Real Matters Inc (REAL) AI Stock Analysis

• Market Cap: C$501.24M
• Dividend Yield: N/A
• Average Volume (3M): 71.78K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.26
• Revenue Growth: 0.86%
• EPS Growth: N/A
• Country: CA
• Employees: 338
• Sector: Real Estate
• Sector Strength: 53
• Industry: Software - Application
• EPS (TTM): -0.03
• Shares Outstanding: 74,148,000
• 10 Day Avg. Volume: 45,796
• 30 Day Avg. Volume: 71,779
• PEG Ratio: -274.29
• Price to Book (P/B): 4.28
• Price to Sales (P/S): 2.87
• P/FCF Ratio: 106.02
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$9.56
• Price Target Upside: 45.07% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 59 Neutral
• Price Target: C$8.00 ▲(21.40% Upside)

Real Matters Inc. has a mixed outlook. The most significant factor is its financial performance, which shows declining revenue and profitability challenges. Technical analysis indicates positive momentum, providing some optimism. Valuation concerns arise due to a negative P/E ratio, suggesting potential overvaluation. The earnings call offered some positive insights with sequential growth and a strong cash position, but year-over-year declines and increased expenses temper the outlook.

Positive Factors

Strong Balance Sheet

A strong balance sheet with no debt and significant cash reserves provides financial stability and flexibility for strategic investments and growth.

New Client Acquisitions

Acquiring new clients, especially major ones, enhances revenue potential and strengthens market position, supporting long-term growth.

Positive Adjusted EBITDA

Achieving positive adjusted EBITDA indicates improved operational efficiency and profitability potential, crucial for sustainable growth.

Negative Factors

Year-over-Year Revenue Decline

Declining year-over-year revenue suggests challenges in maintaining growth momentum, potentially impacting future profitability and market share.

U.S. Appraisal Segment Challenges

Decreased revenues in a key segment highlight operational challenges and competitive pressures, which could hinder overall business performance.

Operating Expenses Increase

Rising operating expenses can pressure margins and profitability, necessitating effective cost management to sustain financial health.

Real Matters Inc Business Overview & Revenue Model

Company Description

Real Matters Inc. provides technology and network management solutions to mortgage lending and insurance industries in Canada and the United States. It offers residential mortgage appraisals for purchase, refinance, and home equity and default transactions under the Solidifi brand to the mortgage lending industry; and insurance inspection services to property and casualty insurers under the iv3 brand. The company also provides residential and commercial real estate title and closing services for refinance, purchase, short sale, and real estate owned transactions to financial institutions under the Solidifi brand; and offers services required to close a mortgage transaction, including title search, curative, closing and escrow services, and title policy issuance, as well as other title services, such as capital markets services. In addition, it provides access to its software platforms to other title insurance agencies and mortgage lenders for a subscription fee. The company was formerly known as Solidifi Inc. and changed its name to Real Matters Inc. in July 2010. Real Matters Inc. was incorporated in 2004 and is headquartered in Markham, Canada.

How the Company Makes Money

Real Matters generates revenue primarily through service fees from its appraisal and title services, which are provided to lenders and insurers in the mortgage industry. The company earns money by charging for each appraisal conducted and title service rendered. Additionally, Real Matters monetizes its data and analytics offerings by providing insights and tools to clients, which can include subscription-based models or pay-per-use fees. Significant partnerships with major financial institutions and technology firms enhance its service offerings and expand its market reach, contributing to its overall earnings.

Real Matters Inc Financial Statement Overview

Summary

Real Matters Inc. faces significant challenges in its financial performance. The income statement indicates declining revenue and profit margins, suggesting operational and market difficulties. Despite a strong equity position and low leverage, as shown in the balance sheet, the company's declining asset base raises concerns about its growth prospects. Cash flow statements reveal inconsistencies, indicating a need for improved cash management strategies.

Income Statement

Real Matters Inc. has experienced significant revenue decline over the years, with total revenue shrinking from $504.1 million in 2021 to $173.4 million in the TTM (Trailing-Twelve-Months) period. While gross profit margin has improved, net profit margin remains low, and EBIT margin is negative, indicating profitability challenges. The company has been unable to sustain its previous high revenue and profitability levels, suggesting operational difficulties.

Balance Sheet

The balance sheet of Real Matters Inc. shows a strong equity base, with a low debt-to-equity ratio of 0.02 in the TTM period, indicating low leverage. The equity ratio is also solid, with shareholders' equity making up a large portion of total assets. However, the declining total assets and equity year-over-year signal potential weaknesses in asset management and growth capabilities.

Cash Flow

Cash flow analysis reveals a volatile free cash flow history, with recent positive free cash flow in the TTM period. The operating cash flow to net income ratio is healthy, suggesting that cash generated from operations supports reported net income. However, the fluctuation in free cash flow growth rates highlights inconsistent cash management practices.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	169.37M	172.72M	163.91M	339.64M	504.11M	455.94M
Gross Profit	44.81M	46.36M	43.02M	22.66M	78.50M	89.62M
EBITDA	-3.74M	2.70M	-4.99M	5.91M	51.56M	70.35M
Net Income	-4.95M	18.00K	-6.17M	-9.27M	32.99M	41.99M
Balance Sheet
Total Assets	127.25M	134.28M	128.74M	137.00M	194.34M	249.72M
Cash, Cash Equivalents and Short-Term Investments	43.82M	49.14M	42.34M	46.14M	60.21M	129.16M
Total Debt	2.01M	2.82M	4.10M	5.86M	8.04M	7.90M
Total Liabilities	16.86M	18.58M	17.16M	22.00M	34.79M	37.51M
Stockholders Equity	110.39M	115.70M	111.58M	114.89M	159.44M	209.00M
Cash Flow
Free Cash Flow	1.14M	4.67M	-3.59M	16.39M	22.00M	72.86M
Operating Cash Flow	2.24M	5.45M	-2.56M	17.57M	25.02M	74.69M
Investing Cash Flow	-690.00K	-169.00K	-799.00K	-1.08M	-2.88M	-1.83M
Financing Cash Flow	910.00K	1.42M	-445.00K	-30.42M	-94.05M	-15.20M

Real Matters Inc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.59
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:REAL, the sentiment is Positive. The current price of 6.59 is above the 20-day moving average (MA) of 6.40, below the 50-day MA of 7.03, and above the 200-day MA of 6.15, indicating a neutral trend. The MACD of -0.20 indicates Negative momentum. The RSI at 47.22 is Neutral, neither overbought nor oversold. The STOCH value of 83.99 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:REAL.

Real Matters Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KXS	71 Outperform	C$4.72B	136.84	8.24%	―	15.11%	75.40%
ENGH	71 Outperform	$1.11B	14.85	12.56%	6.15%	0.03%	-10.21%
DSG	68 Neutral	C$9.86B	48.59	10.54%	―	15.63%	18.47%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
DCBO	63 Neutral	$840.78M	27.66	49.99%	―	16.25%	31.71%
REAL	59 Neutral	C$501.24M	-72.38	-22.15%	―	0.86%	―
LSPD	52 Neutral	C$2.15B	-2.48	-37.01%	―	17.23%	-435.45%

Real Matters Inc Corporate Events

Real Matters to Release Q4 and Fiscal 2025 Financial Results

Real Matters Inc. announced it will release its fourth quarter and fiscal 2025 financial results on November 20, 2025, before market opening. A conference call hosted by CEO Brian Lang and CFO Rodrigo Pinto will follow to discuss the results, with an accompanying slide presentation available on their website. This announcement is significant for stakeholders as it provides insights into the company’s financial health and strategic positioning in the mortgage and insurance industries.

The most recent analyst rating on (TSE:REAL) stock is a Buy with a C$9.00 price target. To see the full list of analyst forecasts on Real Matters Inc stock, see the TSE:REAL Stock Forecast page.

Real Matters Reports Strong Growth Amid Challenges

Despite facing a challenging year-over-year comparison and a softer spring market, Real Matters showcased a strong sequential growth trajectory during its latest earnings call. The company highlighted significant new client acquisitions and an improved financial position, with positive aspects such as substantial market share gains and a healthy balance sheet outweighing the challenges faced.

Real Matters Inc. Sees Revenue Growth Amid Strategic Expansions

Real Matters Inc. reported a 22% sequential increase in consolidated revenues for the third quarter of 2025, reaching $45.4 million, driven by growth in the U.S. Appraisal and U.S. Title segments. Despite a net loss of $4.9 million, the company launched new clients and expanded its presence with major lenders, positioning itself strategically for future opportunities as interest rates shift.

The most recent analyst rating on (TSE:REAL) stock is a Buy with a C$9.00 price target. To see the full list of analyst forecasts on Real Matters Inc stock, see the TSE:REAL Stock Forecast page.