# RMR Group (RMR.US)

Canonical: https://gigainvestors.com/s/RMR

Analysis as of: 2026-10-16T07:31:37.577Z. Financial observations: FY2013–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $18.70 per share; close as of 2026-10-15.

Estimated value: low $18.38 per share, central $20.74 per share, high $23.89 per share. Buy at or below the central value $20.74 per share. Valuation as of 2026-10-16T07:31:37.577Z; scenarios are not confidence intervals.

Expected annual return: 10.8% at the stated quote. About 10.8% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: fail

- 4 revenue declines in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 4

- Years with a net loss: 0

- Operating margin variation: 0.91×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.50×

- FY2018: 0.62×

- FY2019: 0.28×

- FY2020: 0.12×

- FY2021: 0.12×

- FY2022: 0.11×

- FY2023: 0.12×

- FY2024: 0.05×

- FY2025: 0.06×

- LTM to Jun 2026: 0.09×

### moat: pass

- Years with nonpositive invested capital use equity plus debt and leases; positive earnings with no positive capital are shown above 100%.

- ROIC, median of available years: 70.6%

- ROIC, second-lowest year: 17.6%

- Typical minus recent gross margin: -38.0 pp

- Typical gross margin (annual median): 38.9%

- Recent gross margin (lower of latest and 3-year median): 76.9%

- Years with nonpositive capital: 1

- Capital spending / revenue: 0.2%

- ROIC including acquisitions, ten-year median: 61.0%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 49.4%

- FY2018: >100%

- FY2019: >100%

- FY2020: 17.6%

- FY2021: 91.9%

- FY2022: >100%

- FY2023: >100%

- FY2024: 26.8%

- FY2025: 11.7%

- LTM to Jun 2026: 17.9%

### economics: fail

- incremental invested capital return below threshold

- Owner earnings / net income, 5-yr: 1.02×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $172M

- Net income, five-year total: $168M

- Return on incremental invested capital: 0.0%

- Working capital / revenue, annual change: 1.2 pp

- Working capital / revenue, change between three-year averages: 9.6 pp

- Working capital / revenue, final three-year average: 10.2%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.00×

- FY2022: 1.00×

- FY2023: 1.00×

- FY2024: 1.02×

- FY2025: 1.20×

### management: fail

- Historical market-dollar context (not the management verdict): 2017 to 2025 (8 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 51.0% vs 26.8%

- Per-share earnings: 2.33 to 1.40 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 0.4%

- Ordinary dilution, 5-year annual growth: -11.8%

- Market cap gain: -$562M

- Cumulative retained earnings: $400M

- Diluted shares, 10-year annual growth: 0.4%

- Diluted shares, 5-year annual growth: -11.8%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2025

- Per-share value growth: -6.2%

- Per-share value change: -$0.93

- Per-share value, starting three-year median: $2.33

- Per-share value, ending three-year median: $1.40

- Buybacks concentrated in cheaper years (correlation): 0.57

- Average buyback yield: 0.1%

- Buyback history: 9 years

- Debt-funded buybacks: No

- Acquisition spending: $82M

- Cumulative net income, 10 years: $541M

- ROIC, first three-year median: 51.0%

- ROIC, last three-year median: 26.8%

Chart: Earnings per share; fiscal year observations.

- FY2016: $2.33

- FY2017: $2.64

- FY2018: $5.96

- FY2019: $10.47

- FY2020: $0.92

- FY2021: $1.14

- FY2022: $1.08

- FY2023: $3.48

- FY2024: $1.40

- FY2025: $1.06

### accounting: pass

- Sloan accruals: -8.1%

- Receivables to sales index (DSRI): 1.12×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 12.8%

- Earnings backed by cash: Yes

- Operating cash / earnings: 4.30×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.43×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -18.2%

- FY2017: -21.8%

- FY2018: -26.3%

- FY2019: -4.4%

- FY2020: -7.1%

- FY2021: -7.2%

- FY2022: -12.4%

- FY2023: -8.9%

- FY2024: -5.5%

- FY2025: -8.1%

## Holders

## Price story

Down 46% since Oct 2021 · sales -8.8%

Story as of 2026-10-16T09:59:30.908Z; price observation 2026-10-15.

Price needs cash profits to shrink 0.5% a year for ten years

### Sales · FY2025–2026

sales -8.8%; source https://www.sec.gov/Archives/edgar/data/1644378/000164437825000043/rmr-20250930.htm; observed 2025-11-12.

- FY2017: $272M 

- FY2018: $405M 

- FY2019: $713M 

- FY2020: $590M 

- FY2021: $607M 

- FY2022: $833M 

- FY2023: $962M 

- FY2024: $898M 

- FY2025: $700M 

- FY2026: $639M 

### Gross margin · FY2026

gross margin 79.6%; source https://www.sec.gov/Archives/edgar/data/1644378/000164437825000043/rmr-20250930.htm; observed 2025-11-12.

- FY2017: 63.3% 

- FY2018: 73.1% 

- FY2019: 34.2% 

- FY2020: 38.8% 

- FY2021: 39.1% 

- FY2022: 31.7% 

- FY2023: 31.8% 

- FY2024: 32.1% 

- FY2025: 76.9% 

- FY2026: 79.6% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in real estate services; annual sales are USD 700.3 million.

- Source: https://www.sec.gov/Archives/edgar/data/1644378/000164437825000043/rmr-20250930.htm (filed 2025-11-12); FY2025: revenue 700284000; grossProfit 538556000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-05); RMR.US: 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.

### Why customers stay

Margins ranged from 31.8% to 76.9% during 2023–25; it earns 70.6% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-12); FY2023: grossProfit / revenue = 31.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-12); FY2024: grossProfit / revenue = 32.1%.

- Source: https://www.sec.gov/Archives/edgar/data/1644378/000164437825000043/rmr-20250930.htm (filed 2025-11-12); FY2025: grossProfit / revenue = 76.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-12); 10-year return on capital observations [[2017,0.49350260542574415],[2018,1.3496056496618347],[2019,1.9495509374418547],[2020,0.17614453901365607],[2021,0.9189126751345791],[2022,1.6410373688686517],[2023,294.4624814480339],[2024,0.26767254858922035],[2025,0.1171460920234573],[2026,0.1793505229155741]]; median 0.7062076402801616. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back USD 903000 of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-12); FY2016: growth capex 0; upkeep 1070000; owner earnings 150956000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-12); FY2017: growth capex 0; upkeep 827000; owner earnings 168446000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-12); FY2018: growth capex 0; upkeep 648000; owner earnings 221996000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-12); FY2019: growth capex 0; upkeep 702000; owner earnings 687924000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-12); FY2020: growth capex 0; upkeep 601000; owner earnings 28951297.242699713. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-12); FY2021: growth capex 169000; upkeep 973000; owner earnings 35696000. Growth capex / owner earnings = 0.004734424025100852.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-12); FY2022: growth capex 128000; upkeep 993000; cash acquisitions 0; owner earnings 34004000. Growth capex plus acquisitions / owner earnings = 0.003764263027879073.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-12); FY2023: growth capex 2881000; upkeep 1102000; cash acquisitions 0; owner earnings 57147000. Growth capex plus acquisitions / owner earnings = 0.05041384499623777.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-12); FY2024: growth capex 0; upkeep 3865000; cash acquisitions 78771000; owner earnings 23499181.426339664. Growth capex plus acquisitions / owner earnings = 3.3520742093470326.

- Source: https://www.sec.gov/Archives/edgar/data/1644378/000164437825000043/rmr-20250930.htm (filed 2025-11-12); FY2025: growth capex 0; upkeep 3650000; cash acquisitions 0; owner earnings 21190353.421753407. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-12); Dividend observations: [[2016,17209000],[2017,16089000],[2018,16169000],[2019,22727000],[2020,24789000],[2021,139783000],[2022,25730000],[2023,26576000],[2024,28423000],[2025,30347000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1644378/000164437825000043/rmr-20250930.htm (filed 2025-11-12); FY2025: cash repurchases 903000 USD.

### Are managers owners

Insiders own 4.7% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-05); RMR.US SharesStats.PercentInsiders = 4.6530000000000005 percentage points; cache date 2026-10-05.

### What the price says

The price assumes cash profits shrink 0.5% yearly over ten years; actual growth was 9.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-12); Ten-year compound average after fade. Initial solved rate -0.01967196632929119. Price 18.7; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 0.501 → FY2025 1.2731526929676404. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $34.35 per share

- 2016-11: $41.50 per share

- 2016-12: $39.50 per share

- 2017-01: $47.80 per share

- 2017-02: $52.40 per share

- 2017-03: $49.50 per share

- 2017-04: $52.75 per share

- 2017-05: $49.10 per share

- 2017-06: $48.65 per share

- 2017-07: $48.85 per share

- 2017-08: $51.65 per share

- 2017-09: $51.35 per share

- 2017-10: $52.45 per share

- 2017-11: $60.25 per share

- 2017-12: $59.30 per share

- 2018-01: $64.75 per share

- 2018-02: $62.80 per share

- 2018-03: $69.95 per share

- 2018-04: $74.40 per share

- 2018-05: $75.60 per share

- 2018-06: $78.45 per share

- 2018-07: $86.80 per share

- 2018-08: $94.45 per share

- 2018-09: $92.80 per share

- 2018-10: $75.88 per share

- 2018-11: $64.64 per share

- 2018-12: $53.08 per share

- 2019-01: $66.01 per share

- 2019-02: $71.55 per share

- 2019-03: $60.98 per share

- 2019-04: $57.84 per share

- 2019-05: $48.22 per share

- 2019-06: $46.98 per share

- 2019-07: $49.24 per share

- 2019-08: $46.59 per share

- 2019-09: $45.48 per share

- 2019-10: $48.40 per share

- 2019-11: $46.97 per share

- 2019-12: $45.64 per share

- 2020-01: $46.07 per share

- 2020-02: $37.26 per share

- 2020-03: $26.97 per share

- 2020-04: $29.66 per share

- 2020-05: $26.96 per share

- 2020-06: $29.47 per share

- 2020-07: $28.76 per share

- 2020-08: $28.22 per share

- 2020-09: $27.47 per share

- 2020-10: $26.66 per share

- 2020-11: $37.04 per share

- 2020-12: $38.62 per share

- 2021-01: $36.88 per share

- 2021-02: $40.19 per share

- 2021-03: $40.81 per share

- 2021-04: $39.58 per share

- 2021-05: $39.12 per share

- 2021-06: $38.64 per share

- 2021-07: $39.24 per share

- 2021-08: $46.34 per share

- 2021-09: $33.45 per share

- 2021-10: $34.79 per share

- 2021-11: $32.67 per share

- 2021-12: $34.68 per share

- 2022-01: $32.01 per share

- 2022-02: $29.14 per share

- 2022-03: $31.10 per share

- 2022-04: $27.28 per share

- 2022-05: $30.02 per share

- 2022-06: $28.35 per share

- 2022-07: $28.91 per share

- 2022-08: $26.04 per share

- 2022-09: $23.69 per share

- 2022-10: $27.37 per share

- 2022-11: $28.91 per share

- 2022-12: $28.25 per share

- 2023-01: $31.02 per share

- 2023-02: $28.14 per share

- 2023-03: $26.24 per share

- 2023-04: $23.75 per share

- 2023-05: $21.53 per share

- 2023-06: $23.17 per share

- 2023-07: $23.58 per share

- 2023-08: $25.28 per share

- 2023-09: $24.52 per share

- 2023-10: $22.52 per share

- 2023-11: $23.83 per share

- 2023-12: $28.23 per share

- 2024-01: $26.09 per share

- 2024-02: $24.47 per share

- 2024-03: $24.00 per share

- 2024-04: $23.72 per share

- 2024-05: $23.53 per share

- 2024-06: $22.60 per share

- 2024-07: $25.94 per share

- 2024-08: $25.49 per share

- 2024-09: $25.38 per share

- 2024-10: $24.07 per share

- 2024-11: $22.20 per share

- 2024-12: $20.64 per share

- 2025-01: $18.67 per share

- 2025-02: $18.22 per share

- 2025-03: $16.65 per share

- 2025-04: $14.68 per share

- 2025-05: $15.10 per share

- 2025-06: $16.35 per share

- 2025-07: $16.06 per share

- 2025-08: $16.88 per share

- 2025-09: $15.73 per share

- 2025-10: $15.47 per share

- 2025-11: $15.25 per share

- 2025-12: $14.90 per share

- 2026-01: $15.15 per share

- 2026-02: $16.38 per share

- 2026-03: $15.47 per share

- 2026-04: $17.81 per share

- 2026-05: $19.95 per share

- 2026-06: $20.53 per share

- 2026-07: $19.04 per share

- 2026-08: $19.32 per share

- 2026-09: $18.08 per share

- 2026-10: $18.70 per share

## Annual estimated value (USD per share)

- FY2017: low $11.01 per share, central $12.07 per share, high $13.48 per share

- FY2018: low $158.79 per share, central $179.54 per share, high $207.17 per share

- FY2019: low $294.47 per share, central $332.13 per share, high $382.26 per share

- FY2020: low $121.79 per share, central $137.90 per share, high $159.34 per share

- FY2021: low $118.39 per share, central $134.42 per share, high $155.77 per share

- FY2022: low $19.48 per share, central $21.83 per share, high $24.96 per share

- FY2023: low $44.42 per share, central $49.61 per share, high $56.51 per share

- FY2024: low $32.40 per share, central $36.42 per share, high $41.77 per share

- FY2025: low $20.10 per share, central $22.69 per share, high $26.14 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1644378/000164437825000043/rmr-20250930.htm); period 2025-09-30, filed 2025-11-12.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.