MACERICH CO/THE (MAC)
US5543821012 - REIT
Taking everything into account, MAC scores 2 out of 10 in our fundamental rating. MAC was compared to 126 industry peers in the Diversified REITs industry. Both the profitability and financial health of MAC have multiple concerns. MAC has a expensive valuation and it also scores bad on growth.
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's Return On Assets of -3.66% is on the low side compared to the rest of the industry. MAC is outperformed by 84.55% of its industry peers.
MAC's Return On Equity of -11.24% is on the low side compared to the rest of the industry. MAC is outperformed by 86.18% of its industry peers.
MAC has a Return On Invested Capital of 1.98%. This is in the lower half of the industry: MAC underperforms 65.85% 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 2.95%.
The last Return On Invested Capital (1.98%) for MAC is above the 3 year average (1.58%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.66% | ||
| ROE | -11.24% | ||
| ROIC | 1.98% |
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 20.10%. This is comparable to the rest of the industry: MAC outperforms 49.59% of its industry peers.
MAC's Operating Margin has declined in the last couple of years.
The Gross Margin of MAC (55.32%) is worse than 76.42% of its industry peers.
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 | 20.1% | ||
| PM (TTM) | N/A | ||
| GM | 55.32% |
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.
MAC has more shares outstanding than it did 5 years ago.
MAC has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of -0.01, we must say that MAC is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of MAC (-0.01) is worse than 78.86% of its industry peers.
The Debt to FCF ratio of MAC is 24.90, which is on the high side as it means it would take MAC, 24.90 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 24.90, MAC is in line with its industry, outperforming 59.35% of the companies in the same industry.
MAC has a Debt/Equity ratio of 1.77. This is a high value indicating a heavy dependency on external financing.
MAC has a Debt to Equity ratio of 1.77. This is in the lower half of the industry: MAC underperforms 73.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.77 | ||
| Debt/FCF | 24.9 | ||
| Altman-Z | -0.01 |
ROIC/WACC0.28
WACC6.97%
2.3 Liquidity
MAC has a Current Ratio of 0.67. This is a bad value and indicates that MAC is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.67, MAC is not doing good in the industry: 73.98% of the companies in the same industry are doing better.
A Quick Ratio of 0.67 indicates that MAC may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.67, MAC is doing worse than 71.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.67 | ||
| Quick Ratio | 0.67 |
3. Growth
3.1 Past
The earnings per share for MAC have decreased strongly by -336.67% in the last year.
Looking at the last year, MAC shows a small growth in Revenue. The Revenue has grown by 2.92% in the last year.
MAC shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.64% yearly.
EPS 1Y (TTM)-336.67%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q2400%
Revenue 1Y (TTM)2.92%
Revenue growth 3Y4%
Revenue growth 5Y-1.64%
Revenue growth Q2Q4.6%
3.2 Future
MAC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.08% yearly.
MAC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.99% yearly.
EPS Next Y88.53%
EPS Next 2Y38.6%
EPS Next 3Y24.23%
EPS Next 5Y16.08%
Revenue Next Year2.71%
Revenue Next 2Y2.97%
Revenue Next 3Y1.73%
Revenue Next 5Y4.99%
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.
Also next year MAC is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
| 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 63.41% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, MAC is valued a bit cheaper than 69.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.78 | ||
| EV/EBITDA | 15.94 |
4.3 Compensation for Growth
MAC's earnings are expected to grow with 24.23% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y38.6%
EPS Next 3Y24.23%
5. Dividend
5.1 Amount
MAC has a Yearly Dividend Yield of 4.19%, which is a nice return.
Compared to an average industry Dividend Yield of 5.97, MAC is paying slightly less dividend.
MAC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.19% |
5.2 History
The dividend of MAC decreases each year by -25.79%.
MAC has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of MAC decreased in the last 3 years.
Dividend Growth(5Y)-25.79%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
MAC has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-53.31%
EPS Next 2Y38.6%
EPS Next 3Y24.23%
MACERICH CO/THE
NYSE:MAC (4/18/2024, 7:06:35 PM)
After market: 15.17 0 (0%)15.17
-0.2 (-1.3%)
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 Cap3.27B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.19% |
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 | -3.66% | ||
| ROE | -11.24% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 20.1% | ||
| PM (TTM) | N/A | ||
| GM | 55.32% | ||
| 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 | 1.77 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.67 | ||
| Quick Ratio | 0.67 | ||
| 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)
Growth
EPS 1Y (TTM)-336.67%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y88.53%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)2.92%
Revenue growth 3Y4%
Revenue growth 5Y
Revenue growth 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