MID-AMERICA APARTMENT COMM (MAA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MAA - US59522J1034 - REIT
135.79 USD
+1.13 (+0.84%)
137.995 USD
+2.21 (+1.62%)
Taking everything into account, MAA scores 5 out of 10 in our fundamental rating. MAA was compared to 20 industry peers in the Residential REITs industry. MAA has an excellent profitability rating, but 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.
- In the past 5 years MAA has always been profitable.
- In the past 5 years MAA always reported a positive cash flow from operatings.
1.2 Ratios
- With a decent Return On Assets value of 4.63%, MAA is doing good in the industry, outperforming 70.00% of the companies in the same industry.
- MAA has a Return On Equity of 9.46%. This is in the better half of the industry: MAA outperforms 70.00% of its industry peers.
- MAA's Return On Invested Capital of 4.40% is amongst the best of the industry. MAA outperforms 95.00% of its industry peers.
- The Average Return On Invested Capital over the past 3 years 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's Profit Margin of 25.06% is fine compared to the rest of the industry. MAA outperforms 70.00% of its industry peers.
- In the last couple of years the Profit Margin of MAA has grown nicely.
- MAA's Operating Margin of 28.33% is amongst the best of the industry. MAA outperforms 85.00% of its industry peers.
- MAA's Operating Margin has improved in the last couple of years.
- MAA's Gross Margin of 58.66% is in line compared to the rest of the industry. MAA outperforms 55.00% of its industry peers.
- 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
- MAA has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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
- Based on the Altman-Z score of 1.63, we must say that MAA is in the distress zone and has some risk of bankruptcy.
- The Altman-Z score of MAA (1.63) is better than 80.00% of its industry peers.
- 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 has a Debt to Equity ratio of 0.89. This is comparable 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 | 1.63 |
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 has a worse Current ratio (0.09) than 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.
- The Quick ratio of MAA (0.03) is worse than 90.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.09 | ||
| Quick Ratio | 0.03 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 4.66% over the past year.
- The Earnings Per Share has been growing by 8.27% on average over the past years. This is quite good.
- MAA shows a small growth in Revenue. In the last year, the Revenue has grown by 0.91%.
- MAA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.95% yearly.
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
- MAA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.58% yearly.
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
- Based on the Price/Earnings ratio of 28.77, the valuation of MAA can be described as expensive.
- 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 27.21, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 39.61, MAA can be considered very expensive at the moment.
- 85.00% of the companies in the same industry are more expensive than MAA, based on the Price/Forward Earnings ratio.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. MAA is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.77 | ||
| Fwd PE | 39.61 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, MAA is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
- MAA's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 69.38 | ||
| EV/EBITDA | 16.64 |
4.3 Compensation for Growth
- The decent profitability rating of MAA 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)3.48
EPS Next 2Y-13.3%
EPS Next 3Y-5.9%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 4.54%, MAA is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 32.02, MAA has a dividend in line with its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.81, MAA pays a better dividend.
| 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
- 128.07% of the earnings are spent on dividend by MAA. This is not a sustainable payout ratio.
- MAA's earnings are growing more than its dividend. This makes the dividend growth 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.