MARCUS & MILLICHAP INC (MMI) Stock Fundamental Analysis
NYSE:MMI - New York Stock Exchange, Inc. - US5663241090 - Common Stock - Currency: USD
MMI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 65 industry peers in the Real Estate Management & Development industry. While MMI has a great health rating, there are worries on its profitability. MMI has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year MMI has reported negative net income.
In the past year MMI had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: MMI reported negative net income in multiple years.
MMI had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
MMI has a Return On Assets of -1.42%. This is comparable to the rest of the industry: MMI outperforms 49.23% of its industry peers.
The Return On Equity of MMI (-1.96%) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.42% | ||
| ROE | -1.96% | ||
| ROIC | N/A |
ROA(3y)1.7%
ROA(5y)4.84%
ROE(3y)2.46%
ROE(5y)7.13%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
MMI has a better Gross Margin (38.01%) than 69.23% of its industry peers.
In the last couple of years the Gross Margin of MMI has remained more or less at the same level.
The Profit Margin and Operating Margin are not available for MMI so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 38.01% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.61%
GM growth 5Y-0.07%
2. Health
2.1 Basic Checks
MMI does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for MMI has been increased compared to 1 year ago.
Compared to 5 years ago, MMI has less shares outstanding
MMI 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
MMI has an Altman-Z score of 4.73. This indicates that MMI is financially healthy and has little risk of bankruptcy at the moment.
MMI's Altman-Z score of 4.73 is amongst the best of the industry. MMI outperforms 81.54% of its industry peers.
MMI has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 4.73 |
ROIC/WACCN/A
WACC9.01%
2.3 Liquidity
MMI has a Current Ratio of 3.08. This indicates that MMI is financially healthy and has no problem in meeting its short term obligations.
MMI's Current ratio of 3.08 is fine compared to the rest of the industry. MMI outperforms 76.92% of its industry peers.
MMI has a Quick Ratio of 3.08. This indicates that MMI is financially healthy and has no problem in meeting its short term obligations.
With a decent Quick ratio value of 3.08, MMI is doing good in the industry, outperforming 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.08 | ||
| Quick Ratio | 3.08 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 83.00% over the past year.
MMI shows a small growth in Revenue. In the last year, the Revenue has grown by 7.76%.
The Revenue has been decreasing by -2.90% on average over the past years.
EPS 1Y (TTM)83%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%57.69%
Revenue 1Y (TTM)7.76%
Revenue growth 3Y-18.72%
Revenue growth 5Y-2.9%
Sales Q2Q%12.34%
3.2 Future
MMI is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 80.19% yearly.
MMI is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 20.13% yearly.
EPS Next Y81.06%
EPS Next 2Y103.62%
EPS Next 3Y80.19%
EPS Next 5YN/A
Revenue Next Year17.39%
Revenue Next 2Y20.68%
Revenue Next 3Y20.13%
Revenue Next 5YN/A
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 MMI. In the last year negative earnings were reported.
MMI is valuated quite expensively with a Price/Forward Earnings ratio of 43.40.
Based on the Price/Forward Earnings ratio, MMI is valued a bit cheaper than the industry average as 69.23% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of MMI to the average of the S&P500 Index (20.44), we can say MMI is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 43.4 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, MMI is valued a bit cheaper than 64.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 84.3 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
MMI's earnings are expected to grow with 80.19% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y103.62%
EPS Next 3Y80.19%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.66%, MMI has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.75, MMI pays a better dividend. On top of this MMI pays more dividend than 87.69% of the companies listed in the same industry.
MMI's Dividend Yield is slightly below the S&P500 average, which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.66% |
5.2 History
MMI has paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
MMI has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-163.61%
EPS Next 2Y103.62%
EPS Next 3Y80.19%
29.81
-0.27 (-0.9%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryReal Estate Management & Development
Earnings (Last)
Earnings (Next)
Inst Owners97.56%
Inst Owner Change-1.28%
Ins Owners3.23%
Ins Owner Change0.66%
Market Cap1.17B
Analysts42.5
Price Target30.6 (2.65%)
Short Float %1.04%
Short Ratio3.05
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.66% |
Yearly Dividend0.52
Dividend Growth(5Y)N/A
DP-163.61%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)608.08%
Min EPS beat(2)27.05%
Max EPS beat(2)1189.11%
EPS beat(4)4
Avg EPS beat(4)307.95%
Min EPS beat(4)7.59%
Max EPS beat(4)1189.11%
EPS beat(8)8
Avg EPS beat(8)157.32%
EPS beat(12)11
Avg EPS beat(12)107.68%
EPS beat(16)15
Avg EPS beat(16)104.96%
Revenue beat(2)2
Avg Revenue beat(2)11.33%
Min Revenue beat(2)3.69%
Max Revenue beat(2)18.97%
Revenue beat(4)3
Avg Revenue beat(4)5.12%
Min Revenue beat(4)-2.43%
Max Revenue beat(4)18.97%
Revenue beat(8)4
Avg Revenue beat(8)2.35%
Revenue beat(12)5
Avg Revenue beat(12)2.56%
Revenue beat(16)9
Avg Revenue beat(16)9.7%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-300%
EPS NY rev (1m)-175%
EPS NY rev (3m)-175%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-16.15%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-6.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 43.4 | ||
| P/S | 1.68 | ||
| P/FCF | 84.3 | ||
| P/OCF | 53.73 | ||
| P/B | 1.85 | ||
| P/tB | 1.99 | ||
| EV/EBITDA | N/A |
EPS(TTM)-0.17
EYN/A
EPS(NY)0.69
Fwd EY2.3%
FCF(TTM)0.35
FCFY1.19%
OCF(TTM)0.55
OCFY1.86%
SpS17.78
BVpS16.12
TBVpS15.01
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.42% | ||
| ROE | -1.96% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 38.01% | ||
| FCFM | 1.99% |
ROA(3y)1.7%
ROA(5y)4.84%
ROE(3y)2.46%
ROE(5y)7.13%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.61%
GM growth 5Y-0.07%
F-Score6
Asset Turnover0.8
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 47.46% | ||
| Cap/Sales | 1.13% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 3.08 | ||
| Quick Ratio | 3.08 | ||
| Altman-Z | 4.73 |
F-Score6
WACC9.01%
ROIC/WACCN/A
Cap/Depr(3y)67.84%
Cap/Depr(5y)65.16%
Cap/Sales(3y)1.16%
Cap/Sales(5y)1%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)83%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%57.69%
EPS Next Y81.06%
EPS Next 2Y103.62%
EPS Next 3Y80.19%
EPS Next 5YN/A
Revenue 1Y (TTM)7.76%
Revenue growth 3Y-18.72%
Revenue growth 5Y-2.9%
Sales Q2Q%12.34%
Revenue Next Year17.39%
Revenue Next 2Y20.68%
Revenue Next 3Y20.13%
Revenue Next 5YN/A
EBIT growth 1Y44.6%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year79.65%
EBIT Next 3Y53.44%
EBIT Next 5YN/A
FCF growth 1Y116.92%
FCF growth 3Y-61.84%
FCF growth 5Y-3.45%
OCF growth 1Y129.98%
OCF growth 3Y-56.06%
OCF growth 5Y-3.01%