MID-AMERICA APARTMENT COMM (MAA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MAA - US59522J1034 - REIT
134.96 USD
-0.83 (-0.61%)
134.96 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to MAA. MAA was compared to 20 industry peers in the Residential REITs industry. While MAA belongs to the best of the industry regarding profitability, there are concerns on its financial health. While showing a medium growth rate, MAA is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
- In the past year MAA was profitable.
- In the past year MAA had a positive cash flow from operations.
- Each year in the past 5 years MAA has been profitable.
- MAA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 4.63%, MAA is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 9.46%, MAA is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
- With an excellent Return On Invested Capital value of 4.40%, MAA belongs to the best of the industry, outperforming 95.00% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for MAA is above the industry average of 2.59%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.63% | ||
| ROE | 9.46% | ||
| ROIC | 4.4% |
ROA(3y)4.95%
ROA(5y)4.36%
ROE(3y)9.42%
ROE(5y)8.27%
ROIC(3y)4.79%
ROIC(5y)4.19%
1.3 Margins
- MAA has a better Profit Margin (25.06%) than 70.00% of its industry peers.
- In the last couple of years the Profit Margin of MAA has grown nicely.
- MAA has a Operating Margin of 28.33%. This is amongst the best in the industry. MAA outperforms 85.00% of its industry peers.
- In the last couple of years the Operating Margin of MAA has grown nicely.
- Looking at the Gross Margin, with a value of 58.66%, MAA is in line with its industry, outperforming 55.00% of the companies in the same industry.
- MAA's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 28.33% | ||
| PM (TTM) | 25.06% | ||
| GM | 58.66% |
OM growth 3Y4.67%
OM growth 5Y2.72%
PM growth 3Y-7.07%
PM growth 5Y2.33%
GM growth 3Y0.09%
GM growth 5Y-0.01%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so MAA is destroying value.
- Compared to 1 year ago, MAA has less shares outstanding
- MAA has more shares outstanding than it did 5 years ago.
- MAA has a worse debt/assets ratio than last year.
2.2 Solvency
- MAA has an Altman-Z score of 1.62. This is a bad value and indicates that MAA is not financially healthy and even has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 1.62, MAA is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
- The Debt to FCF ratio of MAA is 22.68, which is on the high side as it means it would take MAA, 22.68 years of fcf income to pay off all of its debts.
- MAA's Debt to FCF ratio of 22.68 is fine compared to the rest of the industry. MAA outperforms 70.00% of its industry peers.
- MAA has a Debt/Equity ratio of 0.89. This is a neutral value indicating MAA is somewhat dependend on debt financing.
- MAA's Debt to Equity ratio of 0.89 is in line compared to the rest of the industry. MAA outperforms 55.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | 22.68 | ||
| Altman-Z | 1.62 |
ROIC/WACC0.59
WACC7.46%
2.3 Liquidity
- A Current Ratio of 0.09 indicates that MAA may have some problems paying its short term obligations.
- MAA's Current ratio of 0.09 is on the low side compared to the rest of the industry. MAA is outperformed by 75.00% of its industry peers.
- MAA has a Quick Ratio of 0.09. This is a bad value and indicates that MAA is not financially healthy enough and could expect problems in meeting its short term obligations.
- With a Quick ratio value of 0.03, MAA is not doing good in the industry: 90.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.09 | ||
| Quick Ratio | 0.03 |
3. Growth
3.1 Past
- MAA shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.66%.
- MAA shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.27% yearly.
- MAA shows a small growth in Revenue. In the last year, the Revenue has grown by 0.91%.
- The Revenue has been growing slightly by 5.95% on average over the past years.
EPS 1Y (TTM)4.66%
EPS 3Y9.96%
EPS 5Y8.27%
EPS Q2Q%-14.29%
Revenue 1Y (TTM)0.91%
Revenue growth 3Y7.21%
Revenue growth 5Y5.95%
Sales Q2Q%0.59%
3.2 Future
- The Earnings Per Share is expected to grow by 24.45% on average over the next years. This is a very strong growth
- Based on estimates for the next years, MAA will show a small growth in Revenue. The Revenue will grow by 3.58% on average per year.
EPS Next Y-6.31%
EPS Next 2Y-13.3%
EPS Next 3Y-5.9%
EPS Next 5Y24.45%
Revenue Next Year0.81%
Revenue Next 2Y1.35%
Revenue Next 3Y2.11%
Revenue Next 5Y3.58%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 28.59 indicates a quite expensive valuation of MAA.
- Based on the Price/Earnings ratio, MAA is valued a bit cheaper than 65.00% of the companies in the same industry.
- MAA is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.25, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 39.37, the valuation of MAA can be described as expensive.
- Based on the Price/Forward Earnings ratio, MAA is valued cheaply inside the industry as 85.00% of the companies are valued more expensively.
- When comparing the Price/Forward Earnings ratio of MAA to the average of the S&P500 Index (25.98), we can say MAA is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.59 | ||
| Fwd PE | 39.37 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, MAA is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
- MAA's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 68.96 | ||
| EV/EBITDA | 16.56 |
4.3 Compensation for Growth
- MAA has a very decent profitability rating, which may justify a higher PE ratio.
- MAA's earnings are expected to decrease with -5.90% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)3.46
EPS Next 2Y-13.3%
EPS Next 3Y-5.9%
5. Dividend
5.1 Amount
- MAA has a Yearly Dividend Yield of 4.54%, which is a nice return.
- Compared to an average industry Dividend Yield of 32.02, MAA has a dividend in line with its industry peers.
- MAA's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.54% |
5.2 History
- The dividend of MAA is nicely growing with an annual growth rate of 8.76%!
- MAA has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)8.76%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- MAA pays out 128.07% of its income as dividend. This is not a sustainable payout ratio.
- The dividend of MAA is growing, but earnings are growing more, so the dividend growth is sustainable.
DP128.07%
EPS Next 2Y-13.3%
EPS Next 3Y-5.9%
MID-AMERICA APARTMENT COMM / MAA FAQ
What is the ChartMill fundamental rating of MID-AMERICA APARTMENT COMM (MAA) stock?
ChartMill assigns a fundamental rating of 5 / 10 to MAA.
What is the valuation status of MID-AMERICA APARTMENT COMM (MAA) stock?
ChartMill assigns a valuation rating of 3 / 10 to MID-AMERICA APARTMENT COMM (MAA). This can be considered as Overvalued.
Can you provide the profitability details for MID-AMERICA APARTMENT COMM?
MID-AMERICA APARTMENT COMM (MAA) has a profitability rating of 7 / 10.
Can you provide the financial health for MAA stock?
The financial health rating of MID-AMERICA APARTMENT COMM (MAA) is 2 / 10.
What is the earnings growth outlook for MID-AMERICA APARTMENT COMM?
The Earnings per Share (EPS) of MID-AMERICA APARTMENT COMM (MAA) is expected to decline by -6.31% in the next year.