MACERICH CO/THE (MAC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MAC - US5543821012 - REIT
18.525 USD
+0.63 (+3.49%)
Overall MAC gets a fundamental rating of 1 out of 10. We evaluated MAC against 124 industry peers in the Diversified REITs industry. MAC may be in some trouble as it scores bad on both profitability and health. MAC does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
- In the past year MAC has reported negative net income.
- In the past year MAC had a positive cash flow from operations.
- In the past 5 years MAC reported 4 times negative net income.
- Each year in the past 5 years MAC had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of -4.63%, MAC is doing worse than 80.65% of the companies in the same industry.
- MAC has a worse Return On Equity (-15.55%) than 78.23% of its industry peers.
- MAC has a Return On Invested Capital of 1.79%. This is in the lower half of the industry: MAC underperforms 69.35% 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 3.05%.
- The 3 year average ROIC (1.71%) for MAC is below the current ROIC(1.79%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.63% | ||
| ROE | -15.55% | ||
| ROIC | 1.79% |
ROA(3y)-2.25%
ROA(5y)-1.82%
ROE(3y)-6.88%
ROE(5y)-6.09%
ROIC(3y)1.71%
ROIC(5y)1.43%
1.3 Margins
- MAC has a Operating Margin of 17.50%. This is comparable to the rest of the industry: MAC outperforms 41.13% of its industry peers.
- MAC's Operating Margin has declined in the last couple of years.
- With a Gross Margin value of 54.86%, MAC is not doing good in the industry: 70.97% of the companies in the same industry are doing better.
- MAC's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.5% | ||
| PM (TTM) | N/A | ||
| GM | 54.86% |
OM growth 3Y6.69%
OM growth 5Y-4.17%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.18%
GM growth 5Y-2.5%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), MAC is destroying value.
- Compared to 1 year ago, MAC has more shares outstanding
- 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 0.03, we must say that MAC is in the distress zone and has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 0.03, MAC is doing worse than 74.19% of the companies in the same industry.
- A Debt/Equity ratio of 2.02 is on the high side and indicates that MAC has dependencies on debt financing.
- The Debt to Equity ratio of MAC (2.02) is worse than 69.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.02 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.03 |
ROIC/WACC0.28
WACC6.32%
2.3 Liquidity
- A Current Ratio of 0.85 indicates that MAC may have some problems paying its short term obligations.
- The Current ratio of MAC (0.85) is comparable to the rest of the industry.
- MAC has a Quick Ratio of 0.85. 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 Quick ratio value of 0.85, MAC perfoms like the industry average, outperforming 48.39% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.85 |
3. Growth
3.1 Past
- The earnings per share for MAC have decreased strongly by -596.88% in the last year.
- MAC shows a decrease in Revenue. In the last year, the revenue decreased by -6.05%.
- The Revenue has been decreasing by -0.20% on average over the past years.
EPS 1Y (TTM)-596.87%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%32%
Revenue 1Y (TTM)-6.05%
Revenue growth 3Y2.71%
Revenue growth 5Y-0.2%
Sales Q2Q%15%
3.2 Future
- The Earnings Per Share is expected to grow by 16.72% on average over the next years. This is quite good.
- MAC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.17% yearly.
EPS Next Y37.36%
EPS Next 2Y34.16%
EPS Next 3Y24.95%
EPS Next 5Y16.72%
Revenue Next Year19.6%
Revenue Next 2Y8.81%
Revenue Next 3Y6.14%
Revenue Next 5Y5.17%
3.3 Evolution
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- MAC reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
- 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
- Based on the Enterprise Value to EBITDA ratio, MAC is valued a bit more expensive than 68.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 17.22 |
4.3 Compensation for Growth
- A more expensive valuation may be justified as MAC's earnings are expected to grow with 24.95% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y34.16%
EPS Next 3Y24.95%
5. Dividend
5.1 Amount
- MAC has a Yearly Dividend Yield of 3.70%.
- Compared to an average industry Dividend Yield of 6.82, MAC is paying slightly less dividend.
- Compared to an average S&P500 Dividend Yield of 1.82, MAC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.7% |
5.2 History
- The dividend of MAC decreases each year by -25.88%.
- MAC has paid a dividend for at least 10 years, which is a reliable track record.
- MAC has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-25.88%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
- MAC has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-43.75%
EPS Next 2Y34.16%
EPS Next 3Y24.95%
MACERICH CO/THE / MAC FAQ
What is the fundamental rating for MAC stock?
ChartMill assigns a fundamental rating of 1 / 10 to MAC.
Can you provide the valuation status for MACERICH CO/THE?
ChartMill assigns a valuation rating of 1 / 10 to MACERICH CO/THE (MAC). This can be considered as Overvalued.
How profitable is MACERICH CO/THE (MAC) stock?
MACERICH CO/THE (MAC) has a profitability rating of 2 / 10.
What is the financial health of MACERICH CO/THE (MAC) stock?
The financial health rating of MACERICH CO/THE (MAC) is 0 / 10.