Re/Max Holdings (RMAX) AI Stock Analysis

• Market Cap: $328.69M
• Dividend Yield: N/A
• Average Volume (3M): 188.38K
• Price to Earnings (P/E): 19.0
• Beta (1Y): 1.31
• Revenue Growth: -4.61%
• EPS Growth: N/A
• Country: US
• Employees: 536
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): 0.24
• Shares Outstanding: 19,934,893
• 10 Day Avg. Volume: 265,481
• 30 Day Avg. Volume: 188,383
• PEG Ratio: -0.26
• Price to Book (P/B): 0.73
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 5.69
• Enterprise Value/Market Cap: 2.23
• Enterprise Value/Revenue: 0.59
• Enterprise Value/Gross Profit: 3.35
• Enterprise Value/Ebitda: 2.56
• 1Y Price Target: $9.00
• Price Target Upside: 9.09% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 67 Neutral
• Price Target: $9.00 ▲(9.09%Upside)

Re/Max Holdings' overall stock score is driven by a cautiously optimistic earnings call and positive technical indicators. However, financial performance is mixed with strong profitability but declining revenue and high leverage. The valuation is moderate, lacking a dividend yield, which may limit appeal to certain investors.

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 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.

Revenue Challenges

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

U.S. Agent Count

U.S. agents declined by 1,432 sequentially, to 49,854, which is now roughly 21% below peak levels in 2019.

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 cash flow management and a solid equity position, but the declining revenue trend and low return on equity require attention. The company benefits from low leverage, providing stability.

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.

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.

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.

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
EBITDA	76.00M	75.22M	26.62M	77.25M	20.52M	75.79M
Net Income	8.52M	7.12M	-69.02M	9.48M	-24.62M	20.02M
Balance Sheet
Total Assets	571.39M	581.59M	577.15M	693.96M	776.13M	557.39M
Cash, Cash Equivalents and Short-Term Investments	89.11M	96.62M	82.62M	108.66M	126.27M	101.36M
Total Debt	469.10M	472.07M	483.98M	493.38M	504.33M	279.53M
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

• Technical Analysis Sentiment: Negative
• Last Price: 8.25
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 8.25 is above the 20-day moving average (MA) of 8.18, above the 50-day MA of 7.83, and below the 200-day MA of 9.95, indicating a neutral trend. The MACD of 0.17 indicates Positive momentum. The RSI at 51.81 is Neutral, neither overbought nor oversold. The STOCH value of 26.42 is Neutral, 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
REAX	70 Outperform	$880.47M	―	-52.95%	―	83.50%	8.45%
RMAX	67 Neutral	$328.69M	19.03	2.01%	―	-4.61%	―
EXPI	67 Neutral	$1.49B	―	-6.44%	2.10%	6.69%	-137.52%
Sector *	63 Neutral	$6.98B	18.97	-1.16%	6.86%	4.65%	-25.28%
HOUS	59 Neutral	$424.86M	―	-6.84%	―	2.47%	-74.15%
DOUG	57 Neutral	$206.76M	―	-23.11%	―	11.24%	38.70%
OPEN	44 Neutral	$412.83M	―	-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.