR Group's financial position?
Financial Position Analysis
Short Term Liabilities: RMR's short term assets ($464.9M) exceed its short term liabilities ($98.0M).
Long Term Liabilities: RMR's short term assets ($464.9M) exceed its long term liabilities ($40.8M).
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
Inventory Level: RMR has a low level of unsold assets or inventory.
Debt Coverage by Assets: Insufficient data to determine if RMR's debt is covered by short term assets.
Next Steps
Dividend
What is RMR Group's current dividend yield, its reliability and sustainability?
3.38%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: RMR's dividend (3.46%) is higher than the bottom 25% of dividend payers in the US market (1.4%).
High Dividend: RMR's dividend (3.46%) is low compared to the top 25% of dividend payers in the US market (3.66%).
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 4 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (31.1%), RMR's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: RMR's dividends in 3 years are forecast to be well covered by earnings (32.3% payout ratio).
Next Steps
Management
What is the CEO of RMR Group's salary, the management and board of directors tenure and is there insider trading?
5.0yrs
Average management tenure
CEO
Adam Portnoy (49yo)
5yrs
Tenure
US$4,642,475
Compensation
Mr. Adam David Portnoy has been Managing Director and Director at Five Star Senior Living Inc., since March 20, 2018 and serves as a Chair of the Board since June 11, 2019. Mr. Portnoy serves as the Honora ...
CEO Compensation Analysis
Compensation vs Market: Adam's total compensation ($USD3.98M) is about average for companies of similar size in the US market ($USD3.86M).
Compensation vs Earnings: Adam's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Management Age and Tenure
5.0yrs
Average Tenure
56yo
Average Age
Experienced Management: RMR's management team is seasoned and experienced (5 years average tenure).
Board Age and Tenure
4.2yrs
Average Tenure
57yo
Average Age
Experienced Board: RMR's board of directors are considered experienced (4.2 years average tenure).
Insider Trading
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
| Entity | Company |
| Shares | 2,637,408 |
| Max Price | US$40.00 |
| Entity | Company |
| Shares | 2,801,060 |
| Max Price | US$40.00 |
| Entity | Company |
| Shares | 2,503,777 |
| Max Price | US$40.00 |
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Management Team
Jennifer Clark (57yo)
MD, Executive VP
- Tenure: 5yrs
- Compensation: US$4.85m
John Murray (58yo)
Executive Vice President of RMR Group LLC
- Tenure: 19yrs
- Compensation: US$3.92m
Adam Portnoy (49yo)
CEO, President
- Tenure: 5yrs
- Compensation: US$4.64m
Mark Young (56yo)
Senior Vice President of RMR Group LLC
Steve Miano
Vice President of Accounting- RMR Group LLC
Carlos Flores
Senior Vice President of RMR Group LLC
Matthew Jordan (44yo)
Executive VP
- Tenure: 5yrs
- Compensation: US$2.78m
Jennifer Francis
Senior Vice President of RMR Group LLC
Eileen Kiley
Senior VP & Chief Human Resources Officer of RMR Group LLC
Gregory Carey
Senior VP & Chief Information Officer
- Tenure: 1yrs
Board Members
Jennifer Clark (57yo)
MD, Executive VP
- Tenure: 5yrs
- Compensation: US$4.85m
Walter Watkins (72yo)
Independent Director
- Tenure: 4.2yrs
- Compensation: US$266.50k
Adam Portnoy (49yo)
CEO, President
- Tenure: 5yrs
- Compensation: US$4.64m
Ann Logan (64yo)
Independent Director
- Tenure: 4.2yrs
- Compensation: US$281.50k
Rosen Plevneliev (54yo)
Independent Director
- Tenure: 2.8yrs
- Compensation: US$265.25k
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$1.378b
- Market Cap: US$732.210m
- Shares outstanding: 31.30m
- Website: https://www.rmrgroup.com
Number of Employees
Location
- The RMR Group Inc.
- Two Newton Place
- Suite 300
- Newton
- Massachusetts
- 2458
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| RMR | NasdaqCM (Nasdaq Capital Market) | Yes | Class A Common Shares | US | USD | Nov 2015 |
| 26R | DB (Deutsche Boerse AG) | Yes | Class A Common Shares | DE | EUR | Nov 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 estate investment trusts (REITs) and three real estate operating companies. As of September 30, 2019, the company had approximately 2,200 properties in 48 states 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.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/01/24 00:40 |
| End of Day Share Price | 2020/01/23 00:00 |
| Earnings | 2019/09/30 |
| Annual Earnings | 2019/09/30 |
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.