Re Max HoldingRMAX
▼ NegativeDemandrelevance
Weak agent growth (1.5% annual increase) signals soft demand for RE/MAX's services.
Impact on assets 1
Real Estate
Re Max HoldingRE/MAX Stock Faces Headwinds Despite Recent Rally
2▲0 ▼1Impact / 5
RE/MAX shares have surged 38.2% over the past six months to $11.26, outperforming the S&P 500 by 29.9 percentage points, but analysts at StockStory remain cautious. The firm points to weak agent growth, with the latest count at 149,192 and a tepid two-year average annual increase of just 1.5%, signaling soft demand. Earnings per share have declined 9% annually over the past five years even as revenue grew 1.4%, indicating deteriorating profitability. Additionally, RE/MAX’s free cash flow margin averaged only 11.7% over the last two years, limiting its ability to reinvest or return capital to shareholders. While the stock trades at a seemingly cheap 7.8 times forward earnings, StockStory warns that shaky fundamentals could mean significant downside risk.
Re Max HoldingWeak agent growth (1.5% annual increase) signals soft demand for RE/MAX's services.