- The RMR Group Inc. has an intrinsic value of $94.76, 142% above current price levels, and meets all eight of Bill Ackman’s Pershing Square investing principles.
- The RMR Group Inc. is a small-cap external property management company with a strong balance sheet, including $456 million in current assets and $0 in debt.
- Property management is a low-risk asset-light business with limited real estate exposure.
- The stock is attractively priced at 8.31 normalized P/E and the market is ignoring the possibility of the company securing large future contracts.
- With REITs undervalued across the board, heightened incentive fees and business management fees will be a strong catalyst for earnings growth in 2021.
For further details see:
The RMR Group: A Pershing Square Style Analysis