Real Matters Inc (REAL) AI Stock Analysis

• Market Cap: C$410.05M
• Dividend Yield: N/A
• Average Volume (3M): 33.47K
• Price to Earnings (P/E): 189.3
• Beta (1Y): 1.10
• Revenue Growth: 7.77%
• EPS Growth: N/A
• Country: CA
• Employees: 338
• Sector: Technology
• Sector Strength: 91
• Industry: Software - Application
• EPS (TTM): -0.03
• Shares Outstanding: 74,149,240
• 10 Day Avg. Volume: 64,588
• 30 Day Avg. Volume: 33,467
• PEG Ratio: -2.31
• Price to Book (P/B): 2.71
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 454.02
• Enterprise Value/Market Cap: 0.62
• Enterprise Value/Revenue: 0.37
• Enterprise Value/Gross Profit: 5.50
• Enterprise Value/Ebitda: 30.69
• 1Y Price Target: C$8.83
• Price Target Upside: 60.55% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 52 Neutral
• Price Target: C$5.50 ▲(0.00%Upside)

The overall stock score reflects significant financial performance challenges, with declining revenues and profitability being the most impactful factors. The high valuation and mixed technical indicators suggest caution. The positive corporate event and some growth in specific segments provide minor offsets to the risks.

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. is a leading technology company that provides services to the mortgage lending and insurance industries. The company operates primarily in North America and specializes in delivering appraisal management services and title and closing services through its proprietary cloud-based technology platform. This platform enhances efficiency and accuracy, helping clients streamline their operations and reduce costs.

How the Company Makes Money

Real Matters Inc. generates revenue by offering technology-enabled services to mortgage lenders and insurance companies. The company earns money through fees charged for its appraisal management services, where it connects lenders with a network of independent appraisers to provide property valuations. Additionally, Real Matters offers title and closing services, facilitating the legal transfer of property ownership, and earns fees for these services as well. The company leverages its technology platform to improve the quality and efficiency of these services, which contributes to its competitive advantage and profitability. Significant partnerships with major mortgage lenders and insurance companies further bolster its revenue streams.

Real Matters Inc Financial Statement Overview

Summary

Real Matters Inc. faces challenges in its financial performance with declining revenue and profit margins, indicating operational difficulties. While the balance sheet shows low leverage and a strong equity position, the declining asset base raises growth concerns. Cash flow inconsistencies highlight the need for improved cash management.

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	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	172.72M	163.91M	339.64M	504.11M	455.94M
Gross Profit	46.36M	43.02M	22.66M	78.50M	89.62M
EBITDA	2.70M	-5.06M	5.91M	56.91M	70.35M
Net Income	18.00K	-6.17M	-9.27M	32.99M	41.99M
Balance Sheet
Total Assets	134.28M	128.74M	137.00M	194.34M	249.72M
Cash, Cash Equivalents and Short-Term Investments	49.14M	42.34M	46.14M	60.21M	129.16M
Total Debt	2.82M	4.10M	5.86M	8.04M	7.90M
Total Liabilities	18.58M	17.16M	22.00M	34.79M	37.51M
Stockholders Equity	115.70M	111.58M	114.89M	159.44M	209.00M
Cash Flow
Free Cash Flow	4.67M	-3.59M	16.39M	22.00M	72.86M
Operating Cash Flow	5.45M	-2.56M	17.57M	25.02M	74.69M
Investing Cash Flow	-169.00K	-799.00K	-1.08M	-2.88M	-1.83M
Financing Cash Flow	1.42M	-445.00K	-30.42M	-94.05M	-15.20M

Real Matters Inc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5.50
• 50DMA: Negative
• 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 TSE:REAL, the sentiment is Negative. The current price of 5.5 is below the 20-day moving average (MA) of 5.63, below the 50-day MA of 5.74, and below the 200-day MA of 6.49, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 41.65 is Neutral, neither overbought nor oversold. The STOCH value of 40.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	77 Outperform	C$1.18B	37.35	41.12%	―	20.52%	246.69%
KXS	74 Outperform	C$5.54B	404.81	2.32%	―	15.14%	-31.45%
DSG	74 Outperform	$12.06B	60.73	10.66%	―	17.42%	22.81%
ENGH	72 Outperform	$1.28B	16.30	13.26%	5.18%	5.12%	-2.77%
Sector *	61 Neutral	€9.58B	17.10	3.87%	1.79%	4.38%	-25.22%
LSPD	56 Neutral	C$2.16B	―	-33.64%	―	22.09%	-334.14%
REAL	52 Neutral	C$410.05M	189.31	1.37%	―	7.77%	―

Real Matters Inc Corporate Events

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.

Real Matters Reports Q2 2025 Financial Results Amid Market Challenges

Real Matters Inc. reported a decline in net revenue for the second quarter of 2025, attributed to a decrease in the U.S. purchase mortgage origination market. Despite this, the company achieved growth in its U.S. Title segment due to market share gains and increased refinance origination volumes. The company maintains a strong financial position with $45.7 million in cash and no debt, positioning it well for future market opportunities. The CEO highlighted the potential for growth in the mortgage industry amidst economic uncertainties, emphasizing the company’s strategic execution and client relationship expansion.