This firm has 37.5
M in debt with debt to equity (D/E) ratio of 0.07, which may show that RMR is not taking advantage of profits from borrowing. Our advice module can be used to complement RMR recommendation provided by
average analyst sentiment. It analyzes the firm's potential to grow using fundamental, technical, data market data available at the time.
We determine the current worth of RMR Group using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of RMR Group based exclusively on its
fundamental and basic
technical indicators. By analyzing RMR's
financials, quarterly and monthly indicators, and related drivers such as
dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of
RMR's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of RMR. We calculate exposure to RMR's
market risk, different
technical and
fundamental indicators, relevant financial multiples and ratios, and then
comparing them to RMR's related companies.
RMR Group Investment Alerts
RMR investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring RMR Group performance across your portfolios.Please check all
investment alerts for RMR
RMR Valuation Ratios as Compared to Competition
Our valuation model uses many indicators to compare RMR value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across RMR competition to find
correlations between indicators driving the intrinsic value of RMR.
RMR Gross Profit
RMR Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing RMR previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show RMR Gross Profit growth over the last 10 years. Please check RMR's
gross profit and other
fundamental indicators for more details.
Breaking it down
The company reported the last year's revenue of 176.64
M. Total Income to common stockholders was 30.78
M with profit before taxes, overhead, and interest of 301.34
M.
| 2019 | 2020 (projected) |
Revenues USD | 306.98 M | 307.02 M | Revenues | 642.03 M | 692.72 M |
Margins Breakdown
RMR profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or RMR itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of RMR profit margins.
| Operating Margin | 26.93 |
| EBITDA Margin | 27.57 |
| Gross Margin | 0.89 |
| Profit Margin | 8.49 |
RMR Net Income Per Employee is decreasing over the last 8 years. Also, RMR Earnings Before Interest Taxes and Depreciation Amortization USD is relatively stable at the moment.
Will RMR latest spike continue?
Downside variance is down to 7.25. It may connote a possible volatility fall. The RMR Group currently demonstrates below-verage downside deviation. It has Information Ratio of 0.02 and Jensen Alpha of 0.15. However, we do advice investors to further question The RMR Group expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.
Our Final Take On RMR
While many of the other players within the real estate services industry are still a little expensive, even after the recent corrections, RMR may offer a potential longer-term growth to retail investors. To conclude, as of the 20th of November 2020, our present 30 days 'Buy-Sell' recommendation on the enterprise is
Cautious Hold. We believe RMR is
fairly valued with
very small probability of financial unrest for the next two years.
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Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time basis at the beginning of the pandemic and eventually acquired a real taste for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of RMR Group. Please refer to our
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