MACERICH CO/THE (MAC) Stock Fundamental Analysis
NYSE:MAC - New York Stock Exchange, Inc. - US5543821012 - REIT - Currency: USD
Overall MAC gets a fundamental rating of 2 out of 10. We evaluated MAC against 129 industry peers in the Diversified REITs industry. MAC has a bad profitability rating. Also its financial health evaluation is rather negative. MAC is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year MAC was profitable.
In the past year MAC had a positive cash flow from operations.
In the past 5 years MAC reported 4 times negative net income.
In the past 5 years MAC always reported a positive cash flow from operatings.
1.2 Ratios
MAC's Return On Assets of -3.76% is on the low side compared to the rest of the industry. MAC is outperformed by 81.40% of its industry peers.
MAC has a Return On Equity of -11.67%. This is in the lower half of the industry: MAC underperforms 75.97% of its industry peers.
MAC has a Return On Invested Capital of 1.89%. This is in the lower half of the industry: MAC underperforms 68.99% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for MAC is in line with the industry average of 3.16%.
The 3 year average ROIC (1.71%) for MAC is below the current ROIC(1.89%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.76% | ||
| ROE | -11.67% | ||
| ROIC | 1.89% |
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
The Operating Margin of MAC (17.20%) is worse than 60.47% of its industry peers.
In the last couple of years the Operating Margin of MAC has declined.
MAC has a Gross Margin of 52.60%. This is in the lower half of the industry: MAC underperforms 75.97% of its industry peers.
MAC's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.2% | ||
| PM (TTM) | N/A | ||
| GM | 52.6% |
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.
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.
Looking at the Altman-Z score, with a value of 0.04, MAC is doing worse than 75.97% of the companies in the same industry.
The Debt to FCF ratio of MAC is 92.05, which is on the high side as it means it would take MAC, 92.05 years of fcf income to pay off all of its debts.
MAC's Debt to FCF ratio of 92.05 is in line compared to the rest of the industry. MAC outperforms 56.59% of its industry peers.
MAC has a Debt/Equity ratio of 1.81. This is a high value indicating a heavy dependency on external financing.
MAC's Debt to Equity ratio of 1.81 is on the low side compared to the rest of the industry. MAC is outperformed by 68.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.81 | ||
| Debt/FCF | 92.05 | ||
| Altman-Z | 0.04 |
ROIC/WACC0.28
WACC6.63%
2.3 Liquidity
MAC has a Current Ratio of 0.54. This is a bad value and indicates that MAC is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.54, MAC is doing worse than 75.97% of the companies in the same industry.
MAC has a Quick Ratio of 0.54. 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 Quick ratio of 0.54 is on the low side compared to the rest of the industry. MAC is outperformed by 75.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.54 | ||
| Quick Ratio | 0.54 |
3. Growth
3.1 Past
MAC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 106.13%, which is quite impressive.
The Revenue has been growing slightly by 3.86% in the past year.
Measured over the past years, MAC shows a decrease in Revenue. The Revenue has been decreasing by -0.20% on average per year.
EPS 1Y (TTM)106.13%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%155.93%
Revenue 1Y (TTM)3.86%
Revenue growth 3Y2.71%
Revenue growth 5Y-0.2%
Sales Q2Q%19.37%
3.2 Future
Based on estimates for the next years, MAC will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.57% on average per year.
Based on estimates for the next years, MAC will show a small growth in Revenue. The Revenue will grow by 5.92% on average per year.
EPS Next Y88.39%
EPS Next 2Y42.1%
EPS Next 3Y28.36%
EPS Next 5Y17.57%
Revenue Next Year10.32%
Revenue Next 2Y4.85%
Revenue Next 3Y2.8%
Revenue Next 5Y5.92%
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
With a Price/Earnings ratio of 156.20, MAC can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of MAC indicates a slightly more expensive valuation: MAC is more expensive than 70.54% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of MAC to the average of the S&P500 Index (24.85), we can say MAC is valued expensively.
The Price/Forward Earnings ratio is 984.43, which means the current valuation is very expensive for MAC.
MAC's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.89, MAC is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 156.2 | ||
| Fwd PE | 984.43 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MAC is valued a bit more expensive than 79.07% of the companies in the same industry.
MAC's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 72.7 | ||
| EV/EBITDA | 17.94 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
MAC's earnings are expected to grow with 28.36% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.77
PEG (5Y)N/A
EPS Next 2Y42.1%
EPS Next 3Y28.36%
5. Dividend
5.1 Amount
MAC has a Yearly Dividend Yield of 4.11%, which is a nice return.
The stock price of MAC dropped by -23.80% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 6.64, 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 | 4.11% |
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 Years2
Div Non Decr Years3
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-46.26%
EPS Next 2Y42.1%
EPS Next 3Y28.36%
15.62
-0.45 (-2.8%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners98.91%
Inst Owner Change-0.61%
Ins Owners0.29%
Ins Owner Change0.26%
Market Cap3.95B
Analysts55.45
Price Target19.1 (22.28%)
Short Float %6.02%
Short Ratio6.01
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.11% |
Yearly Dividend0.64
Dividend Growth(5Y)-25.88%
DP-46.26%
Div Incr Years2
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1377.61%
Min EPS beat(2)-1955.13%
Max EPS beat(2)-800.09%
EPS beat(4)1
Avg EPS beat(4)-303.9%
Min EPS beat(4)-1955.13%
Max EPS beat(4)2110%
EPS beat(8)3
Avg EPS beat(8)-443.6%
EPS beat(12)3
Avg EPS beat(12)-354.33%
EPS beat(16)5
Avg EPS beat(16)-239.82%
Revenue beat(2)2
Avg Revenue beat(2)12.89%
Min Revenue beat(2)3.11%
Max Revenue beat(2)22.66%
Revenue beat(4)3
Avg Revenue beat(4)7.32%
Min Revenue beat(4)-0.58%
Max Revenue beat(4)22.66%
Revenue beat(8)7
Avg Revenue beat(8)5.16%
Revenue beat(12)9
Avg Revenue beat(12)3.65%
Revenue beat(16)13
Avg Revenue beat(16)4.87%
PT rev (1m)-6.92%
PT rev (3m)-11.78%
EPS NQ rev (1m)0%
EPS NQ rev (3m)20%
EPS NY rev (1m)-57.15%
EPS NY rev (3m)29.28%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)9.93%
Revenue NY rev (1m)0.24%
Revenue NY rev (3m)7.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 156.2 | ||
| Fwd PE | 984.43 | ||
| P/S | 3.5 | ||
| P/FCF | 72.7 | ||
| P/OCF | 13.92 | ||
| P/B | 1.43 | ||
| P/tB | 1.56 | ||
| EV/EBITDA | 17.94 |
EPS(TTM)0.1
EY0.64%
EPS(NY)0.02
Fwd EY0.1%
FCF(TTM)0.21
FCFY1.38%
OCF(TTM)1.12
OCFY7.18%
SpS4.46
BVpS10.91
TBVpS10.01
PEG (NY)1.77
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.76% | ||
| ROE | -11.67% | ||
| ROCE | 2.39% | ||
| ROIC | 1.89% | ||
| ROICexc | 1.91% | ||
| ROICexgc | 2% | ||
| OM | 17.2% | ||
| PM (TTM) | N/A | ||
| GM | 52.6% | ||
| FCFM | 4.82% |
ROA(3y)-2.25%
ROA(5y)-1.82%
ROE(3y)-6.88%
ROE(5y)-6.09%
ROIC(3y)1.71%
ROIC(5y)1.43%
ROICexc(3y)1.73%
ROICexc(5y)1.46%
ROICexgc(3y)1.79%
ROICexgc(5y)1.51%
ROCE(3y)2.16%
ROCE(5y)1.81%
ROICexcg growth 3Y9.63%
ROICexcg growth 5Y-3.26%
ROICexc growth 3Y9.11%
ROICexc growth 5Y-3.53%
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%
F-Score3
Asset Turnover0.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.81 | ||
| Debt/FCF | 92.05 | ||
| Debt/EBITDA | 10 | ||
| Cap/Depr | 74.92% | ||
| Cap/Sales | 20.33% | ||
| Interest Coverage | 1.04 | ||
| Cash Conversion | 56.72% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.54 | ||
| Quick Ratio | 0.54 | ||
| Altman-Z | 0.04 |
F-Score3
WACC6.63%
ROIC/WACC0.28
Cap/Depr(3y)47.12%
Cap/Depr(5y)31.57%
Cap/Sales(3y)15.89%
Cap/Sales(5y)10.84%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)106.13%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%155.93%
EPS Next Y88.39%
EPS Next 2Y42.1%
EPS Next 3Y28.36%
EPS Next 5Y17.57%
Revenue 1Y (TTM)3.86%
Revenue growth 3Y2.71%
Revenue growth 5Y-0.2%
Sales Q2Q%19.37%
Revenue Next Year10.32%
Revenue Next 2Y4.85%
Revenue Next 3Y2.8%
Revenue Next 5Y5.92%
EBIT growth 1Y9.11%
EBIT growth 3Y9.58%
EBIT growth 5Y-4.36%
EBIT Next Year239.17%
EBIT Next 3Y50.85%
EBIT Next 5YN/A
FCF growth 1Y-68.85%
FCF growth 3Y-40.36%
FCF growth 5Y-30.47%
OCF growth 1Y-4.08%
OCF growth 3Y-0.35%
OCF growth 5Y-4.41%