Re/Max Holdings (RMAX) AI Stock Analysis

• Market Cap: $331.88M
• Dividend Yield: N/A
• Average Volume (3M): 213.53K
• Price to Earnings (P/E): 19.2
• Beta (1Y): 1.29
• Revenue Growth: -4.61%
• EPS Growth: N/A
• Country: US
• Employees: 536
• Sector: Real Estate
• Sector Strength: 61
• Industry: Real Estate - Services
• EPS (TTM): 0.24
• Shares Outstanding: 19,934,893
• 10 Day Avg. Volume: 222,538
• 30 Day Avg. Volume: 213,529
• PEG Ratio: 0.89
• Price to Book (P/B): 0.37
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 6.53
• Enterprise Value/Market Cap: 2.12
• Enterprise Value/Revenue: 0.57
• Enterprise Value/Gross Profit: 3.22
• Enterprise Value/Ebitda: 2.46
• 1Y Price Target: $9.00
• Price Target Upside: 8.04% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 67 Neutral
• Price Target: $9.50 ▲(14.05%Upside)

Re/Max Holdings' overall stock score is driven by its strong financial performance in profitability and cash generation, despite challenges in revenue growth and high leverage. Positive technical indicators support the stock, although valuation concerns and macroeconomic uncertainties weigh on the overall score. The earnings call reflects a mix of optimism and challenges, particularly in the U.S. market.

Positive Factors

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.

Management 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.

Negative Factors

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.

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 Challenges

The company continues to face top-line growth challenges given ongoing U.S. agent declines and tough housing conditions.

Re/Max Holdings Business Overview & Revenue Model

Company Description

RE/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 Money

RE/MAX Holdings generates revenue primarily through franchise fees and services provided to its network of real estate and mortgage franchises. The company earns money from initial franchise sales, ongoing royalties based on a percentage of each franchisee's revenue, and fees for technology and marketing resources provided to franchisees. Additionally, Motto Mortgage earns revenue through franchise fees and royalties from its mortgage brokerage operations. Significant partnerships with technology providers and marketing firms also contribute to enhancing the value of the services offered to franchisees, thereby supporting the company's revenue streams.

Re/Max Holdings Financial Statement Overview

Summary

Re/Max Holdings shows strong gross profitability and cash generation, but faces challenges with declining revenue and high leverage. The balance sheet reflects significant debt, affecting financial stability. Operational efficiency has improved, yet low net profit margin and modest ROE highlight areas for improvement.

Income Statement

Re/Max Holdings has shown a mixed performance in its income statement. The TTM (Trailing-Twelve-Months) gross profit margin stands at 72.0%, indicating strong profitability in core operations. However, the net profit margin is relatively low at 2.8%, suggesting high expenses or other financial pressures. Revenue has declined over the past year, with a negative growth rate of -13.0% from 2023 to 2024, indicating challenges in maintaining sales momentum. The EBIT margin improved to 13.5% in TTM, showing better operational efficiency compared to previous losses. Overall, while there are strengths in profitability, the declining revenue and low net margins are concerning.

Balance Sheet

The balance sheet of Re/Max Holdings reveals a high debt-to-equity ratio of 1.08, indicating significant leverage which could pose financial risks. The return on equity (ROE) is modest at 2.0% in TTM, reflecting limited returns for shareholders. The equity ratio is 75.9%, which suggests a solid equity base relative to total assets. While the company maintains a stable equity position, the high leverage and modest ROE highlight potential financial vulnerabilities.

Cash Flow

Re/Max Holdings demonstrates a strong cash flow position with a TTM free cash flow of $50.2 million. The operating cash flow to net income ratio is robust at 6.57, indicating efficient cash generation from operations. However, the free cash flow growth rate has declined by 5.3% from 2023 to 2024, suggesting challenges in sustaining cash flow growth. The free cash flow to net income ratio is high at 5.90, highlighting effective cash conversion. Overall, the cash flow statement shows strength in cash generation, but the decline in growth rate warrants attention.

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	228.70M	241.81M	263.07M	247.31M	201.60M
EBITDA	75.22M	26.62M	77.25M	20.52M	75.79M
Net Income	7.12M	-69.02M	9.48M	-24.62M	20.02M
Balance Sheet
Total Assets	581.59M	577.15M	693.96M	776.13M	557.39M
Cash, Cash Equivalents and Short-Term Investments	96.62M	82.62M	108.66M	126.27M	101.36M
Total Debt	472.07M	483.98M	493.38M	504.33M	279.53M
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: Positive
• Last Price: 8.33
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RMAX, the sentiment is Positive. The current price of 8.33 is above the 20-day moving average (MA) of 8.29, above the 50-day MA of 8.01, and below the 200-day MA of 9.63, indicating a neutral trend. The MACD of 0.09 indicates Negative momentum. The RSI at 52.11 is Neutral, neither overbought nor oversold. The STOCH value of 75.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RMAX.

Re/Max Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
REAX	70 Outperform	$866.04M	―	-52.95%	―	83.50%	8.45%
EXPI	67 Neutral	$1.71B	―	-6.44%	1.83%	6.69%	-137.52%
RMAX	67 Neutral	$331.88M	19.22	2.01%	―	-4.61%	―
DOUG	64 Neutral	$241.37M	―	-23.11%	―	11.24%	38.70%
HOUS	62 Neutral	$517.66M	―	-6.84%	―	2.47%	-74.15%
Sector *	59 Neutral	C$1.26B	-2.66	-8.19%	4.91%	10.84%	-18.98%
OPEN	54 Neutral	$1.76B	―	-47.67%	―	2.36%	-23.60%

Re/Max Holdings Corporate Events

Re/Max Holdings Stockholders Approve Key Proposals

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.