RMR Group Inc. (RMR) stock analysis
Close on Nov 12, 2026Market cap $503.98MP/E 25.8Yield –
StockData Score
Prices as of Nov 11, 2026How the score works
Mixed14 of 30 checks passed
RMR passes 14 of the 30 checks behind our score; 7 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
- 5/6
- Growth
- 1/6
- Past performance
- 3/6
- Financial health
- 2/6
- Dividend
- 3/6
What stands out
Margin of safety over 20%
The price is 25.0% below fair value, more than the 20% cushion we look for.
Trading below fair value
The share price of $15.75 is below our fair value estimate of $21.01.
Return on capital over 10%
Return on invested capital was 24.4%, above the 10% that usually covers the cost of capital.
Earnings growth accelerating
Net income grew 1.5% over the last twelve months, against a 5-year average of -9.4% a year.
What to watch
Return on equity under 15%
Return on equity was 8.7% over the last twelve months and averaged 14.9% over five years; we look for 15% on both.
Earnings shrank over 5 years
Net income shrank 9.4% a year on average over the last five fiscal years.
Revenue growing under 10% a year
Revenue grew -5.6% a year over the last three fiscal years, short of the 10% we look for.
EPS growing under 10% a year
Diluted EPS grew -20.4% a year over the last three fiscal years.
Valuation5/6
P/E below its 5-year median
RMR's P/E of 13.8 is below its own 5-year median of 14.3.
P/E below the industry
RMR's P/E of 13.8 is below the Management and Public Relations Services median of 21.9.
EV/EBITDA above its 5-year median
RMR's EV/EBITDA of 10.7 is above its 5-year median of 6.7.
P/B below the industry
RMR's price-to-book of 2.25 is below the Management and Public Relations Services median of 2.31.
Trading below fair value
The share price of $15.75 is below our fair value estimate of $21.01.
Margin of safety over 20%
The price is 25.0% below fair value, more than the 20% cushion we look for.
Growth1/6
Revenue growing under 10% a year
Revenue grew -5.6% a year over the last three fiscal years, short of the 10% we look for.
EPS growing under 10% a year
Diluted EPS grew -20.4% a year over the last three fiscal years.
Earnings growth accelerating
Net income grew 1.5% over the last twelve months, against a 5-year average of -9.4% a year.
Growing slower than the industry
Revenue grew -15.2% over the last twelve months; the Management and Public Relations Services median is 7.2%.
Company guidance
No outlook found in earnings releases from the last twelve months.
Gross margin trend
This company does not report gross profit.
Past performance3/6
Return on equity under 15%
Return on equity was 8.7% over the last twelve months and averaged 14.9% over five years; we look for 15% on both.
Return on capital over 10%
Return on invested capital was 24.4%, above the 10% that usually covers the cost of capital.
Return on equity above the industry
RMR's return on equity of 8.7% is above the Management and Public Relations Services median of 0.4%.
Earnings shrank over 5 years
Net income shrank 9.4% a year on average over the last five fiscal years.
Net margin below its 5-year average
Net margin was 3.1% over the last twelve months, against a 5-year average of 4.2%.
Net margin above the industry
RMR's net margin of 3.1% is above the Management and Public Relations Services median of 0.2%.
Financial health2/6
Debt level
Needs debt and equity figures.
Debt trend
Needs a balance sheet from five years ago with positive equity.
Debt coverage
Needs operating cash flow.
Interest not well covered
Operating income covers interest expense 4.0 times; we look for at least 5.
Short-term assets cover short-term debts
Current assets are 1.40 times current liabilities.
Low bankruptcy risk
The Altman Z-score is 3.04; above 3 is the safe zone and below 1.8 the distress zone.
Dividend3/6
Pays a dividend
RMR paid dividends worth 11.4% of the share price over the last twelve months.
Yield above Treasuries
The 11.4% yield is above the 4.4% on a 1-year Treasury.
Yield in the top quarter
The top quarter of US dividend payers yield 3.8% or more; RMR yields 11.4%.
Dividend stability
Fewer than five years of dividend history.
Not covered by earnings
Dividends take 155% of net income, leaving little room.
Cash-flow cover
Needs dividends paid and free cash flow.
Fair value
How we estimate itOur estimate per share
$21.01
The share price is 25% below this estimate.
| Method | Multiple used | Own 5Y median | Industry median | Value per share | Weight |
|---|---|---|---|---|---|
| P/E | 18.1× | 14.3× | 21.9× | $20.59 | 40% |
| EV/EBITDA | 9.8× | 6.7× | 12.9× | $19.53 | 35% |
| P/B | 2.3× | 2.2× | 2.3× | $15.81 | 10% |
| Earnings power | 8.6% cost of equity | – | – | $29.07 | 15% |
| Fair value | $21.01 | 100% | |||
Valuation over time
Using the earnings and balance sheet published at each date, not today's.
- P/E at month end
- Own 5-year median 14.3
- Management and Public Relations Services median 21.9
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
Medium risk
- Average value traded per day
- $2.55M
- Value traded per 1% price move
- $1.89M
Downside
Low risk
- Typical loss in a bad month
- 10.9%
- Volatility (annualized)
- 27%
- Sharpe ratio, 1 year
- -0.13
- Beta to the S&P 500 (5Y)
- 0.75
Typical bad-month loss, week by week
Margins
Share of revenue, fiscal years 2013 to 2026
Gross margin
Operating margin
Net margin
Growth rates
Compound annual growth to fiscal 2026
| Per year | 1 year | 3 years | 5 years | 10 years | Five-year pace |
|---|---|---|---|---|---|
| Revenue | -8.2% | -12.6% | +1.2% | +9.2% | |
| Operating income | -2.1% | -28.9% | -10.7% | -12.0% | |
| Net income | -39.2% | -42.8% | -21.4% | -11.7% | |
| EPS, diluted | -40.8% | -43.8% | -22.3% | -12.5% |
Returns and balance sheet
10 fiscal years. Hover a measure to see how it is calculated.
| Measure | FY2017 | FY2021 | FY2026 | Trend |
|---|---|---|---|---|
| Return on equity | 31.2% | 14.5% | 4.9% | |
| Return on assets | 11.7% | 6.0% | 1.5% | |
| Current ratio | 5.33 | 3.14 | 1.69 | |
| Interest coverage | – | – | 3.5× | |
| Capex to revenue | 0.3% | 0.2% | – | |
| Diluted shares | 16M | 31M | 17M |
Cash use needs five years of cash flow figures
RMR does not report operating cash flow and capital expenditure for each of the last five fiscal years.
DuPont analysis
Return on equity split into margin, efficiency and leverage
| Fiscal year | Net margin | Asset turnover | Equity multiplier | Return on equity |
|---|---|---|---|---|
| FY2026 | 1.7% | 0.92× | 3.20× | 4.9% |
| FY2025 | 2.5% | 0.99× | 3.05× | 7.6% |
| FY2024 | 2.6% | 1.40× | 2.69× | 9.7% |
| FY2023 | 5.9% | 1.71× | 2.52× | 25.6% |
| FY2022 | 4.1% | 1.60× | 2.59× | 16.9% |
| FY2021 | 5.9% | 1.02× | 2.42× | 14.5% |
| FY2020 | 4.9% | 0.87× | 2.31× | 9.9% |
| FY2019 | 10.5% | 1.23× | 2.22× | 28.6% |
| FY2018 | 23.7% | 0.92× | 2.31× | 50.2% |
| FY2017 | 15.6% | 0.75× | 2.66× | 31.2% |
Piotroski F-Score
Nine tests of profitability, balance sheet and efficiency, fiscal 2026 against fiscal 2025
- ProfitableNet income above zero$10.70M
- Cash generatingOperating cash flow above zero$72.43M
- Return on assets improvedROA up on the prior year2.5% → 1.5%
- Earnings backed by cashOperating cash flow above net income$72.43M vs $10.70M
- Less leverageLong-term debt to assets fell– → –
- Better liquidityCurrent ratio rose1.64 → 1.69
- No dilutionShare count did not rise17M → 17M
- Gross margin improvedGross margin up on the prior year– → –
- More efficientAsset turnover rose1.00 → 0.90
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