The RMR Group (RMR) AI Stock Analysis

• Market Cap: $515.46M
• Dividend Yield: 11.13%
• Average Volume (3M): 125.94K
• Price to Earnings (P/E): 13.5
• Beta (1Y): 0.71
• Revenue Growth: -18.14%
• EPS Growth: -55.82%
• Country: US
• Employees: 1,000
• Sector: Real Estate
• Sector Strength: 63
• Industry: Real Estate - Services
• EPS (TTM): 0.21
• Shares Outstanding: 15,877,246
• 10 Day Avg. Volume: 101,183
• 30 Day Avg. Volume: 125,941
• 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: 0.44
• Enterprise Value/Revenue: 0.07
• Enterprise Value/Gross Profit: 0.94
• Enterprise Value/Ebitda: 0.88
• 1Y Price Target: $24.00
• Price Target Upside: 47.97% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 72 Outperform
• Price Target: $16.50 ▲(1.73%Upside)

RMR's overall score is bolstered by strong valuation and strategic corporate events. However, financial performance concerns, particularly revenue decline and low margins, alongside mixed technical indicators, temper the outlook. The earnings call and corporate events provide a balanced view of opportunities and challenges.

Positive Factors

Debt Management

Recent debt transactions offer some dry powder to expand the private capital platform.

Financial Liquidity

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

Negative Factors

REIT Performance

Lower base management income across the managed REITs negatively influenced fiscal 1Q25 earnings and assets under management.

Revenues

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

The RMR Group Business Overview & Revenue Model

Company Description

The RMR Group (RMR) is a leading alternative asset management company with a primary focus on real estate and related businesses. RMR manages a diverse portfolio of real estate assets including office, industrial, and hotel properties across the United States. It provides comprehensive management services and strategic advice to its clients, which include both private and publicly traded companies, to optimize their real estate investments and operations.

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
	EBIT
43.27M	44.98M	113.73M	88.37M	72.09M	68.74M
	EBITDA
60.50M	69.07M	121.05M	90.81M	78.57M	73.20M
	Net Income Common Stockholders
20.27M	23.13M	57.15M	77.47M	81.01M	66.33M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
137.19M	141.60M	267.99M	189.09M	159.84M	369.66M
	Total Assets
649.74M	700.49M	582.42M	542.40M	497.91M	690.25M
	Total Debt
112.10M	114.31M	30.11M	30.32M	34.07M	36.44M
	Net Debt
-25.08M	-27.29M	-237.88M	-158.77M	-125.77M	-333.23M
	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: Neutral
• Last Price: 16.22
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 16.22 is above the 20-day moving average (MA) of 15.20, above the 50-day MA of 14.94, and below the 200-day MA of 19.06, indicating a neutral trend. The MACD of 0.26 indicates Negative momentum. The RSI at 65.90 is Neutral, neither overbought nor oversold. The STOCH value of 91.76 is Negative, 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	72 Outperform	$515.46M	13.48	8.36%	11.13%	-18.14%	-55.82%
FRPH	66 Neutral	$527.19M	77.22	1.62%	―	1.02%	11.92%
Sector *	61 Neutral	$2.86B	10.96	0.41%	6.08%	5.73%	-21.25%
TCI	59 Neutral	$340.48M	42.23	0.95%	―	-5.86%	59.60%
MLP	53 Neutral	$354.56M	―	-47.84%	―	57.16%	-372.16%

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.

The RMR Group’s 2025 Annual Meeting Decisions

At the 2025 Annual Meeting, The RMR Group’s shareholders elected six directors to the board for terms extending to the 2026 meeting. Additionally, shareholders approved the Second Amended and Restated 2016 Omnibus Equity Plan and ratified Deloitte & Touche LLP as independent auditors for the 2025 fiscal year. The meeting also included a vote on executive compensation, which was passed. These decisions reflect shareholder support for the company’s strategic direction and governance.