MID-AMERICA APARTMENT COMM (MAA) Stock Fundamental Analysis
NYSE:MAA - New York Stock Exchange, Inc. - US59522J1034 - REIT - Currency: USD
We assign a fundamental rating of 4 out of 10 to MAA. MAA was compared to 20 industry peers in the Residential REITs industry. MAA scores excellent on profitability, but there are concerns on its financial health. MAA does not seem to be growing, but still is valued expensively.
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.
Of the past 5 years MAA 4 years were profitable.
Of the past 5 years MAA 4 years had a positive operating cash flow.
1.2 Ratios
MAA has a better Return On Assets (4.40%) than 80.00% of its industry peers.
MAA's Return On Equity of 8.67% is fine compared to the rest of the industry. MAA outperforms 80.00% of its industry peers.
MAA's Return On Invested Capital of 4.81% is amongst the best of the industry. MAA outperforms 95.00% of its industry peers.
MAA had an Average Return On Invested Capital over the past 3 years of 4.38%. This is in line with the industry average of 2.75%.
The last Return On Invested Capital (4.81%) for MAA is above the 3 year average (4.38%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.4% | ||
| ROE | 8.67% | ||
| ROIC | 4.81% |
ROA(3y)5.04%
ROA(5y)4.09%
ROE(3y)9.44%
ROE(5y)7.67%
ROIC(3y)4.38%
ROIC(5y)3.89%
1.3 Margins
The Profit Margin of MAA (23.70%) is better than 80.00% of its industry peers.
MAA's Profit Margin has improved in the last couple of years.
MAA's Operating Margin of 30.74% is amongst the best of the industry. MAA outperforms 90.00% of its industry peers.
MAA's Operating Margin has improved in the last couple of years.
MAA's Gross Margin of 59.75% is fine compared to the rest of the industry. MAA outperforms 70.00% of its industry peers.
MAA's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 30.74% | ||
| PM (TTM) | 23.7% | ||
| GM | 59.75% |
OM growth 3Y7.97%
OM growth 5Y4.48%
PM growth 3Y19.55%
PM growth 5Y12.9%
GM growth 3Y1.33%
GM growth 5Y0.66%
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 no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 1.97 indicates that MAA is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 1.97, MAA belongs to the top of the industry, outperforming 90.00% of the companies in the same industry.
The Debt to FCF ratio of MAA is 46.11, which is on the high side as it means it would take MAA, 46.11 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 46.11, MAA perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
A Debt/Equity ratio of 0.82 indicates that MAA is somewhat dependend on debt financing.
The Debt to Equity ratio of MAA (0.82) is better than 65.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | 46.11 | ||
| Altman-Z | 1.97 |
ROIC/WACC0.61
WACC7.84%
2.3 Liquidity
MAA has a Current Ratio of 0.10. This is a bad value and indicates that MAA is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.10, MAA is doing worse than 75.00% of the companies in the same industry.
MAA has a Quick Ratio of 0.10. 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 (0.04) is worse than 85.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.1 | ||
| Quick Ratio | 0.04 |
3. Growth
3.1 Past
The earnings per share for MAA have decreased by -3.18% in the last year.
Measured over the past years, MAA shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.27% on average per year.
EPS 1Y (TTM)-3.18%
EPS 3Y9.96%
EPS 5Y8.27%
EPS Q2Q%3.65%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%1.4%
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.
MAA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.12% yearly.
EPS Next Y-10.46%
EPS Next 2Y-3.25%
EPS Next 3Y-0.15%
EPS Next 5Y24.45%
Revenue Next Year1.63%
Revenue Next 2Y2.76%
Revenue Next 3Y3.63%
Revenue Next 5Y5.12%
3.3 Evolution
The EPS 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
With a Price/Earnings ratio of 34.72, MAA can be considered very expensive at the moment.
Based on the Price/Earnings ratio, MAA is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of MAA to the average of the S&P500 Index (27.63), we can say MAA is valued slightly more expensively.
The Price/Forward Earnings ratio is 38.77, which means the current valuation is very expensive for MAA.
MAA's Price/Forward Earnings ratio is rather cheap when compared to the industry. MAA is cheaper than 90.00% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.85, MAA is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.72 | ||
| Fwd PE | 38.77 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MAA indicates a somewhat cheap valuation: MAA is cheaper than 80.00% of the companies listed 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 | 175.02 | ||
| EV/EBITDA | 17.98 |
4.3 Compensation for Growth
The decent profitability rating of MAA may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)4.2
EPS Next 2Y-3.25%
EPS Next 3Y-0.15%
5. Dividend
5.1 Amount
MAA has a Yearly Dividend Yield of 3.86%.
Compared to an average industry Dividend Yield of 4.58, 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 2.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.86% |
5.2 History
The dividend of MAA is nicely growing with an annual growth rate of 8.70%!
MAA has been paying a dividend for at least 10 years, so it has a reliable track record.
MAA has decreased its dividend recently.
Dividend Growth(5Y)8.7%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
MAA pays out 131.83% of its income as dividend. This is not a sustainable payout ratio.
MAA's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP131.83%
EPS Next 2Y-3.25%
EPS Next 3Y-0.15%
158.32
+3.5 (+2.26%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)
Earnings (Next)
Inst Owners97.36%
Inst Owner Change0.64%
Ins Owners0.6%
Ins Owner Change1.6%
Market Cap18.51B
Analysts74.19
Price Target172.38 (8.88%)
Short Float %3.54%
Short Ratio5.15
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.86% |
Yearly Dividend5.64
Dividend Growth(5Y)8.7%
DP131.83%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-5.79%
Min EPS beat(2)-7.55%
Max EPS beat(2)-4.03%
EPS beat(4)2
Avg EPS beat(4)8.06%
Min EPS beat(4)-7.55%
Max EPS beat(4)26.18%
EPS beat(8)5
Avg EPS beat(8)9.08%
EPS beat(12)8
Avg EPS beat(12)23.76%
EPS beat(16)11
Avg EPS beat(16)19.77%
Revenue beat(2)0
Avg Revenue beat(2)-0.69%
Min Revenue beat(2)-0.8%
Max Revenue beat(2)-0.58%
Revenue beat(4)0
Avg Revenue beat(4)-0.73%
Min Revenue beat(4)-1.09%
Max Revenue beat(4)-0.46%
Revenue beat(8)0
Avg Revenue beat(8)-0.82%
Revenue beat(12)2
Avg Revenue beat(12)-0.49%
Revenue beat(16)4
Avg Revenue beat(16)-0.38%
PT rev (1m)2.09%
PT rev (3m)3.02%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.63%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.07%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.19%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.98%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.72 | ||
| Fwd PE | 38.77 | ||
| P/S | 8.48 | ||
| P/FCF | 175.02 | ||
| P/OCF | 16.47 | ||
| P/B | 3.1 | ||
| P/tB | 3.1 | ||
| EV/EBITDA | 17.98 |
EPS(TTM)4.56
EY2.88%
EPS(NY)4.08
Fwd EY2.58%
FCF(TTM)0.9
FCFY0.57%
OCF(TTM)9.62
OCFY6.07%
SpS18.68
BVpS51.08
TBVpS51.08
PEG (NY)N/A
PEG (5Y)4.2
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.4% | ||
| ROE | 8.67% | ||
| ROCE | 6.37% | ||
| ROIC | 4.81% | ||
| ROICexc | 4.83% | ||
| ROICexgc | 4.89% | ||
| OM | 30.74% | ||
| PM (TTM) | 23.7% | ||
| GM | 59.75% | ||
| FCFM | 4.84% |
ROA(3y)5.04%
ROA(5y)4.09%
ROE(3y)9.44%
ROE(5y)7.67%
ROIC(3y)4.38%
ROIC(5y)3.89%
ROICexc(3y)4.39%
ROICexc(5y)3.9%
ROICexgc(3y)4.45%
ROICexgc(5y)3.95%
ROCE(3y)5.54%
ROCE(5y)4.92%
ROICexcg growth 3Y16.8%
ROICexcg growth 5Y11.48%
ROICexc growth 3Y16.67%
ROICexc growth 5Y11.39%
OM growth 3Y7.97%
OM growth 5Y4.48%
PM growth 3Y19.55%
PM growth 5Y12.9%
GM growth 3Y1.33%
GM growth 5Y0.66%
F-Score4
Asset Turnover0.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | 46.11 | ||
| Debt/EBITDA | 3.91 | ||
| Cap/Depr | 176.67% | ||
| Cap/Sales | 46.64% | ||
| Interest Coverage | 3.76 | ||
| Cash Conversion | 90.1% | ||
| Profit Quality | 20.44% | ||
| Current Ratio | 0.1 | ||
| Quick Ratio | 0.04 | ||
| Altman-Z | 1.97 |
F-Score4
WACC7.84%
ROIC/WACC0.61
Cap/Depr(3y)125.02%
Cap/Depr(5y)110.33%
Cap/Sales(3y)34.49%
Cap/Sales(5y)31.44%
Profit Quality(3y)60.77%
Profit Quality(5y)84.91%
High Growth Momentum
Growth
EPS 1Y (TTM)-3.18%
EPS 3Y9.96%
EPS 5Y8.27%
EPS Q2Q%3.65%
EPS Next Y-10.46%
EPS Next 2Y-3.25%
EPS Next 3Y-0.15%
EPS Next 5Y24.45%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%1.4%
Revenue Next Year1.63%
Revenue Next 2Y2.76%
Revenue Next 3Y3.63%
Revenue Next 5Y5.12%
EBIT growth 1Y-2.57%
EBIT growth 3Y17.24%
EBIT growth 5Y11.23%
EBIT Next Year82.1%
EBIT Next 3Y24.21%
EBIT Next 5Y16.83%
FCF growth 1Y-65.33%
FCF growth 3Y3.26%
FCF growth 5Y1.35%
OCF growth 1Y9.77%
OCF growth 3Y11.34%
OCF growth 5Y9.14%