MARCUS & MILLICHAP INC (MMI) Stock Fundamental Analysis
NYSE:MMI - New York Stock Exchange, Inc. - US5663241090 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to MMI. MMI was compared to 64 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 decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year MMI has reported negative net income.
MMI had a positive operating cash flow in the past year.
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 57.81% of its industry peers.
MMI has a Return On Equity (-1.10%) which is in line with 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 has a better Gross Margin (37.79%) than 65.63% of its industry peers.
MMI's Gross Margin has been stable in the last couple of years.
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.
MMI has more shares outstanding than it did 1 year ago.
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 5.58. This indicates that MMI is financially healthy and has little risk of bankruptcy at the moment.
MMI has a Altman-Z score of 5.58. This is amongst the best in the industry. MMI outperforms 82.81% 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 | 5.58 |
ROIC/WACCN/A
WACC8.91%
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.
The Current ratio of MMI (3.77) is better than 79.69% of its industry peers.
A Quick Ratio of 3.77 indicates that MMI has no problem at all paying its short term obligations.
MMI has a better Quick ratio (3.77) than 82.81% 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 65.93% over the past year.
The Revenue has been growing slightly by 7.76% in the past year.
The Revenue has been decreasing by -2.90% on average over the past years.
EPS 1Y (TTM)65.93%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-100%
Revenue 1Y (TTM)7.76%
Revenue growth 3Y-18.72%
Revenue growth 5Y-2.9%
Sales Q2Q%8.79%
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.
The Revenue is expected to grow by 20.06% 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 Year17.95%
Revenue Next 2Y20.61%
Revenue Next 3Y20.06%
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
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 42.33.
Based on the Price/Forward Earnings ratio, MMI is valued a bit cheaper than the industry average as 71.88% of the companies are valued more expensively.
MMI is valuated rather expensively when we compare the Price/Forward Earnings ratio to 34.04, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 42.33 |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MMI indicates a somewhat cheap valuation: MMI is cheaper than 65.63% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 86.05 | ||
| 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 1.74%, MMI has a reasonable but not impressive dividend return.
MMI's Dividend Yield is rather good when compared to the industry average which is at 3.58. MMI pays more dividend than 85.94% of the companies in the same industry.
MMI's Dividend Yield is slightly below the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.74% |
5.2 History
MMI has been paying a dividend for less than 5 years, so it still needs to build a track record.
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-299.12%
EPS Next 2Y103.62%
EPS Next 3Y80.19%
29.07
+0.33 (+1.15%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryReal Estate Management & Development
Earnings (Last)
Earnings (Next)
Inst Owners97.63%
Inst Owner Change0.99%
Ins Owners3.45%
Ins Owner Change0.69%
Market Cap1.13B
Analysts44.44
Price Target30.6 (5.26%)
Short Float %1.36%
Short Ratio3.56
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.74% |
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)-143.75%
EPS NQ rev (3m)-143.75%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-1.22%
Revenue NQ rev (3m)-1.22%
Revenue NY rev (1m)0.48%
Revenue NY rev (3m)0.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 42.33 | ||
| P/S | 1.59 | ||
| P/FCF | 86.05 | ||
| P/OCF | 56.96 | ||
| P/B | 1.83 | ||
| P/tB | 1.97 | ||
| EV/EBITDA | N/A |
EPS(TTM)-0.31
EYN/A
EPS(NY)0.69
Fwd EY2.36%
FCF(TTM)0.34
FCFY1.16%
OCF(TTM)0.51
OCFY1.76%
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 | 5.58 |
F-Score7
WACC8.91%
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)65.93%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-100%
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%8.79%
Revenue Next Year17.95%
Revenue Next 2Y20.61%
Revenue Next 3Y20.06%
Revenue Next 5YN/A
EBIT growth 1Y51.87%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year75.44%
EBIT Next 3Y53.19%
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%