RLGY

Realogy Holdings Corp

Finance/Real Estate


Presented:02/18/2016
Price:$31.06
Cap:$4.60B
Current Price:$4.67
Cap:$0.52B

Presented

Date02/18/2016
Price$31.06
Market Cap$4.60B
Ent Value$8.28B
P/E Ratio23.53x
Book Value$16.28
Div Yield0%
Shares O/S148.10M
Ave Daily Vol1,615,666
Short Int2.91%

Current

Price$4.67
Market Cap$0.52B
Realogy Holdings Corp. is a preeminent and integrated provider of residential real estate services in the U.S. The company operates through four segments: Real Estate Franchise Services, Company Owned Real Estate Brokerage Services, Relocation Services, and Title & Settlement Services. The Real Estate Franchise Services segment franchises residential real estate brokerages through its brands which includes, Century 21, Coldwell Banker, Coldwell Banker Commercial, ERA, Sotheby's International Realty and Better Homes and Gardens Real Estate. The Company Owned Real Estate Brokerage Services segment own and operate the residential real estate brokerage business in the U.S. It offers full-service residential brokerage services. The Relocation Services segment provides outsourced employee relocation services. It provides services in the U.S. and also operates in key international relocation destinations. The Title & Settlement Services segment assists closing of real estate transactions by providing full-service title and settlement services to customers and real estate companies. Realogy Holdings was founded on December 14, 2006 and is headquartered in Madison, NJ.

Publicly traded companies mentioned herein: PHH Corporation (PHH), Realogy Holdings Corp (RLGY)

Highlights

The presenter is long shares of Realogy Holdings Corp (RLGY) at $31 and thinks the main franchises under the largest residential brokerage company in the US (i.e., Coldwell Banker, Century 21, Sotheby’s, et al) are poised to benefit from favorable domestic macroeconomic and demographic trends. Generally speaking, he sees RLGY as a good business that generates solid FCF. Management should be able to delever from 3.9x to 3x and continue to improve margins, and a stock should appreciate meaningfully over the next 12-24 months.

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Idea Discussion

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