MID-AMERICA APARTMENT COMM (MAA) Stock Fundamental Analysis
NYSE:MAA - New York Stock Exchange, Inc. - US59522J1034 - REIT - Currency: USD
Taking everything into account, MAA scores 5 out of 10 in our fundamental rating. MAA was compared to 20 industry peers in the Residential REITs industry. MAA scores excellent on profitability, but there are concerns on its financial health. MAA has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
MAA had positive earnings in the past year.
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 (4.76%) is better than 80.00% of its industry peers.
MAA has a Return On Equity of 9.40%. This is amongst the best in the industry. MAA outperforms 85.00% of its industry peers.
The Return On Invested Capital of MAA (4.59%) is better 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 2.62%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.76% | ||
| ROE | 9.4% | ||
| ROIC | 4.59% |
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 (25.57%) than 85.00% of its industry peers.
In the last couple of years the Profit Margin of MAA has grown nicely.
MAA has a Operating Margin of 29.61%. This is amongst the best in the industry. MAA outperforms 85.00% of its industry peers.
MAA's Operating Margin has improved in the last couple of years.
MAA has a Gross Margin (59.20%) which 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 | 29.61% | ||
| PM (TTM) | 25.57% | ||
| GM | 59.2% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so MAA is destroying value.
Compared to 1 year ago, MAA has less shares outstanding
The number of shares outstanding for MAA has been increased compared to 5 years ago.
MAA has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 1.91 indicates that MAA is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 1.91, MAA belongs to the top of the industry, outperforming 85.00% of the companies in the same industry.
MAA has a debt to FCF ratio of 43.43. This is a negative value and a sign of low solvency as MAA would need 43.43 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 43.43, MAA is in line with its industry, outperforming 60.00% of the companies in the same industry.
A Debt/Equity ratio of 0.84 indicates that MAA is somewhat dependend on debt financing.
The Debt to Equity ratio of MAA (0.84) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.84 | ||
| Debt/FCF | 43.43 | ||
| Altman-Z | 1.91 |
ROIC/WACC0.6
WACC7.59%
2.3 Liquidity
A Current Ratio of 0.14 indicates that MAA may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.14, MAA is doing worse than 70.00% of the companies in the same industry.
A Quick Ratio of 0.06 indicates that MAA may have some problems paying its short term obligations.
With a Quick ratio value of 0.06, MAA is not doing good in the industry: 80.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.14 | ||
| Quick Ratio | 0.06 |
3. Growth
3.1 Past
MAA shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.31%.
MAA shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.27% yearly.
MAA shows a small growth in Revenue. In the last year, the Revenue has grown by 1.56%.
The Revenue has been growing slightly by 5.95% on average over the past years.
EPS 1Y (TTM)2.31%
EPS 3Y9.96%
EPS 5Y8.27%
EPS Q2Q%26.23%
Revenue 1Y (TTM)1.56%
Revenue growth 3Y7.21%
Revenue growth 5Y5.95%
Sales Q2Q%1.04%
3.2 Future
Based on estimates for the next years, MAA will show a very strong growth in Earnings Per Share. The EPS will grow by 24.45% on average per year.
The Revenue is expected to grow by 5.28% on average over the next years.
EPS Next Y-5.46%
EPS Next 2Y-7.73%
EPS Next 3Y-0.48%
EPS Next 5Y24.45%
Revenue Next Year1.31%
Revenue Next 2Y2.63%
Revenue Next 3Y3.48%
Revenue Next 5Y5.28%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 29.90 indicates a quite expensive valuation of MAA.
Based on the Price/Earnings ratio, MAA is valued cheaper than 90.00% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.69, MAA is valued at the same level.
A Price/Forward Earnings ratio of 37.58 indicates a quite expensive valuation of MAA.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MAA indicates a rather cheap valuation: MAA is cheaper than 90.00% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of MAA to the average of the S&P500 Index (21.29), we can say MAA is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.9 | ||
| Fwd PE | 37.58 |
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 90.00% of the companies listed 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 | 147.12 | ||
| EV/EBITDA | 17.77 |
4.3 Compensation for Growth
MAA has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)3.62
EPS Next 2Y-7.73%
EPS Next 3Y-0.48%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.07%, MAA is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.67, MAA has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.43, MAA pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.07% |
5.2 History
On average, the dividend of MAA grows each year by 8.76%, which is quite nice.
MAA has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)8.76%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
MAA pays out 123.94% 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.
DP123.94%
EPS Next 2Y-7.73%
EPS Next 3Y-0.48%
145.91
-3.26 (-2.19%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)
Earnings (Next)
Inst Owners100.32%
Inst Owner Change2.65%
Ins Owners0.56%
Ins Owner Change1.87%
Market Cap17.08B
Analysts73.55
Price Target173.64 (19%)
Short Float %4.05%
Short Ratio4.66
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.07% |
Yearly Dividend5.89
Dividend Growth(5Y)8.76%
DP123.94%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)54.71%
Min EPS beat(2)38.63%
Max EPS beat(2)70.8%
EPS beat(4)2
Avg EPS beat(4)24.46%
Min EPS beat(4)-7.55%
Max EPS beat(4)70.8%
EPS beat(8)5
Avg EPS beat(8)17.04%
EPS beat(12)8
Avg EPS beat(12)22.4%
EPS beat(16)12
Avg EPS beat(16)26.59%
Revenue beat(2)0
Avg Revenue beat(2)-1.3%
Min Revenue beat(2)-1.34%
Max Revenue beat(2)-1.27%
Revenue beat(4)0
Avg Revenue beat(4)-1%
Min Revenue beat(4)-1.34%
Max Revenue beat(4)-0.58%
Revenue beat(8)0
Avg Revenue beat(8)-0.87%
Revenue beat(12)2
Avg Revenue beat(12)-0.63%
Revenue beat(16)4
Avg Revenue beat(16)-0.45%
PT rev (1m)0.59%
PT rev (3m)2.83%
EPS NQ rev (1m)-10.3%
EPS NQ rev (3m)-14.64%
EPS NY rev (1m)3.81%
EPS NY rev (3m)1.05%
Revenue NQ rev (1m)-0.11%
Revenue NQ rev (3m)-0.96%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)-0.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.9 | ||
| Fwd PE | 37.58 | ||
| P/S | 7.78 | ||
| P/FCF | 147.12 | ||
| P/OCF | 15.6 | ||
| P/B | 2.86 | ||
| P/tB | 2.86 | ||
| EV/EBITDA | 17.77 |
EPS(TTM)4.88
EY3.34%
EPS(NY)3.88
Fwd EY2.66%
FCF(TTM)0.99
FCFY0.68%
OCF(TTM)9.35
OCFY6.41%
SpS18.77
BVpS51.03
TBVpS51.03
PEG (NY)N/A
PEG (5Y)3.62
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.76% | ||
| ROE | 9.4% | ||
| ROCE | 5.97% | ||
| ROIC | 4.59% | ||
| ROICexc | 4.61% | ||
| ROICexgc | 4.66% | ||
| OM | 29.61% | ||
| PM (TTM) | 25.57% | ||
| GM | 59.2% | ||
| FCFM | 5.29% |
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-Score3
Asset Turnover0.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.84 | ||
| Debt/FCF | 43.43 | ||
| Debt/EBITDA | 4.05 | ||
| Cap/Depr | 164.28% | ||
| Cap/Sales | 44.55% | ||
| Interest Coverage | 3.53 | ||
| Cash Conversion | 87.85% | ||
| Profit Quality | 20.67% | ||
| Current Ratio | 0.14 | ||
| Quick Ratio | 0.06 | ||
| Altman-Z | 1.91 |
F-Score3
WACC7.59%
ROIC/WACC0.6
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)2.31%
EPS 3Y9.96%
EPS 5Y8.27%
EPS Q2Q%26.23%
EPS Next Y-5.46%
EPS Next 2Y-7.73%
EPS Next 3Y-0.48%
EPS Next 5Y24.45%
Revenue 1Y (TTM)1.56%
Revenue growth 3Y7.21%
Revenue growth 5Y5.95%
Sales Q2Q%1.04%
Revenue Next Year1.31%
Revenue Next 2Y2.63%
Revenue Next 3Y3.48%
Revenue Next 5Y5.28%
EBIT growth 1Y-4.47%
EBIT growth 3Y12.21%
EBIT growth 5Y8.83%
EBIT Next Year88.31%
EBIT Next 3Y27.95%
EBIT Next 5Y22.18%
FCF growth 1Y-61.66%
FCF growth 3Y-21.89%
FCF growth 5Y-15.48%
OCF growth 1Y-0.23%
OCF growth 3Y7.06%
OCF growth 5Y7.05%