Latest Ratios: P/E Ratio 18.3x · EV/EBITDA 13.9x · ROE 4.3%. (2013–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $600M | $262M | $420M | $772M | $743M | $1.0B | $857M | $734M | $1.5B | $824M | $607M |
| Enterprise Value | $742M | $404M | $392M | $534M | $584M | $921M | $524M | $535M | $1.4B | $894M | $727M |
| P/E Ratio → | 18.27 | 15.27 | 18.39 | 13.47 | 9.59 | 12.92 | 12.90 | 4.34 | 15.57 | 19.52 | 16.28 |
| P/S Ratio | 0.86 | 0.37 | 0.47 | 0.80 | 0.89 | 1.72 | 1.45 | 1.03 | 3.69 | 3.03 | 2.27 |
| P/B Ratio | 0.78 | 0.65 | 1.00 | 1.82 | 2.01 | 3.01 | 1.58 | 1.39 | 3.44 | 2.84 | 2.46 |
| P/FCF | 8.32 | 3.63 | 7.30 | 7.33 | 7.42 | 14.81 | 11.14 | 3.72 | 6.57 | 6.59 | 6.21 |
| P/OCF | 7.92 | 3.46 | 6.84 | 7.07 | 7.33 | 14.57 | 11.06 | 3.70 | 6.55 | 6.54 | 6.14 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 0.58 | 0.44 | 0.55 | 0.70 | 1.52 | 0.89 | 0.75 | 3.49 | 3.29 | 2.73 |
| EV / EBITDA | 13.90 | 7.57 | 7.89 | 4.65 | 6.53 | 12.60 | 7.51 | 0.75 | 3.73 | 3.41 | 2.78 |
| EV / EBIT | 17.75 | 8.11 | 6.01 | 3.57 | 6.44 | 11.86 | 7.25 | 2.60 | 5.49 | 6.18 | 4.85 |
| EV / FCF | — | 5.60 | 6.82 | 5.07 | 5.83 | 13.03 | 6.81 | 2.71 | 6.20 | 7.15 | 7.44 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 76.9% | 76.9% | 32.1% | 31.8% | 31.7% | 39.1% | 38.8% | 34.2% | 73.1% | 63.3% | 65.5% |
| Operating Margin | 6.0% | 6.0% | 5.0% | 11.8% | 10.6% | 11.9% | 11.7% | 27.7% | 62.2% | 49.9% | 55.0% |
| Net Profit Margin | 2.5% | 2.5% | 2.6% | 5.9% | 4.1% | 5.9% | 4.9% | 23.7% | 23.7% | 15.6% | 14.0% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 4.3% | 4.3% | 5.5% | 14.4% | 9.5% | 8.0% | 5.4% | 35.1% | 26.5% | 15.8% | 16.2% |
| ROA | 2.5% | 2.5% | 3.6% | 10.2% | 6.5% | 6.0% | 4.2% | 28.8% | 21.6% | 11.7% | 11.6% |
| ROIC | 6.7% | 6.7% | 11.7% | 43.0% | 30.6% | 25.2% | 19.2% | 43.6% | 53.2% | 28.0% | 40.3% |
| ROCE | 7.2% | 7.2% | 8.6% | 25.0% | 20.8% | 14.1% | 11.7% | 37.8% | 60.5% | 40.2% | 48.7% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.51 | 0.51 | 0.27 | 0.07 | 0.08 | 0.10 | 0.07 | 0.30 | 0.40 | 0.62 | 0.76 |
| Debt / EBITDA | 3.83 | 3.83 | 2.30 | 0.26 | 0.34 | 0.47 | 0.52 | 0.22 | 0.46 | 0.68 | 0.71 |
| Net Debt / Equity | — | 0.35 | -0.07 | -0.56 | -0.43 | -0.36 | -0.62 | -0.38 | -0.19 | 0.24 | 0.49 |
| Net Debt / EBITDA | 2.66 | 2.66 | -0.55 | -2.07 | -1.78 | -1.72 | -4.78 | -0.28 | -0.22 | 0.27 | 0.46 |
| Debt / FCF | — | 1.97 | -0.47 | -2.26 | -1.59 | -1.78 | -4.33 | -1.01 | -0.37 | 0.56 | 1.23 |
| Interest Coverage | 14.63 | 14.63 | 83.31 | — | — | — | — | — | — | — | — |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.64 | 1.64 | 2.20 | 3.66 | 2.78 | 3.14 | 5.58 | 4.74 | 10.46 | 5.33 | 4.64 |
| Quick Ratio | 1.64 | 1.64 | 2.20 | 3.66 | 2.78 | 3.14 | 5.58 | 4.74 | 10.46 | 5.33 | 4.64 |
| Cash Ratio | 0.53 | 0.53 | 1.06 | 2.54 | 1.73 | 1.97 | 4.52 | 3.66 | 9.07 | 4.11 | 3.20 |
| Asset Turnover | — | 0.97 | 1.28 | 1.65 | 1.53 | 1.22 | 0.85 | 1.07 | 0.80 | 0.71 | 0.79 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | — | — | — | — | — | — | — | — | — | — |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 9.7% | 11.6% | 6.8% | 3.4% | 3.5% | 13.4% | 2.9% | 3.1% | 1.1% | 2.0% | 2.8% |
| Payout Ratio | 172.5% | 172.5% | 122.9% | 46.5% | 75.7% | 391.6% | 86.1% | 13.4% | 16.8% | 38.0% | 46.2% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 5.5% | 6.5% | 5.4% | 7.4% | 10.4% | 7.7% | 7.8% | 23.0% | 6.4% | 5.1% | 6.1% |
| FCF Yield | 12.0% | 27.5% | 13.7% | 13.6% | 13.5% | 6.8% | 9.0% | 26.9% | 15.2% | 15.2% | 16.1% |
| Buyback Yield | 0.2% | 0.3% | 0.3% | 0.1% | 0.1% | 0.1% | 0.1% | 0.1% | 0.1% | 0.0% | 0.0% |
| Total Shareholder Yield | 9.8% | 11.9% | 7.0% | 3.5% | 3.5% | 13.4% | 3.0% | 3.2% | 1.1% | 2.0% | 2.8% |
| Shares Outstanding | — | $17M | $17M | $31M | $31M | $31M | $31M | $16M | $16M | $16M | $16M |
Includes 30+ ratios · 13 years · Updated daily
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10-year return with dividends reinvested.
Compare growth, multiples, and margins vs sector.
Quick answers to the most common questions about buying RMR stock.
The RMR Group Inc.'s current P/E ratio is 18.3x. The historical average is 13.8x. This places it at the 80th percentile of its historical range.
The RMR Group Inc.'s current EV/EBITDA is 13.9x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 5.7x.
The RMR Group Inc.'s return on equity (ROE) is 4.3%. The historical average is 9.3%.
Based on historical data, The RMR Group Inc. is trading at a P/E of 18.3x. This is at the 80th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
The RMR Group Inc.'s current dividend yield is 9.69% with a payout ratio of 172.5%.
The RMR Group Inc. has 76.9% gross margin and 6.0% operating margin.
The RMR Group Inc.'s Debt/EBITDA ratio is 3.8x, indicating high leverage. A ratio between 2-4x is manageable but warrants monitoring.
Key Metrics
Top Statement Risk
Dividend sustainability and FFO volatility
Metrics are mathematically derived from official filings.
Valuation Discount Amidst High Yield
RMR trades at a P/E of 18.89 and a 9.4% dividend yield, but the lack of a reported P/FFO metric complicates a direct REIT valuation, suggesting the market may be pricing in significant earnings volatility and dividend risk.
The company's P/E of 18.89 and P/B of 0.81 indicate a discount to book value, which is atypical for a REIT and may reflect investor skepticism about the quality and sustainability of its earnings. The high 9.4% dividend yield, as reported in financial statements, appears to be a function of the depressed share price rather than robust cash flow generation, given the erratic FFO payout ratios. Without a clear P/FFO or P/AFFO, the valuation is difficult to benchmark against peers or historical norms, warranting further investigation into the underlying FFO composition.
NOI Margin Volatility Undermines Profitability
NOI margin has swung wildly from 2.1% in 2025Q4 to 74.2% in 2026Q3, indicating that reported profitability is heavily influenced by non-recurring items rather than stable, organic property-level income generation.
The extreme volatility in NOI margin, as seen in the provided data, suggests that RMR's property-level profitability is not driven by consistent operational performance but likely by lumpy, non-recurring gains or accounting adjustments. This instability makes it challenging to assess the true underlying earnings power of the portfolio. The recent surge in FFO per share to $0.93 appears disconnected from the company's shrinking revenue base, implying that growth is not organic but may stem from asset sales or other non-operational sources.
Dividend Coverage Remains Erratic
The FFO payout ratio has fluctuated between 45.5% and 140.7% over the last ten quarters, with the most recent reading at 98.4%, indicating that the dividend is not consistently covered by core funds from operations.
Based on reported figures, the dividend's safety is questionable, as the payout ratio has repeatedly exceeded 100% of FFO, meaning the company has distributed more than it earned from operations in several periods. The recent tightening to 98.4% in 2026Q3 offers a marginal cushion, but the historical pattern suggests the dividend may be reliant on non-recurring cash inflows or balance sheet liquidity. Investors should monitor whether the company can sustain this distribution without further depleting its cash reserves, which have fallen dramatically.
Leverage Rises as Liquidity Dwindles
RMR's debt-to-gross-assets ratio has increased to 0.38 in 2026Q3 from 0.08 in 2024Q2, while its cash position has collapsed by over 90%, signaling a significant shift toward a more leveraged and less flexible capital structure.
The rapid expansion of debt from $35.0M to $152.9M, as reported in financial statements, has been accompanied by a precipitous decline in cash reserves to just $15.4M, which severely limits the company's financial flexibility. The interest coverage ratio of 3.90 in 2026Q3, while adequate, has deteriorated from much higher levels, suggesting that debt service is consuming a growing portion of operating income. This combination of rising leverage and falling liquidity increases refinancing risk and reduces the buffer against operational volatility.
Operational Efficiency Masked by Volatility
The company's FCF margin has been inconsistent, ranging from -3.3% to 31.7% over the past ten quarters, which, as reported in financial statements, suggests that underlying property operations are not generating stable, predictable cash flows.
The erratic FCF margin indicates that RMR's portfolio is not producing consistent cash generation, which is a key concern for a REIT. This volatility may point to issues with tenant stability, lease structures, or property-type concentration that are not immediately apparent from the high-level data. The lack of a stable, positive FCF margin trend suggests that the company's operational efficiency is compromised, and investors should be cautious about extrapolating any single quarter's performance.
The Misleading P/E Ratio
The standard P/E ratio of 18.89 is the most commonly misapplied metric for RMR, as it is distorted by substantial non-cash depreciation charges that suppress GAAP net income, making the company appear more expensive than it is on a cash flow basis.
For REITs like RMR, the P/E ratio is deeply misleading because it includes large, non-cash depreciation expenses that reduce reported net income but do not affect cash flow. The FFO metric, which adds back depreciation, is the appropriate measure, but RMR's P/FFO is not provided, creating an analytical gap. Using the P/E in isolation obscures the company's true cash-generating ability and valuation; investors should instead focus on FFO-based multiples and the dividend yield, while also scrutinizing the quality and sustainability of that FFO.