0.43%
-9.54%
-22.43%
-28.03%
-28.44%
-41.67%
-59.47%

Company Description

The RMR Group Inc., through its subsidiary, The RMR Group LLC, provides business and property management services in the United States.The company provides management services to its four publicly traded real estate investment trusts and three real estate operating companies.It also provides investment advisory services.


The company was formerly known as REIT Management & Research Inc.and changed its name to The RMR Group Inc.in September 2015.


The RMR Group Inc.was founded in 1986 and is headquartered in Newton, Massachusetts.

Market Data

Last Price 18.67
Change Percentage 0.43%
Open 18.51
Previous Close 18.59
Market Cap ( Millions) 595
Volume 127114
Year High 26.48
Year Low 18.21
M A 50 20.84
M A 200 23.37

Financial Ratios

FCF Yield 9.67%
Dividend Yield 9.64%
ROE 9.64%
Debt / Equity 48.12%
Net Debt / EBIDTA -41.49%
Price To Book 1.3
Price Earnings Ratio 13.34
Price To FCF 10.34
Price To sales 0.66
EV / EBITDA 8.62

Business Breakdown

Expected Mid-Term Growth

Segment nΒ°1 -> Other Reimbursable Expenses

Expected Growth : 4.83 %

What the company do ?

Other Reimbursable Expenses from The RMR Group Inc. refers to costs incurred by the company and reimbursed by its clients, such as operating expenses, taxes, and insurance.

Why we expect these perspectives ?

The 4.83% growth in Other Reimbursable Expenses at The RMR Group Inc. is driven by increased property management fees, higher reimbursement rates, and an expansion of services offered to clients, resulting in higher billable hours and expenses. Additionally, the company's growing portfolio of properties under management has led to increased expenses related to property operations and maintenance.

Segment nΒ°2 -> Management Services

Expected Growth : 8.4 %

What the company do ?

The RMR Group Inc.'s Management Services provide comprehensive real estate management solutions, including property management, accounting, and construction management, to clients across various industries.

Why we expect these perspectives ?

The 8.4% growth in Management Services from The RMR Group Inc. is driven by increasing demand for property management and leasing services, expansion into new markets, and strategic acquisitions. Additionally, the company's focus on technology integration and operational efficiency has improved its ability to attract and retain clients, contributing to revenue growth.

Segment nΒ°3 -> Reimbursable Compensation and Benefits

Expected Growth : 8.37 %

What the company do ?

Reimbursable Compensation and Benefits from The RMR Group Inc. refers to the reimbursement of expenses and provision of benefits to employees, including salaries, bonuses, and other incentives.

Why we expect these perspectives ?

The 8.37% growth in Reimbursable Compensation and Benefits from The RMR Group Inc. is driven by increasing property values, rising rent and fees, and a growing portfolio of properties under management, resulting in higher reimbursement rates and fees earned.

Segment nΒ°4 -> Termination and Incentive Business Management Fees

Expected Growth : 7.92 %

What the company do ?

Termination and Incentive Business Management Fees from The RMR Group Inc. refer to fees paid to the company for managing and terminating business operations, including incentives for meeting performance targets.

Why we expect these perspectives ?

The 7.92% growth in Termination and Incentive Business Management Fees from The RMR Group Inc. is driven by increasing demand for property management services, expansion into new markets, and strategic acquisitions. Additionally, the company's focus on operational efficiency and cost savings initiatives have contributed to the growth.

Segment nΒ°5 -> Reimbursable Equity Based Compensation

Expected Growth : 8.9 %

What the company do ?

Reimbursable Equity Based Compensation from The RMR Group Inc. refers to the reimbursement of equity-based compensation expenses incurred by RMR LLC, a subsidiary, to its employees.

Why we expect these perspectives ?

The 8.9% growth in Reimbursable Equity Based Compensation from The RMR Group Inc. is driven by increasing property values, rising management fees, and a growing portfolio of properties under management. Additionally, the company's ability to attract and retain top talent through competitive compensation packages has contributed to the growth.

Segment nΒ°6 -> Advisory Services

Expected Growth : 8.37 %

What the company do ?

The RMR Group Inc.'s Advisory Services provide strategic guidance to clients on real estate investment, development, and management, leveraging their expertise to maximize value and minimize risk.

Why we expect these perspectives ?

The RMR Group Inc.'s 8.37% growth in Advisory Services is driven by increasing demand for real estate investment management, expansion into new markets, and strategic partnerships. Additionally, the company's expertise in property management and leasing, as well as its ability to provide comprehensive solutions to clients, contribute to its growth momentum.

The Rmr Group Inc. Products

Product Range What is it ?
Property Management The RMR Group Inc. provides property management services to commercial and residential properties, including office buildings, apartments, and condominiums.
Facilities Management The RMR Group Inc. offers facilities management services to ensure that buildings and facilities are well-maintained and running efficiently.
Construction Management The RMR Group Inc. provides construction management services to oversee construction projects from start to finish.
Leasing and Brokerage The RMR Group Inc. provides leasing and brokerage services to help property owners find tenants and negotiate leases.
Investment and Advisory Services The RMR Group Inc. provides investment and advisory services to help clients make informed investment decisions.

The RMR Group Inc.'s Porter Forces

The threat of substitutes for The RMR Group Inc. is medium due to the availability of alternative investment options for investors.

The bargaining power of customers for The RMR Group Inc. is low due to the company's diversified portfolio and lack of dependence on a single customer.

The bargaining power of suppliers for The RMR Group Inc. is medium due to the company's reliance on a few key suppliers for its operations.

The threat of new entrants for The RMR Group Inc. is high due to the relatively low barriers to entry in the real estate investment trust (REIT) industry.

The intensity of rivalry for The RMR Group Inc. is high due to the competitive nature of the REIT industry and the presence of several established players.

Capital Structure

Value
Debt Weight 11.15%
Debt Cost 3.95%
Equity Weight 88.85%
Equity Cost 10.55%
WACC 9.82%
Leverage 12.54%

Historical Valuation

Price/Earnings Ratio

Margin Valuation

Peers Valuation

Competitors

Company Rational
NMRK Newmark Group, Inc. provides commercial real estate services in the United States and internationally. The company's investor/owner services and products include capital markets, such as investment, debt and structured finance, …
RMAX RE/MAX Holdings, Inc. operates as a franchisor of real estate and mortgage brokerage services in the United States, Canada, and internationally. The company operates through three segments: Real Estate, Mortgage, …
MMI Marcus & Millichap, Inc., an investment brokerage company, provides real estate investment brokerage and financing services to sellers and buyers of commercial real estate in the United States and Canada. …
FRPH FRP Holdings, Inc. engages in the real estate businesses in the United States. The company operates through four segments: Asset Management, Mining Royalty Lands, Development, and Stabilized Joint Venture. The …
KW Kennedy-Wilson Holdings, Inc., together with its subsidiaries, operates as a real estate investment company. The company owns, operates, and invests in real estate both on its own and through its …

Peers Metrics

DCF BETA

Parameters

Short Term Growth
Short term Time
Long-Term Growth
WACC
Target Price
18.67$
Current Price
18.67$
Potential
-0.00%

Expected Cash-Flows

Scoring Insights

Peers Group Analysis

πŸ₯‡

RMR Group Logo
RMR Group
A-Score # N/A

Value:# N/A

Growth: # N/A

Quality: # N/A

Yield: # N/A

Momentum: # N/A

Volatility: # N/A

1-Year Total Return ->

πŸ₯ˆ

Kennedy-Wilson Holdings Logo
Kennedy-Wilson Holdings
A-Score # N/A

Value:# N/A

Growth: # N/A

Quality: # N/A

Yield: # N/A

Momentum: # N/A

Volatility: # N/A

1-Year Total Return ->

πŸ₯‰

Marcus Millichap Logo
Marcus Millichap
A-Score # N/A

Value:# N/A

Growth: # N/A

Quality: # N/A

Yield: # N/A

Momentum: # N/A

Volatility: # N/A

1-Year Total Return ->

4

Newmark Logo
Newmark
A-Score # N/A

Value:# N/A

Growth: # N/A

Quality: # N/A

Yield: # N/A

Momentum: # N/A

Volatility: # N/A

1-Year Total Return ->

5

RE/MAX Logo
RE/MAX
A-Score # N/A

Value:# N/A

Growth: # N/A

Quality: # N/A

Yield: # N/A

Momentum: # N/A

Volatility: # N/A

1-Year Total Return ->

6

FRP Holdings Logo
FRP Holdings
A-Score # N/A

Value:# N/A

Growth: # N/A

Quality: # N/A

Yield: # N/A

Momentum: # N/A

Volatility: # N/A

1-Year Total Return ->