Real Matters Inc (REAL) AI Stock Analysis

• Market Cap: C$407.08M
• Dividend Yield: N/A
• Average Volume (3M): 45.19K
• Price to Earnings (P/E): 177.6
• Beta (1Y): 1.04
• Revenue Growth: 2.85%
• EPS Growth: -385.63%
• Country: CA
• Employees: 338
• Sector: Real Estate
• Sector Strength: 54
• Industry: Software - Application
• EPS (TTM): -0.01
• Shares Outstanding: 74,149,240
• 10 Day Avg. Volume: 38,773
• 30 Day Avg. Volume: 45,187
• 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$7.13
• Price Target Upside: 22.72% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 57 Neutral
• Price Target: C$6.00 ▲(3.27% Upside)

Real Matters Inc. faces significant financial challenges with declining revenues and profitability, impacting its overall score. However, strong sequential growth and strategic client wins, as highlighted in the earnings call, provide a positive outlook. The recent board appointment further supports strategic growth, though valuation concerns remain due to negative profitability metrics.

Positive Factors

Business Expansion

Real Matters has made continued market share gains with existing clients and launched three new clients this quarter.

Customer Base

Real Matters is ready to scale when volumes recover, with management optimistic about its growing customer base and opportunities with key customer Rocket Mortgage.

Market Share

REAL gained market share with three Tier 1 clients during the quarter despite industry volume decreases.

Negative Factors

Financial Performance

Q4/24 results were below consensus due to softness in US Appraisal volumes.

Interest Rates

There is a risk that mortgage rates could stay higher for longer, affecting the stock's valuation.

Market Challenges

Market challenges are lingering, with seasonality and uncertain timing on rate cuts expected to remain a headwind.

Real Matters Inc Business Overview & Revenue Model

Company Description

Real Matters Inc. (REAL) is a leading network management services provider, primarily focused on the mortgage lending and insurance industries. The company operates through its proprietary cloud-based platform, which connects a wide range of service providers with lenders and insurers to facilitate processes such as property appraisals, title, and mortgage closing services. Real Matters leverages its scalable technology to enhance efficiency, accuracy, and speed in the real estate sector, serving clients in both the United States and Canada.

How the Company Makes Money

Real Matters Inc. generates revenue through its network management services by offering a platform that connects lenders and insurers with a network of independent field professionals, including appraisal and title service providers. The company earns fees for facilitating transactions on its platform, which are typically based on the volume and value of services processed. Key revenue streams include appraisal management services, where the company earns a portion of the fees paid by lenders for property appraisals, and title and closing services, where revenue comes from facilitating title searches and insurance, as well as mortgage closing processes. Significant partnerships with financial institutions and real estate service providers also contribute to Real Matters' earnings by expanding its network and transaction volume.

Real Matters Inc Financial Statement Overview

Summary

Real Matters Inc. faces financial challenges with declining revenue and profit margins, despite strong equity and low leverage. The inconsistent cash flow history indicates a need for better 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	-5.06M	5.91M	56.91M	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: 5.81
• 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 TSE:REAL, the sentiment is Positive. The current price of 5.81 is above the 20-day moving average (MA) of 5.40, above the 50-day MA of 5.53, and below the 200-day MA of 6.12, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 61.20 is Neutral, neither overbought nor oversold. The STOCH value of 67.37 is Neutral, 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
DCBO	75 Outperform	$1.29B	44.03	55.53%	―	18.51%	32.49%
KXS	73 Outperform	C$5.59B	162.79	5.93%	―	15.81%	22.17%
ENGH	71 Outperform	$1.23B	15.72	13.26%	6.11%	5.12%	-2.77%
DSG	66 Neutral	$11.75B	59.29	10.66%	―	17.42%	22.81%
Sector *	63 Neutral	$6.82B	13.21	-0.71%	7.17%	3.67%	-27.43%
REAL	57 Neutral	C$407.08M	177.59	-4.55%	―	2.85%	-385.63%
LSPD	53 Neutral	C$2.25B	―	-36.64%	―	18.75%	-386.84%

Real Matters Inc Corporate Events

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.

Real Matters to Release Q3 Fiscal 2025 Financial Results

Real Matters Inc. has announced that it will release its third quarter fiscal 2025 financial results on July 31, 2025, before the market opens. The announcement will be followed by a conference call and webcast hosted by the CEO and CFO to discuss the results. This event is significant for stakeholders as it provides insights into the company’s financial health and operational performance, potentially impacting its market positioning and investor relations.

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 Strengthens Board with Industry Veteran John Walsh

Real Matters Inc. has appointed John Walsh, a veteran with over four decades of experience in the mortgage market, to its Board of Directors. Walsh’s extensive background in financial services, data, and technology is expected to be a significant asset to Real Matters as it continues to pursue its long-term growth strategy and strengthen its position as a leader in mortgage technology. His appointment is anticipated to enhance the company’s governance and strategic direction, benefiting stakeholders and aligning with Real Matters’ goals of innovation and industry leadership.

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.