Re/Max Holdings (RMAX) AI Stock Analysis

• Market Cap: $250.32M
• Dividend Yield: N/A
• Average Volume (3M): 171.10K
• Price to Earnings (P/E): 21.8
• Beta (1Y): 1.59
• Revenue Growth: -5.52%
• EPS Growth: N/A
• Country: US
• Employees: 536
• Sector: Real Estate
• Sector Strength: 86
• Industry: Real Estate - Services
• EPS (TTM): 0.35
• Shares Outstanding: 19,906,921
• 10 Day Avg. Volume: 143,830
• 30 Day Avg. Volume: 171,100
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.55
• Price to Cash Flow (P/CF): 2.50
• P/FCF Ratio: 2.50
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $7.50
• Price Target Upside: -2.72% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 3

Re/Max Holdings' overall score reflects significant financial and operational challenges, including fluctuating revenue, high debt, and negative cash flow trends. Despite positive developments in international agent growth and strategic initiatives, the stock's technical indicators reveal bearish momentum, and its valuation appears high relative to industry norms. Addressing financial stability and operational issues is crucial for improving the company's stock performance.

Positive Factors

Financial Performance

Core earnings per share beat expectations with mixed key performance indicators.

International Expansion

Total agent count increased by 1,144 sequentially, driven by international markets.

Profit Results

RE/MAX reported fourth-quarter results that were above expectations on profit.

Negative Factors

Agent Count

U.S. agent count declined by 1,522 sequentially, marking a 7% year-over-year decrease.

Dividend Policy

RMAX suspended the company's quarterly dividend, citing its litigation settlement and ongoing headwinds from housing and mortgage market conditions, and it remains suspended.

Revenue Decline

Revenue declined 4% year-over-year, excluding marketing funds.

Re/Max Holdings Business Overview & Revenue Model

Company Description

RE/MAX Holdings, Inc. (RMAX) operates as a leading global franchisor of real estate brokerage services. Founded in 1973, the company is headquartered in Denver, Colorado, and is renowned for its extensive network of independently owned and operated brokerages. RE/MAX specializes in residential and commercial real estate franchises, providing a comprehensive suite of support services, including training, marketing, and technology solutions, to real estate professionals worldwide.

How the Company Makes Money

RE/MAX Holdings generates revenue primarily through franchise fees and annual dues collected from its network of franchisees. The company charges initial franchise fees for new franchise sales and ongoing fees based on a percentage of the franchisee's gross commission income. Additionally, RE/MAX earns revenue from annual membership dues paid by real estate agents who operate under the brand. The company also benefits from its Motto Mortgage business, which involves franchise sales and fees in the mortgage brokerage industry. Strategic partnerships and technology solutions further support its revenue streams by enhancing the value provided to franchisees and agents, thereby maintaining a competitive edge in the real estate sector.

Re/Max Holdings Financial Statement Overview

Summary

Re/Max Holdings faces significant financial challenges, with fluctuating revenue and profitability, high debt levels, and recent cash flow issues. While there are signs of operational efficiency, the company's inconsistent financial performance and leverage pose risks. Addressing these areas could enhance financial stability and growth potential.

Income Statement

Re/Max Holdings has experienced revenue fluctuations over the years, with a recent decline. The gross profit margin remains high, indicating efficient cost management. However, the net profit margin is low, due to inconsistent profitability, as seen with negative net income in 2021 and 2023. The EBIT and EBITDA margins are also volatile, showing operational challenges.

Balance Sheet

The company's debt-to-equity ratio has improved recently, suggesting better leverage management. However, the debt level remains significant, which could pose risks. The equity ratio indicates that a fair portion of assets is financed by equity, but past liabilities surpass assets, reflecting potential balance sheet weaknesses. ROE fluctuates, impacted by inconsistent net income.

Cash Flow

The cash flow from operations has shown variability, with no operating cash flow in the latest period. Free cash flow is absent in 2024, impacting financial flexibility. Historical free cash flow was positive, but the recent decline in cash generation poses liquidity concerns. The cash flow to net income ratios are not calculable for the latest period due to a lack of operating cash flow and free cash flow.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
307.69M	325.67M	353.39M	329.70M	266.00M
	Gross Profit
307.69M	241.81M	263.07M	247.31M	201.60M
	EBIT
40.18M	-10.64M	55.48M	36.32M	38.01M
	EBITDA
72.02M	26.62M	77.25M	20.52M	75.79M
	Net Income Common Stockholders
7.12M	-69.02M	9.48M	-24.62M	20.02M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
96.62M	82.62M	108.66M	126.27M	101.36M
	Total Assets
581.59M	577.15M	693.96M	776.13M	557.39M
	Total Debt
35.83M	483.98M	493.38M	504.33M	279.53M
	Net Debt
-60.79M	401.36M	384.71M	378.06M	178.18M
	Total Liabilities
639.99M	653.21M	663.53M	707.07M	444.71M
	Stockholders Equity
429.48M	411.06M	479.90M	508.27M	517.17M
Cash Flow		Free Cash Flow
53.03M	21.84M	61.21M	27.20M	63.94M
	Operating Cash Flow
59.65M	28.26M	71.14M	42.44M	70.85M
	Investing Cash Flow
-5.88M	-5.64M	-11.50M	-194.92M	-17.53M
	Financing Cash Flow
-8.27M	-35.82M	-78.36M	189.35M	-36.00M

Re/Max Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 7.71
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RMAX, the sentiment is Negative. The current price of 7.71 is below the 20-day moving average (MA) of 8.48, below the 50-day MA of 9.11, and below the 200-day MA of 10.49, indicating a bearish trend. The MACD of -0.21 indicates Negative momentum. The RSI at 39.14 is Neutral, neither overbought nor oversold. The STOCH value of 12.45 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RMAX.

Re/Max Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EXPI	63 Neutral	$1.40B	―	-7.50%	2.17%	6.69%	-137.52%
Z	63 Neutral	$15.48B	―	-2.39%	―	14.96%	29.56%
Sector *	61 Neutral	$4.31B	16.14	-3.60%	11.88%	6.17%	-20.99%
COMP	59 Neutral	$4.18B	―	-36.85%	―	15.23%	55.04%
RDFN	58 Neutral	$1.13B	―	199.35%	―	-4.16%	-17.19%
RMAX	57 Neutral	$250.32M	21.80	1.69%	―	-5.52%	―
HOUS	49 Neutral	$368.92M	―	-7.89%	―	0.99%	-30.39%

Re/Max Holdings Corporate Events

Re/Max Holdings Announces CEO Ward Morrison’s Retirement

RE/MAX Holdings announced the retirement of Ward Morrison, President and CEO of Motto Mortgage and wemlo, effective June 15, 2025. Morrison, who played a crucial role in the development and launch of Motto Franchising, will continue in a consultative role until the end of 2025. His departure marks a significant transition for the company, which has begun the search for a successor to ensure a seamless leadership transition. Morrison’s leadership has been pivotal in establishing the innovative Mortgage Brokerage In-A-Box model, and his contributions have significantly impacted the real estate and mortgage industries.