RE/MAX Holdings, Inc. (NYSE:RMAX) Financial Performance and Competitive Analysis

• RE/MAX Holdings, Inc. (NYSE:RMAX) demonstrates a strong Return on Invested Capital (ROIC) of 12.05% and a Weighted Average Cost of Capital (WACC) of 6.34%, indicating efficient capital use.
• National Bank Holdings Corporation (NBHC) leads with an exceptional ROIC of 645.72% and a WACC of 16.29%, showcasing superior capital efficiency.
• Urban Edge Properties (UE) and Rexford Industrial Realty, Inc. (REXR) also show notable performances, though with varying degrees of capital efficiency compared to RE/MAX and NBHC.

RE/MAX Holdings, Inc. (NYSE:RMAX) is a well-known real estate company that operates through a franchise model, providing real estate brokerage services. The company is recognized for its extensive network of real estate agents and its strong brand presence in the industry. In the competitive landscape, RE/MAX competes with other real estate service providers and financial institutions that offer similar services.

In evaluating RE/MAX's financial performance, the Return on Invested Capital (ROIC) is a key metric. With a ROIC of 12.05% and a Weighted Average Cost of Capital (WACC) of 6.34%, RE/MAX demonstrates a ROIC to WACC ratio of 1.90. This indicates that the company is effectively using its capital to generate returns that are significantly higher than its cost of capital, which is favorable for investors.

When comparing RE/MAX to its peers, National Bank Holdings Corporation (NBHC) stands out with an impressive ROIC of 645.72% and a WACC of 16.29%, resulting in a ROIC to WACC ratio of 39.64. This suggests that NBHC is exceptionally efficient in generating returns on its invested capital, making it a strong contender in terms of capital efficiency and growth potential.

Urban Edge Properties (UE) also shows a strong performance with a ROIC of 57.67% and a WACC of 7.53%, leading to a ROIC to WACC ratio of 7.66. This indicates that UE is effectively managing its capital to generate substantial returns, although not as high as NBHC. In contrast, Kennedy-Wilson Holdings, Inc. (KW) and ServisFirst Bancshares, Inc. (SFBS) have negative ROIC to WACC ratios, suggesting challenges in generating returns above their cost of capital.

Rexford Industrial Realty, Inc. (REXR) presents a ROIC of 4.61% against a WACC of 7.51%, resulting in a ROIC to WACC ratio of 0.61. This indicates that REXR is not generating returns that exceed its cost of capital, which may be a concern for investors. Overall, while RE/MAX shows a healthy ROIC to WACC ratio, NBHC leads the peer group with superior capital efficiency.