MACERICH CO/THE (MAC)
US5543821012 - REIT
Taking everything into account, MAC scores 2 out of 10 in our fundamental rating. MAC was compared to 127 industry peers in the Diversified REITs industry. Both the profitability and financial health of MAC have multiple concerns. MAC is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
MAC had negative earnings in the past year.
MAC had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: MAC reported negative net income in multiple years.
MAC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
MAC has a worse Return On Assets (-4.66%) than 86.40% of its industry peers.
MAC has a worse Return On Equity (-14.99%) than 90.40% of its industry peers.
MAC has a Return On Invested Capital of 1.92%. This is in the lower half of the industry: MAC underperforms 68.80% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MAC is in line with the industry average of 3.01%.
The 3 year average ROIC (1.58%) for MAC is below the current ROIC(1.92%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.66% | ||
| ROE | -14.99% | ||
| ROIC | 1.92% |
ROA(3y)-1.44%
ROA(5y)-1.15%
ROE(3y)-4.38%
ROE(5y)-3.95%
ROIC(3y)1.58%
ROIC(5y)1.49%
1.3 Margins
MAC has a Operating Margin of 19.27%. This is comparable to the rest of the industry: MAC outperforms 43.20% of its industry peers.
MAC's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 54.46%, MAC is doing worse than 78.40% of the companies in the same industry.
In the last couple of years the Gross Margin of MAC has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.27% | ||
| PM (TTM) | N/A | ||
| GM | 54.46% |
OM growth 3Y21.42%
OM growth 5Y-1.53%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.24%
GM growth 5Y-1.04%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so MAC is destroying value.
The number of shares outstanding for MAC has been increased compared to 1 year ago.
Compared to 5 years ago, MAC has more shares outstanding
The debt/assets ratio for MAC is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of -0.04, we must say that MAC is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of -0.04, MAC is not doing good in the industry: 82.40% of the companies in the same industry are doing better.
The Debt to FCF ratio of MAC is 27.03, which is on the high side as it means it would take MAC, 27.03 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 27.03, MAC perfoms like the industry average, outperforming 58.40% of the companies in the same industry.
A Debt/Equity ratio of 1.92 is on the high side and indicates that MAC has dependencies on debt financing.
With a Debt to Equity ratio value of 1.92, MAC is not doing good in the industry: 72.80% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.92 | ||
| Debt/FCF | 27.03 | ||
| Altman-Z | -0.04 |
ROIC/WACC0.29
WACC6.63%
2.3 Liquidity
MAC has a Current Ratio of 0.69. This is a bad value and indicates that MAC is not financially healthy enough and could expect problems in meeting its short term obligations.
MAC's Current ratio of 0.69 is on the low side compared to the rest of the industry. MAC is outperformed by 82.40% of its industry peers.
A Quick Ratio of 0.69 indicates that MAC may have some problems paying its short term obligations.
MAC has a worse Quick ratio (0.69) than 79.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.69 | ||
| Quick Ratio | 0.69 |
3. Growth
3.1 Past
The earnings per share for MAC have decreased strongly by -307.50% in the last year.
The Revenue has been growing slightly by 2.35% in the past year.
MAC shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.64% yearly.
EPS 1Y (TTM)-307.5%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-118.52%
Revenue 1Y (TTM)2.35%
Revenue growth 3Y4%
Revenue growth 5Y-1.64%
Sales Q2Q%-2.83%
3.2 Future
The Earnings Per Share is expected to grow by 17.09% on average over the next years. This is quite good.
Based on estimates for the next years, MAC will show a small growth in Revenue. The Revenue will grow by 5.50% on average per year.
EPS Next Y64.07%
EPS Next 2Y40.66%
EPS Next 3Y27.91%
EPS Next 5Y17.09%
Revenue Next Year0.18%
Revenue Next 2Y2.1%
Revenue Next 3Y0.66%
Revenue Next 5Y5.5%
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for MAC. In the last year negative earnings were reported.
Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for MAC. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
MAC's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. MAC is more expensive than 64.00% of the companies in the same industry.
75.20% of the companies in the same industry are more expensive than MAC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.59 | ||
| EV/EBITDA | 16.54 |
4.3 Compensation for Growth
MAC's earnings are expected to grow with 27.91% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y40.66%
EPS Next 3Y27.91%
5. Dividend
5.1 Amount
MAC has a Yearly Dividend Yield of 4.21%, which is a nice return.
Compared to an average industry Dividend Yield of 5.52, MAC has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.30, MAC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.21% |
5.2 History
The dividend of MAC decreases each year by -25.79%.
MAC has paid a dividend for at least 10 years, which is a reliable track record.
MAC has decreased its dividend in the last 3 years.
Dividend Growth(5Y)-25.79%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
The earnings of MAC are negative and hence is the payout ratio. MAC will probably not be able to sustain this dividend level.
DP-42%
EPS Next 2Y40.66%
EPS Next 3Y27.91%
MACERICH CO/THE
NYSE:MAC (7/26/2024, 7:04:00 PM)
After market: 16.23 0 (0%)16.23
+0.59 (+3.77%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap3.50B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.21% |
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 | N/A | ||
| Fwd PE | N/A | ||
| 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)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.66% | ||
| ROE | -14.99% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 19.27% | ||
| PM (TTM) | N/A | ||
| GM | 54.46% | ||
| 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 Turnover0.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.92 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.69 | ||
| Quick Ratio | 0.69 | ||
| 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)-307.5%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y64.07%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)2.35%
Revenue growth 3Y4%
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