RE/MAX Holdings (RMAX) Stock Analysis & Winston Score

RE/MAX Holdings runs one of the largest real estate franchise networks in the world. It sells franchises to independent brokers and agents who use the RE/MAX brand to help people buy and sell homes. The company also owns the Motto Mortgage franchise brand, which lets brokers offer mortgage services under a separate network.

RE/MAX makes money by charging fees to its franchisees — things like continuing franchise fees, annual dues, and broker fees — rather than directly selling homes itself. It operates in over 110 countries, though most revenue comes from North America. The franchise model creates some stability because agents pay fees regardless of whether individual deals close, but the business is heavily tied to housing market activity. Rising interest rates and low home inventory have reduced transaction volumes in recent years, and a sustained recovery in housing turnover is the key factor that would meaningfully improve the company's financial results.

Winston Score History

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

-5.7% YoY

YoY Growth Rate

Revenue declining

EPS Growth

-380.0% YoY

YoY Growth Rate

Earnings declining

Insider Activity

20.1%ownership

→ Flat

Insiders holding steady — not selling despite ability to

Cash Runway

~6 years

$107M cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

$107M cash & investments at current burn rate

Revenue declining

RE/MAX Holdings's revenue is actually shrinking. In a growth stock, that removes the core investment thesis. The low Winston Score here may be warranted — unless there's a turnaround story.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Gross Margin

59.3%

Premium pricing power — 59.3% gross margin

Operating Margin

1.0%

Thin — 1.0% operating margin

ROCE

0.1%

Weak — 0.1% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY

-5.4%

Shrinking sales (-5.4% YoY)

EPS YoY

-95.3%

Earnings shrinking (-95.3% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

EPS Consistency

4/8 quarters

Earnings inconsistent quarter-to-quarter

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Cash Flow

Cash Conversion

8956%

Turns 8956% of profit into real cash

FCF Margin

8.7%

Modest free cash flow (8.7%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

Debt / Equity

1.00

Moderate — manageable debt (1.00)

Interest Cover

1.39x

Dangerous — barely covers interest (1.4x)

Interest coverage between 1 and 3. Profits cover interest, but with little room to spare.

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Valuation

P/E Ratio (TTM)

N/A

no trend

Data not available

P/E vs Forward

N/A

not available

Data not available

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Dividends

Not applicable for this business.

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