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RE/MAX Holdings

NYSE:RMAX
Snowflake Description

Proven track record with adequate balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
RMAX
NYSE
$975M
Imp Market Cap
  1. Home
  2. US
  3. Real Estate
Company description

RE/MAX Holdings, Inc. operates as a franchisor of real estate and mortgage brokerage services in the United States, Canada, and internationally. The last earnings update was 24 days ago. More info.


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  • RE/MAX Holdings has significant price volatility in the past 3 months.
RMAX Share Price and Events
7 Day Returns
-2.3%
NYSE:RMAX
-0.4%
US Real Estate
-1.4%
US Market
1 Year Returns
-40.1%
NYSE:RMAX
-15.8%
US Real Estate
1.6%
US Market
RMAX Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
RE/MAX Holdings (RMAX) -2.3% -25.8% -17.7% -40.1% -20.2% 12.5%
US Real Estate -0.4% -8.9% -10.6% -15.8% 14.9% 0.8%
US Market -1.4% -3.9% 0.1% 1.6% 33.2% 38.2%
1 Year Return vs Industry and Market
  • RMAX underperformed the Real Estate industry which returned -15.8% over the past year.
  • RMAX underperformed the Market in United States of America which returned 1.6% over the past year.
Price Volatility
RMAX
Industry
5yr Volatility vs Market

RMAX Value

 Is RE/MAX Holdings 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 RE/MAX Holdings 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 RE/MAX Holdings.

NYSE:RMAX Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 9 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 10.2%
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 NYSE:RMAX
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 1.11
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.111 (1 + (1- 21%) (29.91%))
1.25
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.25
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.25 * 5.96%)
10.18%

Discounted Cash Flow Calculation for NYSE:RMAX using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for RE/MAX Holdings 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.

NYSE:RMAX DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 10.18%)
2019 70.60 Analyst x4 64.08
2020 77.55 Analyst x4 63.88
2021 87.60 Analyst x1 65.49
2022 91.42 Est @ 4.36% 62.03
2023 94.96 Est @ 3.87% 58.48
2024 98.31 Est @ 3.53% 54.95
2025 101.55 Est @ 3.29% 51.51
2026 104.72 Est @ 3.12% 48.21
2027 107.86 Est @ 3% 45.07
2028 111.01 Est @ 2.92% 42.10
Present value of next 10 years cash flows $555.79
NYSE:RMAX DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $111.01 × (1 + 2.73%) ÷ (10.18% – 2.73%)
$1,530.46
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $1,530.46 ÷ (1 + 10.18%)10
$580.40
NYSE:RMAX Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $555.79 + $580.40
$1,136.20
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $1,136.20 / 30.37
$37.41
NYSE:RMAX Discount to Share Price
Calculation Result
Value per share (USD) From above. $37.41
Current discount Discount to share price of $32.12
= -1 x ($32.12 - $37.41) / $37.41
14.2%

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

Current Discount
Amount off the current price RE/MAX Holdings is available for.
Intrinsic value
14%
Share price is $32.12 vs Future cash flow value of $37.41
Current Discount Checks
For RE/MAX Holdings to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • RE/MAX Holdings's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • RE/MAX Holdings'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 RE/MAX Holdings's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are RE/MAX Holdings's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:RMAX PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $1.49
NYSE:RMAX Share Price ** NYSE (2019-05-24) in USD $32.12
United States of America Real Estate Industry PE Ratio Median Figure of 26 Publicly-Listed Real Estate Companies 15.15x
United States of America Market PE Ratio Median Figure of 3,086 Publicly-Listed Companies 17.45x

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

** Primary Listing of RE/MAX Holdings.

NYSE:RMAX PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:RMAX Share Price ÷ EPS (both in USD)

= 32.12 ÷ 1.49

21.54x

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

  • RE/MAX Holdings is overvalued based on earnings compared to the US Real Estate industry average.
  • RE/MAX Holdings is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does RE/MAX Holdings's expected growth come at a high price?
Raw Data
NYSE:RMAX PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 21.54x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts
3.2%per year
United States of America Real Estate Industry PEG Ratio Median Figure of 12 Publicly-Listed Real Estate Companies 0.44x
United States of America Market PEG Ratio Median Figure of 2,121 Publicly-Listed Companies 1.51x

*Line of best fit is calculated by linear regression .

NYSE:RMAX PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 21.54x ÷ 3.2%

6.79x

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

  • RE/MAX Holdings is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on RE/MAX Holdings's assets?
Raw Data
NYSE:RMAX PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $27.22
NYSE:RMAX Share Price * NYSE (2019-05-24) in USD $32.12
United States of America Real Estate Industry PB Ratio Median Figure of 51 Publicly-Listed Real Estate Companies 1.45x
United States of America Market PB Ratio Median Figure of 5,208 Publicly-Listed Companies 1.8x
NYSE:RMAX PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:RMAX Share Price ÷ Book Value per Share (both in USD)

= 32.12 ÷ 27.22

1.18x

* Primary Listing of RE/MAX Holdings.

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

  • RE/MAX Holdings is good value based on assets compared to the US Real Estate industry average.
X
Value checks
We assess RE/MAX Holdings'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. RE/MAX Holdings has a total score of 1/6, 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.

RMAX Future Performance

 How is RE/MAX Holdings expected to perform in the next 1 to 3 years based on estimates from 9 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
3.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is RE/MAX Holdings expected to grow at an attractive rate?
  • RE/MAX Holdings's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • RE/MAX Holdings's earnings growth is positive but not above the United States of America market average.
  • RE/MAX Holdings's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:RMAX Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:RMAX Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts 3.2%
NYSE:RMAX Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 9 Analysts 5.6%
United States of America Real Estate Industry Earnings Growth Rate Market Cap Weighted Average 3.9%
United States of America Real Estate Industry Revenue Growth Rate Market Cap Weighted Average 4.7%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.7%
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
NYSE:RMAX Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:RMAX Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 308 26 3
2020-12-31 298 92 27 9
2019-12-31 288 78 24 9
NYSE:RMAX Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 231 85 26
2018-12-31 213 76 27
2018-09-30 213 67 18
2018-06-30 207 64 13
2018-03-31 199 63 11
2017-12-31 194 63 10
2017-09-30 190 69 20
2017-06-30 186 70 22
2017-03-31 181 66 22
2016-12-31 176 64 22
2016-09-30 175 66 22
2016-06-30 175 68 21

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • RE/MAX Holdings's earnings are expected to grow by 3.2% yearly, however this is not considered high growth (20% yearly).
  • RE/MAX Holdings's revenue is expected to grow by 5.6% 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
NYSE:RMAX 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 9 Analyst Estimates (S&P Global) See Below

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

NYSE:RMAX Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 1.46 1.46 1.46 1.00
2020-12-31 1.52 1.63 1.43 7.00
2019-12-31 1.38 1.49 1.28 7.00
NYSE:RMAX Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 1.49
2018-12-31 1.52
2018-09-30 1.01
2018-06-30 0.76
2018-03-31 0.60
2017-12-31 0.58
2017-09-30 1.11
2017-06-30 1.27
2017-03-31 1.25
2016-12-31 1.26
2016-09-30 1.34
2016-06-30 1.35

*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.
  • RE/MAX Holdings is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess RE/MAX Holdings'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.
RE/MAX Holdings has a total score of 1/6, 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.

RMAX Past Performance

  How has RE/MAX Holdings 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 RE/MAX Holdings'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.
  • RE/MAX Holdings's year on year earnings growth rate has been positive over the past 5 years.
  • RE/MAX Holdings's 1-year earnings growth exceeds its 5-year average (147.8% vs 13.7%)
  • RE/MAX Holdings's earnings growth has exceeded the US Real Estate industry average in the past year (147.8% vs -15.8%).
Earnings and Revenue History
RE/MAX Holdings'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 RE/MAX Holdings Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:RMAX Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 231.16 26.47 115.34
2018-12-31 212.63 27.04 115.57
2018-09-30 212.51 17.87 108.84
2018-06-30 206.72 13.45 109.27
2018-03-31 198.95 10.68 102.74
2017-12-31 193.71 10.24 95.64
2017-09-30 189.63 19.57 99.24
2017-06-30 186.11 22.49 91.21
2017-03-31 180.79 22.00 88.80
2016-12-31 175.64 22.22 86.04
2016-09-30 175.15 22.48 85.17
2016-06-30 174.71 20.87 84.02
2016-03-31 175.58 18.84 84.22
2015-12-31 176.87 16.41 87.33
2015-09-30 176.16 14.85 85.58
2015-06-30 175.29 14.34 85.92
2015-03-31 173.31 13.78 86.09
2014-12-31 170.98 13.44 86.69
2014-09-30 168.65 12.57 88.09
2014-06-30 164.73 8.29 85.73
2014-03-31 161.67 3.91 83.02
2013-12-31 158.86 1.51 95.75
2013-09-30 153.71 19.70 80.05
2013-06-30 151.83 -53.69 88.50
2013-03-31 147.75 28.76 85.38
2012-12-31 143.68 0.00 79.91

*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.
  • Whilst RE/MAX Holdings made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%), this is metric is skewed due to its high level of debt.
  • RE/MAX Holdings used its assets more efficiently than the US Real Estate industry average last year based on Return on Assets.
  • RE/MAX Holdings's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess RE/MAX Holdings'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.
RE/MAX Holdings has a total score of 4/6, 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.

RMAX Health

 How is RE/MAX Holdings'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 RE/MAX Holdings's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • RE/MAX Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • RE/MAX Holdings's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of RE/MAX Holdings'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.
  • Debt is not covered by short term assets, assets are 0.5x debt.
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 RE/MAX Holdings Company Filings, last reported 1 month ago.

NYSE:RMAX Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 83.63 291.79 64.77
2018-12-31 79.28 227.79 59.97
2018-09-30 72.16 228.44 51.26
2018-06-30 60.54 229.12 39.84
2018-03-31 51.11 228.53 30.10
2017-12-31 49.13 228.99 50.81
2017-09-30 72.74 229.44 83.94
2017-06-30 69.96 229.90 70.32
2017-03-31 61.95 230.36 64.64
2016-12-31 60.71 230.82 57.61
2016-09-30 58.68 186.61 101.98
2016-06-30 51.64 186.98 97.57
2016-03-31 43.64 187.36 95.67
2015-12-31 39.41 200.36 110.21
2015-09-30 22.78 202.37 95.37
2015-06-30 13.79 202.85 80.28
2015-03-31 -0.20 203.33 114.55
2014-12-31 39.28 211.67 107.20
2014-09-30 33.11 212.20 98.13
2014-06-30 24.16 212.72 84.62
2014-03-31 16.59 227.84 97.17
2013-12-31 15.54 228.40 88.38
2013-09-30 -22.53 228.96 73.48
2013-06-30 -23.69 223.23 58.58
2013-03-31 -12.70 223.80 68.14
2012-12-31 -18.37 232.33 68.50
  • RE/MAX Holdings's level of debt (348.9%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (1365.3% vs 348.9% today).
  • Debt is well covered by operating cash flow (29.1%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 6.5x coverage).
X
Financial health checks
We assess RE/MAX Holdings'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. RE/MAX Holdings has a total score of 4/6, 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.

RMAX Dividends

 What is RE/MAX Holdings'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
2.62%
Current annual income from RE/MAX Holdings dividends. Estimated to be 2.78% next year.
If you bought $2,000 of RE/MAX Holdings shares you are expected to receive $52 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?
  • RE/MAX Holdings's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.47%).
  • RE/MAX Holdings's dividend is below the markets top 25% of dividend payers in United States of America (3.75%).
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
NYSE:RMAX 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 9 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 2007 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 3.8%

Industry and Market average data is calculated daily.

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

NYSE:RMAX Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 1.00 3.00
2020-12-31 0.89 6.00
2019-12-31 0.84 5.00
NYSE:RMAX Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-05-01 0.840 2.330
2019-02-20 0.840 2.108
2018-10-31 0.800 2.341
2018-08-01 0.800 1.788
2018-05-02 0.800 1.488
2018-02-21 0.800 1.398
2017-11-01 0.720 1.431
2017-08-02 0.720 1.148
2017-05-03 0.720 1.284
2017-02-22 0.720 1.252
2016-08-03 0.600 1.254
2016-02-24 0.600 1.585
2015-11-04 0.500 1.398
2015-08-06 0.500 1.367
2015-05-07 0.500 1.402
2015-03-11 0.500 1.494
2014-11-06 0.250 0.737
2014-08-06 0.250 0.820
2014-05-08 0.250 0.874
2014-03-24 0.250 0.876

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

  • Whilst dividend payments have been stable, RE/MAX Holdings has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but RE/MAX Holdings only paid a dividend in the past 5 years.
Current Payout to shareholders
What portion of RE/MAX Holdings's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.8x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.6x coverage).
X
Income/ dividend checks
We assess RE/MAX Holdings'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 RE/MAX Holdings afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. RE/MAX Holdings 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.

RMAX Management

 What is the CEO of RE/MAX Holdings'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 Contos
COMPENSATION $2,405,065
AGE 46
TENURE AS CEO 1.3 years
CEO Bio

Mr. Adam M. Contos is a Co-Founder of RE/MAX, LLC and its CO-Chief Executive Officer. He has been Director at RE/MAX Holdings, Inc. since December 2018. Mr. Contos has been Chief Executive Officer of RE/MAX Holdings, Inc. since February 14, 2018. He served as Co-Chief Executive Officer of RE/MAX Holdings, Inc. from May 30, 2017 to February 14, 2018 and its Chief Operating Officer since January 1, 2016 until May 30, 2017. Mr. Contos served as Senior Vice President of Marketing at RE/MAX Holdings from February 2015 to January 1, 2016. Mr. Contos served as Senior Vice President of Marketing at RE/MAX, LLC. He served as Vice President of Business Development at RE/MAX, LLC since February 2014 and served as its Vice President of Region Development since August 2013. Mr. Contos served as Regional Vice President of RE/MAX Florida at RE/MAX, LLC since January 2010 and served as its Regional Vice President since February 2007. Mr. Contos served as Regional Director of Mountain States of Re/max International, Inc. from September 2005 to March 2006 and its Vice President of RE/MAX Mountain States since March 2006. He served as a Senior Franchise Development Consultant and Franchise Development consultant for the region from April 2004 to August 2005. From August 2003 to April 2004, he served as an Independent contractor of RE/MAX International, creating and conducting S.A.F.E.R. Prior to his affiliation with RE/MAX, Mr. Contos served at the Douglas County Sheriff's Office in various positions from April 1993 to April 2004. He was Lieutenant (Watch Commander) for the Patrol Division and SWAT Tactical Commander from November, 2002 to April, 2004. He was Sergeant of Court Services and Detentions Division, a Corporal/Investigator and a Deputy Sheriff. Mr. Contos served in the United States Marine Corps Reserves from 1990 to 1996 and was honorably discharged as a sergeant. Following a long, successful career in law enforcement, he began working for the RE/MAX organization as an independent contactor in August 2003, presenting a safety training and awareness program he created specifically for real estate agents. Mr. Contos attended Cherry Creek High School and Metro State College in criminal justice.

CEO Compensation
  • Adam's compensation has been consistent with company performance over the past year, both up more than 20%.
  • 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 RE/MAX Holdings management team in years:

2.3
Average Tenure
45.5
Average Age
  • The tenure for the RE/MAX Holdings management team is about average.
Management Team

Dave Liniger

TITLE
Co-Founder & Non-Executive Chairman
AGE
72
TENURE
46.3 yrs

Adam Contos

TITLE
CEO & Director
COMPENSATION
$2M
AGE
46
TENURE
1.3 yrs

Gail Liniger

TITLE
Co-Founder & Vice Chair
AGE
72
TENURE
46.3 yrs

Karri Callahan

TITLE
Chief Financial Officer
COMPENSATION
$922K
AGE
40
TENURE
3.3 yrs

Serene Smith

TITLE
Chief of Staff & COO
COMPENSATION
$880K
AGE
39
TENURE
2 yrs

Brett Ritchie

TITLE
Senior VP & Chief Accounting Officer
AGE
45
TENURE
2.3 yrs

Andy Schulz

TITLE
Vice President of Investor Relations
TENURE
3.3 yrs

Adam Scoville

TITLE
VP, General Counsel & Secretary

Kerry McGovern

TITLE
Vice President of Communications
TENURE
0.4 yrs

Pete Crowe

TITLE
Executive Vice President of Business & Product Strategy
TENURE
1.4 yrs
Board of Directors Tenure

Average tenure and age of the RE/MAX Holdings board of directors in years:

5.1
Average Tenure
70.5
Average Age
  • The tenure for the RE/MAX Holdings board of directors is about average.
Board of Directors

Dave Liniger

TITLE
Co-Founder & Non-Executive Chairman
AGE
72
TENURE
5.8 yrs

Adam Contos

TITLE
CEO & Director
COMPENSATION
$2M
AGE
46
TENURE
0.4 yrs

Gail Liniger

TITLE
Co-Founder & Vice Chair
AGE
72

Kathy Cunningham

TITLE
Independent Director
COMPENSATION
$215K
AGE
71
TENURE
5.8 yrs

Roger Dow

TITLE
Lead Independent Director
COMPENSATION
$196K
AGE
71

Chris Riordan

TITLE
Independent Director
COMPENSATION
$196K
AGE
53
TENURE
4.3 yrs

Joe DeSplinter

TITLE
Independent Director
COMPENSATION
$201K
AGE
64
TENURE
3.3 yrs

Ron Harrison

TITLE
Independent Director
COMPENSATION
$199K
AGE
82
TENURE
5.8 yrs

Dan Predovich

TITLE
Director
COMPENSATION
$181K
AGE
70
TENURE
5.8 yrs

Teresa Van De Bogart

TITLE
Independent Director
COMPENSATION
$194K
AGE
62
TENURE
3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
13. Jun 18 Sell Daniel Predovich Individual 11. Jun 18 11. Jun 18 -1,576 $54.28 $-85,545
X
Management checks
We assess RE/MAX Holdings'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. RE/MAX Holdings 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.

RMAX News

Simply Wall St News

If You Had Bought RE/MAX Holdings (NYSE:RMAX) Stock A Year Ago, You'd Be Sitting On A 37% Loss, Today

By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. … Even though the RE/MAX Holdings share price is down over the year, its EPS actually improved. … Since the fundamental metrics don't readily explain the share price drop, there might be an opportunity if the market has overreacted

Simply Wall St -

Why RE/MAX Holdings Inc (NYSE:RMAX) Looks Like A Quality Company

RE/MAX Holdings has a ROE of 59%, based on the last twelve months. … View our latest analysis for RE/MAX Holdings? … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Should Income Investors Buy RE/MAX Holdings Inc (NYSE:RMAX) Before Its Ex-Dividend?

Investors who want to cash in on RE/MAX Holdings Inc's (NYSE:RMAX) upcoming dividend of US$0.20 per share have only 2 days left to buy the shares before its ex-dividend date, 14 August 2018, in time for dividends payable on the 29 August 2018. … Well, keep on reading because today, I'm going to look at the latest data and analyze the stock and its dividend property in further detail. … How I analyze a dividend stock?

Simply Wall St -

Is RE/MAX Holdings Inc (NYSE:RMAX) A Smart Pick For Income Investors?

In the past 4 years RE/MAX Holdings Inc (NYSE:RMAX) has returned an average of 1.00% per year to investors in the form of dividend payouts. … Let's dig deeper into whether RE/MAX Holdings should have a place in your portfolio. … View our latest analysis for RE/MAX Holdings

Simply Wall St -

Calculating The Fair Value Of RE/MAX Holdings Inc (NYSE:RMAX)

by taking the foreast future cash flows of the company and discounting them back to today's value. … discounted cash flows (DCF). … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model

Simply Wall St -

What is Behind RE/MAX Holdings Inc's (NYSE:RMAX) Superior ROE?

and looking to gauge the potential return on investment in RE/MAX Holdings Inc (NYSE:RMAX). … RE/MAX Holdings Inc (NYSE:RMAX) outperformed the real estate services industry on the basis of its ROE – producing a higher 68.40% relative to the peer average of 10.60% over the past 12 months. … Sustainability can be gauged by a company’s financial leverage – the more debt it has, the higher ROE is pumped up in the short term, at the expense of long term interest payment burden

Simply Wall St -

Brief Commentary On RE/MAX Holdings Inc's (NYSE:RMAX) Fundamentals

I've been keeping an eye on RE/MAX Holdings Inc (NYSE:RMAX) because I'm attracted to its fundamentals. … Looking at the company as a whole, as a potential stock investment, I believe RMAX has a lot to offer. … In the following section, I expand a bit more on these key aspects.

Simply Wall St -

With An ROE Of 68.40%, Has RE/MAX Holdings Inc's (NYSE:RMAX) Management Done Well?

Check out our latest analysis for RE/MAX Holdings What you must know about ROE Firstly, Return on Equity, or ROE, is simply the percentage of last years’ earning against the book value of shareholders’ equity. … For now, let’s just look at the cost of equity number for RE/MAX Holdings, which is 8.59%. … This is called the Dupont Formula: Dupont Formula ROE = profit margin × asset turnover × financial leverage ROE = (annual net profit ÷ sales) × (sales ÷ assets) × (assets ÷ shareholders’ equity) ROE = annual net profit ÷ shareholders’ equity NYSE:RMAX Last Perf May 31st 18 The first component is profit margin, which measures how much of sales is retained after the company pays for all its expenses.

Simply Wall St -

What Should We Expect From RE/MAX Holdings Inc's (NYSE:RMAX) Earnings Over The Next Few Years?

The most recent earnings announcement RE/MAX Holdings Inc's (NYSE:RMAX) released in December 2017 suggested that the business experienced a substantial headwind with earnings deteriorating by -42.78%. … Below is my commentary, albeit very simple and high-level, on how market analysts perceive RE/MAX Holdings's earnings growth outlook over the next couple of years and whether the future looks brighter. … Check out our latest analysis for RE/MAX Holdings Analysts' outlook for next year seems buoyant, with earnings growth more than doubling.

Simply Wall St -

Should You Be Tempted To Sell RE/MAX Holdings Inc (NYSE:RMAX) Because Of Its PE Ratio?

Formula Price-Earnings Ratio = Price per share ÷ Earnings per share P/E Calculation for RMAX Price per share = $59.05 Earnings per share = $0.724 ∴ Price-Earnings Ratio = $59.05 ÷ $0.724 = 81.5x The P/E ratio itself doesn’t tell you a lot; however, it becomes very insightful when you compare it with other similar companies. … RMAX’s P/E of 81.5x is higher than its industry peers (9.2x), which implies that each dollar of RMAX’s earnings is being overvalued by investors. … Alternatively, if you inadvertently compared riskier firms with RMAX, RMAX’s P/E would again be higher since investors would reward RMAX’s lower risk with a higher price as well.

Simply Wall St -

RMAX Company Info

Description

RE/MAX Holdings, Inc. operates as a franchisor of real estate and mortgage brokerage services in the United States, Canada, and internationally. The company offers its real estate franchise services under the RE/MAX brand name; and mortgage brokerage services under the Motto Mortgage brand. It also provides real estate technology solutions. The company was founded in 1973 and is headquartered in Denver, Colorado.

Details
Name: RE/MAX Holdings, Inc.
RMAX
Exchange: NYSE
Founded: 1973
$975,405,641
$571,991,289
30,367,548
Website: http://www.remax.com
Address: RE/MAX Holdings, Inc.
5075 South Syracuse Street,
Denver,
Colorado, 80237,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE RMAX Class A Common Stock New York Stock Exchange US USD 02. Oct 2013
DB 2RM Class A Common Stock Deutsche Boerse AG DE EUR 02. Oct 2013
Number of employees
Current staff
Staff numbers
500
RE/MAX Holdings employees.
Industry
Real Estate Services
Real Estate
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/27 00:37
End of day share price update: 2019/05/24 00:00
Last estimates confirmation: 2019/05/14
Last earnings filing: 2019/05/03
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


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.