MACERICH CO/THE (MAC) Stock Fundamental Analysis
NYSE:MAC - New York Stock Exchange, Inc. - US5543821012 - REIT - Currency: USD
MAC gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 128 industry peers in the Diversified REITs industry. Both the profitability and financial health of MAC have multiple concerns. 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 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
MAC has a worse Return On Assets (-2.83%) than 75.00% of its industry peers.
MAC has a Return On Equity of -9.21%. This is in the lower half of the industry: MAC underperforms 75.78% of its industry peers.
Looking at the Return On Invested Capital, with a value of 1.89%, MAC is doing worse than 67.97% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for MAC is in line with the industry average of 3.14%.
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 | -2.83% | ||
| ROE | -9.21% | ||
| 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
MAC's Operating Margin of 16.87% is on the low side compared to the rest of the industry. MAC is outperformed by 62.50% of its industry peers.
In the last couple of years the Operating Margin of MAC has declined.
With a Gross Margin value of 53.11%, MAC is not doing good in the industry: 75.78% 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 | 16.87% | ||
| PM (TTM) | N/A | ||
| GM | 53.11% |
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
MAC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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
MAC has an Altman-Z score of 0.05. This is a bad value and indicates that MAC is not financially healthy and even has some risk of bankruptcy.
MAC's Altman-Z score of 0.05 is on the low side compared to the rest of the industry. MAC is outperformed by 74.22% of its industry peers.
The Debt to FCF ratio of MAC is 63.67, which is on the high side as it means it would take MAC, 63.67 years of fcf income to pay off all of its debts.
MAC's Debt to FCF ratio of 63.67 is fine compared to the rest of the industry. MAC outperforms 62.50% of its industry peers.
A Debt/Equity ratio of 1.96 is on the high side and indicates that MAC has dependencies on debt financing.
MAC has a worse Debt to Equity ratio (1.96) than 71.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.96 | ||
| Debt/FCF | 63.67 | ||
| Altman-Z | 0.05 |
ROIC/WACC0.24
WACC7.78%
2.3 Liquidity
A Current Ratio of 0.89 indicates that MAC may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.89, MAC is in line with its industry, outperforming 48.44% of the companies in the same industry.
A Quick Ratio of 0.89 indicates that MAC may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.89, MAC is in line with its industry, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.89 |
3. Growth
3.1 Past
MAC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 73.62%, which is quite impressive.
Looking at the last year, MAC shows a very strong growth in Revenue. The Revenue has grown by 32.95%.
MAC shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.20% yearly.
EPS 1Y (TTM)73.62%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%66.1%
Revenue 1Y (TTM)32.95%
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 5.50% on average per year.
EPS Next Y70.97%
EPS Next 2Y38.47%
EPS Next 3Y27.19%
EPS Next 5Y17.57%
Revenue Next Year17.42%
Revenue Next 2Y8.11%
Revenue Next 3Y5.99%
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
MAC reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
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
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MAC indicates a slightly more expensive valuation: MAC is more expensive than 78.13% of the companies listed in the same industry.
63.28% 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 | 49.69 | ||
| EV/EBITDA | 17.25 |
4.3 Compensation for Growth
A more expensive valuation may be justified as MAC's earnings are expected to grow with 27.19% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y38.47%
EPS Next 3Y27.19%
5. Dividend
5.1 Amount
MAC has a Yearly Dividend Yield of 4.24%, which is a nice return.
Compared to an average industry Dividend Yield of 6.72, MAC is paying slightly less dividend.
MAC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.24% |
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-65.26%
EPS Next 2Y38.47%
EPS Next 3Y27.19%
16.16
-0.08 (-0.49%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners101.6%
Inst Owner Change1%
Ins Owners0.31%
Ins Owner Change0.5%
Market Cap4.08B
Analysts56.36
Price Target18.93 (17.14%)
Short Float %5.45%
Short Ratio6.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.24% |
Yearly Dividend0.64
Dividend Growth(5Y)-25.88%
DP-65.26%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1051.33%
Min EPS beat(2)-1955.13%
Max EPS beat(2)-147.52%
EPS beat(4)1
Avg EPS beat(4)-198.19%
Min EPS beat(4)-1955.13%
Max EPS beat(4)2110%
EPS beat(8)3
Avg EPS beat(8)-429.99%
EPS beat(12)3
Avg EPS beat(12)-330.33%
EPS beat(16)5
Avg EPS beat(16)-242.78%
Revenue beat(2)2
Avg Revenue beat(2)17.41%
Min Revenue beat(2)12.16%
Max Revenue beat(2)22.66%
Revenue beat(4)4
Avg Revenue beat(4)10.5%
Min Revenue beat(4)3.11%
Max Revenue beat(4)22.66%
Revenue beat(8)7
Avg Revenue beat(8)6.21%
Revenue beat(12)9
Avg Revenue beat(12)4.32%
Revenue beat(16)13
Avg Revenue beat(16)5.32%
PT rev (1m)-0.89%
PT rev (3m)-11.17%
EPS NQ rev (1m)-26.93%
EPS NQ rev (3m)-102.65%
EPS NY rev (1m)-71.88%
EPS NY rev (3m)-76.79%
Revenue NQ rev (1m)1.49%
Revenue NQ rev (3m)7.1%
Revenue NY rev (1m)3.97%
Revenue NY rev (3m)12.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 3.5 | ||
| P/FCF | 49.69 | ||
| P/OCF | 13.13 | ||
| P/B | 1.53 | ||
| P/tB | 1.66 | ||
| EV/EBITDA | 17.25 |
EPS(TTM)-0.43
EYN/A
EPS(NY)-0.07
Fwd EYN/A
FCF(TTM)0.33
FCFY2.01%
OCF(TTM)1.23
OCFY7.61%
SpS4.62
BVpS10.54
TBVpS9.73
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.83% | ||
| ROE | -9.21% | ||
| ROCE | 2.39% | ||
| ROIC | 1.89% | ||
| ROICexc | 1.94% | ||
| ROICexgc | 2.03% | ||
| OM | 16.87% | ||
| PM (TTM) | N/A | ||
| GM | 53.11% | ||
| FCFM | 7.04% |
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-Score5
Asset Turnover0.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.96 | ||
| Debt/FCF | 63.67 | ||
| Debt/EBITDA | 9.94 | ||
| Cap/Depr | 69.35% | ||
| Cap/Sales | 19.59% | ||
| Interest Coverage | 1.05 | ||
| Cash Conversion | 59.03% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.89 | ||
| Altman-Z | 0.05 |
F-Score5
WACC7.78%
ROIC/WACC0.24
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)73.62%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%66.1%
EPS Next Y70.97%
EPS Next 2Y38.47%
EPS Next 3Y27.19%
EPS Next 5Y17.57%
Revenue 1Y (TTM)32.95%
Revenue growth 3Y2.71%
Revenue growth 5Y-0.2%
Sales Q2Q%19.37%
Revenue Next Year17.42%
Revenue Next 2Y8.11%
Revenue Next 3Y5.99%
Revenue Next 5Y5.5%
EBIT growth 1Y16.37%
EBIT growth 3Y9.58%
EBIT growth 5Y-4.36%
EBIT Next Year238.93%
EBIT Next 3Y51.4%
EBIT Next 5Y29.98%
FCF growth 1Y-69.3%
FCF growth 3Y-40.36%
FCF growth 5Y-30.47%
OCF growth 1Y-11.89%
OCF growth 3Y-0.35%
OCF growth 5Y-4.41%