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We are one of the world s leading franchisors in the real estate industry. We franchise real estate brokerages worldwide under the RE/MAX brand ( REMAX ) and mortgage brokerages in the United States under the Motto Mortgage brand ( Motto ).
16.13% operating margin is respectable but not wide. ROIC at 4.52%. Suggests the business covers its cost of capital, but doesn't point to a wide moat.
Revenue declined 5.2% YoY. The question is whether this is cyclical or a structural shift.
Free cash flow declined 37% versus the prior year, cash generation momentum has weakened. Net debt of $341M represents 10.2x FCF, leverage limits flexibility.
Profitability & Returns
Revenue (TTM)
$287M
▼ -5.2% YoY
Net Income (TTM)
$7M
▲ +66.3% YoY
Op. Margin
11.78%
ROIC
3.07%
Cash Flow & Balance Sheet
FCF (TTM)
$25M
▼ -36.8% YoY
Op. Cash Flow (TTM)
$33M
▼ -31.5% YoY
Net Debt
$350M
Cash & Equiv.
$107M
5Y CAGR: +1.9%
5Y CAGR: -12.1%
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