RE/MAX Holdings (NYSE:RMAX) - Share price, News & Analysis

RMAX fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	3/6
Past Performance	0/6
Financial Health	2/6
Dividends	1/6

RMAX Stock Overview

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

Rewards

Trading at 62% below our estimate of its fair value

Earnings are forecast to grow 38.54% per year

Risk Analysis

Debt is not well covered by operating cash flow

Dividend of 4.06% is not well covered by earnings or forecast to be in the next 3 years

RE/MAX Holdings Competitors

Zillow Group

NasdaqGS:ZG

US$10.1b

Opendoor Technologies

NasdaqGS:OPEN

US$4.3b

Realogy Holdings

NYSE:RLGY

US$1.3b

Offerpad Solutions

NYSE:OPAD

US$1.2b

Price History & Performance

Summary of all time highs, changes and price drops for RE/MAX Holdings
Historical stock prices
Current Share Price	US$22.66
52 Week High	US$35.90
52 Week Low	US$21.48
Beta	1.41
1 Month Change	-13.11%
3 Month Change	-23.19%
1 Year Change	-35.74%
3 Year Change	-28.11%
5 Year Change	-58.27%
Change since IPO	-16.07%

Recent News & Updates

May 01

RE/MAX Holdings (NYSE:RMAX) Has Affirmed Its Dividend Of US$0.23

The board of RE/MAX Holdings, Inc. ( NYSE:RMAX ) has announced that it will pay a dividend of US$0.23 per share on the...

Shareholder Returns

	RMAX	US Real Estate	US Market
7D	0.5%	4.3%	0.1%
1Y	-35.7%	-48.6%	-12.7%

Return vs Industry: RMAX exceeded the US Real Estate industry which returned -47.7% over the past year.

Return vs Market: RMAX underperformed the US Market which returned -11.5% over the past year.

Price Volatility

Is RMAX's price volatile compared to industry and market?
RMAX volatility
RMAX Average Weekly Movement	5.0%
Real Estate Industry Average Movement	9.0%
Market Average Movement	8.0%
10% most volatile stocks in US Market	17.0%
10% least volatile stocks in US Market	3.0%

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 (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1973	639	Steve Joyce	https://www.remaxholdings.com

RE/MAX Holdings, Inc. operates as a franchisor of real estate and mortgage brokerage services in the United States, Canada, and internationally. The company operates through three segments: Real Estate, Mortgage, and Marketing Funds. It offers real estate brokerage franchising services under the RE/MAX brand; mortgage brokerage services to real estate brokers, real estate professionals, mortgage professionals, and other investors under the Motto Mortgage brand; and mortgage loan processing software and services under the wemlo brand.

RE/MAX Holdings Fundamentals Summary

How do RE/MAX Holdings's earnings and revenue compare to its market cap?
RMAX fundamental statistics
Market Cap	US$730.72m
Earnings (TTM)	-US$15.33m
Revenue (TTM)	US$348.41m

2.1x

P/S Ratio

-47.0x

P/E Ratio

Is RMAX overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
RMAX income statement (TTM)
Revenue	US$348.41m
Cost of Revenue	US$87.10m
Gross Profit	US$261.31m
Other Expenses	US$276.64m
Earnings	-US$15.33m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	-0.80
Gross Margin	75.00%
Net Profit Margin	-4.40%
Debt/Equity Ratio	646.4%

How did RMAX perform over the long term?

See historical performance and comparison

Dividends

4.1%

Current Dividend Yield

-113%

Payout Ratio

Valuation

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

Valuation Score

2/6

Valuation Score 2/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: RMAX ($22.66) is trading below our estimate of fair value ($59.69)

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

Price To Earnings Ratio

PE vs Industry: RMAX is unprofitable, so we can't compare its PE Ratio to the US Real Estate industry average.

PE vs Market: RMAX is unprofitable, so we can't compare its PE Ratio to the US market.

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate RMAX's PEG Ratio to determine if it is good value.

Price to Book Ratio

PB vs Industry: RMAX's PB Ratio (1.4x) is in line with the US Real Estate industry average.

Future Growth

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

Future Growth Score

3/6

Future Growth Score 3/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

38.5%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: RMAX is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.9%).

Earnings vs Market: RMAX is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: RMAX's is expected to become profitable in the next 3 years.

Revenue vs Market: RMAX's revenue (4% per year) is forecast to grow slower than the US market (7.8% per year).

High Growth Revenue: RMAX's revenue (4% 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 (6.9%).

Past Performance

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

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-30.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: RMAX is currently unprofitable.

Growing Profit Margin: RMAX is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: RMAX is unprofitable, and losses have increased over the past 5 years at a rate of 30.1% per year.

Accelerating Growth: Unable to compare RMAX's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: RMAX is unprofitable, making it difficult to compare its past year earnings growth to the Real Estate industry (100.8%).

Return on Equity

High ROE: RMAX has a negative Return on Equity (-33.58%), as it is currently unprofitable.

Financial Health

How is RE/MAX Holdings's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: RMAX's short term assets ($210.6M) exceed its short term liabilities ($134.0M).

Long Term Liabilities: RMAX's short term assets ($210.6M) do not cover its long term liabilities ($559.9M).

Debt to Equity History and Analysis

Debt Level: RMAX's net debt to equity ratio (476.6%) is considered high.

Reducing Debt: RMAX's debt to equity ratio has increased from 371.3% to 646.4% over the past 5 years.

Debt Coverage: RMAX's debt is not well covered by operating cash flow (8.4%).

Interest Coverage: RMAX's interest payments on its debt are well covered by EBIT (4.9x coverage).

Balance Sheet

Dividend

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

Dividend Score

2/6

Dividend Score 2/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

4.06%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: RMAX's dividend (4.06%) is higher than the bottom 25% of dividend payers in the US market (1.57%).

High Dividend: RMAX's dividend (4.06%) is low compared to the top 25% of dividend payers in the US market (4.07%).

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 8 years.

Earnings Payout to Shareholders

Earnings Coverage: RMAX is paying a dividend but the company is unprofitable.

Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (124.4%), RMAX's dividend payments are not well covered by cash flows.

Discover strong dividend paying companies

Management

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

6.3yrs

Average management tenure

CEO

Steve Joyce (61 yo)

0.17

Tenure

US$190,003

Compensation

Mr. Stephen P. Joyce, also known as Steve, serves as Chief Executive Officer at RE/MAX Holdings, Inc since March 31, 2022 and serves as Director since April 17, 2020. He served as Co-Chief Executive Office...

Leadership Team

Experienced Management: RMAX's management team is seasoned and experienced (6.3 years average tenure).

Board Members

Experienced Board: RMAX's board of directors are considered experienced (8.1 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.

Data	Last Updated (UTC time)
Company Analysis	2022/05/19 00:00
End of Day Share Price	2022/05/19 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31