Skip to main content

Real Brokerage Stock (REAX) Great Growth and Undervalue (Q4 2024 Earnings)

In an era where technology continues to reshape industries, The Real Brokerage Inc. (NASDAQ: REAX) stands out as a transformative force in the real estate sector. With its innovative approach and impressive financial performance, particularly in Q4 2024, Real Brokerage presents a compelling investment opportunity. This article delves into the company's background, financial achievements, stock valuation, growth prospects, and potential risks, providing a comprehensive analysis for investors.

Real Estate Tech

1. About Real Brokerage

Founded in 2014, The Real Brokerage Inc. is a technology-driven real estate company headquartered in Toronto, Canada. Operating across all 50 U.S. states and Canada, Real Brokerage offers a cloud-based platform that integrates essential real estate services, including brokerage, mortgage, and closing services. By leveraging technology, the company aims to simplify the home buying and selling process, providing a seamless experience for both agents and clients. As of the end of 2024, Real Brokerage supports over 24,000 agents, reflecting its rapid expansion and adoption in the real estate community.

Read More: Is NVIDIA Stock a Good Buy Right Now? A Fundamental Analysis

2. Real Brokerage Financial Performance

The Q4 2024 earnings report highlights Real Brokerage's impressive financial trajectory:​

  • Revenue Growth: The company reported revenue of $350.63 million for Q4 2024, a substantial increase of 93.35% compared to $181.34 million in Q4 2023. On a trailing twelve months (TTM) basis, revenue reached $1.26 billion, up 83.5% from $689.16 million the previous year.​
  • Earnings Per Share (EPS): The quarterly EPS improved to -$0.03 in Q4 2024 from -$0.07 in Q4 2023, reflecting a 57.14% reduction in losses. TTM EPS also showed improvement, decreasing losses by 6.67% from -$0.15 to -$0.14.​
  • Free Cash Flow Per Share: TTM free cash flow per share increased by 150%, rising from $0.10 in Q4 2023 to $0.25 in Q4 2024.​
  • Analyst Forecasts for 2025: Analysts project revenue to grow by 38.54% to $1.75 billion in 2025. EPS is expected to improve by 50%, reducing losses from -$0.14 to -$0.07.​

These figures indicate strong operational performance and a clear path toward profitability, bolstered by efficient cash flow management and strategic growth initiatives.​

3. REAX Stock Price Performance and Valuation

As of April 12, 2025, REAX is trading at $4.27 per share, reflecting a 2% increase over the past year, aligning closely with the S&P 500's 1.9% gain during the same period. 

REAX Stock vs S&P 500 April 2024-2025

Despite this modest appreciation, the stock's valuation metrics suggest it remains undervalued:​

  • Price-to-Sales (P/S) Ratio: The TTM P/S ratio stands at 0.65, with a forward P/S ratio of 0.47, indicating a low valuation relative to revenue.​
  • Price-to-Free Cash Flow (P/FCF) Ratio: At 18.46, this ratio reflects a reasonable valuation considering the company's growth prospects and cash flow generation.​

These metrics suggest that the market has yet to fully recognize Real Brokerage's growth potential, offering investors an attractive entry point.

4. Real Brokerage Growth Potential

Real Brokerage's growth prospects are underpinned by several factors:​

  • Agent Expansion: The company's agent count grew by 77% year-over-year, reaching 24,140 by the end of Q4 2024. ​
  • Technological Innovation: The launch of Real Wallet, a fintech platform offering business checking accounts and credit lines for agents, enhances the value proposition for agents and clients alike.  
  • Market Trends: The real estate industry's shift towards digital solutions positions Real Brokerage to capitalize on the increasing demand for technology-driven services.​

These elements collectively support the company's potential for sustained growth in the evolving real estate landscape.

5. Risks to Consider

While Real Brokerage exhibits strong growth indicators, investors should be mindful of potential risks:​

  • Profitability: Despite narrowing losses, the company has yet to achieve consistent profitability, which may impact investor confidence.​
  • Market Competition: The real estate sector is highly competitive, with established players and new entrants vying for market share.​
  • Economic Sensitivity: Real estate markets are influenced by macroeconomic factors such as interest rates and housing demand, which can affect transaction volumes.​ The recent escalation of Trump tariff trade war and expected US negative GDP growth in Q1 2024 could drag down US housing market.

Nevertheless, Real Brokerage's strategic initiatives and financial discipline position it to navigate these challenges effectively.

Read More: PDD Holdings Stock (PDD) Good Growth and Undervalue (Q4 2024 Earnings)

Conclusion

Real Brokerage Inc. has demonstrated remarkable growth, with significant increases in revenue and improvements in key financial metrics. The company's innovative approach to real estate brokerage, combined with its strategic expansion and technological advantages, positions it well for continued success. Despite its achievements, the stock remains undervalued, offering investors a unique opportunity to participate in its growth story. While acknowledging potential risks, the company's strong fundamentals and positive outlook make REAX a recommended consideration for investors seeking exposure to the evolving real estate sector.

Labels:

Comments

Post a Comment

Popular posts from this blog

Seagate Technology Stock (STX) Great Growth and Good Value (Q1 2026 Earnings)

Seagate Technology Holdings plc (NASDAQ: STX) has emerged as one of the standout performers in the tech sector, delivering impressive financial growth and strong stock price appreciation. Segate’s stock is up 95% since my recommendation article in August 2025 . With its fiscal Q1 2026 earnings report showing significant year-over-year improvements in revenue and earnings per share, investors are focusing on Seagate’s robust fundamentals and future growth potential. As the data storage industry continues to expand especially with the rise of cloud infrastructure and artificial intelligence (AI) Seagate’s market positioning, profitability, and valuation present a compelling investment story for both growth and value-oriented investors. In this article we will dive into Seagate Technology recent earnings, stock performance & valuation, growth potential, and the risks investor should consider.
Post a Comment
Read more

Defensive Sector in Recession Time

When the economic landscape darkens and recession clouds loom, investors naturally seek refuge in safer corners of the stock market. While no sector is completely immune to the effects of an economic downturn, the defensive sector has long been regarded as a relatively stable shelter. In times of financial uncertainty, companies that provide essential goods and services tend to maintain consistent revenue and performance, making them attractive to risk-conscious investors. In this article, we’ll explore the nature of the defensive sector, why it performs better during recessions, which industries fall under this category, and how to approach investing in defensive stocks when the economy turns south.
Post a Comment
Read more

Silvercorp Metals Stock (SVM) Good Growth and Good Value (Q2 2026 Earnings)

Investors seeking exposure to the precious metals sector have recently turned their attention to Silvercorp Metals (NYSE American: SVM), a Canadian-based mining company with significant operations in China. Amid rising global demand for silver and other industrial metals, Silvercorp’s Q2 Fiscal 2026 earnings revealed strong revenue growth, improving margins, and robust free cash flow generation, signs that have bolstered investor confidence. With solid quarterly results, attractive valuation metrics, and a strong growth outlook backed by analyst forecasts, Silvercorp appears to offer both growth and value investors a compelling opportunity. In this article we will dive into Silvercorp’s recent earnings, stock performance & valuation, growth potential, and the risks investor should consider.
Post a Comment
Read more