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Re/Max Holdings (RMAX)
NYSE:RMAX
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Re/Max Holdings
(NYSE:RMAX)
Rating:61Neutral
Price Target:―
Positive Factors
Company Initiatives
Management remains optimistic about eventual stabilization in U.S. agent growth, supported by newer initiatives like RE/MAX Teams, CM&A, Concierge, and the recently announced Aspire initiative.
Financial Performance
Adjusted EBITDA of $19 million were $2 million above our estimate and $1 million above consensus.
International Growth
The company continues to see success on the international front and continues to pivot and innovate its service offering.
Negative Factors
Dividend Suspension
RMAX suspended the company's quarterly dividend, citing its litigation settlement and ongoing headwinds from housing and mortgage market conditions, and it remains suspended.
Top-line Growth Challenges
The company continues to face top-line growth challenges given ongoing U.S. agent declines and tough housing conditions.
US Agent Count Decline
U.S. agents declined by 1,432 sequentially, to 49,854 (down 8% year-over-year), which is now roughly 21% below peak levels in 2019.
Re/Max Holdings (RMAX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$282.48M
Dividend YieldN/A
Average Volume (3M)144.84K
Price to Earnings (P/E)16.4
Beta (1Y)1.31
Revenue Growth-4.61%
EPS GrowthN/A
CountryUS
Employees536
SectorReal Estate
Sector Strength64
IndustryReal Estate - Services
Share Statistics
EPS (TTM)0.24
Shares Outstanding19,934,893
10 Day Avg. Volume162,985
30 Day Avg. Volume144,843
Financial Highlights & Ratios
PEG Ratio0.86
Price to Book (P/B)0.36
Price to Sales (P/S)0.00
P/FCF Ratio3.17
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$9.00Price Target Upside25.17% Upside
Rating ConsensusHold
Number of Analyst Covering5
Re/Max Holdings Business Overview & Revenue Model
Company DescriptionRE/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. In addition, the company provides First mobile app, which integrates a suite of digital products that enables agents, brokers, and teams to establish and manage client relationships; RE/MAX University platform, a learning hub designed to help each agent in their professional expertise; and Booj platform. The company was founded in 1973 and is headquartered in Denver, Colorado.
How the Company Makes MoneyRE/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 demonstrates strong cash flow management and equity position with a high equity ratio and positive free cash flow growth. However, declining revenue and low return on equity indicate challenges that need attention.Income Statement
Re/Max Holdings shows resilience in its income statement with a Gross Profit Margin of approximately 78% TTM, indicating strong profitability from core operations. However, the company experienced a decrease in Total Revenue by 1.24% from the previous year, which might be concerning if the trend continues. Notably, the Net Profit Margin improved to 2.8% TTM, reflecting better cost management despite a challenging revenue environment.65
Positive
Balance Sheet
The balance sheet reveals a high Debt-to-Equity Ratio of 0.07 TTM, suggesting limited leverage risk, which is favorable. The Equity Ratio stands at 75.9%, indicating a strong equity position relative to assets. However, the Return on Equity is low at 1.96% TTM, pointing to inefficient use of equity capital to generate profits.55
Neutral
Cash Flow
The cash flow statement shows positive Free Cash Flow growth of 130% TTM, highlighting strong cash generation capability. The Operating Cash Flow to Net Income Ratio of 6.57 TTM indicates healthy cash flow relative to net income, showcasing strong cash earnings quality.72
Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 303.87M | 307.69M | 325.67M | 353.39M | 329.70M | 266.00M | Gross Profit |
| 218.82M | 228.70M | 241.81M | 263.07M | 247.31M | 201.60M | EBIT |
| 41.02M | 40.18M | -10.64M | 55.48M | 36.32M | 38.01M | EBITDA |
| 76.00M | 75.22M | 26.62M | 77.25M | 20.52M | 75.79M | Net Income Common Stockholders |
| 8.52M | 7.12M | -69.02M | 9.48M | -24.62M | 20.02M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 89.11M | 96.62M | 82.62M | 108.66M | 126.27M | 101.36M | Total Assets |
| 571.39M | 581.59M | 577.15M | 693.96M | 776.13M | 557.39M | Total Debt |
| 469.10M | 472.07M | 483.98M | 493.38M | 504.33M | 279.53M | Net Debt |
| 379.99M | 375.45M | 401.36M | 384.71M | 378.06M | 178.18M | Total Liabilities |
| 626.91M | 639.99M | 653.21M | 663.53M | 707.07M | 444.71M | Stockholders Equity |
| 433.51M | 429.48M | 411.06M | 479.90M | 508.27M | 517.17M |
| Cash Flow | Free Cash Flow | ||||
| 50.24M | 53.03M | 21.84M | 61.21M | 27.20M | 63.94M | Operating Cash Flow |
| 55.93M | 59.65M | 28.26M | 71.14M | 42.44M | 70.85M | Investing Cash Flow |
| -5.14M | -5.88M | -5.64M | -11.50M | -194.92M | -17.53M | Financing Cash Flow |
| -10.45M | -8.27M | -35.82M | -78.36M | 189.35M | -36.00M |
Re/Max Holdings Technical Analysis
Negative
7.19
Price Trends
7.91
Negative
8.83
Negative
10.29
Negative
Market Momentum
-0.16
Positive
38.13
Neutral
7.33
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 7.19 is below the 20-day moving average (MA) of 7.69, below the 50-day MA of 7.91, and below the 200-day MA of 10.29, indicating a bearish trend. The MACD of -0.16 indicates Positive momentum. The RSI at 38.13 is Neutral, neither overbought nor oversold. The STOCH value of 7.33 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RMAX.
Re/Max Holdings Risk Analysis
Re/Max Holdings disclosed 31 risk factors in its most recent earnings report. Re/Max Holdings reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 1 New Risks
1.
RIHI directly (through ownership of our Class B common stock) and indirectly (through ownership of RMCO common units) owns interests in us, and RIHI has the right to redeem and cause us to redeem, as applicable, such interests pursuant to the terms of the RMCO, LLC agreement. We may elect to issue shares of Class A common stock upon such redemption, and the issuance and sale of such shares may have a negative impact on the market price of our Class A common stock. Q4, 2024
Re/Max Holdings Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $847.48M | ― | -52.95% | ― | 83.50% | 8.45% | |
67 Neutral | $1.20B | ― | -6.44% | 2.65% | 6.69% | -137.52% | |
63 Neutral | $189.90M | ― | -23.11% | ― | 11.24% | 38.70% | |
61 Neutral | $282.48M | 16.36 | 2.01% | ― | -4.61% | ― | |
60 Neutral | $2.76B | 10.33 | 0.49% | 8508.28% | 5.95% | -17.56% | |
53 Neutral | $360.01M | ― | -6.84% | ― | 2.47% | -74.15% | |
45 Neutral | $539.75M | ― | -47.67% | ― | 2.36% | -23.60% |
* Real Estate Sector Average
Performance Comparison
RMAX
Re/Max Holdings
7.19
-1.03
-12.53%
HOUS
Anywhere Real Estate ate
3.34
-1.15
-25.61%
EXPI
eXp World Holdings
7.63
-3.39
-30.76%
OPEN
Opendoor Technologies
0.68
-1.45
-68.08%
REAX
Real Brokerage
4.13
-0.73
-15.02%
DOUG
Douglas Elliman Inc.
2.90
1.70
141.67%
Re/Max Holdings Earnings Call Summary
Earnings Call Date:May 01, 2025
(Q1-2025)
| % Change Since: -7.70%|
Next Earnings Date:Jul 30, 2025
Earnings Call Sentiment Neutral
The earnings call conveyed a cautiously optimistic tone, with RE/MAX demonstrating strong international growth and successful new initiatives, despite challenges in the U.S. market and mortgage segment. The company is focused on long-term growth and operational efficiencies.Q1-2025 Updates
Positive Updates
Higher Than Expected Revenue and Profitability
First quarter results featured higher than expected revenue, margins, and profits, with total revenue of $74.5 million and adjusted EBITDA of $19.3 million, up 1.5% over Q1 of last year.
Strong Global Agent Growth
RE/MAX's global agent count grew by over 10% in Q1, highlighting strong international momentum.
Successful New Initiatives
Introduced Aspire, a new onboarding program, alongside other initiatives like refreshed branding, MAX/Engage social platform, and AI-powered tools, aimed at enhancing competitive advantage.
Improved Margin Performance
Adjusted EBITDA margin improved to 25.9%, an increase of 164 basis points over the first quarter of 2024.
Encouraging Signs in Mortgage Segment
Despite a challenging market, there are positive signs such as increased network-wide transactions and volume, franchise renewals, and high conference attendance.
Negative Updates
Decline in U.S. Agent Count and Revenue
Revenue excluding the marketing funds decreased by 4.3% due to lower U.S. agent count and negative organic growth.
Challenges in Mortgage Market
The challenging mortgage market continues to impact revenue, with a need for several quarters to return to consistent growth.
Currency and Acquisition Pressures
Revenue was adversely affected by foreign currency movements of 1.1% and the wind down of prior technology acquisitions.
Operational Uncertainty
The macroeconomic situation and real estate market are clouded with uncertainty, making forecasting future results challenging.
Company Guidance
During the RE/MAX Holdings First Quarter 2025 Earnings Conference Call, the company provided guidance for the second quarter and full year of 2025 amid challenging macroeconomic and real estate market conditions. For Q2 2025, RE/MAX anticipates a 1.5% to 2.5% increase in agent count over Q2 2024, with revenue projected between $70 million and $75 million, including marketing funds revenue of $17 million to $19 million. Adjusted EBITDA is expected to range from $22.5 million to $25.5 million. For the full year, the company forecasts agent count between -1% and +1% compared to FY 2024, with revenue between $290 million and $310 million, and marketing funds revenue between $71 million and $75 million. Adjusted EBITDA for the year is projected to range from $90 million to $100 million. The company remains focused on operational excellence and strategic initiatives, including expanding and modernizing products and services, as well as enhancing its competitive advantage to navigate the ongoing market uncertainties.Re/Max Holdings Corporate Events
Executive/Board ChangesShareholder Meetings
Re/Max Holdings Stockholders Approve Key Proposals
Neutral
May 20, 2025
On May 14, 2025, Re/Max Holdings held its Annual Meeting where stockholders voted on several key proposals. The stockholders elected Class III directors, approved executive compensation, amended the 2023 Omnibus Incentive Plan, and ratified Ernst & Young LLP as the independent registered public accounting firm for 2025.
The most recent analyst rating on (RMAX) stock is a Sell with a $9.00 price target. To see the full list of analyst forecasts on Re/Max Holdings stock, see the RMAX Stock Forecast page.
Executive/Board Changes
Re/Max Holdings Announces CEO Ward Morrison’s Retirement
Neutral
Mar 31, 2025
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.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.