We assign a fundamental rating of 1 out of 10 to MAC. MAC was compared to 124 industry peers in the Diversified REITs industry. Both the profitability and financial health of MAC have multiple concerns. MAC is valued expensive and it does not seem to be growing.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year MAC has reported negative net income.
In the past year MAC had a positive cash flow from operations.
In the past 5 years MAC reported 4 times negative net income.
In the past 5 years MAC always reported a positive cash flow from operatings.

1.2 Ratios

With a Return On Assets value of -4.63%, MAC is not doing good in the industry: 80.65% of the companies in the same industry are doing better.
MAC has a Return On Equity of -15.55%. This is in the lower half of the industry: MAC underperforms 78.23% of its industry peers.
Looking at the Return On Invested Capital, with a value of 1.79%, MAC is doing worse than 69.35% of the companies in the same industry.
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 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 (17.50%) which is in line with its industry peers.
In the last couple of years the Operating Margin of MAC has declined.
MAC's Gross Margin of 54.86% is on the low side compared to the rest of the industry. MAC is outperformed by 70.97% of its industry peers.
In the last couple of years the Gross Margin of MAC has declined.

		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%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), MAC is destroying value.
MAC has more shares outstanding than it did 1 year ago.
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

Based on the Altman-Z score of 0.06, we must say that MAC is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of MAC (0.06) is worse than 74.19% of its industry peers.
A Debt/Equity ratio of 2.02 is on the high side and indicates that MAC has dependencies on debt financing.
MAC has a worse Debt to Equity ratio (2.02) than 69.35% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	2.02
Debt/FCF	N/A
Altman-Z	0.06

ROIC/WACC0.28

WACC6.31%

2.3 Liquidity

A Current Ratio of 0.85 indicates that MAC may have some problems paying its short term obligations.
MAC has a Current ratio (0.85) which 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.
With a Quick ratio value of 0.85, MAC perfoms like the industry average, outperforming 48.39% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	0.85
Quick Ratio	0.85

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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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%.
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)-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.
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.

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4. Valuation

4.1 Price/Earnings Ratio

MAC reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
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

Based on the Enterprise Value to EBITDA ratio, MAC is valued a bit more expensive than 69.35% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	N/A
EV/EBITDA	17.71

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%

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5. Dividend

5.1 Amount

MAC has a Yearly Dividend Yield of 3.64%. Purely for dividend investing, there may be better candidates out there.
MAC's Dividend Yield is slightly below the industry average, which is at 6.98.
MAC's Dividend Yield is rather good when compared to the S&P500 average which is at 1.83.

		Industry Rank	Sector Rank
Dividend Yield	3.64%

5.2 History

The dividend of MAC decreases each year by -25.88%.
MAC has been paying a dividend for at least 10 years, so it has 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%

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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.