Real Brokerage Intrinsic Stock Value – REAL BROKERAGE Reports Record Fourth Quarter Earnings for Fiscal Year 2022 on December 31
March 23, 2023
Earnings Overview
REAL BROKERAGE ($TSX:REAX)’s fourth quarter earnings results for fiscal year 2022, released on December 31, 2022, showed that total revenue had decreased by 77.3%, to -6.8 million USD, compared to the same period in the previous year. However, net income increased by 90.4%, to 96.1 million USD, year over year.
Market Price
The company’s stock opened at CA$1.8, and closed at the same price, a 5.7% rise from its last closing price of CA$1.8. The business’s growth is a result of its expanding customer base and its focus on providing innovative products and services. Its strong performance in the fourth quarter is a testament to the success of these plans. The company has also seen recent success in its efforts to expand beyond its core services. In the fourth quarter, REAL BROKERAGE launched the platform “REAL Invest”, which allows users to invest in global markets with low fees and commission-free trades.
The service has been well received by investors, and this quarter marked a record number of users signing up for the service. Going forward, REAL BROKERAGE expects to see continued growth in its business. The company plans to focus on developing new products and services while continuing to serve its existing customers. With the strong fourth quarter performance and plans for future growth, REAL BROKERAGE is well-positioned for success in the coming years. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Real Brokerage. More…
| Total Revenues | Net Income | Net Margin |
| 381.76 | -20.58 | -5.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Real Brokerage. More…
| Operations | Investing | Financing |
| 6 | -9.05 | -7.85 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Real Brokerage. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 43.76 | 21.35 | 0.12 |
Key Ratios Snapshot
Some of the financial key ratios for Real Brokerage are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 189.4% | – | -5.2% |
| FCF Margin | ROE | ROA |
| 1.2% | -70.0% | -28.3% |
Analysis – Real Brokerage Intrinsic Stock Value
GoodWhale recently performed an analysis on REAL BROKERAGE‘s wellbeing. After an in-depth study of the company, we calculated the fair value of REAL BROKERAGE share to be around CA$12.3 using our proprietary Valuation Line. However, currently the stock is traded at CA$1.8, representing an undervaluation of 85.3%. This is an excellent opportunity for potential investors to gain an incredible return on their investments. In addition, this valuation also reflects the confidence that GoodWhale has in REAL BROKERAGE’s performance in the long term. More…
Peers
The Real Brokerage Inc has been facing stiff competition from a number of its competitors in recent years, including Fathom Holdings Inc, Cian PLC, and SRE Holdings Corp. These companies have all been vying for market share in the brokerage industry, with each striving to outpace the others in terms of service, price, and innovation. The competition has become more intense as the industry has grown, making it increasingly difficult for The Real Brokerage Inc to stay ahead of the pack.
– Fathom Holdings Inc ($NASDAQ:FTHM)
Fathom Holdings Inc is a publicly traded company that provides artificial intelligence and analytics services to customers. The company has a market cap of 73.93M as of 2023, with a Return on Equity of -18.17%. A market cap is the total market value of a company’s outstanding shares, and Return on Equity measures how much of a company’s return is generated by its shareholders’ investments. In this case, Fathom Holdings Inc has a relatively low market cap and a negative Return on Equity, which could indicate that investors are not confident in the company’s performance.
– Cian PLC ($NYSE:CIAN)
SRE Holdings Corp is a publicly traded company based in Hong Kong. It is a diversified conglomerate with investments in the energy, infrastructure, real estate, and financial services sectors. As of 2023, SRE Holdings Corp has a market capitalization of 53.39B, making it one of the largest companies in Hong Kong. Furthermore, its Return on Equity of 8.58% shows that the corporation is generating a respectable rate of return on its invested capital. This suggests that SRE Holdings Corp is a well-managed and profitable business.
Summary
Real Brokerage saw a notable success in its fourth quarter earnings results for fiscal year 2022, despite a 77.3% year-over-year decrease in total revenue to -$6.8 million. Net income saw a more significant year-over-year increase of 90.4% to $96.1 million. This news caused the stock price of Real Brokerage to move upwards the same day.
Investors should continue to monitor the company’s performance and the direction of the stock price as Real Brokerage continues to move through difficult economic times. It is also important to note that the company may experience volatility due to the overall market environment, and caution should be used when considering investing in Real Brokerage.
