MACERICH CO/THE (MAC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MAC - US5543821012 - REIT
17.655 USD
-0.39 (-2.19%)
Overall MAC gets a fundamental rating of 1 out of 10. We evaluated MAC against 124 industry peers in the Diversified REITs industry. MAC has a bad profitability rating. Also its financial health evaluation is rather negative. MAC does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
- MAC had negative earnings in the past year.
- In the past year MAC had a positive cash flow from operations.
- MAC had negative earnings in 4 of the past 5 years.
- MAC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- MAC's Return On Assets of -4.63% is on the low side compared to the rest of the industry. MAC is outperformed by 80.65% of its industry peers.
- With a Return On Equity value of -15.55%, MAC is not doing good in the industry: 78.23% of the companies in the same industry are doing better.
- The Return On Invested Capital of MAC (1.79%) is worse than 69.35% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for MAC is in line with the industry average of 3.05%.
- The last Return On Invested Capital (1.79%) for MAC is above the 3 year average (1.71%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.63% | ||
| ROE | -15.55% | ||
| ROIC | 1.79% |
ROA(3y)-2.25%
ROA(5y)-1.82%
ROE(3y)-6.88%
ROE(5y)-6.09%
ROIC(3y)1.71%
ROIC(5y)1.43%
1.3 Margins
- MAC's Operating Margin of 17.50% is in line compared to the rest of the industry. MAC outperforms 41.13% of its industry peers.
- MAC's Operating Margin has declined in the last couple of years.
- MAC has a Gross Margin of 54.86%. This is in the lower half of the industry: MAC underperforms 70.97% of its industry peers.
- MAC's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.5% | ||
| PM (TTM) | N/A | ||
| GM | 54.86% |
OM growth 3Y6.69%
OM growth 5Y-4.17%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.18%
GM growth 5Y-2.5%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), MAC is destroying value.
- Compared to 1 year ago, MAC has more shares outstanding
- The number of shares outstanding for MAC has been increased compared to 5 years ago.
- The debt/assets ratio for MAC is higher compared to a year ago.
2.2 Solvency
- MAC has an Altman-Z score of 0.03. This is a bad value and indicates that MAC is not financially healthy and even has some risk of bankruptcy.
- The Altman-Z score of MAC (0.03) is worse than 74.19% of its industry peers.
- MAC has a Debt/Equity ratio of 2.02. This is a high value indicating a heavy dependency on external financing.
- MAC's Debt to Equity ratio of 2.02 is on the low side compared to the rest of the industry. MAC is outperformed by 69.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.02 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.03 |
ROIC/WACC0.28
WACC6.33%
2.3 Liquidity
- A Current Ratio of 0.85 indicates that MAC may have some problems paying its short term obligations.
- The Current ratio of MAC (0.85) is comparable to the rest of the industry.
- A Quick Ratio of 0.85 indicates that MAC may have some problems paying its short term obligations.
- MAC's Quick ratio of 0.85 is in line compared to the rest of the industry. MAC outperforms 48.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.85 |
3. Growth
3.1 Past
- MAC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -596.88%.
- MAC shows a decrease in Revenue. In the last year, the revenue decreased by -6.05%.
- The Revenue has been decreasing by -0.20% on average over the past years.
EPS 1Y (TTM)-596.87%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%32%
Revenue 1Y (TTM)-6.05%
Revenue growth 3Y2.71%
Revenue growth 5Y-0.2%
Sales Q2Q%15%
3.2 Future
- Based on estimates for the next years, MAC will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.72% on average per year.
- Based on estimates for the next years, MAC will show a small growth in Revenue. The Revenue will grow by 5.17% on average per year.
EPS Next Y37.36%
EPS Next 2Y34.16%
EPS Next 3Y24.95%
EPS Next 5Y16.72%
Revenue Next Year19.6%
Revenue Next 2Y8.81%
Revenue Next 3Y6.14%
Revenue Next 5Y5.17%
3.3 Evolution
- The Revenue 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
- The Price/Earnings Ratio is negative for MAC. In the last year negative earnings were reported.
- Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for MAC. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MAC indicates a slightly more expensive valuation: MAC is more expensive than 68.55% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 17.29 |
4.3 Compensation for Growth
- MAC's earnings are expected to grow with 24.95% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y34.16%
EPS Next 3Y24.95%
5. Dividend
5.1 Amount
- MAC has a Yearly Dividend Yield of 3.70%. Purely for dividend investing, there may be better candidates out there.
- MAC's Dividend Yield is slightly below the industry average, which is at 6.82.
- MAC's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.7% |
5.2 History
- The dividend of MAC decreases each year by -25.88%.
- MAC has paid a dividend for at least 10 years, which is a reliable track record.
- MAC has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-25.88%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
- MAC has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-43.75%
EPS Next 2Y34.16%
EPS Next 3Y24.95%
MACERICH CO/THE / MAC FAQ
What is the fundamental rating for MAC stock?
ChartMill assigns a fundamental rating of 1 / 10 to MAC.
Can you provide the valuation status for MACERICH CO/THE?
ChartMill assigns a valuation rating of 1 / 10 to MACERICH CO/THE (MAC). This can be considered as Overvalued.
How profitable is MACERICH CO/THE (MAC) stock?
MACERICH CO/THE (MAC) has a profitability rating of 2 / 10.
What is the financial health of MACERICH CO/THE (MAC) stock?
The financial health rating of MACERICH CO/THE (MAC) is 0 / 10.