MID-AMERICA APARTMENT COMM (MAA)

US59522J1034 - REIT

131.62  +0.82 (+0.63%)

Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to MAA. MAA was compared to 21 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 has a valuation in line with the averages, but it does not seem to be growing.



9

1. Profitability

1.1 Basic Checks

MAA had positive earnings in the past year.
MAA had a positive operating cash flow in the past year.
MAA had positive earnings in each of the past 5 years.
In the past 5 years MAA always reported a positive cash flow from operatings.

1.2 Ratios

MAA has a Return On Assets of 4.78%. This is amongst the best in the industry. MAA outperforms 90.48% of its industry peers.
MAA has a Return On Equity of 8.98%. This is amongst the best in the industry. MAA outperforms 80.95% of its industry peers.
MAA has a Return On Invested Capital of 5.02%. This is amongst the best in the industry. MAA outperforms 95.24% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MAA is in line with the industry average of 2.53%.
The 3 year average ROIC (4.38%) for MAA is below the current ROIC(5.02%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 4.78%
ROE 8.98%
ROIC 5.02%
ROA(3y)5.04%
ROA(5y)4.09%
ROE(3y)9.44%
ROE(5y)7.67%
ROIC(3y)4.38%
ROIC(5y)3.89%

1.3 Margins

MAA has a Profit Margin of 25.55%. This is amongst the best in the industry. MAA outperforms 80.95% of its industry peers.
MAA's Profit Margin has improved in the last couple of years.
MAA has a Operating Margin of 32.07%. This is amongst the best in the industry. MAA outperforms 100.00% of its industry peers.
In the last couple of years the Operating Margin of MAA has grown nicely.
The Gross Margin of MAA (61.09%) is better than 61.90% of its industry peers.
MAA's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 32.07%
PM (TTM) 25.55%
GM 61.09%
OM growth 3Y7.97%
OM growth 5Y4.48%
PM growth 3Y19.55%
PM growth 5Y12.9%
GM growth 3Y1.33%
GM growth 5Y0.66%

3

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), MAA is destroying value.
The number of shares outstanding for MAA has been increased compared to 1 year ago.
Compared to 5 years ago, MAA has more shares outstanding
MAA has a worse debt/assets ratio than last year.

2.2 Solvency

MAA has an Altman-Z score of 1.88. This is not the best score and indicates that MAA is in the grey zone with still only limited risk for bankruptcy at the moment.
MAA has a better Altman-Z score (1.88) than 85.71% of its industry peers.
The Debt to FCF ratio of MAA is 12.13, which is on the high side as it means it would take MAA, 12.13 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 12.13, MAA belongs to the top of the industry, outperforming 80.95% of the companies in the same industry.
MAA has a Debt/Equity ratio of 0.74. This is a neutral value indicating MAA is somewhat dependend on debt financing.
The Debt to Equity ratio of MAA (0.74) is better than 76.19% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.74
Debt/FCF 12.13
Altman-Z 1.88
ROIC/WACC0.67
WACC7.5%

2.3 Liquidity

MAA has a Current Ratio of 0.18. This is a bad value and indicates that MAA is not financially healthy enough and could expect problems in meeting its short term obligations.
MAA has a Current ratio of 0.18. This is in the lower half of the industry: MAA underperforms 71.43% of its industry peers.
A Quick Ratio of 0.06 indicates that MAA may have some problems paying its short term obligations.
MAA has a worse Quick ratio (0.06) than 80.95% of its industry peers.
Industry RankSector Rank
Current Ratio 0.18
Quick Ratio 0.06

3

3. Growth

3.1 Past

MAA shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -14.21%.
The Earnings Per Share has been growing by 20.04% on average over the past years. This is a very strong growth
MAA shows a small growth in Revenue. In the last year, the Revenue has grown by 6.36%.
The Revenue has been growing slightly by 6.46% on average over the past years.
EPS 1Y (TTM)-14.21%
EPS 3Y28.88%
EPS 5Y20.04%
EPS growth Q2Q-17.96%
Revenue 1Y (TTM)6.36%
Revenue growth 3Y8.59%
Revenue growth 5Y6.46%
Revenue growth Q2Q2.7%

3.2 Future

The Earnings Per Share is expected to grow by 1.43% on average over the next years.
MAA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.91% yearly.
EPS Next Y-8.1%
EPS Next 2Y-2.27%
EPS Next 3Y1.43%
EPS Next 5YN/A
Revenue Next Year2.12%
Revenue Next 2Y2.68%
Revenue Next 3Y3.33%
Revenue Next 5Y4.91%

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 decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.

5

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 27.94, which means the current valuation is very expensive for MAA.
Compared to the rest of the industry, the Price/Earnings ratio of MAA indicates a rather cheap valuation: MAA is cheaper than 90.48% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.42. MAA is around the same levels.
MAA is valuated quite expensively with a Price/Forward Earnings ratio of 30.41.
MAA's Price/Forward Earnings ratio is rather cheap when compared to the industry. MAA is cheaper than 95.24% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.74, MAA is valued a bit more expensive.
Industry RankSector Rank
PE 27.94
Fwd PE 30.41

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MAA indicates a rather cheap valuation: MAA is cheaper than 85.71% of the companies listed in the same industry.
66.67% of the companies in the same industry are more expensive than MAA, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 41.04
EV/EBITDA 15.75

4.3 Compensation for Growth

MAA has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.39
EPS Next 2Y-2.27%
EPS Next 3Y1.43%

5

5. Dividend

5.1 Amount

MAA has a Yearly Dividend Yield of 4.42%, which is a nice return.
MAA's Dividend Yield is comparable with the industry average which is at 4.46.
Compared to an average S&P500 Dividend Yield of 2.34, MAA pays a better dividend.
Industry RankSector Rank
Dividend Yield 4.42%

5.2 History

On average, the dividend of MAA grows each year by 8.70%, which is quite nice.
MAA has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of MAA decreased recently.
Dividend Growth(5Y)8.7%
Div Incr Years1
Div Non Decr Years1

5.3 Sustainability

119.41% of the earnings are spent on dividend by MAA. This is not a sustainable payout ratio.
The dividend of MAA is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP119.41%
EPS Next 2Y-2.27%
EPS Next 3Y1.43%

MID-AMERICA APARTMENT COMM

NYSE:MAA (3/28/2024, 1:35:29 PM)

131.62

+0.82 (+0.63%)

Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap15.36B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 4.42%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 27.94
Fwd PE 30.41
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)1.39
Profitability
Industry RankSector Rank
ROA 4.78%
ROE 8.98%
ROCE
ROIC
ROICexc
ROICexgc
OM 32.07%
PM (TTM) 25.55%
GM 61.09%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.19
Health
Industry RankSector Rank
Debt/Equity 0.74
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 0.18
Quick Ratio 0.06
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-14.21%
EPS 3Y28.88%
EPS 5Y
EPS growth Q2Q
EPS Next Y-8.1%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)6.36%
Revenue growth 3Y8.59%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y