MID-AMERICA APARTMENT COMM (MAA) Stock Fundamental Analysis
USA - NYSE:MAA - US59522J1034 - REIT
142.2 USD
-1.89 (-1.31%)
142.2 USD
0 (0%)
MAA gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 20 industry peers in the Residential REITs industry. While MAA has a great profitability rating, there are quite some concerns on its financial health. MAA has a correct valuation and a medium growth rate.
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.
Each year in the past 5 years MAA had a positive operating cash flow.
1.2 Ratios
MAA has a Return On Assets of 4.80%. This is in the better half of the industry: MAA outperforms 75.00% of its industry peers.
With a decent Return On Equity value of 9.60%, MAA is doing good in the industry, outperforming 80.00% of the companies in the same industry.
The Return On Invested Capital of MAA (4.51%) is better than 95.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital 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's Profit Margin of 25.81% is fine compared to the rest of the industry. MAA outperforms 80.00% of its industry peers.
MAA's Profit Margin has improved in the last couple of years.
The Operating Margin of MAA (28.91%) is better than 85.00% of its industry peers.
MAA's Operating Margin has improved in the last couple of years.
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.
The number of shares outstanding for MAA has been reduced compared to 1 year ago.
MAA has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, MAA has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.80, we must say that MAA is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of MAA (1.80) is better than 80.00% of its industry peers.
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.
The Debt to FCF ratio of MAA (26.49) is better than 70.00% of its industry peers.
A Debt/Equity ratio of 0.85 indicates that MAA is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.85, MAA perfoms like the industry average, outperforming 55.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.85 | ||
| Debt/FCF | 26.49 | ||
| Altman-Z | 1.8 |
ROIC/WACC0.62
WACC7.33%
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.
MAA's Quick ratio of 0.05 is on the low side compared to the rest of the industry. MAA is outperformed by 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.
Measured over the past years, MAA shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.27% on average per year.
The Revenue has been growing slightly by 1.19% in the past year.
The Revenue has been growing slightly by 5.95% on average over the past years.
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
Based on estimates for the next years, MAA will show a small growth in Revenue. The Revenue will grow by 4.78% on average per year.
EPS Next Y-4.67%
EPS Next 2Y-8.92%
EPS Next 3Y-1.51%
EPS Next 5Y24.45%
Revenue Next Year0.9%
Revenue Next 2Y2.06%
Revenue Next 3Y2.78%
Revenue Next 5Y4.78%
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 29.26 indicates a quite expensive valuation of MAA.
80.00% of the companies in the same industry are more expensive than MAA, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.30, MAA is valued at the same level.
MAA is valuated quite expensively with a Price/Forward Earnings ratio of 37.59.
Based on the Price/Forward Earnings ratio, MAA is valued cheaply inside the industry as 85.00% of the companies are valued more expensively.
MAA is valuated expensively when we compare the Price/Forward Earnings ratio to 22.73, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.26 | ||
| Fwd PE | 37.59 |
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.
MAA's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 87.37 | ||
| EV/EBITDA | 17.37 |
4.3 Compensation for Growth
The decent profitability rating of MAA may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)3.54
EPS Next 2Y-8.92%
EPS Next 3Y-1.51%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.21%, MAA is a good candidate for dividend investing.
MAA's Dividend Yield is comparable with the industry average which is at 4.74.
Compared to an average S&P500 Dividend Yield of 2.45, MAA pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.21% |
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
123.55% of the earnings are spent on dividend by MAA. This is not a sustainable payout ratio.
The dividend of MAA is growing, but earnings are growing more, so the dividend growth is sustainable.
DP123.55%
EPS Next 2Y-8.92%
EPS Next 3Y-1.51%
142.2
-1.89 (-1.31%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)
Earnings (Next)
Inst Owners100.4%
Inst Owner Change-1.62%
Ins Owners0.56%
Ins Owner Change1.47%
Market Cap16.65B
Analysts72
Price Target162.31 (14.14%)
Short Float %3.05%
Short Ratio3.8
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.21% |
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)-3.13%
PT rev (3m)-6.82%
EPS NQ rev (1m)1.35%
EPS NQ rev (3m)-9.32%
EPS NY rev (1m)1.39%
EPS NY rev (3m)4.67%
Revenue NQ rev (1m)-0.44%
Revenue NQ rev (3m)-1.35%
Revenue NY rev (1m)-0.36%
Revenue NY rev (3m)-0.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.26 | ||
| Fwd PE | 37.59 | ||
| P/S | 7.57 | ||
| P/FCF | 87.37 | ||
| P/OCF | 15.15 | ||
| P/B | 2.82 | ||
| P/tB | 2.82 | ||
| EV/EBITDA | 17.37 |
EPS(TTM)4.86
EY3.42%
EPS(NY)3.78
Fwd EY2.66%
FCF(TTM)1.63
FCFY1.14%
OCF(TTM)9.39
OCFY6.6%
SpS18.79
BVpS50.5
TBVpS50.5
PEG (NY)N/A
PEG (5Y)3.54
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 | 1.8 |
F-Score4
WACC7.33%
ROIC/WACC0.62
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-4.67%
EPS Next 2Y-8.92%
EPS Next 3Y-1.51%
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 2Y2.06%
Revenue Next 3Y2.78%
Revenue Next 5Y4.78%
EBIT growth 1Y-5.72%
EBIT growth 3Y12.21%
EBIT growth 5Y8.83%
EBIT Next Year88.17%
EBIT Next 3Y27.56%
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%