MARCUS & MILLICHAP INC (MMI) Stock Fundamental Analysis
NYSE:MMI - New York Stock Exchange, Inc. - US5663241090 - Common Stock - Currency: USD
Taking everything into account, MMI scores 5 out of 10 in our fundamental rating. MMI was compared to 65 industry peers in the Real Estate Management & Development industry. No worries on liquidiy or solvency for MMI as it has an excellent financial health rating, but there are worries on the profitability. MMI is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
MMI had negative earnings in the past year.
In the past year MMI had a positive cash flow from operations.
In multiple years MMI reported negative net income over the last 5 years.
MMI had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
MMI's Return On Assets of -0.85% is in line compared to the rest of the industry. MMI outperforms 60.00% of its industry peers.
MMI's Return On Equity of -1.10% is fine compared to the rest of the industry. MMI outperforms 61.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.85% | ||
| ROE | -1.1% | ||
| 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's Gross Margin of 37.79% is fine compared to the rest of the industry. MMI outperforms 67.69% 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 | 37.79% |
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.
Compared to 1 year ago, MMI has more shares outstanding
The number of shares outstanding for MMI has been reduced compared to 5 years ago.
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 5.68. This indicates that MMI is financially healthy and has little risk of bankruptcy at the moment.
MMI's Altman-Z score of 5.68 is amongst the best of the industry. MMI outperforms 83.08% 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 | 5.68 |
ROIC/WACCN/A
WACC9.16%
2.3 Liquidity
MMI has a Current Ratio of 3.77. This indicates that MMI is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 3.77, MMI is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
A Quick Ratio of 3.77 indicates that MMI has no problem at all paying its short term obligations.
MMI has a Quick ratio of 3.77. This is amongst the best in the industry. MMI outperforms 83.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.77 | ||
| Quick Ratio | 3.77 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 83.00% over the past year.
MMI shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.79%.
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)14.79%
Revenue growth 3Y-18.72%
Revenue growth 5Y-2.9%
Sales Q2Q%12.34%
3.2 Future
Based on estimates for the next years, MMI will show a very strong growth in Earnings Per Share. The EPS will grow by 80.19% on average per year.
The Revenue is expected to grow by 20.13% on average over the next years. This is a very strong growth
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
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
MMI reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Based on the Price/Forward Earnings ratio of 43.51, the valuation of MMI can be described as expensive.
Based on the Price/Forward Earnings ratio, MMI is valued a bit cheaper than 69.23% of the companies in the same industry.
MMI is valuated expensively when we compare the Price/Forward Earnings ratio to 22.06, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 43.51 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, MMI is valued a bit cheaper than 66.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 88.44 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
MMI's 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 1.75%, MMI has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.60, MMI pays a better dividend. On top of this MMI pays more dividend than 86.15% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.38, MMI is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.75% |
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
The earnings of MMI are negative and hence is the payout ratio. MMI will probably not be able to sustain this dividend level.
DP-299.12%
EPS Next 2Y103.62%
EPS Next 3Y80.19%
29.88
+0.47 (+1.6%)
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 Change0.6%
Ins Owners3.23%
Ins Owner Change0.68%
Market Cap1.16B
Analysts42.5
Price Target30.6 (2.41%)
Short Float %0.98%
Short Ratio2.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.75% |
Yearly Dividend0.52
Dividend Growth(5Y)N/A
DP-299.12%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)610.52%
Min EPS beat(2)31.93%
Max EPS beat(2)1189.11%
EPS beat(4)4
Avg EPS beat(4)313.92%
Min EPS beat(4)7.59%
Max EPS beat(4)1189.11%
EPS beat(8)8
Avg EPS beat(8)159.73%
EPS beat(12)11
Avg EPS beat(12)109.39%
EPS beat(16)15
Avg EPS beat(16)101.16%
Revenue beat(2)2
Avg Revenue beat(2)10.7%
Min Revenue beat(2)2.43%
Max Revenue beat(2)18.97%
Revenue beat(4)3
Avg Revenue beat(4)5.66%
Min Revenue beat(4)-2.43%
Max Revenue beat(4)18.97%
Revenue beat(8)5
Avg Revenue beat(8)2.85%
Revenue beat(12)6
Avg Revenue beat(12)2.8%
Revenue beat(16)9
Avg Revenue beat(16)9.08%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-175%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-6.75%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-6.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 43.51 | ||
| P/S | 1.64 | ||
| P/FCF | 88.44 | ||
| P/OCF | 58.55 | ||
| P/B | 1.89 | ||
| P/tB | 2.03 | ||
| EV/EBITDA | N/A |
EPS(TTM)-0.17
EYN/A
EPS(NY)0.69
Fwd EY2.3%
FCF(TTM)0.34
FCFY1.13%
OCF(TTM)0.51
OCFY1.71%
SpS18.27
BVpS15.84
TBVpS14.74
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.85% | ||
| ROE | -1.1% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 37.79% | ||
| FCFM | 1.85% |
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-Score7
Asset Turnover0.89
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 41.99% | ||
| Cap/Sales | 0.94% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 3.77 | ||
| Quick Ratio | 3.77 | ||
| Altman-Z | 5.68 |
F-Score7
WACC9.16%
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)14.79%
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 1Y51.87%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year79.65%
EBIT Next 3Y53.44%
EBIT Next 5YN/A
FCF growth 1Y140.15%
FCF growth 3Y-61.84%
FCF growth 5Y-3.45%
OCF growth 1Y198.98%
OCF growth 3Y-56.06%
OCF growth 5Y-3.01%