NYSE:RMAX

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Executive Summary

RE/MAX Holdings, Inc. operates as a franchisor of real estate and mortgage brokerage services in the United States, Canada, and internationally. More Details


Snowflake Analysis

Adequate balance sheet with moderate growth potential.


Similar Companies

Share Price & News

How has RE/MAX Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: RMAX is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: RMAX's weekly volatility has decreased from 12% to 5% over the past year.


Market Performance


7 Day Return

5.1%

RMAX

-11.3%

US Real Estate

-1.4%

US Market


1 Year Return

32.6%

RMAX

210.4%

US Real Estate

37.1%

US Market

Return vs Industry: RMAX underperformed the US Real Estate industry which returned 166.1% over the past year.

Return vs Market: RMAX underperformed the US Market which returned 34.1% over the past year.


Shareholder returns

RMAXIndustryMarket
7 Day5.1%-11.3%-1.4%
30 Day3.7%-12.4%1.6%
90 Day30.6%-45.9%7.3%
1 Year36.7%32.6%211.7%210.4%40.2%37.1%
3 Year-20.0%-25.6%476.8%465.9%62.5%52.1%
5 Year35.0%22.2%1,302.4%1,219.8%133.9%108.0%

Long-Term Price Volatility Vs. Market

How volatile is RE/MAX Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is RE/MAX Holdings undervalued compared to its fair value and its price relative to the market?

59.1x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: RMAX ($41.17) is trading above our estimate of fair value ($37.95)

Significantly Below Fair Value: RMAX is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: RMAX is poor value based on its PE Ratio (59.1x) compared to the US Real Estate industry average (32.3x).

PE vs Market: RMAX is poor value based on its PE Ratio (59.1x) compared to the US market (21.5x).


Price to Earnings Growth Ratio

PEG Ratio: RMAX is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: RMAX's PB Ratio (1.5x) is in line with the US Real Estate industry average.


Next Steps

Future Growth

How is RE/MAX Holdings forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

35.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RMAX's forecast earnings growth (35.5% per year) is above the savings rate (2%).

Earnings vs Market: RMAX's earnings (35.5% per year) are forecast to grow faster than the US market (20.4% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: RMAX's revenue (7.2% per year) is forecast to grow slower than the US market (10.5% per year).

High Growth Revenue: RMAX's revenue (7.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RMAX's Return on Equity is forecast to be low in 3 years time (6.5%).


Next Steps

Past Performance

How has RE/MAX Holdings performed over the past 5 years?

3.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RMAX has a large one-off loss of $10.8M impacting its September 30 2020 financial results.

Growing Profit Margin: RMAX's current net profit margins (4.8%) are lower than last year (10.6%).


Past Earnings Growth Analysis

Earnings Trend: RMAX's earnings have grown by 3.7% per year over the past 5 years.

Accelerating Growth: RMAX's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: RMAX had negative earnings growth (-55.5%) over the past year, making it difficult to compare to the Real Estate industry average (-11.3%).


Return on Equity

High ROE: Whilst RMAX's Return on Equity (20.63%) is high, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is RE/MAX Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: RMAX's short term assets ($148.0M) exceed its short term liabilities ($102.7M).

Long Term Liabilities: RMAX's short term assets ($148.0M) do not cover its long term liabilities ($328.4M).


Debt to Equity History and Analysis

Debt Level: RMAX's debt to equity ratio (199.8%) is considered high.

Reducing Debt: RMAX's debt to equity ratio has reduced from 874.3% to 199.8% over the past 5 years.

Debt Coverage: RMAX's debt is well covered by operating cash flow (30%).

Interest Coverage: RMAX's interest payments on its debt are well covered by EBIT (5.7x coverage).


Balance Sheet


Next Steps

Dividend

What is RE/MAX Holdings's current dividend yield, its reliability and sustainability?

2.23%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: RMAX's dividend (2.23%) is higher than the bottom 25% of dividend payers in the US market (1.34%).

High Dividend: RMAX's dividend (2.23%) is low compared to the top 25% of dividend payers in the US market (3.75%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, RMAX has been paying a dividend for less than 10 years.

Growing Dividend: RMAX's dividend payments have increased, but the company has only paid a dividend for 7 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (124.9%), RMAX's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: RMAX's dividends in 3 years are forecast to be well covered by earnings (42.6% payout ratio).


Next Steps

Management

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

3.9yrs

Average management tenure


CEO

Adam Contos (48 yo)

3yrs

Tenure

US$2,062,212

Compensation

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/MA...


CEO Compensation Analysis

Compensation vs Market: Adam's total compensation ($USD2.06M) is below average for companies of similar size in the US market ($USD3.68M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Adam Contos
CEO & Director3yrsUS$2.06m0.076%
$ 943.7k
Karri Callahan
Chief Financial Officer5.08yrsUS$1.07m0.071%
$ 881.5k
Serene Smith
Chief of Staff & COO3.75yrsUS$1.01m0.033%
$ 412.0k
Nicholas Bailey
Chief Customer Officer1.42yrsUS$661.60k0.025%
$ 310.5k
David Liniger
Co-Founder & Non-Executive Chairman7.58yrsno data1.91%
$ 23.6m
Gail Liniger
Co-Founder & Vice Chair of the Boardno datano datano data
Brett Ritchie
Senior VP & Chief Accounting Officer4yrsno data0.0037%
$ 45.4k
Andy Schulz
Vice President of Investor Relations5.08yrsno datano data
Adam Scoville
VP, General Counsel & Secretaryno datano data0.029%
$ 353.5k
Kerry McGovern
Vice President of Communications2.17yrsno datano data
Roy Schwalm
Senior Vice President of Finance & Strategy2yrsno datano data
Mike Reagan
Senior VPno datano datano data

3.9yrs

Average Tenure

47yo

Average Age

Experienced Management: RMAX's management team is considered experienced (3.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Adam Contos
CEO & Director3yrsUS$2.06m0.076%
$ 943.7k
David Liniger
Co-Founder & Non-Executive Chairman7.58yrsno data1.91%
$ 23.6m
Gail Liniger
Co-Founder & Vice Chair of the Boardno datano datano data
Joseph DeSplinter
Independent Director5yrsUS$203.29k0.045%
$ 563.0k
Stephen Joyce
Independent Director0.83yrno datano data
Kathleen Cunningham
Independent Director7.58yrsUS$213.29k0.081%
$ 1.0m
Ronald Harrison
Independent Director7.58yrsUS$194.54k0.091%
$ 1.1m
Roger Dow
Lead Independent Director1.75yrsUS$210.79k0.14%
$ 1.7m
Daniel Predovich
Director7.58yrsUS$183.29k0.019%
$ 234.3k
Laura Kelly
Director0.75yrno datano data
Christine Riordan
Independent Director6.08yrsUS$195.79k0.052%
$ 642.6k
Teresa Van De Bogart
Independent Director4.75yrsUS$195.79k0.043%
$ 528.3k

5.0yrs

Average Tenure

69yo

Average Age

Experienced Board: RMAX's board of directors are considered experienced (5 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.1%.


Top Shareholders

Company Information

RE/MAX Holdings, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: RE/MAX Holdings, Inc.
  • Ticker: RMAX
  • Exchange: NYSE
  • Founded: 1973
  • Industry: Real Estate Services
  • Sector: Real Estate
  • Implied Market Cap: US$1.239b
  • Market Cap: US$764.000m
  • Shares outstanding: 31.12m
  • Website: https://www.remax.com

Number of Employees


Location

  • RE/MAX Holdings, Inc.
  • 5075 South Syracuse Street
  • Denver
  • Colorado
  • 80237
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RMAXNYSE (New York Stock Exchange)YesClass A Common StockUSUSDOct 2013
2RMDB (Deutsche Boerse AG)YesClass A Common StockDEEUROct 2013

Biography

RE/MAX Holdings, Inc. operates as a franchisor of real estate and mortgage brokerage services in the United States, Canada, and internationally. It operates through four segments: RE/MAX Franchising, Motto...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/02/25 01:04
End of Day Share Price2021/02/24 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.