The Real Brokerage Inc. Fundamental Analysis (NASDAQ: REAX)
The Real Brokerage Inc. Fundamental Analysis (NASDAQ: REAX)
The Real Brokerage Inc. (NASDAQ: REAX) shows moderate financial fundamentals with a PE ratio of -3.86, profit margin of -3.46%, and ROE of -54.32%. The company generates $2.9B in annual revenue with strong year-over-year growth of 55.65%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -8.0/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze REAX's fundamental strength across five key dimensions:
Efficiency Score
WeakREAX struggles to generate sufficient returns from assets.
Valuation Score
ExcellentREAX trades at attractive valuation levels.
Growth Score
ExcellentREAX delivers strong and consistent growth momentum.
Financial Health Score
ExcellentREAX maintains a strong and stable balance sheet.
Profitability Score
WeakREAX struggles to sustain strong margins.
Key Financial Metrics
Is REAX Expensive or Cheap?
P/E Ratio
REAX trades at -3.86 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, REAX's PEG of -1.28 indicates potential undervaluation.
Price to Book
The market values The Real Brokerage Inc. at 0.81 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -5.79 times EBITDA. This is generally considered low.
How Well Does REAX Make Money?
Net Profit Margin
For every $100 in sales, The Real Brokerage Inc. keeps $-3.46 as profit after all expenses.
Operating Margin
Core operations generate -3.13 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-54.32 in profit for every $100 of shareholder equity.
ROA
The Real Brokerage Inc. generates $-7.23 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
The Real Brokerage Inc. generates limited operating cash flow of $86.51M, signaling weaker underlying cash strength.
Free Cash Flow
The Real Brokerage Inc. generates weak or negative free cash flow of $85.87M, restricting financial flexibility.
FCF Per Share
Each share generates $2.35 in free cash annually.
FCF Yield
REAX converts 17.16% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-3.86
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.28
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.81
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.17
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.04
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.16
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.54
vs 25 benchmark
ROA
Return on assets percentage
-0.07
vs 25 benchmark
ROCE
Return on capital employed
-0.08
vs 25 benchmark
How REAX Stacks Against Its Sector Peers
| Metric | REAX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -3.86 | 25.26 | Better (Cheaper) |
| ROE | -54.32% | 722.00% | Weak |
| Net Margin | -3.46% | 2077.00% | Weak |
| Debt/Equity | 0.04 | -37.25 (disorted) | Distorted |
| Current Ratio | 1.16 | 91.70 | Neutral |
| ROA | -7.23% | 270.00% | Weak |
REAX outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews The Real Brokerage Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
5406.29%
Industry Style: Income, Inflation Hedge, REIT
High GrowthEPS CAGR
15.75%
Industry Style: Income, Inflation Hedge, REIT
High GrowthFCF CAGR
2005.02%
Industry Style: Income, Inflation Hedge, REIT
High Growth