The RMR Group (RMR) AI Stock Analysis

• Market Cap: $493.02M
• Dividend Yield: 11.64%
• Average Volume (3M): 129.25K
• Price to Earnings (P/E): 13.4
• Beta (1Y): 0.79
• Revenue Growth: -16.99%
• EPS Growth: -24.57%
• Country: US
• Employees: 1,000
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): 0.28
• Shares Outstanding: 15,869,689
• 10 Day Avg. Volume: 178,350
• 30 Day Avg. Volume: 129,252
• PEG Ratio: -0.30
• Price to Book (P/B): 1.77
• Price to Sales (P/S): 0.47
• P/FCF Ratio: 7.30
• Enterprise Value/Market Cap: 0.90
• Enterprise Value/Revenue: 0.59
• Enterprise Value/Gross Profit: 1.58
• Enterprise Value/Ebitda: 7.15
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 67 Neutral
• Price Target: $17.00 ▲(11.77% Upside)

RMR's overall stock score reflects challenges in financial performance, particularly in revenue growth and profitability. While the valuation is attractive with a high dividend yield, technical indicators show mixed momentum. Strategic initiatives from the earnings call are promising, but challenges in fundraising and increased interest expenses remain concerns.

Positive Factors

Executive Leadership Promotions

Promoting experienced executives like Matt Jordan to COO can enhance strategic execution and operational efficiency, strengthening the company's leadership team.

Expansion of Private Capital Initiatives

Expanding the private capital platform to over $12 billion positions RMR to leverage economies of scale and capture more market opportunities, driving long-term growth.

Successful Debt Refinancing

Refinancing $1.2 billion of debt to a fixed rate reduces interest rate risk and stabilizes cash flows, improving financial stability over the long term.

Negative Factors

Challenging Fundraising Environment

A challenging fundraising environment can slow down the growth of private capital assets under management, limiting expansion and revenue potential.

Revenue Decline

A decline in recurring service revenues indicates potential issues in client retention or market demand, impacting long-term revenue stability.

Increased Interest Expenses

Rising interest expenses can erode profitability and reduce cash available for reinvestment, affecting the company's financial health and growth prospects.

The RMR Group Business Overview & Revenue Model

Company Description

The RMR Group (RMR) is a leading real estate investment and management firm based in Newton, Massachusetts. The company specializes in managing a diverse portfolio of properties, including commercial real estate investments such as office buildings, industrial facilities, and retail spaces. RMR provides a range of services, including property management, leasing, and development, focusing on enhancing asset value and delivering strategic investment opportunities for its clients and partners.

How the Company Makes Money

RMR generates revenue primarily through property management fees, leasing commissions, and acquisition fees associated with the properties it manages. The company earns a percentage of the rental income generated by the properties, which is a significant source of recurring revenue. Additionally, RMR benefits from asset management fees charged to its clients for overseeing their real estate investments. Strategic partnerships with various real estate investment trusts (REITs) and institutional investors further contribute to RMR's earnings by expanding its portfolio and creating economies of scale in operations. The company also engages in performance-based incentives, allowing it to earn additional income based on the success of the properties it manages.

The RMR Group Financial Statement Overview

Summary

The RMR Group faces challenges in revenue growth and profitability, with declining margins and cash flow growth. The balance sheet remains stable with manageable leverage, but reduced return on equity indicates potential inefficiencies.

Income Statement

The RMR Group's income statement shows a declining revenue trend with a negative growth rate of -6.31% in the TTM period. Gross profit margin has decreased slightly to 30.26%, and net profit margin is relatively low at 2.52%. The EBIT and EBITDA margins are stable but modest at 7.23% and 7.52%, respectively. Overall, the company faces challenges in revenue growth and profitability.

Balance Sheet

The balance sheet reflects a moderate debt-to-equity ratio of 0.48, indicating manageable leverage. Return on equity has decreased to 8.55%, suggesting reduced efficiency in generating profits from equity. The equity ratio is not explicitly calculated but appears stable given the equity and asset figures. The company maintains a balanced financial structure but shows signs of declining profitability.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth by -15.97% in the TTM period. The operating cash flow to net income ratio is 0.66, indicating moderate cash generation relative to net income. Free cash flow to net income ratio is high at 0.94, suggesting efficient cash conversion. Despite strong cash conversion, the decline in free cash flow growth is a concern.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	753.59M	897.61M	962.32M	832.50M	607.24M	589.50M
Gross Profit	282.55M	288.46M	169.56M	133.86M	117.56M	107.55M
EBITDA	62.27M	69.07M	121.05M	90.81M	78.57M	73.20M
Net Income	19.52M	23.13M	57.15M	77.47M	81.01M	66.33M
Balance Sheet
Total Assets	648.02M	700.49M	582.42M	542.40M	497.91M	690.25M
Cash, Cash Equivalents and Short-Term Investments	121.28M	141.60M	267.99M	189.09M	159.84M	369.66M
Total Debt	116.25M	114.31M	30.11M	30.32M	34.07M	36.44M
Total Liabilities	238.69M	281.08M	158.76M	172.67M	150.20M	149.35M
Stockholders Equity	231.34M	237.57M	240.07M	206.62M	195.12M	295.92M
Cash Flow
Free Cash Flow	50.61M	57.51M	105.23M	100.15M	70.65M	76.90M
Operating Cash Flow	54.42M	61.38M	109.22M	101.27M	71.79M	77.50M
Investing Cash Flow	-167.66M	-209.84M	49.50M	-10.59M	-1.14M	-5.92M
Financing Cash Flow	26.54M	22.07M	-79.81M	-61.43M	-280.48M	-60.36M

The RMR Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 15.21
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 15.21 is above the 20-day moving average (MA) of 14.60, below the 50-day MA of 15.42, and below the 200-day MA of 15.52, indicating a neutral trend. The MACD of -0.06 indicates Negative momentum. The RSI at 61.35 is Neutral, neither overbought nor oversold. The STOCH value of 54.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RMR.

The RMR Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CWK	―	$3.61B	16.33	12.21%	―	6.77%	150.72%
RMR	―	$493.02M	13.44	8.12%	11.64%	-16.99%	-24.57%
Sector *	―	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
NMRK	―	$3.10B	30.53	7.36%	0.66%	22.17%	94.52%
HOUS	―	$1.14B	-10.44	-6.89%	―	2.74%	-118.94%
KW	―	$1.04B	―	-2.97%	6.35%	-4.15%	75.18%
MMI	―	$1.14B	-92.38	-1.99%	1.71%	17.89%	65.32%

The RMR Group Corporate Events

The RMR Group Enters Restructuring Agreement with OPI

On October 30, 2025, Office Properties Income Trust (OPI) and its subsidiaries filed for Chapter 11 bankruptcy in the United States Bankruptcy Court for the Southern District of Texas. In conjunction with this, The RMR Group LLC, as OPI’s manager, entered into a Restructuring Support Agreement (RSA) with OPI and its lenders. The RSA outlines new management agreements that will take effect after OPI’s reorganization plan is implemented, reducing OPI’s debt from $2.4 billion to $1.3 billion.

The most recent analyst rating on (RMR) stock is a Hold with a $15.50 price target. To see the full list of analyst forecasts on The RMR Group stock, see the RMR Stock Forecast page.

The RMR Group Announces New Leadership Appointments

On September 29, 2025, The RMR Group announced leadership changes effective October 1, 2025, with Matthew P. Jordan appointed as Chief Operating Officer and Executive Vice President, and Matthew C. Brown as Executive Vice President, Chief Financial Officer, and Treasurer. These appointments are expected to enhance the company’s strategic growth initiatives and operational efficiency, with Mr. Jordan focusing on capital formation and shared services, while Mr. Brown continues to oversee accounting, finance, and audit functions.

The most recent analyst rating on (RMR) stock is a Hold with a $18.00 price target. To see the full list of analyst forecasts on The RMR Group stock, see the RMR Stock Forecast page.

RMR Group Earnings Call: Balanced Sentiment and Strategic Growth

The RMR Group Inc.’s recent earnings call presented a balanced sentiment, highlighting notable achievements in REIT performance and strategic acquisitions, while acknowledging ongoing challenges in fundraising and specific sectors such as OPI’s office properties.

The RMR Group Inc. Reports Q3 2025 Results

The RMR Group Inc. is a prominent U.S. alternative asset management company specializing in both residential and commercial real estate, leveraging a vertical integration model supported by a large team of real estate professionals across the nation.