MID-AMERICA APARTMENT COMM (MAA) Stock Fundamental Analysis
USA - NYSE:MAA - US59522J1034 - REIT
133.76 USD
-0.78 (-0.58%)
133.76 USD
0 (0%)
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. MAA is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
MAA had positive earnings in the past year.
MAA had a positive operating cash flow in the past year.
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
With a decent Return On Assets value of 4.80%, MAA is doing good in the industry, outperforming 75.00% of the companies in the same industry.
MAA's Return On Equity of 9.60% is fine compared to the rest of the industry. MAA outperforms 80.00% of its industry peers.
With an excellent Return On Invested Capital value of 4.51%, 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 | 4.8% | ||
| ROE | 9.6% | ||
| ROIC | 4.51% |
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 Profit Margin of 25.81%. This is in the better half of the industry: MAA outperforms 80.00% of its industry peers.
MAA's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 28.91%, MAA belongs to the best of the industry, outperforming 85.00% of the companies in the same industry.
MAA's Operating Margin has improved in the last couple of years.
The Gross Margin of MAA (58.85%) is comparable to the rest of the industry.
MAA's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 28.91% | ||
| PM (TTM) | 25.81% | ||
| GM | 58.85% |
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.
The number of shares outstanding for MAA has been reduced compared to 1 year ago.
MAA has more shares outstanding than it did 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 1.69, we must say that MAA is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of MAA (1.69) is better than 80.00% of its industry peers.
MAA has a debt to FCF ratio of 26.49. This is a negative value and a sign of low solvency as MAA would need 26.49 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 26.49, MAA is doing good in the industry, outperforming 70.00% of the companies in the same industry.
MAA has a Debt/Equity ratio of 0.85. This is a neutral value indicating MAA is somewhat dependend on debt financing.
The Debt to Equity ratio of MAA (0.85) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.85 | ||
| Debt/FCF | 26.49 | ||
| Altman-Z | 1.69 |
ROIC/WACC0.62
WACC7.3%
2.3 Liquidity
A Current Ratio of 0.13 indicates that MAA may have some problems paying its short term obligations.
The Current ratio of MAA (0.13) is worse than 70.00% of its industry peers.
MAA has a Quick Ratio of 0.13. This is a bad value and indicates that MAA is not financially healthy enough and could expect problems in meeting its short term obligations.
MAA's Quick ratio of 0.05 is on the low side compared to the rest of the industry. MAA is outperformed by 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.13 | ||
| Quick Ratio | 0.05 |
3. Growth
3.1 Past
MAA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.72%, which is quite good.
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.
MAA shows a small growth in Revenue. In the last year, the Revenue has grown by 1.19%.
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)8.72%
EPS 3Y9.96%
EPS 5Y8.27%
EPS Q2Q%-2.13%
Revenue 1Y (TTM)1.19%
Revenue growth 3Y7.21%
Revenue growth 5Y5.95%
Sales Q2Q%0.63%
3.2 Future
MAA is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 24.45% yearly.
MAA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.78% yearly.
EPS Next Y-4.76%
EPS Next 2Y-8.96%
EPS Next 3Y-1.68%
EPS Next 5Y24.45%
Revenue Next Year0.86%
Revenue Next 2Y1.97%
Revenue Next 3Y2.68%
Revenue Next 5Y4.78%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
MAA is valuated quite expensively with a Price/Earnings ratio of 27.52.
Compared to the rest of the industry, the Price/Earnings ratio of MAA indicates a somewhat cheap valuation: MAA is cheaper than 80.00% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of MAA to the average of the S&P500 Index (27.50), we can say MAA is valued inline with the index average.
MAA is valuated quite expensively with a Price/Forward Earnings ratio of 35.39.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MAA indicates a rather cheap valuation: MAA is cheaper than 85.00% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of MAA to the average of the S&P500 Index (22.99), we can say MAA is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.52 | ||
| Fwd PE | 35.39 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MAA is valued cheaply inside the industry as 90.00% 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 | 82.18 | ||
| EV/EBITDA | 16.47 |
4.3 Compensation for Growth
MAA has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)3.33
EPS Next 2Y-8.96%
EPS Next 3Y-1.68%
5. Dividend
5.1 Amount
MAA has a Yearly Dividend Yield of 4.49%, which is a nice return.
Compared to an average industry Dividend Yield of 6.43, MAA has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.44, MAA pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.49% |
5.2 History
On average, the dividend of MAA grows each year by 8.76%, which is quite nice.
MAA has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)8.76%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
MAA pays out 123.55% 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.
DP123.55%
EPS Next 2Y-8.96%
EPS Next 3Y-1.68%
133.76
-0.78 (-0.58%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)
Earnings (Next)
Inst Owners98.01%
Inst Owner Change-0.01%
Ins Owners0.56%
Ins Owner Change0.21%
Market Cap15.66B
Analysts70.97
Price Target161.67 (20.87%)
Short Float %3.55%
Short Ratio5.03
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.49% |
Yearly Dividend5.89
Dividend Growth(5Y)8.76%
DP123.55%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)38.05%
Min EPS beat(2)5.31%
Max EPS beat(2)70.8%
EPS beat(4)3
Avg EPS beat(4)27.68%
Min EPS beat(4)-4.03%
Max EPS beat(4)70.8%
EPS beat(8)5
Avg EPS beat(8)16.23%
EPS beat(12)8
Avg EPS beat(12)15.12%
EPS beat(16)12
Avg EPS beat(16)25.64%
Revenue beat(2)0
Avg Revenue beat(2)-1.29%
Min Revenue beat(2)-1.32%
Max Revenue beat(2)-1.27%
Revenue beat(4)0
Avg Revenue beat(4)-1.13%
Min Revenue beat(4)-1.34%
Max Revenue beat(4)-0.58%
Revenue beat(8)0
Avg Revenue beat(8)-0.94%
Revenue beat(12)1
Avg Revenue beat(12)-0.76%
Revenue beat(16)3
Avg Revenue beat(16)-0.58%
PT rev (1m)-0.39%
PT rev (3m)-6.89%
EPS NQ rev (1m)-0.5%
EPS NQ rev (3m)0.85%
EPS NY rev (1m)-0.09%
EPS NY rev (3m)1.3%
Revenue NQ rev (1m)0.01%
Revenue NQ rev (3m)-0.59%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)-0.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.52 | ||
| Fwd PE | 35.39 | ||
| P/S | 7.12 | ||
| P/FCF | 82.18 | ||
| P/OCF | 14.25 | ||
| P/B | 2.65 | ||
| P/tB | 2.65 | ||
| EV/EBITDA | 16.47 |
EPS(TTM)4.86
EY3.63%
EPS(NY)3.78
Fwd EY2.83%
FCF(TTM)1.63
FCFY1.22%
OCF(TTM)9.39
OCFY7.02%
SpS18.79
BVpS50.5
TBVpS50.5
PEG (NY)N/A
PEG (5Y)3.33
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.8% | ||
| ROE | 9.6% | ||
| ROCE | 5.88% | ||
| ROIC | 4.51% | ||
| ROICexc | 4.53% | ||
| ROICexgc | 4.58% | ||
| OM | 28.91% | ||
| PM (TTM) | 25.81% | ||
| GM | 58.85% | ||
| FCFM | 8.66% |
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%
ROICexcg growth 3Y10.7%
ROICexcg 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 Turnover0.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.85 | ||
| Debt/FCF | 26.49 | ||
| Debt/EBITDA | 4.07 | ||
| Cap/Depr | 150.32% | ||
| Cap/Sales | 41.28% | ||
| Interest Coverage | 3.58 | ||
| Cash Conversion | 88.59% | ||
| Profit Quality | 33.56% | ||
| Current Ratio | 0.13 | ||
| Quick Ratio | 0.05 | ||
| Altman-Z | 1.69 |
F-Score4
WACC7.3%
ROIC/WACC0.62
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)8.72%
EPS 3Y9.96%
EPS 5Y8.27%
EPS Q2Q%-2.13%
EPS Next Y-4.76%
EPS Next 2Y-8.96%
EPS Next 3Y-1.68%
EPS Next 5Y24.45%
Revenue 1Y (TTM)1.19%
Revenue growth 3Y7.21%
Revenue growth 5Y5.95%
Sales Q2Q%0.63%
Revenue Next Year0.86%
Revenue Next 2Y1.97%
Revenue Next 3Y2.68%
Revenue Next 5Y4.78%
EBIT growth 1Y-5.72%
EBIT growth 3Y12.21%
EBIT growth 5Y8.83%
EBIT Next Year87.13%
EBIT Next 3Y26.86%
EBIT Next 5Y21.48%
FCF growth 1Y-45.99%
FCF growth 3Y-21.89%
FCF growth 5Y-15.48%
OCF growth 1Y-4.35%
OCF growth 3Y7.06%
OCF growth 5Y7.05%