MID-AMERICA APARTMENT COMM (MAA)
US59522J1034 - REIT
We assign a fundamental rating of 5 out of 10 to MAA. MAA was compared to 20 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 is valued correctly, but it does not seem to be growing.
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.
MAA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
MAA has a Return On Assets of 4.85%. This is amongst the best in the industry. MAA outperforms 90.00% of its industry peers.
The Return On Equity of MAA (9.14%) is better than 75.00% of its industry peers.
With an excellent Return On Invested Capital value of 4.93%, MAA belongs to the best of the industry, outperforming 95.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for MAA is in line with the industry average of 2.59%.
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 Rank | Sector 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
MAA has a better Profit Margin (25.74%) than 75.00% of its industry peers.
MAA's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 31.48%, MAA belongs to the best of the industry, outperforming 95.00% of the companies in the same industry.
MAA's Operating Margin has improved in the last couple of years.
MAA has a better Gross Margin (60.57%) than 65.00% of its industry peers.
MAA's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector 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%
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.
The number of shares outstanding for MAA has been increased compared to 5 years ago.
The debt/assets ratio for MAA is higher compared to a year ago.
2.2 Solvency
MAA has an Altman-Z score of 2.00. 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 Altman-Z score of 2.00. This is amongst the best in the industry. MAA outperforms 85.00% of its industry peers.
The Debt to FCF ratio of MAA is 11.57, which is on the high side as it means it would take MAA, 11.57 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of MAA (11.57) is better than 85.00% 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.
MAA has a Debt to Equity ratio of 0.76. This is in the better half of the industry: MAA outperforms 70.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 11.57 | ||
| Altman-Z | 2 |
ROIC/WACC0.65
WACC7.61%
2.3 Liquidity
A Current Ratio of 0.23 indicates that MAA may have some problems paying its short term obligations.
The Current ratio of MAA (0.23) is worse than 75.00% 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.
MAA's Quick ratio of 0.10 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 | 0.23 | ||
| Quick Ratio | 0.1 |
3. Growth
3.1 Past
MAA shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -16.32%.
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 4.35%.
MAA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.46% yearly.
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
Based on estimates for the next years, MAA will show a decrease in Earnings Per Share. The EPS will decrease by -0.50% on average per year.
MAA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.68% yearly.
EPS Next Y-6.23%
EPS Next 2Y-5.31%
EPS Next 3Y-0.5%
EPS Next 5YN/A
Revenue Next Year1.94%
Revenue Next 2Y2.3%
Revenue Next 3Y3.2%
Revenue Next 5Y4.68%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 29.87 indicates a quite expensive valuation of MAA.
Based on the Price/Earnings ratio, MAA is valued cheaply inside the industry as 90.00% of the companies are valued more expensively.
MAA is valuated rather expensively when we compare the Price/Earnings ratio to 24.41, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 33.74 indicates a quite expensive valuation of MAA.
Based on the Price/Forward Earnings ratio, MAA is valued cheaper than 95.00% of the companies in the same industry.
MAA is valuated expensively when we compare the Price/Forward Earnings ratio to 20.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.87 | ||
| Fwd PE | 33.74 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MAA is valued cheaper than 90.00% of the companies in the same industry.
80.00% of the companies in the same industry are more expensive than MAA, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.66 | ||
| EV/EBITDA | 16.74 |
4.3 Compensation for Growth
The excellent profitability rating of MAA may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.49
EPS Next 2Y-5.31%
EPS Next 3Y-0.5%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.06%, MAA is a good candidate for dividend investing.
MAA's Dividend Yield is comparable with the industry average which is at 4.10.
Compared to an average S&P500 Dividend Yield of 2.30, MAA pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.06% |
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.
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.
The Dividend Rate of MAA has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP119.5%
EPS Next 2Y-5.31%
EPS Next 3Y-0.5%
MID-AMERICA APARTMENT COMM
NYSE:MAA (7/26/2024, 7:04:00 PM)
After market: 142.5 0 (0%)142.5
+2.38 (+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 Cap16.65B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.06% |
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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.87 | ||
| Fwd PE | 33.74 | ||
| 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)1.49
Profitability
| Industry Rank | Sector 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 Rank | Sector 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-6.23%
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