The RMR Group (RMR) AI Stock Analysis

• Market Cap: $540.00M
• Dividend Yield: 10.63%
• Average Volume (3M): 113.34K
• Price to Earnings (P/E): 14.1
• Beta (1Y): 0.71
• Revenue Growth: -18.14%
• EPS Growth: -55.82%
• Country: US
• Employees: 1,000
• Sector: Real Estate
• Sector Strength: 57
• Industry: Real Estate - Services
• EPS (TTM): 0.21
• Shares Outstanding: 15,877,246
• 10 Day Avg. Volume: 153,041
• 30 Day Avg. Volume: 113,339
• PEG Ratio: -1.04
• Price to Book (P/B): 1.87
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 3.86
• Enterprise Value/Market Cap: 0.42
• Enterprise Value/Revenue: 0.07
• Enterprise Value/Gross Profit: 0.94
• Enterprise Value/Ebitda: 0.88
• 1Y Price Target: $24.00
• Price Target Upside: 39.29% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 76 Outperform
• Price Target: $18.50 ▲(7.37%Upside)

RMR's overall stock score is supported by its attractive valuation and positive technical indicators. Despite stable financials, concerns over revenue decline and low profit margins are notable risks. Earnings call insights and corporate events show a mixed outlook, with strategic growth initiatives offering some optimism.

Positive Factors

Debt Management

Progress on addressing near-term debt maturities and reducing overall leverage should benefit the share price of RMR’s managed REITs over time.

Growth Initiatives

The company is incubating new funds within each vertical and completed several financing transactions to accommodate future growth.

Liquidity

Recent financing transactions have solidified RMR’s liquidity, including a master repurchase agreement and credit facility.

Negative Factors

Operating Headwinds

Continued downside from the managed REITs, which have been negatively influenced by excessive leverage and operating headwinds, causing fee income to decline.

Revenue Challenges

RMR Group continues to face headwinds across several of its managed REITs, which has weighed on revenues.

Share Price Decline

RMR’s managed REITs have all seen significant deterioration in share prices across 4Q24.

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

The RMR Group generates revenue primarily through management services fees from the real estate assets it oversees. These fees are typically based on a percentage of the gross rents collected from the properties under management, as well as fixed fees for specific services provided. Additionally, RMR earns incentive fees based on the performance of the assets relative to benchmarks or specified goals. The company also benefits from strategic partnerships and joint ventures that enhance its ability to acquire, manage, and dispose of real estate assets efficiently, contributing to its revenue streams.

The RMR Group Financial Statement Overview

Summary

RMR Group shows a stable financial position with a strong balance sheet and decent cash flow generation. However, revenue decline and low profit margins are concerning. Effective leverage management is a positive, but operational efficiency needs improvement.

Income Statement

The RMR Group's income statement shows mixed results. The gross profit margin for TTM (Trailing-Twelve-Months) is approximately 30.25%, and the net profit margin stands at 2.52%, indicating a narrow profitability. Revenue has declined from the previous year, showing a contraction of about 10.39%, which is concerning. The EBIT and EBITDA margins for TTM are 5.38% and 7.52% respectively, which are relatively low, suggesting limited operational efficiency.

Balance Sheet

The balance sheet reflects a strong equity position with an equity ratio of 36.06% in TTM, supporting financial stability. The debt-to-equity ratio is relatively low at 0.48, indicating prudent leverage management. ROE is modest at 8.65% for TTM, suggesting average returns on equity.

Cash Flow

The cash flow analysis reveals a stable operating cash flow to net income ratio of 3.18 for TTM, indicating good cash generation relative to net income. Free cash flow has shown consistent growth with a strong free cash flow to net income ratio of 2.97 for TTM. However, the overall investing cash flow is negative, which could suggest high capital expenditures or investments.

Breakdown	TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	804.34M	897.61M	962.32M	832.50M	607.24M	589.50M
Gross Profit	243.43M	288.46M	169.56M	133.86M	117.56M	107.55M
EBITDA	60.50M	69.07M	121.05M	90.81M	78.57M	73.20M
Net Income	20.27M	23.13M	57.15M	77.47M	81.01M	66.33M
Balance Sheet
Total Assets	649.74M	700.49M	582.42M	542.40M	497.91M	690.25M
Cash, Cash Equivalents and Short-Term Investments	137.19M	141.60M	267.99M	189.09M	159.84M	369.66M
Total Debt	112.10M	114.31M	30.11M	30.32M	34.07M	36.44M
Total Liabilities	234.82M	281.08M	158.76M	172.67M	150.20M	149.35M
Stockholders Equity	234.29M	237.57M	240.07M	206.62M	195.12M	295.92M
Cash Flow
Free Cash Flow	60.23M	57.51M	105.23M	100.15M	70.65M	76.90M
Operating Cash Flow	64.35M	61.38M	109.22M	101.27M	71.79M	77.50M
Investing Cash Flow	-140.33M	-209.84M	49.50M	-10.59M	-1.14M	-5.92M
Financing Cash Flow	21.05M	22.07M	-79.81M	-61.43M	-280.48M	-60.36M

The RMR Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 17.23
• 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 RMR, the sentiment is Positive. The current price of 17.23 is above the 20-day moving average (MA) of 16.23, above the 50-day MA of 15.35, and below the 200-day MA of 18.58, indicating a neutral trend. The MACD of 0.43 indicates Negative momentum. The RSI at 69.38 is Neutral, neither overbought nor oversold. The STOCH value of 70.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RMR.

The RMR Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RMR	76 Outperform	$540.00M	14.12	8.36%	10.63%	-18.14%	-55.82%
Sector *	63 Neutral	$6.96B	18.86	-1.16%	6.91%	4.65%	-25.28%
MAYS		$75.87M	―	-0.14%	―	―	―
MLP	54 Neutral	$363.64M	―	-47.84%	―	57.16%	-372.16%
NEN		$255.69M	16.01		2.19%	―	―
FRPH	66 Neutral	$514.59M	75.37	1.62%	―	1.02%	11.92%
TCI	55 Neutral	$380.48M	47.97	0.95%	―	-5.86%	59.60%

The RMR Group Corporate Events

The RMR Group Highlights Growth and Sustainability

On June 2, 2025, The RMR Group Inc. released an investor presentation highlighting its diversified revenue sources and durable earnings, with nearly 70% of service revenues derived from long-term contracts. The company is well-positioned for growth with a scalable infrastructure and significant liquidity, presenting a compelling investment opportunity due to its valuation discount to industry peers. The presentation also emphasized RMR’s commitment to sustainability and its competitive advantage as a vertically integrated real estate operating platform.

The most recent analyst rating on (RMR) stock is a Hold with a $25.00 price target. To see the full list of analyst forecasts on The RMR Group stock, see the RMR Stock Forecast page.