MACERICH CO/THE (MAC) Stock Fundamental Analysis
NYSE:MAC - New York Stock Exchange, Inc. - US5543821012 - REIT - Currency: USD
We assign a fundamental rating of 2 out of 10 to MAC. MAC was compared to 130 industry peers in the Diversified REITs industry. MAC has a bad profitability rating. Also its financial health evaluation is rather negative. MAC is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year MAC has reported negative net income.
MAC had a positive operating cash flow in the past year.
In the past 5 years MAC reported 4 times negative net income.
Each year in the past 5 years MAC had a positive operating cash flow.
1.2 Ratios
MAC has a worse Return On Assets (-3.76%) than 82.31% of its industry peers.
The Return On Equity of MAC (-11.67%) is worse than 75.38% of its industry peers.
Looking at the Return On Invested Capital, with a value of 1.89%, MAC is doing worse than 68.46% of the companies in the same industry.
MAC had an Average Return On Invested Capital over the past 3 years of 1.71%. This is in line with the industry average of 3.19%.
The last Return On Invested Capital (1.89%) for MAC is above the 3 year average (1.71%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.76% | ||
| ROE | -11.67% | ||
| ROIC | 1.89% |
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 17.20% is on the low side compared to the rest of the industry. MAC is outperformed by 60.77% of its industry peers.
MAC's Operating Margin has declined in the last couple of years.
MAC has a worse Gross Margin (52.60%) than 76.15% of its industry peers.
In the last couple of years the Gross Margin of MAC has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.2% | ||
| PM (TTM) | N/A | ||
| GM | 52.6% |
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
MAC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
MAC has more shares outstanding than it did 1 year ago.
MAC has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, MAC has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of -0.01, we must say that MAC is in the distress zone and has some risk of bankruptcy.
MAC has a Altman-Z score of -0.01. This is in the lower half of the industry: MAC underperforms 75.38% of its industry peers.
The Debt to FCF ratio of MAC is 92.05, which is on the high side as it means it would take MAC, 92.05 years of fcf income to pay off all of its debts.
MAC has a Debt to FCF ratio (92.05) which is comparable to the rest of the industry.
MAC has a Debt/Equity ratio of 1.81. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.81, MAC is doing worse than 67.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.81 | ||
| Debt/FCF | 92.05 | ||
| Altman-Z | -0.01 |
ROIC/WACC0.29
WACC6.52%
2.3 Liquidity
MAC has a Current Ratio of 0.54. 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's Current ratio of 0.54 is on the low side compared to the rest of the industry. MAC is outperformed by 74.62% of its industry peers.
A Quick Ratio of 0.54 indicates that MAC may have some problems paying its short term obligations.
MAC's Quick ratio of 0.54 is on the low side compared to the rest of the industry. MAC is outperformed by 73.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.54 | ||
| Quick Ratio | 0.54 |
3. Growth
3.1 Past
MAC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 37.40%, which is quite impressive.
MAC shows a strong growth in Revenue. In the last year, the Revenue has grown by 27.46%.
Measured over the past years, MAC shows a decrease in Revenue. The Revenue has been decreasing by -0.20% on average per year.
EPS 1Y (TTM)37.4%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-456%
Revenue 1Y (TTM)27.46%
Revenue growth 3Y2.71%
Revenue growth 5Y-0.2%
Sales Q2Q%14.66%
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 17.57% on average per year.
MAC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.92% yearly.
EPS Next Y88.39%
EPS Next 2Y42.1%
EPS Next 3Y28.36%
EPS Next 5Y17.57%
Revenue Next Year10.05%
Revenue Next 2Y4.79%
Revenue Next 3Y1.67%
Revenue Next 5Y5.92%
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.
Also next year MAC is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
| 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 73.08% of the companies listed in the same industry.
MAC's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 66.09 | ||
| EV/EBITDA | 17 |
4.3 Compensation for Growth
MAC's earnings are expected to grow with 28.36% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y42.1%
EPS Next 3Y28.36%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.63%, MAC is a good candidate for dividend investing.
In the last 3 months the price of MAC has falen by -30.75%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 16.87, MAC is paying slightly less dividend.
MAC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.63% |
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 Years2
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-46.26%
EPS Next 2Y42.1%
EPS Next 3Y28.36%
14.21
+0.1 (+0.71%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners98.91%
Inst Owner Change0.02%
Ins Owners0.29%
Ins Owner Change0.26%
Market Cap3.59B
Analysts54.55
Price Target20.52 (44.41%)
Short Float %6.54%
Short Ratio8.01
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.63% |
Yearly Dividend0.64
Dividend Growth(5Y)-25.88%
DP-46.26%
Div Incr Years2
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1377.61%
Min EPS beat(2)-1955.13%
Max EPS beat(2)-800.09%
EPS beat(4)1
Avg EPS beat(4)-303.9%
Min EPS beat(4)-1955.13%
Max EPS beat(4)2110%
EPS beat(8)3
Avg EPS beat(8)-443.6%
EPS beat(12)3
Avg EPS beat(12)-354.33%
EPS beat(16)5
Avg EPS beat(16)-239.82%
Revenue beat(2)2
Avg Revenue beat(2)12.89%
Min Revenue beat(2)3.11%
Max Revenue beat(2)22.66%
Revenue beat(4)3
Avg Revenue beat(4)7.32%
Min Revenue beat(4)-0.58%
Max Revenue beat(4)22.66%
Revenue beat(8)7
Avg Revenue beat(8)5.16%
Revenue beat(12)9
Avg Revenue beat(12)3.65%
Revenue beat(16)13
Avg Revenue beat(16)4.87%
PT rev (1m)-3.71%
PT rev (3m)-1.15%
EPS NQ rev (1m)-3.71%
EPS NQ rev (3m)29.41%
EPS NY rev (1m)29.28%
EPS NY rev (3m)45%
Revenue NQ rev (1m)1.9%
Revenue NQ rev (3m)6.59%
Revenue NY rev (1m)5.19%
Revenue NY rev (3m)8.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 3.18 | ||
| P/FCF | 66.09 | ||
| P/OCF | 12.66 | ||
| P/B | 1.3 | ||
| P/tB | 1.42 | ||
| EV/EBITDA | 17 |
EPS(TTM)-0.82
EYN/A
EPS(NY)-0.1
Fwd EYN/A
FCF(TTM)0.21
FCFY1.51%
OCF(TTM)1.12
OCFY7.9%
SpS4.46
BVpS10.92
TBVpS10.02
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.76% | ||
| ROE | -11.67% | ||
| ROCE | 2.39% | ||
| ROIC | 1.89% | ||
| ROICexc | 1.91% | ||
| ROICexgc | 2% | ||
| OM | 17.2% | ||
| PM (TTM) | N/A | ||
| GM | 52.6% | ||
| FCFM | 4.82% |
ROA(3y)-2.25%
ROA(5y)-1.82%
ROE(3y)-6.88%
ROE(5y)-6.09%
ROIC(3y)1.71%
ROIC(5y)1.43%
ROICexc(3y)1.73%
ROICexc(5y)1.46%
ROICexgc(3y)1.79%
ROICexgc(5y)1.51%
ROCE(3y)2.16%
ROCE(5y)1.81%
ROICexcg growth 3Y9.63%
ROICexcg growth 5Y-3.26%
ROICexc growth 3Y9.11%
ROICexc growth 5Y-3.53%
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%
F-Score3
Asset Turnover0.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.81 | ||
| Debt/FCF | 92.05 | ||
| Debt/EBITDA | 10 | ||
| Cap/Depr | 74.92% | ||
| Cap/Sales | 20.33% | ||
| Interest Coverage | 1.04 | ||
| Cash Conversion | 56.72% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.54 | ||
| Quick Ratio | 0.54 | ||
| Altman-Z | -0.01 |
F-Score3
WACC6.52%
ROIC/WACC0.29
Cap/Depr(3y)47.12%
Cap/Depr(5y)31.57%
Cap/Sales(3y)15.89%
Cap/Sales(5y)10.84%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)37.4%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-456%
EPS Next Y88.39%
EPS Next 2Y42.1%
EPS Next 3Y28.36%
EPS Next 5Y17.57%
Revenue 1Y (TTM)27.46%
Revenue growth 3Y2.71%
Revenue growth 5Y-0.2%
Sales Q2Q%14.66%
Revenue Next Year10.05%
Revenue Next 2Y4.79%
Revenue Next 3Y1.67%
Revenue Next 5Y5.92%
EBIT growth 1Y9.11%
EBIT growth 3Y9.58%
EBIT growth 5Y-4.36%
EBIT Next Year239.17%
EBIT Next 3Y50.85%
EBIT Next 5YN/A
FCF growth 1Y-68.85%
FCF growth 3Y-40.36%
FCF growth 5Y-30.47%
OCF growth 1Y-4.08%
OCF growth 3Y-0.35%
OCF growth 5Y-4.41%