Is RMR a high-quality business?

AlphaMadera's AlphaQuality grade scores The RMR Group Inc. on six pillars — profitability, capital efficiency, balance-sheet strength, growth durability, cash generation, and shareholder yield. The composite letter grade reflects how RMR compares to a Buffett-style quality bar.

What is The RMR Group Inc.'s AlphaQuality grade?

AlphaQuality assigns a letter grade (A through F) to RMR based on a six-pillar quantitative model. The live page shows the composite grade plus each pillar's individual score with the underlying metrics.

What makes RMR a quality stock?

AlphaQuality looks at return on capital, free-cash-flow margins, debt-to-equity, revenue stability, dividend and buyback policy, and operating-margin trend. Stocks scoring well across all six pillars earn higher grades — the methodology favors compounders over cyclicals.

RMR - The RMR Group Inc.

Price: -- -- | CONSENSUS: Hold DETAILS | PRICE TARGET: $32.00 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Stable Earnings Power

AlphaQuality — archetype-weighted quantitative grade

C+ 61.5 / 100 composite

Composite Grade

Composite of six pillars weighted for stable earnings power businesses. Purely quantitative — no stock price or analyst input.

Profitability

Weight: 20%

C+ 60.5

5yr Avg ROIC 16.7% 84/100
Operating Margin Trend -1.74 pp/yr 5/100

Capital Efficiency

Weight: 15%

A- 86.4

5yr Avg ROE 14.7% 79/100
5yr Share-Count CAGR -14.6% 100/100

Growth Quality

Weight: 15%

D 34.4

5yr Revenue CAGR 3.6% 50/100
5yr EPS CAGR -20.6% 0/100
Revenue-Growth Years (5) 3/5 60/100

Cash Generation

Weight: 15%

B 70.3

5yr FCF Margin 10.3% 71/100
5yr FCF/NI Conversion 2.67x 70/100

Balance Sheet

Weight: 20%

B+ 78.9

Net Debt / EBITDA 2.31x 64/100
Interest Coverage (EBIT/Int) 14.63x 92/100
Altman Z-Score 3.69 90/100

Stability

Weight: 15%

D- 32.8

EPS Volatility (σ/μ) 0.94 2/100
Piotroski F-Score 5 56/100
Negative-Revenue Years (5) 2/5 60/100

Not enough curated-guru data to call a flow.

Cooperman sold -100%

How this is calculated

AlphaQuality grades six pillars from 0-100 and weights each by archetype:

Profitability (20%) — 5yr Avg ROIC, Operating Margin Trend
Capital Efficiency (15%) — 5yr Avg ROE, 5yr Share-Count CAGR
Growth Quality (15%) — 5yr Revenue CAGR, 5yr EPS CAGR, Revenue-Growth Years (5)
Cash Generation (15%) — 5yr FCF Margin, 5yr FCF/NI Conversion
Balance Sheet (20%) — Net Debt / EBITDA, Interest Coverage (EBIT/Int), Altman Z-Score
Stability (15%) — EPS Volatility (σ/μ), Piotroski F-Score, Negative-Revenue Years (5)

We deliberately ignore stock price, analyst targets, and consensus ratings so the grade is suitable for backtesting forward returns. A minimum of 5 fiscal years of audited statements is required; distressed and highly leveraged infrastructure businesses are declared ungradable rather than forced into a numeric score.