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Royalty Management Holding Corp (RMCOW) stock analysis

RMCOWNasdaqPatent Owners & LessorsFiscal year ends December 31Also trades as RMCO
Financials through Q2 FY2026, quarter ended Jun 30, 2026Last filing: 10-Q on Aug 13, 2026Score 9/301% above fair value
$0.10+0.02 (+20.22%)

Close on Oct 30, 2026Market cap $34.90MP/E –Yield –

StockData Score

Prices as of Oct 30, 2026How the score works

Value0Growth2Performance1Health5Dividend1

Mixed9 of 30 checks passed

Royalty Management passes 9 of the 30 checks behind our score; 10 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.

Valuation
0/6
Growth
2/6
Past performance
1/6
Financial health
5/6
Dividend
1/6

What stands out

  • No debt

    Royalty Management has no borrowings on its latest balance sheet.

  • Revenue growing 10%+ a year

    Revenue grew 203% a year over the last three fiscal years.

  • Debt covered by cash flow

    There is no debt to cover.

  • Low bankruptcy risk

    The Altman Z-score is 7.61; above 3 is the safe zone and below 1.8 the distress zone.

What to watch

  • Margin of safety under 20%

    The price is 1.3% above fair value, so there is no margin of safety.

  • Trading above fair value

    The share price of $2.30 is above our fair value estimate of $2.27.

  • Return on equity under 15%

    Return on equity was -6.4% over the last twelve months and averaged 1532% over five years; we look for 15% on both.

  • Return on capital under 10%

    Return on invested capital was -1.8%, below the 10% that usually covers the cost of capital.

Valuation0/6

  • P/E against its history

    Not enough price and earnings history to compare.

  • P/E against the industry

    Needs positive earnings and enough profitable companies in the industry.

  • EV/EBITDA against its history

    Needs positive EBITDA and price history.

  • P/B above the industry

    Royalty Management's price-to-book of 2.51 is above the Miscellaneous Investing median of 1.20.

  • Trading above fair value

    The share price of $2.30 is above our fair value estimate of $2.27.

  • Margin of safety under 20%

    The price is 1.3% above fair value, so there is no margin of safety.

Growth2/6

  • Revenue growing 10%+ a year

    Revenue grew 203% a year over the last three fiscal years.

  • EPS growth over 3 years

    Needs positive EPS three years ago and today.

  • Earnings acceleration

    Needs positive net income now, a year ago and five years ago.

  • Growing faster than the industry

    Revenue grew 134% over the last twelve months; the Miscellaneous Investing median is 4.4%.

  • Company guidance

    No outlook found in earnings releases from the last twelve months.

  • Gross margin slipping

    Gross margin was 11.1% over the last twelve months, against 32.7% a year earlier.

Past performance1/6

  • Return on equity under 15%

    Return on equity was -6.4% over the last twelve months and averaged 1532% over five years; we look for 15% on both.

  • Return on capital under 10%

    Return on invested capital was -1.8%, below the 10% that usually covers the cost of capital.

  • Return on equity below the industry

    Royalty Management's return on equity of -6.4% is below the Miscellaneous Investing median of 3.4%.

  • Earnings over 5 years

    Needs positive net income five years ago and in the latest year.

  • Net margin above its 5-year average

    Net margin was -14.5% over the last twelve months, against a 5-year average of -443%.

  • Net margin below the industry

    Royalty Management's net margin of -14.5% is below the Miscellaneous Investing median of 11.4%.

Financial health5/6

  • No debt

    Royalty Management has no borrowings on its latest balance sheet.

  • Debt not rising

    With no debt today, leverage cannot have risen.

  • Debt covered by cash flow

    There is no debt to cover.

  • Interest not well covered

    Operating income covers interest expense -32.2 times; we look for at least 5.

  • Short-term assets cover short-term debts

    Current assets are 1.41 times current liabilities.

  • Low bankruptcy risk

    The Altman Z-score is 7.61; above 3 is the safe zone and below 1.8 the distress zone.

Dividend1/6

  • Pays a dividend

    Royalty Management paid dividends worth 0.4% of the share price over the last twelve months.

  • Yield below Treasuries

    The 0.4% yield is below the 4.4% on a 1-year Treasury.

  • Yield below the top quarter

    The top quarter of US dividend payers yield 4.0% or more; Royalty Management yields 0.4%.

  • Dividend stability

    Fewer than five years of dividend history.

  • Earnings cover

    Needs dividends paid and net income.

  • Cash-flow cover

    Needs dividends paid and free cash flow.

Scores of similar companies

Fair value

How we estimate it

Our estimate per share

$2.27

The share price is 1% above this estimate.

20%+ below
Near fair value
20%+ above
$2.30Price
MethodMultiple usedOwn 5Y medianIndustry medianValue per shareWeight
P/B1.4×1.9×1.2×$1.2850%
P/S8.0×17.1×4.1×$3.2650%
Earnings powerleft out, too far from the others7.5% cost of equity––$0.12–
Fair value$2.27100%

Valuation over time

Using the earnings and balance sheet published at each date, not today's.

  • P/B at month end
  • Own 5-year median 1.9
  • Miscellaneous Investing median 1.2

An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.

Market risk

From the past year of daily prices.

Liquidity

High risk

Average value traded per day
$18.11K
Value traded per 1% price move
$8.66K

Downside

High risk

Typical loss in a bad month
35.1%
Volatility (annualized)
90%
Sharpe ratio, 1 year
-0.37
Beta to the S&P 500 (5Y)
0.16

Typical bad-month loss, week by week

25%: high

Margins

Share of revenue, fiscal years 2020 to 2025

Gross margin

16.3%

Operating margin

-5.9%

Net margin

-14.7%