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. While MAA has a great profitability rating, there are quite some concerns on its financial health. MAA has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year MAA was profitable.
MAA had a positive operating cash flow in the past year.
MAA had positive earnings in each of the past 5 years.
MAA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of MAA (4.80%) is better than 75.00% of its industry peers.
MAA has a better Return On Equity (9.60%) than 85.00% of its industry peers.
MAA's Return On Invested Capital of 4.51% is amongst the best of the industry. MAA outperforms 95.00% of its industry peers.
MAA had an Average Return On Invested Capital over the past 3 years of 4.79%. This is above the industry average of 2.62%.
| 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.
In the last couple of years the Profit Margin of MAA has grown nicely.
MAA has a Operating Margin of 28.91%. 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.
Looking at the Gross Margin, with a value of 58.85%, MAA is in line with its industry, outperforming 50.00% of the companies in the same 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.
Compared to 5 years ago, MAA has more shares outstanding
The debt/assets ratio for MAA is higher compared to a year ago.
2.2 Solvency
MAA has an Altman-Z score of 1.78. This is a bad value and indicates that MAA is not financially healthy and even has some risk of bankruptcy.
MAA has a Altman-Z score of 1.78. This is in the better half of the industry: MAA outperforms 80.00% of its industry peers.
MAA has a debt to FCF ratio of 26.49. This is a negative value and a sign of low solvency as MAA would need 26.49 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 26.49, MAA is doing good in the industry, outperforming 65.00% of the companies in the same industry.
A Debt/Equity ratio of 0.85 indicates that MAA is somewhat dependend on debt financing.
MAA has a Debt to Equity ratio (0.85) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.85 | ||
| Debt/FCF | 26.49 | ||
| Altman-Z | 1.78 |
ROIC/WACC0.6
WACC7.52%
2.3 Liquidity
A Current Ratio of 0.13 indicates that MAA may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.13, MAA is doing worse than 70.00% of the companies in the same industry.
MAA has a Quick Ratio of 0.13. This is a bad value and indicates that MAA is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.05, MAA is doing worse than 85.00% of the companies in the same industry.
| 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.
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
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-5.98%
EPS Next 2Y-8.32%
EPS Next 3Y-0.83%
EPS Next 5Y24.45%
Revenue Next Year1.26%
Revenue Next 2Y2.54%
Revenue Next 3Y3.42%
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
The Price/Earnings ratio is 28.91, which means the current valuation is very expensive for MAA.
80.00% of the companies in the same industry are more expensive than MAA, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.48. MAA is around the same levels.
A Price/Forward Earnings ratio of 36.66 indicates a quite expensive valuation of MAA.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MAA indicates a somewhat cheap valuation: MAA is cheaper than 75.00% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.04, MAA is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.91 | ||
| Fwd PE | 36.66 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MAA is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
MAA's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 86.3 | ||
| EV/EBITDA | 17.19 |
4.3 Compensation for Growth
MAA has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)3.5
EPS Next 2Y-8.32%
EPS Next 3Y-0.83%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.26%, 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 2.40, MAA pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.26% |
5.2 History
The dividend of MAA is nicely growing with an annual growth rate of 8.76%!
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 123.55% of its income as dividend. 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-8.32%
EPS Next 3Y-0.83%
140.48
-1.67 (-1.17%)
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-0.72%
Ins Owners0.56%
Ins Owner Change1.2%
Market Cap16.44B
Analysts71.33
Price Target167.55 (19.27%)
Short Float %3.7%
Short Ratio4.5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.26% |
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)-1.63%
PT rev (3m)-0.41%
EPS NQ rev (1m)-1.38%
EPS NQ rev (3m)-3.11%
EPS NY rev (1m)-0.55%
EPS NY rev (3m)5%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)0.16%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)-0.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.91 | ||
| Fwd PE | 36.66 | ||
| P/S | 7.47 | ||
| P/FCF | 86.3 | ||
| P/OCF | 14.97 | ||
| P/B | 2.78 | ||
| P/tB | 2.78 | ||
| EV/EBITDA | 17.19 |
EPS(TTM)4.86
EY3.46%
EPS(NY)3.83
Fwd EY2.73%
FCF(TTM)1.63
FCFY1.16%
OCF(TTM)9.39
OCFY6.68%
SpS18.8
BVpS50.51
TBVpS50.51
PEG (NY)N/A
PEG (5Y)3.5
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 | 1.78 |
F-Score4
WACC7.52%
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)8.72%
EPS 3Y9.96%
EPS 5Y8.27%
EPS Q2Q%-2.13%
EPS Next Y-5.98%
EPS Next 2Y-8.32%
EPS Next 3Y-0.83%
EPS Next 5Y24.45%
Revenue 1Y (TTM)1.19%
Revenue growth 3Y7.21%
Revenue growth 5Y5.95%
Sales Q2Q%0.63%
Revenue Next Year1.26%
Revenue Next 2Y2.54%
Revenue Next 3Y3.42%
Revenue Next 5Y5.28%
EBIT growth 1Y-5.72%
EBIT growth 3Y12.21%
EBIT growth 5Y8.83%
EBIT Next Year88.17%
EBIT Next 3Y27.56%
EBIT Next 5Y22.18%
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%