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RMAX

RE/MAX HoldingsNYSE:RMAX Stock Report

Market Cap

US$923.6m

7D

8.1%

1Y

-9.0%

Updated

08 Dec, 2021

Data

Company Financials +
RMAX fundamental analysis
Snowflake Score
Valuation2/6
Future Growth3/6
Past Performance0/6
Financial Health2/6
Dividends2/6

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.

RE/MAX Holdings Competitors

Zillow Group

NasdaqGS:ZG

US$15.9b

Opendoor Technologies

NasdaqGS:OPEN

US$9.4b

Redfin

NasdaqGS:RDFN

US$4.3b

Realogy Holdings

NYSE:RLGY

US$1.9b

Price History & Performance

Summary of all time highs, changes and price drops for RE/MAX Holdings
Historical stock prices
Current Share PriceUS$29.73
52 Week HighUS$43.85
52 Week LowUS$26.05
Beta1.47
1 Month Change-5.83%
3 Month Change-11.33%
1 Year Change-9.03%
3 Year Change-1.62%
5 Year Change-46.04%
Change since IPO10.11%

Recent News & Updates

Oct 14

Re/Max: Bouncing Back In 2021

Re/Max has a time tested, consistently profitable business model. Smart investments in technology and acquisitions are keeping the company relevant and growing. The valuation is fair.

Shareholder Returns

RMAXUS Real EstateUS Market
7D8.1%4.9%1.7%
1Y-9.0%-26.8%19.8%

Return vs Industry: RMAX exceeded the US Real Estate industry which returned -26.8% over the past year.

Return vs Market: RMAX underperformed the US Market which returned 19.8% over the past year.

Price Volatility

Is RMAX's price volatile compared to industry and market?
RMAX volatility
RMAX Average Weekly Movement4.2%
Real Estate Industry Average Movement7.9%
Market Average Movement6.2%
10% most volatile stocks in US Market14.9%
10% least volatile stocks in US Market2.4%

Stable Share Price: RMAX is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: RMAX's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1973545Adam Contoshttps://www.remax.com

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 three segments: Real Estate, Mortgage, and Marketing Funds. The company offers its real estate franchise services under the RE/MAX brand; and mortgage brokerage services to real estate brokers, real estate professionals, mortgage professionals, and other investors under the Motto Mortgage brand.

RE/MAX Holdings Fundamentals Summary

How do RE/MAX Holdings's earnings and revenue compare to its market cap?
RMAX fundamental statistics
Market CapUS$923.59m
Earnings (TTM)-US$17.64m
Revenue (TTM)US$312.99m

3.0x

P/S Ratio

-52.9x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
RMAX income statement (TTM)
RevenueUS$312.99m
Cost of RevenueUS$77.28m
Gross ProfitUS$235.71m
ExpensesUS$253.35m
Earnings-US$17.64m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-0.56
Gross Margin75.31%
Net Profit Margin-5.64%
Debt/Equity Ratio684.5%

How did RMAX perform over the long term?

See historical performance and comparison

Dividends

3.1%

Current Dividend Yield

-96%

Payout Ratio

Valuation

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

29.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RMAX ($29.73) is trading below our estimate of fair value ($42.36)

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 is overvalued based on its PB Ratio (1.8x) compared to the US Real Estate industry average (1.6x).


Future Growth

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

54.4%

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 (2%).

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 (6.4% per year) is forecast to grow slower than the US market (10% per year).

High Growth Revenue: RMAX's revenue (6.4% 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 (6.3%).


Past Performance

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

-15.7%

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 15.7% 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 (84.2%).


Return on Equity

High ROE: RMAX has a negative Return on Equity (-43.12%), as it is currently unprofitable.


Financial Health

How is RE/MAX Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: RMAX's short term assets ($201.6M) exceed its short term liabilities ($141.1M).

Long Term Liabilities: RMAX's short term assets ($201.6M) do not cover its long term liabilities ($571.9M).


Debt to Equity History and Analysis

Debt Level: RMAX's net debt to equity ratio (504%) is considered high.

Reducing Debt: RMAX's debt to equity ratio has increased from 318.7% to 684.5% over the past 5 years.

Debt Coverage: RMAX's debt is not well covered by operating cash flow (9.7%).

Interest Coverage: RMAX's interest payments on its debt are well covered by EBIT (5x coverage).


Balance Sheet


Dividend

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

3.09%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: RMAX's dividend (3.09%) is higher than the bottom 25% of dividend payers in the US market (1.31%).

High Dividend: RMAX's dividend (3.09%) is low compared to the top 25% of dividend payers in the US market (3.55%).


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.


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: RMAX's dividends in 3 years are forecast to be well covered by earnings (37.7% payout ratio).


Next Steps

  • Explore strong dividend paying companies in the Real Estate industry.

Management

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

4.8yrs

Average management tenure


CEO

Adam Contos (49 yo)

3.83yrs

Tenure

US$2,394,169

Compensation

Mr. Adam M. Contos is a Co-Founder of RE/MAX, LLC and has been its Chief Executive Officer since February 2018. He has been Director at RE/MAX Holdings, Inc. since December 2018. He serves as Director of R...


CEO Compensation Analysis

Compensation vs Market: Adam's total compensation ($USD2.39M) is about average for companies of similar size in the US market ($USD2.31M).

Compensation vs Earnings: Adam's compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: RMAX's management team is considered experienced (4.8 years average tenure).


Board Members

Experienced Board: RMAX's board of directors are considered experienced (6.9 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

RE/MAX Holdings, Inc.'s 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$923.588m
  • Market Cap: US$559.108m
  • Shares outstanding: 31.37m
  • Website: https://www.remax.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/12/08 00:58
End of Day Share Price2021/12/07 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.