RMR Group
Market Cap
US$1.2b
Last Updated
2021/01/21 23:54 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. 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 +/- 8% a week.
Volatility Over Time: RMR's weekly volatility (8%) has been stable over the past year.
Market Performance
7 Day Return
-5.5%
RMR
9.9%
US Real Estate
1.4%
US Market
1 Year Return
-14.2%
RMR
8.5%
US Real Estate
22.6%
US Market
Return vs Industry: RMR underperformed the US Real Estate industry which returned 9% over the past year.
Return vs Market: RMR underperformed the US Market which returned 22.8% over the past year.
Shareholder returns
| RMR | Industry | Market | |
|---|---|---|---|
| 7 Day | -5.5% | 9.9% | 1.4% |
| 30 Day | 2.7% | 7.2% | 4.9% |
| 90 Day | 35.1% | 20.4% | 14.6% |
| 1 Year | -10.0%-14.2% | 11.4%8.5% | 25.4%22.6% |
| 3 Year | -36.4%-41.8% | 15.9%7.5% | 46.8%37.0% |
| 5 Year | 114.1%86.9% | 49.3%31.2% | 132.0%106.1% |
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
3 days ago | Simply Wall St
We Think RMR Group's (NASDAQ:RMR) Statutory Profit Might Understate Its Earnings Potential3 weeks ago | Simply Wall St
Did You Participate In Any Of RMR Group's (NASDAQ:RMR) Fantastic 196% Return ?1 month ago | Simply Wall St
Key Things To Watch Out For If You Are After The RMR Group Inc.'s (NASDAQ:RMR) 3.9% DividendValuation
Is RMR Group undervalued compared to its fair value and its price relative to the market?
21.83x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: RMR ($38.53) is trading above our estimate of fair value ($18.45)
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 (21.8x) compared to the US Real Estate industry average (37.5x).
PE vs Market: RMR is poor value based on its PE Ratio (21.8x) compared to the US market (21.1x).
Price to Earnings Growth Ratio
PEG Ratio: RMR is poor value based on its PEG Ratio (3.2x)
Price to Book Ratio
PB vs Industry: RMR is overvalued based on its PB Ratio (2.1x) compared to the US Real Estate industry average (1.3x).
Next Steps
Future Growth
How is RMR Group forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?
6.9%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: RMR's forecast earnings growth (6.9% per year) is above the savings rate (2%).
Earnings vs Market: RMR's earnings (6.9% per year) are forecast to grow slower than the US market (21.6% per year).
High Growth Earnings: RMR's earnings are forecast to grow, but not significantly.
Revenue vs Market: RMR's revenue (32.3% per year) is forecast to grow faster than the US market (10.5% per year).
High Growth Revenue: RMR's revenue (32.3% 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 (9.4%).
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 (-7.9%).
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?
3.94%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: RMR's dividend (3.94%) is higher than the bottom 25% of dividend payers in the US market (1.37%).
High Dividend: RMR's dividend (3.94%) is in the top 25% of dividend payers in the US market (3.86%)
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 (81.1% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
4.1yrs
Average management tenure
CEO
Adam Portnoy (50 yo)
6yrs
Tenure
US$3,850,853
Compensation
Mr. Adam David Portnoy has been Managing Trustee at Industrial Logistics Properties Trust since May 28, 2020. Mr. Portnoy served as Chairman of the Board of Trustees at Industrial Logistics Properties Trus...
CEO Compensation Analysis
Compensation vs Market: Adam's total compensation ($USD3.85M) is about average for companies of similar size in the US market ($USD3.86M).
Compensation vs Earnings: Adam's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO, President | 6yrs | US$3.85m | 0.41% $ 5.0m | |
| Executive VP | 6yrs | US$2.63m | 0.14% $ 1.7m | |
| MD, Executive VP | 6yrs | US$4.31m | 0.16% $ 2.0m | |
| Executive Vice President of RMR Group LLC | 20yrs | US$3.66m | 0.11% $ 1.3m | |
| Vice President of Accounting- RMR Group LLC | no data | no data | no data | |
| Senior VP & Chief Information Officer - RMR Group LLC | 2yrs | no data | no data | |
| Director of Investor Relations | no data | no data | no data | |
| Vice President of Human Resources | no data | no data | no data | |
| Senior Vice President | 1yr | no data | no data | |
| Vice President of Underwriting - RMR Group LLC | 2.25yrs | no data | no data | |
| Vice President of Asset Management | 1.58yrs | no data | no data | |
| Senior Vice President of The RMR Group LLC | no data | no data | no data |
4.1yrs
Average Tenure
50yo
Average Age
Experienced Management: RMR's management team is considered experienced (4.1 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO, President | 6yrs | US$3.85m | 0.41% $ 5.0m | |
| MD, Executive VP | 6yrs | US$4.31m | 0.16% $ 2.0m | |
| Independent Director | 5.17yrs | US$191.34k | 0.073% $ 900.1k | |
| Independent Director | 5.17yrs | US$196.34k | 0.086% $ 1.1m | |
| Independent Director | 3.83yrs | US$191.34k | 0.054% $ 669.5k | |
| Independent Director | 0.58yr | US$155.76k | 0.018% $ 225.0k |
5.2yrs
Average Tenure
59yo
Average Age
Experienced Board: RMR's board of directors are considered experienced (5.2 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$1.230b
- Market Cap: US$631.724m
- 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
| 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 |
| RMR * | BMV (Bolsa Mexicana de Valores) | Yes | Class A Common Shares | MX | MXN | 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 esta...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/21 23:54 |
| End of Day Share Price | 2021/01/21 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2020/09/30 |
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.