NASDAQ
RMR
Last Price
US $20.54
KEY FIGURES
MKT CAP
$0.7B
EPS
TTM
$1.24
PEG
TTM
N/M
P/E
TTM
17.24x
P/S
TTM
0.95x
YIELD
8.62%
GROWTH
Revenue Y/Y
3.50%
(FY vs FY)
EBITDA Y/Y
Cash Flow (DCF)
Fair Value
Market $20.54
0.59%
Default assumptions
EBITDA Multiple
Fair Value
Market $20.54
-56.00%
Default assumptions
Valuation
Financial
Performance
Financial stability - Cash flow debt coverage.
The RMR Group Inc. cash flow to debt ratio of 37.12% indicates that the company generates enough cash to cover its debts. This level indicates strong financial health.
Financial stability - Healthy cash flow growth.
The RMR Group Inc.'s free cash flow has increased 25.36% from $57.51M last year to $72.10M, signaling increasing performance
Financial risk - Healthy debt to equity ratio.
The RMR Group Inc.'s debt to equity ratio is 0.69, which means that the company's assets are unhealthy financed, signaling financial risk. READ MORE: A ratio over 0.60 means the company finances its assets with debt, signaling financial risk. If ratio is negative, the company spent its own equity and risks bankruptcy
Financial risk - Healthy debt to equity ratio development.
The RMR Group Inc.'s debt has increased relative to shareholder equity from 0.48 last year to 0.69 today, signaling weakened financials
Financial stability - Net debt/EBITDA.
The RMR Group Inc. has a net debt to EBITDA ratio of 2.31x, which is below the 3.00x threshold, indicating healthy leverage and financial stability
Financial stability - ICR.
The RMR Group Inc. earns at least as much interest as it pays. Interest obligations are fully covered.
Financial stability - Profit margin growth.
The RMR Group Inc.'s profit margin has increased (26.07%) in the last year from 2.58% to 3.25%, signaling increasing performance
Financial stability - Short term assets vs short term liabilities.
The RMR Group Inc.'s short-term assets of $192.69M exceed its short-term liabilities of $117.82M
Decreasing performance - ROA.
The RMR Group Inc.'s return on assets of 3.04% is lower than the 5.00% threshold, indicating inefficient asset utilization
Decreasing performance - Absolute return on equity.
The RMR Group Inc.'s return on equity of 9.05%, is lower than 15.00%, indicating bad performance
Increasing performance - Earnings quality.
The RMR Group Inc.'s operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation
Increasing performance - Earnings stability.
The RMR Group Inc. had positive net income in 5.00 out of 5 years, indicating stable and consistent earnings
Increasing performance - Free cash flow.
The RMR Group Inc. has positive free cash flow, indicating the company generates cash after capital expenditures
Increasing performance - FCF yield.
The RMR Group Inc. has a free cash flow yield of 10.83%, which is above the 2.00% threshold, indicating strong cash generation relative to market value
Decreasing performance - Healthy earnings growth.
The RMR Group Inc.'s yearly earnings has decreased -23.93% since last year from $23.13M to $17.60M, signaling decreasing performance
Decreasing performance - Healthy revenue growth.
The RMR Group Inc.'s yearly revenue has decreased -21.98% since last year from $897.61M to $700.28M, signaling decreasing performance
Increasing performance - ROIC.
ROIC 8.73% (Source: FMP key-metrics). In the 5–10% partial-credit band. Score: 1 of 2. This band sits within the typical US weighted-average cost of capital range. Methodology choice can change the conclusion: under FMP's invested-capital definition the company is at or near its cost of capital; under narrower operating-capital definitions the same company may score higher. Invested capital here includes equity, non-current liabilities, and short-term debt. Cash is not subtracted. See methodology.
Decreasing performance - 3-year revenue CAGR.
The RMR Group Inc.'s 3-year revenue CAGR of -5.60% is negative, indicating declining revenue over the past 3 years
Increasing performance - Revenue consistency.
The RMR Group Inc. had revenue growth in 3.00 out of 5 years, indicating consistent revenue performance
Increasing performance - ROE consistency.
The RMR Group Inc. had positive ROE in 5.00 out of 5 years, indicating consistent and reliable returns on equity
Overvalued - DCF valuation.
The RMR Group Inc. is overvalued relative to its fair value price of 20.62 based on Discounted Cash Flow model
Undervalued - Earnings yield.
The RMR Group Inc. has an earnings yield of 5.94%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings
Overvalued - EBITDA valuation.
The RMR Group Inc. is overvalued relative to its fair value price of 9.02 based on EBITDA multiple model
Undervalued - EV/EBITDA.
The RMR Group Inc. has an EV/EBITDA ratio of 9.55x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings
Overvalued - PEG ratio value.
The RMR Group Inc. has a PEG-ratio over 1 which is considered overvalued
Undervalued - P/B ratio.
The RMR Group Inc. has a price-to-book ratio of 1.54x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value
Undervalued - P/S ratio.
The RMR Group Inc. has a price-to-sales ratio of 1.04x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue
Profit margin
Current Ratio
Capital Returns
9.05%
Return on equity
ROIC: 8.73%
Valuation History
17.2X
Price to Earnings
EV/EBITDA: 9.6X
Cash flow
Profit margin
-3.49%
(FY vs FY)
Cash flow Y/Y
-1.28%
(FY vs FY)
Base valuations use default assumptions. Customize in the Valuator.