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Re/Max Holdings (RMAX)
NYSE:RMAX
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Re/Max Holdings
(NYSE:RMAX)
57Neutral
Positive Factors
Agent Growth
Management remains optimistic about stabilization in U.S. agent growth, supported by newer initiatives like RE/MAX Teams and concierge.
Earnings
Core earnings per share beat expectations with mixed key performance indicators.
Negative Factors
Dividend
The company's quarterly dividend remains suspended due to litigation settlement and ongoing headwinds from housing and mortgage market conditions.
Re/Max Holdings (RMAX) vs. S&P 500 (SPY)
Market Cap
$271.58M
Dividend YieldN/A
Average Volume (3M)139.86K
Price to Earnings (P/E)24.3
Beta (1Y)1.90
Revenue Growth-5.52%
EPS GrowthN/A
CountryUS
Employees536
SectorReal Estate
Sector Strength69
IndustryReal Estate
Share Statistics
EPS (TTM)0.35
Shares Outstanding18,982,922
10 Day Avg. Volume187,760
30 Day Avg. Volume139,863
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.53
Price to Cash Flow (P/CF)2.40
P/FCF Ratio2.40
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$7.50Price Target Upside-12.89% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering3
Re/Max Holdings Business Overview & Revenue Model
Company DescriptionRE/MAX Holdings, Inc. (RMAX) operates as a leading global franchisor of real estate brokerage services. Founded in 1973, the company is headquartered in Denver, Colorado, and is renowned for its extensive network of independently owned and operated brokerages. RE/MAX specializes in residential and commercial real estate franchises, providing a comprehensive suite of support services, including training, marketing, and technology solutions, to real estate professionals worldwide.
How the Company Makes MoneyRE/MAX Holdings generates revenue primarily through franchise fees and annual dues collected from its network of franchisees. The company charges initial franchise fees for new franchise sales and ongoing fees based on a percentage of the franchisee's gross commission income. Additionally, RE/MAX earns revenue from annual membership dues paid by real estate agents who operate under the brand. The company also benefits from its Motto Mortgage business, which involves franchise sales and fees in the mortgage brokerage industry. Strategic partnerships and technology solutions further support its revenue streams by enhancing the value provided to franchisees and agents, thereby maintaining a competitive edge in the real estate sector.
Re/Max Holdings Financial Statement Overview
Summary
Re/Max Holdings faces significant financial challenges, with fluctuating revenue and profitability, high debt levels, and recent cash flow issues. While there are signs of operational efficiency, the company's inconsistent financial performance and leverage pose risks. Addressing these areas could enhance financial stability and growth potential.Income Statement
Re/Max Holdings has experienced revenue fluctuations over the years, with a recent decline. The gross profit margin remains high, indicating efficient cost management. However, the net profit margin is low, due to inconsistent profitability, as seen with negative net income in 2021 and 2023. The EBIT and EBITDA margins are also volatile, showing operational challenges.60
Neutral
Balance Sheet
The company's debt-to-equity ratio has improved recently, suggesting better leverage management. However, the debt level remains significant, which could pose risks. The equity ratio indicates that a fair portion of assets is financed by equity, but past liabilities surpass assets, reflecting potential balance sheet weaknesses. ROE fluctuates, impacted by inconsistent net income.65
Positive
Cash Flow
The cash flow from operations has shown variability, with no operating cash flow in the latest period. Free cash flow is absent in 2024, impacting financial flexibility. Historical free cash flow was positive, but the recent decline in cash generation poses liquidity concerns. The cash flow to net income ratios are not calculable for the latest period due to a lack of operating cash flow and free cash flow.55
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 307.69M | 325.67M | 353.39M | 329.70M | 266.00M | Gross Profit |
| 307.69M | 241.81M | 263.07M | 247.31M | 201.60M | EBIT |
| 40.18M | -10.64M | 55.48M | 36.32M | 38.01M | EBITDA |
| 72.02M | 26.62M | 77.25M | 20.52M | 75.79M | Net Income Common Stockholders |
| 7.12M | -69.02M | 9.48M | -24.62M | 20.02M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 96.62M | 82.62M | 108.66M | 126.27M | 101.36M | Total Assets |
| 581.59M | 577.15M | 693.96M | 776.13M | 557.39M | Total Debt |
| 35.83M | 483.98M | 493.38M | 504.33M | 279.53M | Net Debt |
| -60.79M | 401.36M | 384.71M | 378.06M | 178.18M | Total Liabilities |
| 639.99M | 653.21M | 663.53M | 707.07M | 444.71M | Stockholders Equity |
| 429.48M | 411.06M | 479.90M | 508.27M | 517.17M |
| Cash Flow | Free Cash Flow | |||
| 53.03M | 21.84M | 61.21M | 27.20M | 63.94M | Operating Cash Flow |
| 59.65M | 28.26M | 71.14M | 42.44M | 70.85M | Investing Cash Flow |
| -5.88M | -5.64M | -11.50M | -194.92M | -17.53M | Financing Cash Flow |
| -8.27M | -35.82M | -78.36M | 189.35M | -36.00M |
Re/Max Holdings Technical Analysis
Negative
8.61
Price Trends
9.84
Negative
10.98
Negative
10.46
Negative
Market Momentum
-0.44
Positive
36.94
Neutral
28.13
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RMAX, the sentiment is Negative. The current price of 8.61 is below the 20-day moving average (MA) of 9.30, below the 50-day MA of 9.84, and below the 200-day MA of 10.46, indicating a bearish trend. The MACD of -0.44 indicates Positive momentum. The RSI at 36.94 is Neutral, neither overbought nor oversold. The STOCH value of 28.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RMAX.
Re/Max Holdings Risk Analysis
Re/Max Holdings disclosed 31 risk factors in its most recent earnings report. Re/Max Holdings reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Re/Max Holdings Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
63 Neutral | $1.49B | ― | -7.50% | 2.02% | 6.69% | -137.52% | |
61 Neutral | $4.74B | 19.16 | -3.00% | 7.93% | 6.45% | -20.78% | |
59 Neutral | $4.52B | ― | -36.85% | ― | 15.23% | 55.04% | |
58 Neutral | $1.23B | ― | 199.35% | ― | -4.16% | -17.19% | |
58 Neutral | $16.93B | ― | -2.39% | ― | 14.96% | 29.56% | |
57 Neutral | $271.58M | 24.35 | 1.69% | ― | -5.52% | ― | |
49 Neutral | $376.06M | ― | -7.89% | ― | 0.99% | -30.39% |
* Real Estate Sector Average
Performance Comparison
RMAX
Re/Max Holdings
8.61
0.36
4.36%
HOUS
Anywhere Real Estate ate
3.38
-2.63
-43.76%
EXPI
eXp World Holdings
9.66
-2.48
-20.43%
RDFN
Redfin
9.76
2.68
37.85%
Z
Zillow Group Class C
70.17
13.62
24.08%
COMP
Compass
8.54
4.97
139.22%
Re/Max Holdings Earnings Call Summary
Earnings Call Date: Feb 20, 2025 | % Change Since: -15.17% | Next Earnings Date: May 1, 2025
Earnings Call Sentiment Positive
The earnings call reflected a positive sentiment overall, driven by international agent growth, improved profit performance, and successful new revenue initiatives. However, challenges remain with the decline in US agent count and negative organic growth. The company's strategic focus on operational efficiency and new leadership additions are expected to address these issues moving forward.Highlights
International Agent Count Growth
International agent count increased by almost 9% over last year's Q4, with over 70,000 agents outside the US and Canada for the first time.
Improved Profit Performance
The company delivered strong margin and profit performance, continuing a trend started in the second quarter, with an adjusted EBITDA of $23.3 million, up almost 2% over Q4 of last year.
Operational Efficiency
Operational efficiency efforts contributed to improved margins and bottom-line results, with selling, operating, and administrative expenses decreasing $3.4 million, or 8.6%, to $35.8 million.
New Revenue Initiatives
Launch of Lead Concierge and RE/MAX Media Network, which are expected to contribute to top-line revenue growth with potential seven-digit annual revenue.
Strong Canadian Market Leadership
The RE/MAX brand continues to hold a leading position in Canada, with over 25,000 agents and a 28% market share.
Lowlights
Decline in US Agent Count
The US agent count experienced some decline, attributed to the typical year-end trend and challenges in stabilizing and growing the agent count.
Negative Organic Growth
Revenue excluding marketing funds decreased by 3.9% compared to the same period last year, with negative organic growth principally driven by US agent count and reduced revenue from previous acquisitions.
Canadian Class Action Settlement
Settlement of two industry class action lawsuits in Canada for approximately $5.5 million US dollars, which slightly increased the total leverage ratio to 3.57 to 1.
Company Guidance
During the RE/MAX Holdings Fourth Quarter 2024 Earnings Call, the company highlighted several key metrics and strategic initiatives. The international agent count increased by nearly 9% year-over-year, surpassing 70,000 agents outside the US and Canada for the first time. In Canada, the agent count was over 25,000 at year-end. The company reported total revenue of $72.5 million, with adjusted EBITDA at $23.3 million, reflecting a 2% increase over the previous year. The adjusted EBITDA margin improved by 220 basis points to 32.2%, and adjusted diluted EPS was $0.30. The focus on operational efficiency and strong collections contributed to these financial results. The company also announced a settlement agreement for two industry class action lawsuits in Canada for approximately $5.5 million. For 2025, RE/MAX expects agent count growth of 1% to 2% in Q1 and a revenue range of $71 million to $76 million, with full-year revenue anticipated between $290 million and $310 million. The company aims to enhance its value proposition and explore new revenue opportunities through initiatives like Lead Concierge and the RE/MAX Media Network.Re/Max Holdings Corporate Events
Business Operations and StrategyFinancial Disclosures
Re/Max Holdings Maintains Financial Guidance Amidst Agent Growth
Neutral
Jan 8, 2025
Re/Max Holdings reported a slight increase in overall agent count as of December 31, 2024, with growth outside the U.S. and Canada offsetting declines in the U.S. market. The company reaffirmed its financial guidance for the fourth quarter and full year 2024, projecting revenue between $306.0 million and $311.0 million and adjusted EBITDA between $95.0 million and $98.0 million, reflecting stable financial expectations despite operational changes.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.