MACERICH CO/THE (MAC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MAC - US5543821012 - REIT
18.35 USD
-0.05 (-0.27%)
18.35 USD
0 (0%)
Taking everything into account, MAC scores 1 out of 10 in our fundamental rating. MAC was compared to 124 industry peers in the Diversified REITs industry. Both the profitability and financial health of MAC have multiple concerns. MAC has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
- MAC had negative earnings in the past year.
- MAC had a positive operating cash flow in the past year.
- 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 has a Return On Assets of -4.63%. This is amonst the worse of the industry: MAC underperforms 80.80% of its industry peers.
- Looking at the Return On Equity, with a value of -15.55%, MAC is doing worse than 78.40% of the companies in the same industry.
- MAC's Return On Invested Capital of 1.79% is on the low side compared to the rest of the industry. MAC is outperformed by 69.60% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for MAC is in line with the industry average of 3.05%.
- The 3 year average ROIC (1.71%) for MAC is below the current ROIC(1.79%), indicating increased profibility in the last year.
| 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 has a Operating Margin of 17.50%. This is comparable to the rest of the industry: MAC outperforms 40.80% of its industry peers.
- In the last couple of years the Operating Margin of MAC has declined.
- Looking at the Gross Margin, with a value of 54.86%, MAC is doing worse than 71.20% of the companies in the same industry.
- 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so MAC is destroying value.
- The number of shares outstanding for MAC has been increased compared to 1 year ago.
- Compared to 5 years ago, MAC has more shares outstanding
- Compared to 1 year ago, MAC has a worse debt to assets ratio.
2.2 Solvency
- MAC has an Altman-Z score of 0.04. This is a bad value and indicates that MAC is not financially healthy and even has some risk of bankruptcy.
- With a Altman-Z score value of 0.04, MAC is not doing good in the industry: 73.60% of the companies in the same industry are doing better.
- MAC has a Debt/Equity ratio of 2.02. This is a high value indicating a heavy dependency on external financing.
- Looking at the Debt to Equity ratio, with a value of 2.02, MAC is doing worse than 68.80% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.02 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.04 |
ROIC/WACC0.28
WACC6.35%
2.3 Liquidity
- MAC has a Current Ratio of 0.85. This is a bad value and indicates that MAC is not financially healthy enough and could expect problems in meeting its short term obligations.
- MAC has a Current ratio of 0.85. This is comparable to the rest of the industry: MAC outperforms 46.40% of its industry peers.
- A Quick Ratio of 0.85 indicates that MAC may have some problems paying its short term obligations.
- MAC has a Quick ratio (0.85) which is in line with 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%.
- Looking at the last year, MAC shows a decrease in Revenue. The Revenue has decreased by -6.05% in the last year.
- MAC shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.20% yearly.
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
- MAC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.72% yearly.
- MAC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.17% yearly.
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
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
- MAC's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. MAC is more expensive than 69.60% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 17.43 |
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.
- Compared to an average industry Dividend Yield of 6.82, MAC is paying slightly less dividend.
- Compared to an average S&P500 Dividend Yield of 1.81, MAC pays a better dividend.
| 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
- The earnings of MAC are negative and hence is the payout ratio. MAC will probably not be able to sustain this dividend level.
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.