RE/MAX Holdings Inc. Class A Common Stock (RMAX)

FairStock Score: 58/100 — STEADY

Key Financials

Strengths

• Generates $43 million in annual free cash flow (32.1% yield on market cap)

Concerns

• Trades significantly above Graham Number ($3) with negative 108% margin of safety—limited downside protection
• Revenue declining at 1.8% year-over-year signals potential demand weakness or market share loss
• Altman Z-Score of 0.2 places it in the financial distress zone—elevated bankruptcy risk
• No meaningful dividend despite modest growth—total return depends entirely on multiple expansion

AI Analysis

RE/MAX Holdings Inc. Class A Common Stock is a micro-cap real estate company valued at $134 million. The business generates $287 million in annual revenue with a 0.5% net margin and $43 million in free cash flow. From a quality standpoint, RE/MAX shows solid Piotroski F-Score of 6/9 and distressed Altman Z-Score of 0.2 warrants caution. On valuation, the stock is commanding a steep 448.5x multiple, with trades far above its Graham Number ($3) with no margin of safety. Growth dynamics show revenue growing at -1.8% and profit growth of -75.2%. Our composite FairStock Score of 58/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $43 million in annual free cash flow (32.1% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

At 449x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer