The RMR Group (RMR) AI Stock Analysis

• Market Cap: $519.02M
• Dividend Yield: 11.98%
• Average Volume (3M): 180.13K
• Price to Earnings (P/E): 5.1
• Beta (1Y): 0.64
• Revenue Growth: -21.98%
• EPS Growth: -25.08%
• Country: US
• Employees: 1,000
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): 0.20
• Shares Outstanding: 16,058,178
• 10 Day Avg. Volume: 142,114
• 30 Day Avg. Volume: 180,132
• PEG Ratio: -0.59
• Price to Book (P/B): 1.15
• Price to Sales (P/S): 0.37
• P/FCF Ratio: 3.63
• Enterprise Value/Market Cap: 1.18
• Enterprise Value/Revenue: 0.93
• Enterprise Value/Gross Profit: 1.10
• Enterprise Value/Ebitda: 7.62
• 1Y Price Target: $19.00
• Price Target Upside: 17.36% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 0.75
• Revenue Forecast (FY): $730.40M

• Rating: 69 Neutral
• Price Target: $17.50 ▲(8.09% Upside)
• Action: Downgraded Date: 02/06/26
• Date: Action: Downgraded 02/06/26

The score is driven by solid technical uptrend and supportive valuation (moderate P/E and high dividend yield), offset by mixed financial performance (declining TTM revenue and higher leverage) and earnings-call guidance indicating near-term revenue and earnings pressure despite strong liquidity and incentive-fee tailwinds.

Positive Factors

Fee-based model & incentive fees

RMR's core revenue is contractual, fee-based management plus incentive fees. Large incentive receipts ($23.6M) both boosted cash and demonstrate the firm's ability to capture performance-linked upside, sustaining durable fee cash flows tied to client asset performance and alignment with owners.

Cash generation and liquidity

Operating cash flow (~$61M TTM) and free cash flow (~$58M TTM, ~0.95x net income) plus ~$150M liquidity provide a durable buffer. This supports dividend coverage, funds capital deployment and allows RMR to backstop private raises or weather fee volatility without immediate capital markets dependence.

Private capital platform expansion

RMR is scaling private capital capabilities (new senior hires, Seven Hills capital raise and a ~$1B lending pipeline). Expanding proprietary capital and lending capabilities diversifies fee and investment income sources and deepens long-term client relationships across real estate cycles.

Negative Factors

Rising leverage

Debt-to-equity near 0.75 represents a material increase from prior years and reduces financial flexibility. Higher leverage raises interest sensitivity, constrains capital allocation options, and increases refinancing and covenant risk if asset or fee performance weakens over the medium term.

Declining recurring service revenues

A shrinking recurring fee base (guidance pointing to ~$41M next quarter) erodes the stable backbone of RMR's business. Persistent declines from contract wind‑downs and client deleveraging reduce predictable fee income and magnify reliance on lumpy incentive, transaction and private capital revenue.

Client-specific bankruptcy risk (OPI)

An ongoing Chapter 11 involving a client creates multi-quarter operational and recovery uncertainty. Bankruptcy proceedings can delay fees, impair asset values, increase counterparty risk, and require management distraction or concessions, making fee realization and recoveries less certain over the medium term.

The RMR Group Business Overview & Revenue Model

Company Description

The RMR Group Inc., through its subsidiary, The RMR Group LLC, provides business and property management services in the United States. The company provides management services to its four publicly traded real estate investment trusts and three real estate operating companies. It also provides investment advisory services. The company was formerly known as REIT Management & Research Inc. and changed its name to The RMR Group Inc. in September 2015. The RMR Group Inc. was founded in 1986 and is headquartered in Newton, Massachusetts.

How the Company Makes Money

RMR primarily makes money by earning contractual fees for managing real estate assets and providing management services to client companies. Its revenue model is largely fee-based and typically includes: (1) Base management fees: recurring fees paid under management agreements for providing overall management and advisory services; these fees are commonly structured as a percentage of a client’s business size metrics (for example, real estate assets or total enterprise value), depending on the specific contract terms (contract-specific basis: null). (2) Incentive/performance fees: in some arrangements, RMR can earn additional fees tied to achieving defined performance targets (for example, total return or other benchmarks) over a measurement period (availability and exact metrics by client: null). (3) Property-level service revenues and reimbursements: RMR and/or its subsidiaries may earn fees for property management, leasing, project/development management, and similar services, and may also be reimbursed by clients for certain costs incurred in providing services (specific reimbursable categories and proportions: null). (4) Other contract-driven income: RMR may receive fees connected to transactional activity (such as acquisitions, dispositions, financings, or other capital markets activity) when such fees are provided for in agreements (extent and terms: null). Key factors that influence RMR’s earnings include the scale and performance of the assets it manages (which can affect fee bases and incentive fees), renewal/retention of management contracts, and the level of transaction and leasing activity across its managed portfolio. Significant partnerships are primarily its long-term contractual relationships with the client companies it manages; the identities and relative contribution of specific clients to revenue are not provided here (null).

The RMR Group Financial Statement Overview

Summary

Fundamentals are stable but mixed: TTM revenue declined (-5.6%) and leverage has risen (debt-to-equity ~0.75), while cash generation remains a relative strength with healthy operating cash flow (~$61M) and free cash flow (~$58M) despite a TTM FCF decline (-19.2%).

Income Statement

TTM (Trailing-Twelve-Months) revenue declined (-5.6%), extending a softer top-line trend versus the stronger growth seen earlier in the period. Profitability is mixed: gross margin is very high in TTM, but net margin is modest (about 3.5%), indicating meaningful costs below gross profit. Operating profitability (EBITDA margin ~12.6%) is reasonable, but earnings power is well below FY2023 levels when margins and net income were materially stronger.

Balance Sheet

Leverage has risen meaningfully versus prior years: debt-to-equity is ~0.75 in TTM compared with much lower levels in FY2021–FY2023, reducing balance-sheet flexibility. Equity remains positive and return on equity is solid (~10% TTM), but it is below the peak levels seen in FY2022–FY2023. Overall, the balance sheet looks serviceable, but the higher debt load is a clear risk factor relative to the company’s recent history.

Cash Flow

Cash generation remains a relative strength: TTM operating cash flow (~$61M) and free cash flow (~$58M) are healthy and free cash flow is close to net income (about 0.95x), suggesting earnings are largely backed by cash. However, free cash flow declined sharply in TTM (-19.2%), and operating cash flow relative to revenue is modest (about 0.65x), pointing to some weakening momentum versus the stronger FY2022–FY2023 cash profile.

Breakdown	TTM	Sep 2025	Sep 2024	Sep 2023	Sep 2022	Sep 2021
Income Statement
Total Revenue	661.23M	700.28M	897.61M	962.32M	832.50M	607.24M
Gross Profit	557.02M	538.56M	288.46M	305.92M	263.74M	237.20M
EBITDA	80.50M	61.30M	69.94M	150.64M	91.69M	78.57M
Net Income	23.41M	17.60M	23.13M	57.15M	34.00M	35.70M
Balance Sheet
Total Assets	687.12M	718.25M	700.49M	582.42M	542.40M	497.91M
Cash, Cash Equivalents and Short-Term Investments	49.31M	62.30M	141.60M	267.99M	189.09M	159.84M
Total Debt	158.23M	204.04M	114.31M	30.11M	30.32M	34.07M
Total Liabilities	272.28M	316.23M	281.08M	158.76M	172.67M	150.20M
Stockholders Equity	232.70M	227.66M	237.57M	240.07M	206.62M	195.12M
Cash Flow
Free Cash Flow	58.23M	72.10M	57.51M	105.23M	100.15M	70.65M
Operating Cash Flow	61.46M	75.75M	61.38M	109.22M	101.27M	71.79M
Investing Cash Flow	-144.37M	-183.86M	-209.84M	49.50M	-10.59M	-1.14M
Financing Cash Flow	-15.36M	28.81M	22.07M	-79.81M	-61.43M	-280.48M

The RMR Group Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 16.19
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RMR, the sentiment is Neutral. The current price of 16.19 is below the 20-day moving average (MA) of 16.57, below the 50-day MA of 16.26, and above the 200-day MA of 15.39, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 45.54 is Neutral, neither overbought nor oversold. The STOCH value of 19.47 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for RMR.

The RMR Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RMR	69 Neutral	$519.02M	5.12	10.11%	11.98%	-21.98%	-25.08%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
MMI	61 Neutral	$977.66M	-556.71	-1.09%	1.80%	20.74%	78.92%
CWK	60 Neutral	$2.87B	42.44	4.65%	―	6.77%	150.72%
KW	56 Neutral	$1.50B	283.77	0.30%	4.96%	-3.75%	90.10%
NMRK	56 Neutral	$2.69B	24.52	8.82%	0.68%	22.22%	94.52%

The RMR Group Corporate Events

The RMR Group Announces Executive Leadership Retirement Agreement

On January 12, 2026, The RMR Group LLC and Sonesta International Hotels Corporation entered into a retirement agreement with John G. Murray, under which he will remain executive vice president of RMR LLC and president, chief executive officer and director of Sonesta until March 31, 2026, then resign from all officer and related positions at RMR LLC, Sonesta and their affiliates, while continuing as a Sonesta employee until his retirement date on September 30, 2026. The agreement provides for continued salary through March 31, 2026, monthly payments of $15,000 from April 1, 2026 to the retirement date, a 2025 cash bonus of $1,912,500 and an additional combined cash payment of $2,765,625 in two installments during 2026, along with a recommendation to accelerate vesting of his unvested company shares and other customary terms such as confidentiality, non-solicitation and release provisions, underscoring an orderly leadership transition with significant negotiated compensation for the outgoing executive.

The most recent analyst rating on (RMR) stock is a Buy with a $17.00 price target. To see the full list of analyst forecasts on The RMR Group stock, see the RMR Stock Forecast page.

The RMR Group Promotes COO Matthew Jordan to Director

On December 18, 2025, The RMR Group’s board elected Chief Operating Officer Matthew P. Jordan as a Managing Director, effective January 1, 2026, succeeding retiring Managing Director Jennifer B. Clark, whose resignation, effective December 31, 2025, was noted as not stemming from any disagreement with the company’s operations, policies or practices. Jordan, a longtime senior executive who has held key leadership roles including COO, CFO and Treasurer at RMR and its affiliates, will now combine his operational responsibilities for capital formation, strategic growth and shared service platforms with board-level duties, further consolidating experienced internal leadership at the helm while maintaining regulatory and governance requirements for director qualifications and independence from related-party conflicts.

The most recent analyst rating on (RMR) stock is a Hold with a $17.00 price target. To see the full list of analyst forecasts on The RMR Group stock, see the RMR Stock Forecast page.