The RMR Group Inc. (RMR)
NASDAQ:RMR
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The RMR Group
(NASDAQ:RMR)
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Rating:71Outperform
Price Target:
$22.50
▲(32.67% Upside)
Action:Upgraded
Date:05/09/26
The score is driven primarily by strong and improving cash flow and a serviceable balance sheet with moderating leverage, partially offset by declining revenue and compressed profitability versus 2023. Technicals show strong upward trend but are overbought, and valuation is supported by a very high dividend yield. Earnings call messaging was generally constructive with solid guidance and liquidity, tempered by fundraising and service-revenue headwinds.
Positive Factors
Strong cash generation
RMR’s cash generation is a durable strength: TTM operating cash flow and free cash flow are large and FCF grew ~58%. High cash conversion (FCF roughly matching net income) supports covered dividends, reinvestment, balance-sheet flexibility and the ability to seed private vehicles over multiple quarters.
Negative Factors
Revenue decline and margin compression
A multiyear revenue downshift and lower net margins weaken the core fee base and reduce distributable earnings sensitivity. If incentive and transaction fees don’t recover, lower top-line and compressed profitability could constrain dividend coverage, reinvestment capacity and long-term growth funding.
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Positive Factors
Negative Factors
Strong cash generation
RMR’s cash generation is a durable strength: TTM operating cash flow and free cash flow are large and FCF grew ~58%. High cash conversion (FCF roughly matching net income) supports covered dividends, reinvestment, balance-sheet flexibility and the ability to seed private vehicles over multiple quarters.
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The RMR Group (RMR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$644.44M
Dividend Yield11.98%
Average Volume (3M)184.64K
Price to Earnings (P/E)64.3
Beta (1Y)0.71
Revenue Growth-20.41%
EPS Growth0.92%
CountryUS
Employees1,000
SectorReal Estate
Sector Strength53
IndustryReal Estate - Services
Share Statistics
EPS (TTM)1.21
Shares Outstanding16,093,382
10 Day Avg. Volume151,918
30 Day Avg. Volume184,636
Financial Highlights & Ratios
PEG Ratio-0.59
Price to Book (P/B)1.15
Price to Sales (P/S)0.37
P/FCF Ratio3.63
Enterprise Value/Market Cap1.12
Enterprise Value/Revenue1.13
Enterprise Value/Gross Profit1.31
Enterprise Value/Ebitda9.27
Forecast
1Y Price Target
$21.00Price Target Upside23.82% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.74
Revenue Forecast (FY)$700.79M
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 re...
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 pa...
The RMR Group Earnings Call Summary
Earnings Call Date:May 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Aug 06, 2026
Earnings Call Sentiment Positive
The call highlighted multiple operational and financial strengths — distributable earnings and adjusted EBITDA at or above guidance, incentive fees, strong DHC and ILPT performance, SVC deleveraging, Seven Hills momentum, a major multifamily acquisition, and significant private capital AUM growth. Offsetting these positives are fundraising headwinds driven by geopolitical volatility (global fundraising down ~50% Y/Y), modest revenue headwinds from the wind-down of certain activities and lower construction management fees, a small adjusted net income miss leading to a change in metric guidance, and some quarter-to-quarter tax volatility. Overall, the company appears well-capitalized and executing strategic initiatives, though fundraising and near-term revenue mix pose challenges.Positive Updates
Strong Quarterly Results
Fiscal Q2 distributable earnings of $0.44 per share and adjusted EBITDA of $18.5 million, both at or near the high end of guidance; adjusted net income $0.11 per share (missed by $0.01).
Negative Updates
Fundraising Disruption from Geopolitical Volatility
Global fundraising in 2026 has dropped ~50% year-over-year due to the ongoing conflict in the Middle East, elongating fundraising cycles and slowing equity raises, particularly for international and credit-focused efforts.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Quarterly Results
Fiscal Q2 distributable earnings of $0.44 per share and adjusted EBITDA of $18.5 million, both at or near the high end of guidance; adjusted net income $0.11 per share (missed by $0.01).
Read all positive updates
Company Guidance
The company guided fiscal third‑quarter adjusted EBITDA of $19.0–$21.0 million and distributable earnings of $0.48–$0.50 per share, with recurring service revenues expected to rise to approximately $44 million (including roughly $100 thousand from the Greenwich multifamily acquisition and a $600 thousand revenue recognition in Q3), recurring cash compensation to remain near Q2’s $37.7 million, and recurring G&A to stay around $10.1 million (after excluding $600 thousand of annual director share grants); management said it will no longer provide adjusted net income guidance (Q2 adjusted net income was $0.11 per share), reiterated a full‑year estimated tax rate of about 17–18% despite quarterly variability (Q2 was 22%), and noted current liquidity of roughly $133 million (including $75 million of revolver capacity) plus incremental quarterly dividends of about $420 thousand from its $50 million SVC equity purchase; the Greenwich JV (where RMR invested $6 million for a 5% GP stake) should generate ongoing GP fees of roughly $750 thousand annually and target ~7.5% annual cash‑on‑cash returns.The RMR Group Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
63
Positive
Cash Flow
78
Positive
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 640.19M | 700.28M | 897.61M | 962.32M | 832.50M | 607.24M |
| Gross Profit | 552.57M | 538.56M | 288.46M | 305.92M | 263.74M | 237.20M |
| EBITDA | 77.81M | 61.30M | 69.94M | 150.64M | 91.69M | 78.57M |
| Net Income | 20.80M | 17.60M | 23.13M | 57.15M | 34.00M | 35.70M |
Balance Sheet | ||||||
| Total Assets | 684.63M | 718.25M | 700.49M | 582.42M | 542.40M | 497.91M |
| Cash, Cash Equivalents and Short-Term Investments | 80.10M | 62.30M | 141.60M | 267.99M | 189.09M | 159.84M |
| Total Debt | 157.65M | 204.04M | 114.31M | 30.11M | 30.32M | 34.07M |
| Total Liabilities | 280.18M | 316.23M | 281.08M | 158.76M | 172.67M | 150.20M |
| Stockholders Equity | 227.60M | 227.66M | 237.57M | 240.07M | 206.62M | 195.12M |
Cash Flow | ||||||
| Free Cash Flow | 92.03M | 72.10M | 57.51M | 105.23M | 100.15M | 70.65M |
| Operating Cash Flow | 97.32M | 75.75M | 61.38M | 109.22M | 101.27M | 71.79M |
| Investing Cash Flow | -140.58M | -183.86M | -209.84M | 49.50M | -10.59M | -1.14M |
| Financing Cash Flow | -13.82M | 28.81M | 22.07M | -79.81M | -61.43M | -280.48M |
The RMR Group Technical Analysis
Positive
16.96
Price Trends
17.08
Positive
16.41
Positive
15.52
Positive
Market Momentum
0.82
Positive
71.72
Negative
76.80
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 16.96 is below the 20-day moving average (MA) of 19.10, below the 50-day MA of 17.08, and above the 200-day MA of 15.52, indicating a bullish trend. The MACD of 0.82 indicates Positive momentum. The RSI at 71.72 is Negative, neither overbought nor oversold. The STOCH value of 76.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RMR.
The RMR Group Risk Analysis
The RMR Group disclosed 2 risk factors in its most recent earnings report. The RMR Group reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
The RMR Group Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $644.44M | 64.33 | 9.05% | 11.98% | -20.41% | 0.92% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
64 Neutral | $1.08B | -81.92 | -0.10% | 1.80% | 9.77% | 91.22% | |
58 Neutral | $3.00B | -56.63 | 3.79% | ― | 10.40% | -54.85% | |
57 Neutral | $2.58B | 47.47 | 9.81% | 0.68% | 23.00% | 105.99% | |
51 Neutral | $1.53B | 15.24 | 3.85% | 4.96% | -6.38% | ― |
* Real Estate Sector Average
RMR
The RMR Group
20.21
7.27
56.16%
KW
Kennedy-Wilson
10.99
5.25
91.36%
MMI
Marcus & Millichap
28.83
1.20
4.36%
NMRK
Newmark Group
14.60
4.22
40.66%
CWK
Cushman & Wakefield
12.89
3.26
33.85%
The RMR Group Corporate Events
Business Operations and StrategyFinancial Disclosures
The RMR Group Highlights Growth-Focused Investor Presentation
Positive
May 7, 2026
On May 7, 2026, The RMR Group Inc. posted a May 2026 investor presentation outlining its financial and operating profile, including over $37 billion in assets under management as of March 31, 2026, split between 68% perpetual capital and 32% priva...
Business Operations and StrategyFinancial Disclosures
RMR Highlights Growth Potential in Updated Investor Presentation
Positive
Apr 2, 2026
On April 2, 2026, The RMR Group published an updated investor presentation outlining its diversified revenue base, durable 20-year evergreen contracts, strong adjusted EBITDA margins above 40% and growing dividend track record, positioning the com...
Executive/Board ChangesShareholder Meetings
The RMR Group Shareholders Approve Directors and Governance Items
Positive
Mar 26, 2026
At its annual meeting of shareholders held on March 26, 2026, The RMR Group’s investors elected six directors to the board for terms running until the 2027 annual meeting, with each nominee receiving strong majority support and only modest w...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.