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The RMR Group
(NASDAQ:RMR)
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Rating:63Neutral
Price Target:
$20.00
▲(2.67% Upside)
Action:Reiterated
Date:08/06/26
RMR scores as a moderate opportunity: strong and improving free cash flow plus solid liquidity and a constructive guidance/incentive-fee outlook support the score, but it is held back by declining revenue and weaker/volatile margins, alongside bearish near-term technical momentum. The high dividend yield and reasonable P/E provide additional support on valuation.
Positive Factors
Strong Cash Generation
Robust operating and free cash flow gives RMR meaningful internal funding capacity and supports financial resilience. Free cash flow remains close to net income, indicating earnings are broadly cash-backed and providing flexibility for investment, debt management, and shareholder distributions.
Negative Factors
Revenue and Margin Pressure
A multiyear revenue decline combined with margins below prior highs indicates that RMR’s current earnings base is less powerful than its historical performance. Persistent top-line pressure or reduced operating leverage could limit reinvestment, constrain distributions, and make incentive revenue more important.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Cash Generation
Robust operating and free cash flow gives RMR meaningful internal funding capacity and supports financial resilience. Free cash flow remains close to net income, indicating earnings are broadly cash-backed and providing flexibility for investment, debt management, and shareholder distributions.
Read all positive factors
The RMR Group Key Performance Indicators (KPIs)
The RMR Group (RMR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$584.82M
Dividend Yield9.83%
Average Volume (3M)97.16K
Price to Earnings (P/E)16.0
Beta (1Y)0.67
Revenue Growth-15.21%
EPS Growth-0.30%
CountryUS
Employees900
SectorReal Estate
Sector Strength53
IndustryReal Estate - Services
Share Statistics
EPS (TTM)1.14
Shares Outstanding16,080,227
10 Day Avg. Volume117,948
30 Day Avg. Volume97,159
Financial Highlights & Ratios
PEG Ratio-0.60
Price to Book (P/B)1.15
Price to Sales (P/S)0.37
P/FCF Ratio3.63
Enterprise Value/Market Cap1.10
Enterprise Value/Revenue1.01
Enterprise Value/Gross Profit1.27
Enterprise Value/Ebitda8.09
Forecast
1Y Price Target
$26.00Price Target Upside33.47% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.75
Revenue Forecast (FY)$677.70M
The RMR Group Business Overview & Revenue Model
Company Description
The RMR Group Inc., operating through its subsidiary, The RMR Group LLC, specializes in delivering business and property management solutions across the United States. The firm primarily serves four publicly traded real estate investment trusts (R...
How the Company Makes Money
RMR makes money primarily by earning contractual management and advisory fees from the companies and investment vehicles it manages. Its key revenue streams generally include: (1) Base business/property management fees: recurring fees paid by mana...
The RMR Group Earnings Call Summary
Earnings Call Date:Aug 05, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Nov 16, 2026
Earnings Call Sentiment Positive
The call conveyed substantial operational and financial progress across RMR's managed REITs (DHC, ILPT, SVC) and growth in private capital AUM, supported by strong liquidity and a meaningful incentive-fee pipeline. These positives were balanced by near-term headwinds in private fundraising (laid out as a macro/geopolitical issue), a one-time noncash impairment related to OPI, elevated quarterly tax and compensation timing effects, and a notable valuation discount for RMR shares. On balance, the company presented multiple clear wins in operations, balance-sheet improvement at its managed REITs, and tangible transactional progress that outweigh the described cyclical and one-time challenges.Positive Updates
Quarterly Profitability Metrics Met Guidance
Distributable earnings of $0.48 per share and adjusted EBITDA of $19.7 million for the fiscal third quarter, both in line with company guidance. Next-quarter guidance: adjusted EBITDA $19M–$21M and distributable earnings $0.48–$0.50 per share.
Negative Updates
Fundraising Headwinds for Private Capital
Global real estate fundraising in H1 of the calendar year was at a 9-year low. The ongoing conflict in the Middle East and extended fundraising cycles (now 18–24 months) have paused many investors (notably Middle Eastern capital), slowing fundraising for the Enhanced Growth Venture and other private capital initiatives.
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Q3-2026 Updates
Positive
Negative
Quarterly Profitability Metrics Met Guidance
Distributable earnings of $0.48 per share and adjusted EBITDA of $19.7 million for the fiscal third quarter, both in line with company guidance. Next-quarter guidance: adjusted EBITDA $19M–$21M and distributable earnings $0.48–$0.50 per share.
Read all positive updates
Company Guidance
Management guided next-quarter adjusted EBITDA of $19.0M–$21.0M and distributable earnings of $0.48–$0.50 per share, with recurring service revenues expected to stay roughly flat at ≈$45M (this quarter $45.5M); recurring cash compensation is forecast to decline to ≈$38.5M (this quarter $39.6M) with ≈$600k of incremental equity compensation expected next quarter, recurring G&A to be modestly lower (this quarter $10.7M), and a reimbursement-rate run‑rate of ~42%. For the full year, RMR expects adjusted EBITDA of approximately $76.5M–$78.5M (excluding $23.6M of 2025 incentive fees and a possible >$40M of 2026 incentive fees), targets an annual tax rate of 17%–18% (this quarter was 20.4%), and finished the quarter with over $130M of liquidity (>$55M cash and $75M revolver capacity).The RMR Group Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
61
Positive
Cash Flow
78
Positive
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 638.98M | 700.28M | 897.61M | 962.32M | 832.50M | 607.24M |
| Gross Profit | 508.92M | 538.56M | 288.46M | 305.92M | 263.74M | 237.20M |
| EBITDA | 79.60M | 61.30M | 69.94M | 150.64M | 91.69M | 78.57M |
| Net Income | 19.81M | 17.60M | 23.13M | 57.15M | 34.00M | 35.70M |
Balance Sheet | ||||||
| Total Assets | 713.58M | 718.25M | 700.49M | 582.42M | 542.40M | 497.91M |
| Cash, Cash Equivalents and Short-Term Investments | 58.20M | 62.30M | 141.60M | 267.99M | 189.09M | 159.84M |
| Total Debt | 183.39M | 204.04M | 114.31M | 30.11M | 30.32M | 34.07M |
| Total Liabilities | 315.01M | 316.23M | 281.08M | 158.76M | 172.67M | 150.20M |
| Stockholders Equity | 224.19M | 227.66M | 237.57M | 240.07M | 206.62M | 195.12M |
Cash Flow | ||||||
| Free Cash Flow | 97.99M | 72.10M | 57.51M | 105.23M | 100.15M | 70.65M |
| Operating Cash Flow | 103.90M | 75.75M | 61.38M | 109.22M | 101.27M | 71.79M |
| Investing Cash Flow | -169.99M | -183.86M | -209.84M | 49.50M | -10.59M | -1.14M |
| Financing Cash Flow | 8.31M | 28.81M | 22.07M | -79.81M | -61.43M | -280.48M |
The RMR Group Technical Analysis
Positive
19.48
Price Trends
19.04
Negative
19.49
Negative
17.71
Positive
Market Momentum
-0.35
Negative
47.20
Neutral
62.82
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RMR, the sentiment is Positive. The current price of 19.48 is above the 20-day moving average (MA) of 18.31, above the 50-day MA of 19.04, and above the 200-day MA of 17.71, indicating a neutral trend. The MACD of -0.35 indicates Negative momentum. The RSI at 47.20 is Neutral, neither overbought nor oversold. The STOCH value of 62.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RMR.
The RMR Group Risk Analysis
The RMR Group disclosed 2 risk factors in its most recent earnings report. The RMR Group reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
The RMR Group Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $2.13B | 14.13 | 10.45% | 1.54% | 23.06% | 88.89% | |
70 Outperform | $1.06B | 75.70 | 2.44% | 1.80% | 11.89% | ― | |
69 Neutral | $13.71B | 14.01 | 13.57% | 0.53% | 11.17% | 79.36% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
63 Neutral | $584.82M | 16.04 | 8.69% | 9.83% | -15.21% | -0.30% | |
58 Neutral | $37.85B | 29.54 | 15.16% | ― | 14.53% | 22.31% | |
52 Neutral | $2.71B | 39.03 | 3.50% | ― | 11.04% | -66.92% |
* Real Estate Sector Average
RMR
The RMR Group
18.32
5.04
37.93%
CBRE
CBRE Group
129.67
-24.69
-16.00%
JLL
Jones Lang Lasalle
298.32
3.59
1.22%
MMI
Marcus & Millichap
27.72
-0.57
-2.03%
NMRK
Newmark Group
11.71
-6.00
-33.88%
CWK
Cushman & Wakefield
11.39
-4.16
-26.75%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.