The RMR Group (RMR) AI Stock Analysis

• Market Cap: $488.62M
• Dividend Yield: 11.81%
• Average Volume (3M): 196.40K
• Price to Earnings (P/E): 14.8
• Beta (1Y): 0.63
• 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): 0.22
• Shares Outstanding: 16,061,400
• 10 Day Avg. Volume: 215,844
• 30 Day Avg. Volume: 196,399
• PEG Ratio: 0.00
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.18
• Enterprise Value/Revenue: 0.77
• Enterprise Value/Gross Profit: 2.05
• Enterprise Value/Ebitda: 8.58
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 1.11
• Revenue Forecast (FY): $765.10M

• Rating: 70 Neutral
• Price Target: $17.00 ▲(10.39% Upside)

RMR's overall stock score is driven by strong financial performance and attractive valuation metrics. While technical indicators and earnings call sentiment present a mixed outlook, the company's robust cash flow and high dividend yield provide a solid foundation for potential growth.

Positive Factors

Strong Cash Flow Generation

Robust cash flow generation enhances financial flexibility, allowing RMR to invest in growth opportunities and weather economic downturns effectively.

Stable Financial Structure

A balanced approach to leveraging with a moderate debt-to-equity ratio indicates financial stability, supporting long-term operational resilience.

Leadership Changes for Strategic Growth

New leadership appointments are expected to enhance strategic growth initiatives and operational efficiency, strengthening RMR's competitive position.

Negative Factors

Revenue Decline

A decline in revenue growth can signal challenges in market demand or competitive pressures, potentially impacting long-term profitability.

Impact of OPI's Bankruptcy

OPI's bankruptcy affects RMR's management fees, posing a risk to revenue stability and necessitating adjustments in financial forecasts.

Reduced Recurring Service Revenues

A decrease in recurring service revenues can weaken financial predictability and reduce cash flow, impacting RMR's ability to fund operations.

The RMR Group Business Overview & Revenue Model

Company Description

The RMR Group (RMR) is a diversified real estate investment management company that focuses on managing a portfolio of income-producing properties across various sectors, including commercial real estate, healthcare, and hospitality. The company specializes in providing management services for publicly traded real estate investment trusts (REITs) and other real estate-related investments. RMR's core offerings include property management, asset management, and advisory services, aimed at maximizing the value of the properties under its care while delivering consistent returns to investors.

How the Company Makes Money

RMR generates revenue primarily through management fees, which are derived from the assets it manages for REITs and other investment vehicles. These fees typically include base management fees based on the total assets under management and incentive fees linked to the performance of the investments. Additionally, RMR may earn revenue from leasing commissions, property management fees, and advisory services. The company's revenue model is bolstered by long-term contracts with clients, which provide stability and predictability in earnings. Strategic partnerships with publicly traded REITs and other investment firms help RMR expand its portfolio and enhance its revenue potential.

The RMR Group Financial Statement Overview

Summary

The RMR Group demonstrates strong profitability and cash flow metrics, with a solid gross profit margin of 76.89% and a significant free cash flow growth rate of 42.46%. Despite a revenue decline, the company's financial structure remains stable with a moderate debt-to-equity ratio and strong return on equity.

Income Statement

The RMR Group has shown a decline in revenue over the past year, with a negative revenue growth rate of -7.07%. However, the company maintains a solid gross profit margin of 76.89% and a net profit margin of 7.71%, indicating efficient cost management. The EBIT and EBITDA margins are also healthy at 5.97% and 8.75%, respectively, suggesting stable operational performance despite the revenue drop.

Balance Sheet

The company's balance sheet reflects a moderate debt-to-equity ratio of 0.68, indicating a balanced approach to leveraging. The return on equity stands at 23.73%, showcasing strong profitability relative to shareholder equity. The equity ratio is 31.70%, suggesting a stable financial structure with a reasonable proportion of equity financing.

Cash Flow

The RMR Group has demonstrated a significant free cash flow growth rate of 42.46%, highlighting improved cash generation capabilities. The operating cash flow to net income ratio is 1.40, and the free cash flow to net income ratio is 1.33, both indicating robust cash flow relative to earnings, which enhances financial flexibility.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	753.59M	700.28M	897.61M	962.32M	832.50M	607.24M
Gross Profit	282.55M	538.56M	288.46M	305.92M	263.74M	237.20M
EBITDA	67.43M	61.30M	69.94M	150.64M	91.69M	78.57M
Net Income	19.52M	54.02M	23.13M	57.15M	34.00M	35.70M
Balance Sheet
Total Assets	648.02M	718.25M	700.49M	582.42M	542.40M	497.91M
Cash, Cash Equivalents and Short-Term Investments	121.28M	62.30M	141.60M	267.99M	189.09M	159.84M
Total Debt	116.25M	204.04M	114.31M	30.11M	30.32M	34.07M
Total Liabilities	238.69M	316.23M	281.08M	158.76M	172.67M	150.20M
Stockholders Equity	231.34M	227.66M	237.57M	240.07M	206.62M	195.12M
Cash Flow
Free Cash Flow	50.61M	72.10M	57.51M	105.23M	100.15M	70.65M
Operating Cash Flow	54.42M	75.75M	61.38M	109.22M	101.27M	71.79M
Investing Cash Flow	-167.66M	-183.86M	-209.84M	49.50M	-10.59M	-1.14M
Financing Cash Flow	26.54M	28.81M	22.07M	-79.81M	-61.43M	-280.48M

The RMR Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 15.40
• 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 RMR, the sentiment is Negative. The current price of 15.4 is above the 20-day moving average (MA) of 15.37, above the 50-day MA of 15.13, and above the 200-day MA of 15.28, indicating a neutral trend. The MACD of 0.06 indicates Positive momentum. The RSI at 47.09 is Neutral, neither overbought nor oversold. The STOCH value of 45.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RMR.

The RMR Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RMR	70 Neutral	$488.62M	14.75	7.39%	11.81%	-21.98%	-25.08%
CWK	69 Neutral	$3.57B	16.67	12.21%	―	6.77%	150.72%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
NMRK	59 Neutral	$3.12B	29.89	8.08%	0.68%	22.22%	94.52%
KW	58 Neutral	$1.37B	-38.43	0.52%	4.83%	-3.75%	90.10%
MMI	56 Neutral	$1.08B	-162.52	-1.09%	1.79%	20.74%	78.92%
HOUS	55 Neutral	$1.60B	-12.62	-8.15%	―	5.27%	25.71%

The RMR Group Corporate Events

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 RMR Group Enters Restructuring Agreement with OPI

On October 30, 2025, Office Properties Income Trust (OPI) and its subsidiaries filed for Chapter 11 bankruptcy in the United States Bankruptcy Court for the Southern District of Texas. In conjunction with this, The RMR Group LLC, as OPI’s manager, entered into a Restructuring Support Agreement (RSA) with OPI and its lenders. The RSA outlines new management agreements that will take effect after OPI’s reorganization plan is implemented, reducing OPI’s debt from $2.4 billion to $1.3 billion.

The RMR Group Announces New Leadership Appointments

On September 29, 2025, The RMR Group announced leadership changes effective October 1, 2025, with Matthew P. Jordan appointed as Chief Operating Officer and Executive Vice President, and Matthew C. Brown as Executive Vice President, Chief Financial Officer, and Treasurer. These appointments are expected to enhance the company’s strategic growth initiatives and operational efficiency, with Mr. Jordan focusing on capital formation and shared services, while Mr. Brown continues to oversee accounting, finance, and audit functions.