(RMR) RMR - Overview
Sector: Real Estate | Industry: Real Estate Services | Exchange: NASDAQ (USA) | Market Cap: 345m USD | Total Return: 53.7% in 12m
Avg Turnover: 3.01M
EPS Trend: -97.5%
Qual. Beats: -1
Rev. Trend: 9.1%
Qual. Beats: -1
Warnings
No concerns identified
Tailwinds
Idiosyncratic Leader
The RMR Group Inc. is an alternative asset management firm based in Newton, Massachusetts, specializing in real estate investment services. The company manages a diverse portfolio through its subsidiary, The RMR Group LLC, providing oversight for four publicly traded REITs, multiple real estate operating companies, and various private capital vehicles. Its management scope encompasses a broad range of sectors, including healthcare, senior living, industrial, office, and multifamily residential properties.
As a diversified real estate manager, RMR operates under a fee-based business model where revenue is typically derived from assets under management (AUM) and performance-based incentives. This structure allows the firm to scale operations across specialized property types without the direct capital requirements of property ownership. The diversified real estate sub-industry often exhibits lower volatility than pure-play REITs due to these recurring management fees and broad sectoral exposure.
To evaluate how these management fees impact long-term shareholder returns, you may want to examine the detailed financial metrics available on ValueRay.
Founded in 1986 and incorporated in 2015, the firm also provides advisory services to mortgage REITs and manages specialized assets such as leased lands and service-focused retail. This multi-platform approach provides the company with exposure to both equity and mortgage real estate markets across the United States.
- Managed assets under management growth drives base management fee revenue
- Interest rate fluctuations impact financing costs for managed REIT portfolios
- Performance fees depend on total shareholder returns of managed public entities
- Expansion into private capital vehicles diversifies revenue away from public REITs
- Commercial real estate occupancy levels influence property management fee income streams
| Net Income: 20.8m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.13 > 0.02 and ΔFCF/TA 4.17 > 1.0 |
| NWC/Revenue: 11.74% < 20% (prev 18.24%; Δ -6.50% < -1%) |
| CFO/TA 0.14 > 3% & CFO 97.3m > Net Income 20.8m |
| Net Debt (98.4m) to EBITDA (77.8m): 1.26 < 3 |
| Current Ratio: 1.73 > 1.5 & < 3 |
| Outstanding Shares: last quarter (16.8m) vs 12m ago 0.81% < -2% |
| Gross Margin: 86.31% > 18% (prev 0.36%; Δ 8.60k% > 0.5%) |
| Asset Turnover: 95.95% > 50% (prev 123.8%; Δ -27.87% > 0%) |
| Interest Coverage Ratio: 7.75 > 6 (EBITDA TTM 77.8m / Interest Expense TTM 8.00m) |
| A: 0.11 (Total Current Assets 177.5m - Total Current Liabilities 102.4m) / Total Assets 684.6m |
| B: 0.68 (Retained Earnings 467.0m / Total Assets 684.6m) |
| C: 0.09 (EBIT TTM 61.9m / Avg Total Assets 667.2m) |
| D: 1.67 (Book Value of Equity 467.3m / Total Liabilities 280.2m) |
| Altman-Z'' = 5.32 = AAA |
| DSRI: 1.16 (Receivables 83.0m/90.0m, Revenue 640.2m/804.5m) |
| GMI: 0.42 (GM 86.31% / 36.02%) |
| AQI: 0.81 (AQ_t 0.38 / AQ_t-1 0.47) |
| SGI: 0.80 (Revenue 640.2m / 804.5m) |
| TATA: -0.11 (NI 20.8m - CFO 97.3m) / TA 684.6m) |
| Beneish M = -3.80 (Cap -4..+1) = AAA |
As of May 29, 2026, the stock is trading at USD 20.40 with a total of 165,598 shares traded.
Over the past week, the price has changed by +2.93%,
over one month by +13.33%,
over three months by +27.92% and
over the past year by +53.69%.
RMR has received a consensus analysts rating of 3.67. Therefore, it is recommended to hold RMR.
- StrongBuy: 1
- Buy: 0
- Hold: 2
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 20.8 | 1.7% |
P/E Trailing = 16.7025
P/E Forward = 19.4175
P/S = 1.5768
P/B = 1.5178
P/EG = 0.0873
Revenue TTM = 640.2m USD
EBIT TTM = 61.9m USD
EBITDA TTM = 77.8m USD
Long Term Debt = 136.8m USD (from longTermDebt, last quarter)
Short Term Debt = 5.54m USD (from shortTermDebt, last quarter)
Debt = 178.5m USD (from shortLongTermDebtTotal, last quarter) + Leases 20.9m
Net Debt = 98.4m USD (calculated: Debt 178.5m - CCE 80.1m)
Enterprise Value = 443.9m USD (345.5m + Debt 178.5m - CCE 80.1m)
Interest Coverage Ratio = 7.75 (Ebit TTM 61.9m / Interest Expense TTM 8.00m)
EV/FCF = 4.82x (Enterprise Value 443.9m / FCF TTM 92.0m)
FCF Yield = 20.73% (FCF TTM 92.0m / Enterprise Value 443.9m)
FCF Margin = 14.38% (FCF TTM 92.0m / Revenue TTM 640.2m)
Net Margin = 3.25% (Net Income TTM 20.8m / Revenue TTM 640.2m)
Gross Margin = 86.31% ((Revenue TTM 640.2m - Cost of Revenue TTM 87.6m) / Revenue TTM)
Gross Margin QoQ = 44.27% (prev 49.31%)
Tobins Q-Ratio = 0.65 (Enterprise Value 443.9m / Total Assets 684.6m)
Interest Expense / Debt = 4.48% (Interest Expense 8.00m / Debt 178.5m)
Taxrate = 22.24% (589k / 2.65m)
NOPAT = 48.2m (EBIT 61.9m * (1 - 22.24%))
Current Ratio = 1.73 (Total Current Assets 177.5m / Total Current Liabilities 102.4m)
Debt / Equity = 0.78 (Debt 178.5m / totalStockholderEquity, last quarter 227.6m)
Debt / EBITDA = 1.26 (Net Debt 98.4m / EBITDA 77.8m)
Debt / FCF = 1.07 (Net Debt 98.4m / FCF TTM 92.0m)
Total Stockholder Equity = 229.8m (last 4 quarters mean from totalStockholderEquity)
RoA = 3.12% (Net Income 20.8m / Total Assets 684.6m)
RoE = 9.05% (Net Income TTM 20.8m / Total Stockholder Equity 229.8m)
RoCE = 16.89% (EBIT 61.9m / Capital Employed (Equity 229.8m + L.T.Debt 136.8m))
RoIC = 9.48% (NOPAT 48.2m / Invested Capital 507.7m)
WACC = 6.88% (E(345.5m)/V(524.0m) * Re(8.64%) + D(178.5m)/V(524.0m) * Rd(4.48%) * (1-Tc(0.22)))
Discount Rate = 8.64% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 24.44 | Cagr: -24.49%
[DCF] Terminal Value 77.97% ; FCFF base≈79.3m ; Y1≈90.9m ; Y5≈133.8m
[DCF] Fair Price = 119.0 (EV 2.01b - Net Debt 98.4m = Equity 1.92b / Shares 16.1m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: -97.52 | EPS CAGR: -27.53% | SUE: -2.60 | # QB: -1
Revenue Correlation: 9.10 | Revenue CAGR: 1.44% | SUE: -1.28 | # QB: -1
EPS current Quarter (2026-06-30): EPS=0.16 | Chg30d=-17.95% | Revisions=-20% | Analysts=1
EPS current Year (2026-09-30): EPS=0.65 | Chg30d=-11.56% | Revisions=-20% | GrowthEPS=-42.5% | GrowthRev=-11.1%
EPS next Year (2027-09-30): EPS=0.78 | Chg30d=-3.11% | Revisions=-20% | GrowthEPS=+20.0% | GrowthRev=+3.5%
[Analyst] Revisions Ratio: -20%