RE/MAX HOLDINGS Reports 10.5% Year-Over-Year Revenue Decrease in Q2 FY2023
August 20, 2023
🌥️Earnings Overview
RE/MAX HOLDINGS ($NYSE:RMAX) reported their second quarter earnings results for FY2023 on June 30 2023 which showed total revenue of USD 82.5 million, a 10.5% decrease compared to the same period in the previous fiscal year. Net income for the quarter was USD 2.0 million, a 65.5% decline year-over-year.
Analysis
GoodWhale has conducted an analysis of RE/MAX HOLDINGS‘s fundamentals. According to the Star Chart, RE/MAX HOLDINGS has a high health score of 8/10 with regard to its cash flows and debt, meaning that it should be capable of safely riding out any crisis without the risk of bankruptcy. RE/MAX HOLDINGS is strong in dividend, medium in growth, profitability and weak in asset. Based on these metrics, we classify RE/MAX HOLDINGS as a ‘cow’, a type of company that has a track record of paying out consistent and sustainable dividends. Investors who are looking for steady returns and income from dividends may be interested in investing in RE/MAX HOLDINGS. Investors looking for capital appreciation and growth may not be interested in such a company. Investors who are risk-averse may appreciate the low-risk nature of the company, given its ability to weather tough times without the risk of bankruptcy. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Re/max Holdings. More…
| Total Revenues | Net Income | Net Margin |
| 338.06 | 0.17 | 1.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Re/max Holdings. More…
| Operations | Investing | Financing |
| 34.47 | -7.75 | -65.64 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Re/max Holdings. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 655.02 | 631 | 26.35 |
Key Ratios Snapshot
Some of the financial key ratios for Re/max Holdings are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 8.8% | -7.2% | 10.9% |
| FCF Margin | ROE | ROA |
| 8.2% | 4.8% | 3.5% |
Peers
The company operates in three segments: Real Estate Franchise, Rental Property Franchise, and Company-Owned Real Estate Brokerages. RE/MAX Holdings Inc. reported total revenue of $3.4 billion in 2018, an increase of 6% from the previous year. The company’s net income was $206.6 million in 2018, an increase of 9% from the previous year. RE/MAX Holdings Inc. operates in the United States, Canada, Europe, Asia, Latin America, and Africa. The company has a market capitalization of $6.8 billion as of March 2019. RE/MAX Holdings Inc competes with Mobiventures Inc, E-House (China) Enterprise Holdings Ltd, and Investors House Oyj.
– Mobiventures Inc ($OTCPK:MBLV)
As of 2022, Mobiventures Inc has a market cap of 643.65k. The company has a Return on Equity of 212.89%. The company focuses on mobile technology investments.
– E-House (China) Enterprise Holdings Ltd ($LTS:0G4W)
Investors House Oyj is a Finnish real estate investment company. The company’s objective is to generate long-term capital appreciation for its shareholders through active and responsible real estate ownership. As of December 31, 2020, the company’s investment portfolio consisted of 41 properties with a total value of approximately EUR 1.2 billion.
Summary
Investors looking to assess RE/MAX HOLDINGS‘ performance in the second quarter of FY2023 should note that total revenue decreased 10.5% year-over-year, while net income plummeted 65.5% over the same period. This may indicate that the company has encountered difficulties in recent times and is not performing as well as it was in prior quarters. Investors should closely monitor future earnings releases to assess the company’s progress and determine if it is a good investment opportunity.
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