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The RMR Group (RMR) Fair Value & Analysis

Real Estate · US · Market cap $352M

TR The RMR Group logo The RMR Group RMR · US
Price$19.45
Fair Value$24.94
Upside+28.2%
Quality65/100
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Healthy Growth
Thin margins · 9.5% net margin
Moderate debt · generates free cash flow
8.80% dividend yield
Ranks above peers (9/15)
Narrow moat 43/100
Evidence: Medium Range $14.82 – $35.07 Share as image

Fair value as of: Jul 27, 2026

From 14 valuation models · updated 15 days ago

Share price −2.1% over the past month.

A solid business, screening 28% undervalued on our models.

What matters now

  • Solid quality (65/100) at a price below fair value, the discount is the argument here, not the business quality.
  • A fairly wide model range ($14.82 to $35.07) leaves room in how you read the outcome.
  • As a real-estate business, asset- and dividend-based methods carry more weight here than a standard DCF.
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Price vs Fair Value (5 years)

$27.23 $12.42 Fair Value $24.94 Apr 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 27, 2026.

How to read this chart

60‑month range $12.42 – $27.23 · fair‑value band $14.82 – $35.07 · the $19.45 price screens below the $24.94 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 27, 2026.

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Analysis

The RMR Group (RMR) currently trades at $19.45, while our model-based Fair Value estimate is $24.94, implying the stock looks roughly 28.2% undervalued today. The Quality Score stands at 65/100 (solid quality), in the Real Estate sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: medium), always confirm before acting.

Over the trailing twelve months, The RMR Group generated revenue of $219M at a net margin of 9.5%. Revenue declined 0.9% year over year. It earns a return on equity of 11.2%. Net debt stands at $142M. Fundamentals as of Jul 27, 2026

Our scenario range runs from $14.82 (bear case) to $35.07 (bull case); at $19.45, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 9% below its 52-week high and 48% above its 52-week low, currently above its 200-day average. For context, the median of 10 Real Estate peers we cover trades at -2% fair-value upside, at 28%, RMR screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Growth DCF $36.80 $53.46 $74.39 80
Residual Income $10.99 $11.44 $11.83 76
Rev-Margin DCF $24.62 $38.96 $55.71 74
All 14 models by family
DCF Models
FCF DCF $36.58 $55.84 $81.69 38
5Y Revenue Exit $24.62 $38.47 $55.61 39
5Y EBITDA Exit $33.64 $55.39 $80.48 41
10Y Revenue Exit $28.49 $41.61 $58.44 36
10Y EBITDA Exit $34.36 $52.37 $75.84 37
Multiples
P/S Multiple $13.94 $18.59 $23.23 58
P/B Multiple $13.94 $18.59 $23.23 55
EV/EBIT $37.11 $51.39 $65.67 53
EV/EBITDA $36.53 $50.61 $64.70 54
EV/Revenue $17.90 $28.03 $38.15 43
Asset-Based
NCAV (Graham) $7.07 $9.48 $14.15 50
Growth DCF
Growth DCF $36.80 $53.46 $74.39 80
Rev-Margin DCF $24.62 $38.96 $55.71 74
Economic Profit
Residual Income $10.99 $11.44 $11.83 76

Widest divergence: DCF Models ($52.37) versus Asset-Based ($9.48). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) $219M
Revenue growth (YoY) -0.9%
Net margin 9.5%
Return on equity 11.2%
Free cash flow $72.1M FY2025
P/E ratio 17.0
More key figures
Operating margin 18.2%
EPS (TTM) $1.21
Dividend yield 8.8%
EPS growth (YoY) -76.2%
Net debt $142M FY2025

Figures from reported company fundamentals · as of Jul 27, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 65/100

Of which business quality 63 · Market factors (momentum, volatility) 68

Profitability 52
Margins and returns on capital today
Quality Growth 40
Are margins and returns improving?
Cashflow 74
Earnings quality: real cash, not paper profit
Fin. Strength 54
Balance sheet, leverage, solvency risk
Investment 78
Disciplined investing over empire-building
Low Volatility 63
Calm price path (market factor)
Momentum 69
Price trend over the last 3–12 months (market factor)
52W Momentum 72
Distance to the 52-week high (market factor)
Net Issuance 87
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

The RMR Group Inc., through its subsidiary, The RMR Group LLC, provides real estate asset management services in the United States. The company offers management services to its four publicly traded real estate investment trusts, two real estate operating companies, and private capital vehicles.

Full company description

The RMR Group Inc., through its subsidiary, The RMR Group LLC, provides real estate asset management services in the United States. The company offers management services to its four publicly traded real estate investment trusts, two real estate operating companies, and private capital vehicles. It also provides advisory services to publicly traded mortgage real estate investment trust. In addition, the company provides management services to a wide range of real estate assets and businesses that include healthcare facilities, senior living and other apartments, hotels, office buildings, industrial buildings, leased lands, net-lease service-focused retail, multifamily residential communities, and various specialized properties. The company was formerly known as REIT Management & Research Inc. and changed its name to The RMR Group Inc. in October 2015. The RMR Group Inc. was founded in 1986 and was incorporated on May 28th, 2015 in Maryland, USA and is headquartered in Newton, Massachusetts.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

The RMR Group reported revenue of $700M in FY2025 versus $607M in FY2021, a compound +3.6%/yr. Reported net income was $17.6M in FY2025, compounding −16.2%/yr from FY2021.

Growth Quality 68/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
$700M
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+13.9%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+4.7%
Avg. growth/yr (11Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+11.9%
Revenue +3.6%/yr
FY21 $607M
FY22 $833M
FY23 $962M
FY24 $898M
FY25 $700M
Net income −16.2%/yr
FY21 $35.7M
FY22 $34.0M
FY23 $57.1M
FY24 $23.1M
FY25 $17.6M
Character of growth · EPS growth decomposed (2014-2025) +3.2 % p.a.
Revenue per share +11.0 pp

of which total revenue +14.7 pp · buybacks/dilution −3.7 pp

EBIT margin −14.6 pp
Tax rate +0.9 pp
Residual (interest, one-offs) +5.9 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

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Cite: Fair Value Calculator (2026). "The RMR Group Fair Value". https://www.fairvalue-calculator.com/stock/RMR

Peer Group

Real Estate Services · 520 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 63 · Top 25%
Fair Value upside +28% · Above median
Return on equity (TTM) 11% · Top 25%
Return on assets 7% · Top 25%
Net margin (TTM) 9% · Above median
Operating margin (TTM) 18% · Below median
Revenue growth -1% · Below median
Dividend yield (TTM) 8.8% · Top 25%
Debt / equity 0.68× · Higher than median

Valuation Multiples vs Real Estate Services median · lower = cheaper

P/E (TTM) 17.0× · Pricier than median
P/B 1.55× · Pricier than 75% of peers
P/S (TTM) 1.61× · Cheaper than median
P/FCF 4.9× · Pricier than median
EV/EBITDA 4.6× · Cheaper than 75% of peers
PEG 0.09× · Cheaper than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 71 · sector 37
FUTURE 0 · sector 10
PAST 45 · sector 16
HEALTH 66 · sector 85
DIVIDEND 100 · sector 49

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

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10 more Real Estate Services stocks, each showing price versus our Fair Value estimate (as of Jul 27, 2026).

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PT Metropolitan Kentjana Tbk MKPI 20,975 IDR 19,160 IDR -9%
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Frequently asked questions

Is The RMR Group (RMR) overvalued or undervalued?
As of Jul 27, 2026, our model estimates a fair value of $24.94 versus a price of $19.45, about +28% (undervalued).
What is the fair value of RMR?
Our model-based fair value for The RMR Group is $24.94 (as of Jul 27, 2026), built from audited fundamentals. The current price is $19.45.
What is the quality score of RMR?
The RMR Group has a Quality Score of 65/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of The RMR Group (RMR)?
The RMR Group reported trailing-twelve-month revenue of about $219M (latest available figure, as of Jul 27, 2026).
What is the net profit margin of RMR?
The net profit margin of The RMR Group is about 9.5%, meaning it keeps roughly 9.5% of revenue as net income. Based on the latest reported figures.
Does The RMR Group pay a dividend?
The RMR Group currently shows a dividend yield of about 8.80% relative to its recent price (as of Jul 27, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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