MID-AMERICA APARTMENT COMM (MAA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MAA - US59522J1034 - REIT
135.9 USD
-2.64 (-1.91%)
135.9 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. MAA has an excellent profitability rating, but there are concerns on its financial health. MAA is quite expensive at the moment. It does show 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.
Each year in the past 5 years MAA had a positive operating cash flow.
1.2 Ratios
The Return On Assets of MAA (4.63%) is better than 70.00% of its industry peers.
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.
Looking at the Return On Invested Capital, with a value of 4.40%, MAA belongs to the top of the industry, outperforming 95.00% of the companies in the same industry.
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 has a Profit Margin of 25.06%. This is in the better half of the industry: MAA outperforms 70.00% of its industry peers.
MAA's Profit Margin has improved in the last couple of years.
MAA has a Operating Margin of 28.33%. This is amongst the best in the industry. MAA outperforms 85.00% of its industry peers.
MAA's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 58.66%, MAA perfoms like the industry average, 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
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.
Compared to 5 years ago, MAA has more shares outstanding
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.
MAA's Altman-Z score of 1.63 is fine compared to the rest of the industry. MAA outperforms 80.00% of its industry peers.
MAA has a debt to FCF ratio of 22.68. This is a negative value and a sign of low solvency as MAA would need 22.68 years to pay back of all of its debts.
MAA has a Debt to FCF ratio of 22.68. This is in the better half of the industry: MAA outperforms 70.00% of its industry peers.
A Debt/Equity ratio of 0.89 indicates that 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
WACC7.42%
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.
MAA has a worse Quick ratio (0.03) than 90.00% of its industry peers.
| 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.
The Revenue has been growing slightly by 0.91% in the past year.
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
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-6.09%
EPS Next 2Y-12.18%
EPS Next 3Y-4.8%
EPS Next 5Y24.45%
Revenue Next Year0.77%
Revenue Next 2Y1.39%
Revenue Next 3Y2.28%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 28.79, which means the current valuation is very expensive for MAA.
Based on the Price/Earnings ratio, MAA is valued a bit cheaper than 65.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.19. MAA is around the same levels.
Based on the Price/Forward Earnings ratio of 38.64, 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.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.92, MAA is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.79 | ||
| Fwd PE | 38.64 |
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 ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 69.44 | ||
| EV/EBITDA | 16.65 |
4.3 Compensation for Growth
The decent profitability rating of MAA may justify a higher PE ratio.
A cheap valuation may be justified as MAA's earnings are expected to decrease with -4.80% in the coming years.
PEG (NY)N/A
PEG (5Y)3.48
EPS Next 2Y-12.18%
EPS Next 3Y-4.8%
5. Dividend
5.1 Amount
MAA has a Yearly Dividend Yield of 4.42%, which is a nice return.
MAA's Dividend Yield is comparable with the industry average which is at 32.52.
Compared to an average S&P500 Dividend Yield of 1.92, MAA pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.42% |
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.
The dividend of MAA is growing, but earnings are growing more, so the dividend growth is sustainable.
DP128.07%
EPS Next 2Y-12.18%
EPS Next 3Y-4.8%
135.9
-2.64 (-1.91%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)
Earnings (Next)
Inst Owners98.67%
Inst Owner Change-0.07%
Ins Owners0.56%
Ins Owner Change0.93%
Market Cap15.91B
Revenue(TTM)2.20B
Net Income(TTM)552.18M
Analysts70.97
Price Target150.55 (10.78%)
Short Float %2.73%
Short Ratio2.96
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.42% |
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)-0.49%
PT rev (3m)-6.88%
EPS NQ rev (1m)0.14%
EPS NQ rev (3m)-2.37%
EPS NY rev (1m)-0.05%
EPS NY rev (3m)-1.4%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)-0.5%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.79 | ||
| Fwd PE | 38.64 | ||
| P/S | 7.22 | ||
| P/FCF | 69.44 | ||
| P/OCF | 15.07 | ||
| P/B | 2.73 | ||
| P/tB | 2.73 | ||
| EV/EBITDA | 16.65 |
EPS(TTM)4.72
EY3.47%
EPS(NY)3.52
Fwd EY2.59%
FCF(TTM)1.96
FCFY1.44%
OCF(TTM)9.02
OCFY6.63%
SpS18.82
BVpS49.87
TBVpS49.87
PEG (NY)N/A
PEG (5Y)3.48
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 | 1.63 |
F-Score4
WACC7.42%
ROIC/WACC0.59
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-6.09%
EPS Next 2Y-12.18%
EPS Next 3Y-4.8%
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 2Y1.39%
Revenue Next 3Y2.28%
Revenue Next 5Y3.58%
EBIT growth 1Y-7.01%
EBIT growth 3Y12.21%
EBIT growth 5Y8.83%
EBIT Next Year87.28%
EBIT Next 3Y25.49%
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.
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 -6.09% in the next year.