MID-AMERICA APARTMENT COMM (MAA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MAA - US59522J1034 - REIT
131.67 USD
-1.19 (-0.9%)
131.67 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 has a great profitability rating, there are quite some concerns on its financial health. MAA is not valued too expensively and it also shows a decent growth rate.
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.
MAA had positive earnings in each of the past 5 years.
In the past 5 years MAA always reported a positive cash flow from operatings.
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.
The Return On Equity of MAA (9.46%) is better than 70.00% of its industry peers.
MAA has a Return On Invested Capital of 4.40%. This is amongst the best in 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
Looking at the Profit Margin, with a value of 25.06%, MAA is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
In the last couple of years the Profit Margin of MAA has grown nicely.
MAA has a better Operating Margin (28.33%) than 85.00% of its industry peers.
In the last couple of years the Operating Margin of MAA has grown nicely.
MAA has a Gross Margin (58.66%) which is in line with 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), MAA is destroying value.
MAA has less shares outstanding than it did 1 year ago.
The number of shares outstanding for MAA has been increased compared to 5 years ago.
The debt/assets ratio for MAA is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.58, we must say that MAA is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.58, 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.
Looking at the Debt to FCF ratio, with a value of 22.68, MAA is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
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 (0.89) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | 22.68 | ||
| Altman-Z | 1.58 |
ROIC/WACC0.6
WACC7.35%
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.
A Quick Ratio of 0.03 indicates that MAA may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.03, MAA is doing worse than 90.00% of the companies in the same industry.
| 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%.
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%.
Measured over the past years, MAA shows a small growth in Revenue. The Revenue has been growing by 5.95% on average per year.
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
Based on estimates for the next years, MAA will show a very strong growth in Earnings Per Share. The EPS will grow by 24.45% on average per year.
The Revenue is expected to grow by 3.58% on average over the next years.
EPS Next Y-6.04%
EPS Next 2Y-11.56%
EPS Next 3Y-3.91%
EPS Next 5Y24.45%
Revenue Next Year0.77%
Revenue Next 2Y1.5%
Revenue Next 3Y2.48%
Revenue Next 5Y3.58%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 27.90, the valuation of MAA can be described as expensive.
70.00% of the companies in the same industry are more expensive than MAA, based on the Price/Earnings ratio.
MAA is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.49, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 36.92 indicates a quite expensive valuation of MAA.
MAA's Price/Forward Earnings ratio is rather cheap when compared to the industry. MAA is cheaper than 85.00% of the companies in the same industry.
MAA's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 23.69.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.9 | ||
| Fwd PE | 36.92 |
4.2 Price Multiples
MAA's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. MAA is cheaper than 90.00% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as MAA.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 67.28 | ||
| EV/EBITDA | 16.25 |
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 -3.91% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)3.37
EPS Next 2Y-11.56%
EPS Next 3Y-3.91%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.56%, MAA is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 7.26, MAA has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.31, MAA pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.56% |
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-11.56%
EPS Next 3Y-3.91%
131.67
-1.19 (-0.9%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)
Earnings (Next)
Inst Owners98.63%
Inst Owner Change-0.33%
Ins Owners0.56%
Ins Owner Change0.06%
Market Cap15.42B
Revenue(TTM)2.20B
Net Income(TTM)552.18M
Analysts71.61
Price Target151.29 (14.9%)
Short Float %2.67%
Short Ratio3.16
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.56% |
Yearly Dividend5.89
Dividend Growth(5Y)8.76%
DP128.07%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.86%
Min EPS beat(2)-7.02%
Max EPS beat(2)5.31%
EPS beat(4)3
Avg EPS beat(4)26.93%
Min EPS beat(4)-7.02%
Max EPS beat(4)70.8%
EPS beat(8)5
Avg EPS beat(8)17.49%
EPS beat(12)8
Avg EPS beat(12)15.03%
EPS beat(16)11
Avg EPS beat(16)24.55%
Revenue beat(2)0
Avg Revenue beat(2)-1.23%
Min Revenue beat(2)-1.32%
Max Revenue beat(2)-1.15%
Revenue beat(4)0
Avg Revenue beat(4)-1.27%
Min Revenue beat(4)-1.34%
Max Revenue beat(4)-1.15%
Revenue beat(8)0
Avg Revenue beat(8)-1%
Revenue beat(12)0
Avg Revenue beat(12)-0.97%
Revenue beat(16)2
Avg Revenue beat(16)-0.69%
PT rev (1m)-5.19%
PT rev (3m)-6.79%
EPS NQ rev (1m)-2.53%
EPS NQ rev (3m)-2.92%
EPS NY rev (1m)-1.64%
EPS NY rev (3m)-1.44%
Revenue NQ rev (1m)-0.22%
Revenue NQ rev (3m)-0.51%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)-0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.9 | ||
| Fwd PE | 36.92 | ||
| P/S | 7 | ||
| P/FCF | 67.28 | ||
| P/OCF | 14.6 | ||
| P/B | 2.64 | ||
| P/tB | 2.64 | ||
| EV/EBITDA | 16.25 |
EPS(TTM)4.72
EY3.58%
EPS(NY)3.57
Fwd EY2.71%
FCF(TTM)1.96
FCFY1.49%
OCF(TTM)9.02
OCFY6.85%
SpS18.82
BVpS49.87
TBVpS49.87
PEG (NY)N/A
PEG (5Y)3.37
Graham Number72.77
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.63% | ||
| ROE | 9.46% | ||
| ROCE | 5.81% | ||
| ROIC | 4.4% | ||
| ROICexc | 4.41% | ||
| ROICexgc | 4.46% | ||
| OM | 28.33% | ||
| PM (TTM) | 25.06% | ||
| GM | 58.66% | ||
| FCFM | 10.4% |
ROA(3y)4.95%
ROA(5y)4.36%
ROE(3y)9.42%
ROE(5y)8.27%
ROIC(3y)4.79%
ROIC(5y)4.19%
ROICexc(3y)4.8%
ROICexc(5y)4.21%
ROICexgc(3y)4.86%
ROICexgc(5y)4.26%
ROCE(3y)6.1%
ROCE(5y)5.33%
ROICexgc growth 3Y10.7%
ROICexgc growth 5Y8.18%
ROICexc growth 3Y10.71%
ROICexc growth 5Y8.14%
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%
F-Score4
Asset Turnover0.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | 22.68 | ||
| Debt/EBITDA | 4.2 | ||
| Cap/Depr | 134.59% | ||
| Cap/Sales | 37.51% | ||
| Interest Coverage | 3.27 | ||
| Cash Conversion | 85.25% | ||
| Profit Quality | 41.5% | ||
| Current Ratio | 0.09 | ||
| Quick Ratio | 0.03 | ||
| Altman-Z | 1.58 |
F-Score4
WACC7.35%
ROIC/WACC0.6
Cap/Depr(3y)143.54%
Cap/Depr(5y)125.9%
Cap/Sales(3y)38.3%
Cap/Sales(5y)35.02%
Profit Quality(3y)49.76%
Profit Quality(5y)69.71%
High Growth Momentum
Growth
EPS 1Y (TTM)4.66%
EPS 3Y9.96%
EPS 5Y8.27%
EPS Q2Q%-14.29%
EPS Next Y-6.04%
EPS Next 2Y-11.56%
EPS Next 3Y-3.91%
EPS Next 5Y24.45%
Revenue 1Y (TTM)0.91%
Revenue growth 3Y7.21%
Revenue growth 5Y5.95%
Sales Q2Q%0.59%
Revenue Next Year0.77%
Revenue Next 2Y1.5%
Revenue Next 3Y2.48%
Revenue Next 5Y3.58%
EBIT growth 1Y-7.01%
EBIT growth 3Y12.21%
EBIT growth 5Y8.83%
EBIT Next Year87.43%
EBIT Next 3Y25.68%
EBIT Next 5Y20.98%
FCF growth 1Y-58.73%
FCF growth 3Y-21.89%
FCF growth 5Y-15.48%
OCF growth 1Y-6.04%
OCF growth 3Y7.06%
OCF growth 5Y7.05%
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.
Can you provide the valuation status for MID-AMERICA APARTMENT COMM?
ChartMill assigns a valuation rating of 4 / 10 to MID-AMERICA APARTMENT COMM (MAA). This can be considered as Fairly Valued.
Can you provide the profitability details for MID-AMERICA APARTMENT COMM?
MID-AMERICA APARTMENT COMM (MAA) has a profitability rating of 7 / 10.
What are the PE and PB ratios of MID-AMERICA APARTMENT COMM (MAA) stock?
The Price/Earnings (PE) ratio for MID-AMERICA APARTMENT COMM (MAA) is 27.9 and the Price/Book (PB) ratio is 2.64.
What is the financial health of MID-AMERICA APARTMENT COMM (MAA) stock?
The financial health rating of MID-AMERICA APARTMENT COMM (MAA) is 2 / 10.