MID-AMERICA APARTMENT COMM (MAA) Stock Fundamental Analysis
USA - NYSE:MAA - US59522J1034 - REIT
136.7 USD
+0.44 (+0.32%)
136.5 USD
-0.2 (-0.15%)
Overall MAA gets a fundamental rating of 5 out of 10. We evaluated MAA against 20 industry peers in the Residential REITs industry. While MAA belongs to the best of the industry regarding profitability, there are concerns on its financial health. MAA is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year MAA was profitable.
In the past year MAA had a positive cash flow from operations.
In the past 5 years MAA has always been profitable.
In the past 5 years MAA always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of MAA (4.80%) is better than 75.00% of its industry peers.
MAA has a Return On Equity of 9.60%. This is in the better half of the industry: MAA outperforms 80.00% of its industry peers.
MAA has a better Return On Invested Capital (4.51%) than 95.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MAA is above the industry average of 2.59%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.8% | ||
| ROE | 9.6% | ||
| ROIC | 4.51% |
ROA(3y)4.95%
ROA(5y)4.36%
ROE(3y)9.42%
ROE(5y)8.27%
ROIC(3y)4.79%
ROIC(5y)4.19%
1.3 Margins
MAA has a better Profit Margin (25.81%) than 80.00% of its industry peers.
In the last couple of years the Profit Margin of MAA has grown nicely.
Looking at the Operating Margin, with a value of 28.91%, MAA belongs to the top of the industry, outperforming 85.00% of the companies in the same industry.
In the last couple of years the Operating Margin of MAA has grown nicely.
The Gross Margin of MAA (58.85%) is comparable to the rest of the industry.
MAA's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 28.91% | ||
| PM (TTM) | 25.81% | ||
| GM | 58.85% |
OM growth 3Y4.67%
OM growth 5Y2.72%
PM growth 3Y-7.07%
PM growth 5Y2.33%
GM growth 3Y0.09%
GM growth 5Y-0.01%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), MAA is destroying value.
MAA has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, MAA has more shares outstanding
Compared to 1 year ago, MAA has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.71, we must say that MAA is in the distress zone and has some risk of bankruptcy.
With a decent Altman-Z score value of 1.71, MAA is doing good in the industry, outperforming 80.00% of the companies in the same industry.
The Debt to FCF ratio of MAA is 26.49, which is on the high side as it means it would take MAA, 26.49 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 26.49, MAA is doing good in the industry, outperforming 70.00% of the companies in the same industry.
A Debt/Equity ratio of 0.85 indicates that MAA is somewhat dependend on debt financing.
MAA's Debt to Equity ratio of 0.85 is in line compared to the rest of the industry. MAA outperforms 55.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.85 | ||
| Debt/FCF | 26.49 | ||
| Altman-Z | 1.71 |
ROIC/WACC0.61
WACC7.37%
2.3 Liquidity
A Current Ratio of 0.13 indicates that MAA may have some problems paying its short term obligations.
MAA's Current ratio of 0.13 is on the low side compared to the rest of the industry. MAA is outperformed by 70.00% of its industry peers.
A Quick Ratio of 0.05 indicates that MAA may have some problems paying its short term obligations.
The Quick ratio of MAA (0.05) is worse than 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.13 | ||
| Quick Ratio | 0.05 |
3. Growth
3.1 Past
MAA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.72%, which is quite good.
The Earnings Per Share has been growing by 8.27% on average over the past years. This is quite good.
MAA shows a small growth in Revenue. In the last year, the Revenue has grown by 1.19%.
MAA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.95% yearly.
EPS 1Y (TTM)8.72%
EPS 3Y9.96%
EPS 5Y8.27%
EPS Q2Q%-2.13%
Revenue 1Y (TTM)1.19%
Revenue growth 3Y7.21%
Revenue growth 5Y5.95%
Sales Q2Q%0.63%
3.2 Future
The Earnings Per Share is expected to grow by 24.45% on average over the next years. This is a very strong growth
MAA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.78% yearly.
EPS Next Y-4.76%
EPS Next 2Y-8.96%
EPS Next 3Y-1.68%
EPS Next 5Y24.45%
Revenue Next Year0.9%
Revenue Next 2Y2.01%
Revenue Next 3Y2.7%
Revenue Next 5Y4.78%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 28.13, MAA can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of MAA indicates a somewhat cheap valuation: MAA is cheaper than 80.00% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.86, MAA is valued at the same level.
Based on the Price/Forward Earnings ratio of 36.17, the valuation of MAA can be described as expensive.
Based on the Price/Forward Earnings ratio, MAA is valued cheaply inside the industry as 85.00% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of MAA to the average of the S&P500 Index (23.29), we can say MAA is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.13 | ||
| Fwd PE | 36.17 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MAA is valued cheaper than 90.00% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MAA is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 83.99 | ||
| EV/EBITDA | 16.63 |
4.3 Compensation for Growth
The decent profitability rating of MAA may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)3.4
EPS Next 2Y-8.96%
EPS Next 3Y-1.68%
5. Dividend
5.1 Amount
MAA has a Yearly Dividend Yield of 4.32%, which is a nice return.
MAA's Dividend Yield is comparable with the industry average which is at 6.33.
MAA's Dividend Yield is rather good when compared to the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.32% |
5.2 History
On average, the dividend of MAA grows each year by 8.76%, which is quite nice.
MAA has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)8.76%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
MAA pays out 123.55% of its income as dividend. This is not a sustainable payout ratio.
MAA's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP123.55%
EPS Next 2Y-8.96%
EPS Next 3Y-1.68%
136.7
+0.44 (+0.32%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)
Earnings (Next)
Inst Owners98.01%
Inst Owner Change-1.62%
Ins Owners0.56%
Ins Owner Change1.47%
Market Cap16.00B
Analysts72
Price Target162.31 (18.73%)
Short Float %3.55%
Short Ratio5.03
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.32% |
Yearly Dividend5.89
Dividend Growth(5Y)8.76%
DP123.55%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)38.05%
Min EPS beat(2)5.31%
Max EPS beat(2)70.8%
EPS beat(4)3
Avg EPS beat(4)27.68%
Min EPS beat(4)-4.03%
Max EPS beat(4)70.8%
EPS beat(8)5
Avg EPS beat(8)16.23%
EPS beat(12)8
Avg EPS beat(12)15.12%
EPS beat(16)12
Avg EPS beat(16)25.64%
Revenue beat(2)0
Avg Revenue beat(2)-1.29%
Min Revenue beat(2)-1.32%
Max Revenue beat(2)-1.27%
Revenue beat(4)0
Avg Revenue beat(4)-1.13%
Min Revenue beat(4)-1.34%
Max Revenue beat(4)-0.58%
Revenue beat(8)0
Avg Revenue beat(8)-0.94%
Revenue beat(12)1
Avg Revenue beat(12)-0.76%
Revenue beat(16)3
Avg Revenue beat(16)-0.58%
PT rev (1m)-0.44%
PT rev (3m)-6.52%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.32%
EPS NY rev (1m)-0.09%
EPS NY rev (3m)0.74%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)-0.61%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.13 | ||
| Fwd PE | 36.17 | ||
| P/S | 7.27 | ||
| P/FCF | 83.99 | ||
| P/OCF | 14.57 | ||
| P/B | 2.71 | ||
| P/tB | 2.71 | ||
| EV/EBITDA | 16.63 |
EPS(TTM)4.86
EY3.56%
EPS(NY)3.78
Fwd EY2.76%
FCF(TTM)1.63
FCFY1.19%
OCF(TTM)9.39
OCFY6.87%
SpS18.79
BVpS50.5
TBVpS50.5
PEG (NY)N/A
PEG (5Y)3.4
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.8% | ||
| ROE | 9.6% | ||
| ROCE | 5.88% | ||
| ROIC | 4.51% | ||
| ROICexc | 4.53% | ||
| ROICexgc | 4.58% | ||
| OM | 28.91% | ||
| PM (TTM) | 25.81% | ||
| GM | 58.85% | ||
| FCFM | 8.66% |
ROA(3y)4.95%
ROA(5y)4.36%
ROE(3y)9.42%
ROE(5y)8.27%
ROIC(3y)4.79%
ROIC(5y)4.19%
ROICexc(3y)4.8%
ROICexc(5y)4.21%
ROICexgc(3y)4.86%
ROICexgc(5y)4.26%
ROCE(3y)6.1%
ROCE(5y)5.33%
ROICexcg growth 3Y10.7%
ROICexcg growth 5Y8.18%
ROICexc growth 3Y10.71%
ROICexc growth 5Y8.14%
OM growth 3Y4.67%
OM growth 5Y2.72%
PM growth 3Y-7.07%
PM growth 5Y2.33%
GM growth 3Y0.09%
GM growth 5Y-0.01%
F-Score4
Asset Turnover0.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.85 | ||
| Debt/FCF | 26.49 | ||
| Debt/EBITDA | 4.07 | ||
| Cap/Depr | 150.32% | ||
| Cap/Sales | 41.28% | ||
| Interest Coverage | 3.58 | ||
| Cash Conversion | 88.59% | ||
| Profit Quality | 33.56% | ||
| Current Ratio | 0.13 | ||
| Quick Ratio | 0.05 | ||
| Altman-Z | 1.71 |
F-Score4
WACC7.37%
ROIC/WACC0.61
Cap/Depr(3y)143.54%
Cap/Depr(5y)125.9%
Cap/Sales(3y)38.3%
Cap/Sales(5y)35.02%
Profit Quality(3y)49.76%
Profit Quality(5y)69.71%
High Growth Momentum
Growth
EPS 1Y (TTM)8.72%
EPS 3Y9.96%
EPS 5Y8.27%
EPS Q2Q%-2.13%
EPS Next Y-4.76%
EPS Next 2Y-8.96%
EPS Next 3Y-1.68%
EPS Next 5Y24.45%
Revenue 1Y (TTM)1.19%
Revenue growth 3Y7.21%
Revenue growth 5Y5.95%
Sales Q2Q%0.63%
Revenue Next Year0.9%
Revenue Next 2Y2.01%
Revenue Next 3Y2.7%
Revenue Next 5Y4.78%
EBIT growth 1Y-5.72%
EBIT growth 3Y12.21%
EBIT growth 5Y8.83%
EBIT Next Year87.13%
EBIT Next 3Y26.86%
EBIT Next 5Y21.79%
FCF growth 1Y-45.99%
FCF growth 3Y-21.89%
FCF growth 5Y-15.48%
OCF growth 1Y-4.35%
OCF growth 3Y7.06%
OCF growth 5Y7.05%