MACERICH CO/THE (MAC)

US5543821012 - REIT

16.37  -0.15 (-0.91%)

After market: 16.37 0 (0%)

Fundamental Rating

2

We assign a fundamental rating of 2 out of 10 to MAC. MAC was compared to 128 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.



2

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 multiple years MAC reported negative net income over the last 5 years.
MAC had a positive operating cash flow in 4 of the past 5 years.

1.2 Ratios

MAC has a Return On Assets of -4.42%. This is amonst the worse of the industry: MAC underperforms 87.10% of its industry peers.
MAC has a Return On Equity of -13.80%. This is amonst the worse of the industry: MAC underperforms 90.32% of its industry peers.
MAC's Return On Invested Capital of 1.61% is on the low side compared to the rest of the industry. MAC is outperformed by 72.58% 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 3.00%.
The last Return On Invested Capital (1.61%) for MAC is above the 3 year average (1.06%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA -4.42%
ROE -13.8%
ROIC 1.61%
ROA(3y)-1.06%
ROA(5y)-0.29%
ROE(3y)-4.05%
ROE(5y)-1.3%
ROIC(3y)1.06%
ROIC(5y)1.31%

1.3 Margins

Looking at the Operating Margin, with a value of 18.89%, MAC is in line with its industry, outperforming 41.94% of the companies in the same industry.
MAC's Operating Margin has declined in the last couple of years.
MAC has a worse Gross Margin (54.90%) than 79.03% of its industry peers.
MAC's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 18.89%
PM (TTM) N/A
GM 54.9%
OM growth 3Y-7.74%
OM growth 5Y-5.87%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-3.29%
GM growth 5Y-1.95%

1

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), MAC is destroying value.
MAC has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.

2.2 Solvency

MAC has an Altman-Z score of 0.01. This is a bad value and indicates that MAC is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of MAC (0.01) is worse than 79.84% of its industry peers.
The Debt to FCF ratio of MAC is 24.20, which is on the high side as it means it would take MAC, 24.20 years of fcf income to pay off all of its debts.
MAC has a Debt to FCF ratio of 24.20. This is in the better half of the industry: MAC outperforms 63.71% of its industry peers.
A Debt/Equity ratio of 1.82 is on the high side and indicates that MAC has dependencies on debt financing.
The Debt to Equity ratio of MAC (1.82) is worse than 75.00% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.82
Debt/FCF 24.2
Altman-Z 0.01
ROIC/WACC0.25
WACC6.4%

2.3 Liquidity

A Current Ratio of 0.66 indicates that MAC may have some problems paying its short term obligations.
The Current ratio of MAC (0.66) is worse than 75.81% of its industry peers.
A Quick Ratio of 0.66 indicates that MAC may have some problems paying its short term obligations.
MAC's Quick ratio of 0.66 is on the low side compared to the rest of the industry. MAC is outperformed by 73.39% of its industry peers.
Industry RankSector Rank
Current Ratio 0.66
Quick Ratio 0.66

3

3. Growth

3.1 Past

MAC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -297.44%.
The Revenue has been growing slightly by 1.56% in the past year.
MAC shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -2.87% yearly.
EPS 1Y (TTM)-297.44%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q-1642.86%
Revenue 1Y (TTM)1.56%
Revenue growth 3Y-2.52%
Revenue growth 5Y-2.87%
Revenue growth Q2Q3.56%

3.2 Future

Based on estimates for the next years, MAC will show a very strong growth in Earnings Per Share. The EPS will grow by 21.43% on average per year.
MAC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.54% yearly.
EPS Next Y-312.08%
EPS Next 2Y18.07%
EPS Next 3Y12.16%
EPS Next 5Y21.43%
Revenue Next Year3.3%
Revenue Next 2Y1.88%
Revenue Next 3Y2.79%
Revenue Next 5Y4.54%

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.

1

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 RankSector 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 70.97% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MAC indicates a somewhat cheap valuation: MAC is cheaper than 72.58% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 19.25
EV/EBITDA 16.94

4.3 Compensation for Growth

A more expensive valuation may be justified as MAC's earnings are expected to grow with 12.16% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y18.07%
EPS Next 3Y12.16%

3

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 3.96%, MAC has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 5.83, MAC is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.45, MAC pays a better dividend.
Industry RankSector Rank
Dividend Yield 3.96%

5.2 History

The dividend of MAC decreases each year by -26.70%.
MAC has paid a dividend for at least 10 years, which is a reliable track record.
MAC has decreased its dividend recently.
Dividend Growth(5Y)-26.7%
Div Incr Years1
Div Non Decr Years1

5.3 Sustainability

MAC has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-31.77%
EPS Next 2Y18.07%
EPS Next 3Y12.16%

MACERICH CO/THE

NYSE:MAC (2/27/2024, 7:04:00 PM)

After market: 16.37 0 (0%)

16.37

-0.15 (-0.91%)

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 Cap3.53B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 3.96%
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 RankSector 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 RankSector Rank
ROA -4.42%
ROE -13.8%
ROCE
ROIC
ROICexc
ROICexgc
OM 18.89%
PM (TTM) N/A
GM 54.9%
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 RankSector Rank
Debt/Equity 1.82
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 0.66
Quick Ratio 0.66
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)-297.44%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y-312.08%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)1.56%
Revenue growth 3Y-2.52%
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