MID-AMERICA APARTMENT COMM (MAA)

US59522J1034 - REIT

139.3  +2.33 (+1.7%)

Fundamental Rating

5

MAA gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 21 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 valuation in line with the averages, but on the other hand it scores bad on growth.



8

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.
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 (4.85%) is better than 85.71% of its industry peers.
With a decent Return On Equity value of 9.14%, MAA is doing good in the industry, outperforming 71.43% of the companies in the same industry.
The Return On Invested Capital of MAA (4.93%) is better than 95.24% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for MAA is in line with the industry average of 2.55%.
The last Return On Invested Capital (4.93%) for MAA is above the 3 year average (4.38%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 4.85%
ROE 9.14%
ROIC 4.93%
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

Looking at the Profit Margin, with a value of 25.74%, MAA is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
In the last couple of years the Profit Margin of MAA has grown nicely.
MAA has a better Operating Margin (31.48%) than 95.24% of its industry peers.
In the last couple of years the Operating Margin of MAA has grown nicely.
Looking at the Gross Margin, with a value of 60.57%, MAA is in the better half of the industry, outperforming 61.90% of the companies in the same industry.
MAA's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 31.48%
PM (TTM) 25.74%
GM 60.57%
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.
MAA has more shares outstanding than it did 1 year ago.
MAA has more shares outstanding than it did 5 years ago.
MAA has a worse debt/assets ratio than last year.

2.2 Solvency

An Altman-Z score of 1.96 indicates that MAA is not a great score, but indicates only limited risk for bankruptcy at the moment.
MAA has a better Altman-Z score (1.96) than 85.71% of its industry peers.
MAA has a debt to FCF ratio of 11.57. This is a negative value and a sign of low solvency as MAA would need 11.57 years to pay back of all of its debts.
MAA has a Debt to FCF ratio of 11.57. This is amongst the best in the industry. MAA outperforms 85.71% of its industry peers.
MAA has a Debt/Equity ratio of 0.76. This is a neutral value indicating MAA is somewhat dependend on debt financing.
The Debt to Equity ratio of MAA (0.76) is better than 71.43% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.76
Debt/FCF 11.57
Altman-Z 1.96
ROIC/WACC0.64
WACC7.73%

2.3 Liquidity

MAA has a Current Ratio of 0.23. 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 worse Current ratio (0.23) than 80.95% of its industry peers.
MAA has a Quick Ratio of 0.23. This is a bad value and indicates that MAA is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.10, MAA is not doing good in the industry: 80.95% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 0.23
Quick Ratio 0.1

3

3. Growth

3.1 Past

The earnings per share for MAA have decreased strongly by -16.32% in the last year.
MAA shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 20.04% yearly.
Looking at the last year, MAA shows a small growth in Revenue. The Revenue has grown by 4.35% in the last year.
The Revenue has been growing slightly by 6.46% on average over the past years.
EPS 1Y (TTM)-16.32%
EPS 3Y28.88%
EPS 5Y20.04%
EPS Q2Q%5.17%
Revenue 1Y (TTM)4.35%
Revenue growth 3Y8.59%
Revenue growth 5Y6.46%
Sales Q2Q%2.76%

3.2 Future

MAA is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 0.94% yearly.
The Revenue is expected to grow by 4.68% on average over the next years.
EPS Next Y-8.67%
EPS Next 2Y-4.75%
EPS Next 3Y0.94%
EPS Next 5YN/A
Revenue Next Year1.71%
Revenue Next 2Y2.28%
Revenue Next 3Y3.43%
Revenue Next 5Y4.68%

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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.

5

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 29.20, MAA can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of MAA indicates a rather cheap valuation: MAA is cheaper than 85.71% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of MAA to the average of the S&P500 Index (28.24), we can say MAA is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 32.60, the valuation of MAA can be described as expensive.
95.24% of the companies in the same industry are more expensive than MAA, based on the Price/Forward Earnings ratio.
MAA's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 19.93.
Industry RankSector Rank
PE 29.2
Fwd PE 32.6

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, MAA is valued cheaper than 90.48% of the companies in the same industry.
71.43% 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 40.73
EV/EBITDA 16.44

4.3 Compensation for Growth

MAA has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.46
EPS Next 2Y-4.75%
EPS Next 3Y0.94%

5

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 4.29%, MAA is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.26, MAA pays a bit more dividend than its industry peers.
MAA's Dividend Yield is rather good when compared to the S&P500 average which is at 2.37.
Industry RankSector Rank
Dividend Yield 4.29%

5.2 History

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

5.3 Sustainability

119.50% of the earnings are spent on dividend by MAA. This is not a sustainable payout ratio.
MAA's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP119.5%
EPS Next 2Y-4.75%
EPS Next 3Y0.94%

MID-AMERICA APARTMENT COMM

NYSE:MAA (6/12/2024, 9:24:02 AM)

139.3

+2.33 (+1.7%)

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 Cap16.27B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 4.29%
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 29.2
Fwd PE 32.6
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)1.46
Profitability
Industry RankSector Rank
ROA 4.85%
ROE 9.14%
ROCE
ROIC
ROICexc
ROICexgc
OM 31.48%
PM (TTM) 25.74%
GM 60.57%
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 0.76
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 0.23
Quick Ratio 0.1
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)
High Growth Momentum
Growth
EPS 1Y (TTM)-16.32%
EPS 3Y28.88%
EPS 5Y
EPS Q2Q%
EPS Next Y-8.67%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)4.35%
Revenue growth 3Y8.59%
Revenue growth 5Y
Sales 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