MACERICH CO/THE (MAC)
US5543821012 - REIT
We assign a fundamental rating of 3 out of 10 to MAC. MAC was compared to 130 industry peers in the Diversified REITs industry. Both the profitability and financial health of MAC have multiple concerns. While showing a medium growth rate, MAC is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
MAC had positive earnings in the past year.
MAC had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: MAC reported negative net income in multiple years.
In the past 5 years MAC always reported a positive cash flow from operatings.
1.2 Ratios
MAC has a Return On Assets of -0.64%. This is in the lower half of the industry: MAC underperforms 67.97% of its industry peers.
MAC has a worse Return On Equity (-1.93%) than 67.97% of its industry peers.
Looking at the Return On Invested Capital, with a value of 2.15%, MAC is doing worse than 64.06% 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 3.08%.
The last Return On Invested Capital (2.15%) for MAC is above the 3 year average (1.58%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.64% | ||
| ROE | -1.93% | ||
| ROIC | 2.15% |
ROA(3y)-1.44%
ROA(5y)-1.15%
ROE(3y)-4.38%
ROE(5y)-3.95%
ROIC(3y)1.58%
ROIC(5y)1.49%
1.3 Margins
MAC has a worse Operating Margin (17.88%) than 61.72% of its industry peers.
MAC's Operating Margin has declined in the last couple of years.
MAC has a worse Gross Margin (53.34%) than 78.91% of its industry peers.
MAC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.88% | ||
| PM (TTM) | N/A | ||
| GM | 53.34% |
OM growth 3Y21.42%
OM growth 5Y-1.53%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.24%
GM growth 5Y-1.04%
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.
The number of shares outstanding for MAC has been increased compared to 5 years ago.
MAC has a worse debt/assets ratio than last year.
2.2 Solvency
MAC has an Altman-Z score of 0.25. This is a bad value and indicates that MAC is not financially healthy and even has some risk of bankruptcy.
MAC has a worse Altman-Z score (0.25) than 71.09% of its industry peers.
MAC has a debt to FCF ratio of 25.88. This is a negative value and a sign of low solvency as MAC would need 25.88 years to pay back of all of its debts.
The Debt to FCF ratio of MAC (25.88) is better than 69.53% of its industry peers.
MAC has a Debt/Equity ratio of 1.73. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.73, MAC is doing worse than 68.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.73 | ||
| Debt/FCF | 25.88 | ||
| Altman-Z | 0.25 |
ROIC/WACC0.33
WACC6.57%
2.3 Liquidity
MAC has a Current Ratio of 0.61. This is a bad value and indicates that MAC is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.61, MAC is not doing good in the industry: 82.03% of the companies in the same industry are doing better.
A Quick Ratio of 0.61 indicates that MAC may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.61, MAC is doing worse than 78.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.61 | ||
| Quick Ratio | 0.61 |
3. Growth
3.1 Past
MAC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 120.65%, which is quite impressive.
Looking at the last year, MAC shows a very strong growth in Revenue. The Revenue has grown by 24.99%.
Measured over the past years, MAC shows a decrease in Revenue. The Revenue has been decreasing by -1.64% on average per year.
EPS 1Y (TTM)120.65%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%59.02%
Revenue 1Y (TTM)24.99%
Revenue growth 3Y4%
Revenue growth 5Y-1.64%
Sales Q2Q%0.95%
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 17.09% yearly.
Based on estimates for the next years, MAC will show a small growth in Revenue. The Revenue will grow by 5.21% on average per year.
EPS Next Y129.41%
EPS Next 2Y36.67%
EPS Next 3Y25.93%
EPS Next 5Y17.09%
Revenue Next Year0.83%
Revenue Next 2Y1.87%
Revenue Next 3Y4.29%
Revenue Next 5Y5.21%
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
A Price/Earnings ratio of 63.22 indicates a quite expensive valuation of MAC.
MAC's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of MAC to the average of the S&P500 Index (27.54), we can say MAC is valued expensively.
The Forward Price/Earnings Ratio is negative for MAC. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 63.22 | ||
| Fwd PE | N/A |
4.2 Price Multiples
81.25% of the companies in the same industry are cheaper than MAC, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, MAC is valued a bit cheaper than 63.28% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.55 | ||
| EV/EBITDA | 19.46 |
4.3 Compensation for Growth
MAC's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as MAC's earnings are expected to grow with 25.93% in the coming years.
PEG (NY)0.49
PEG (5Y)N/A
EPS Next 2Y36.67%
EPS Next 3Y25.93%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.41%, MAC has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 16.05, MAC is paying slightly less dividend.
MAC's Dividend Yield is a higher than the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.41% |
5.2 History
The dividend of MAC decreases each year by -25.79%.
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)-25.79%
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-303.15%
EPS Next 2Y36.67%
EPS Next 3Y25.93%
MACERICH CO/THE
NYSE:MAC (12/24/2024, 8:26:24 PM)
After market: 20.23 0 (0%)20.23
+0.17 (+0.85%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners96.12%
Inst Owner Change5.05%
Ins Owners0.36%
Ins Owner Change0.03%
Market Cap5.30B
Analysts49.52
Price Target17.69 (-12.56%)
Short Float %5.48%
Short Ratio6.94
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.41% |
Dividend Growth(5Y)-25.79%
DP-303.15%
Div Incr Years2
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)654.96%
Min EPS beat(2)-800.09%
Max EPS beat(2)2110%
EPS beat(4)2
Avg EPS beat(4)241.31%
Min EPS beat(4)-800.09%
Max EPS beat(4)2110%
EPS beat(8)3
Avg EPS beat(8)-206.76%
EPS beat(12)3
Avg EPS beat(12)-199.57%
EPS beat(16)5
Avg EPS beat(16)-121.74%
Revenue beat(2)2
Avg Revenue beat(2)3.09%
Min Revenue beat(2)2.09%
Max Revenue beat(2)4.09%
Revenue beat(4)3
Avg Revenue beat(4)2.71%
Min Revenue beat(4)-0.58%
Max Revenue beat(4)5.26%
Revenue beat(8)6
Avg Revenue beat(8)2.05%
Revenue beat(12)9
Avg Revenue beat(12)2.34%
Revenue beat(16)12
Avg Revenue beat(16)3.38%
PT rev (1m)7.71%
PT rev (3m)18.85%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-40.35%
EPS NY rev (1m)-31.36%
EPS NY rev (3m)-19.82%
Revenue NQ rev (1m)-0.22%
Revenue NQ rev (3m)1.13%
Revenue NY rev (1m)0.35%
Revenue NY rev (3m)0.95%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 63.22 | ||
| Fwd PE | N/A | ||
| P/S | 4.85 | ||
| P/FCF | 31.55 | ||
| P/OCF | 19.06 | ||
| P/B | 2.11 | ||
| P/tB | 2.22 | ||
| EV/EBITDA | 19.46 |
EPS(TTM)0.32
EY1.58%
EPS(NY)-0.17
Fwd EYN/A
FCF(TTM)0.64
FCFY3.17%
OCF(TTM)1.06
OCFY5.25%
SpS4.17
BVpS9.59
TBVpS9.13
PEG (NY)0.49
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.64% | ||
| ROE | -1.93% | ||
| ROCE | 2.72% | ||
| ROIC | 2.15% | ||
| ROICexc | 2.18% | ||
| ROICexgc | 2.26% | ||
| OM | 17.88% | ||
| PM (TTM) | N/A | ||
| GM | 53.34% | ||
| FCFM | 15.38% |
ROA(3y)-1.44%
ROA(5y)-1.15%
ROE(3y)-4.38%
ROE(5y)-3.95%
ROIC(3y)1.58%
ROIC(5y)1.49%
ROICexc(3y)1.61%
ROICexc(5y)1.52%
ROICexgc(3y)1.66%
ROICexgc(5y)1.57%
ROCE(3y)2.01%
ROCE(5y)1.89%
ROICexcg growth 3Y34%
ROICexcg growth 5Y0.82%
ROICexc growth 3Y33.95%
ROICexc growth 5Y0.97%
OM growth 3Y21.42%
OM growth 5Y-1.53%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.24%
GM growth 5Y-1.04%
F-Score5
Asset Turnover0.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.73 | ||
| Debt/FCF | 25.88 | ||
| Debt/EBITDA | 8.88 | ||
| Cap/Depr | 37.37% | ||
| Cap/Sales | 10.07% | ||
| Interest Coverage | 1.04 | ||
| Cash Conversion | 56.77% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.61 | ||
| Quick Ratio | 0.61 | ||
| Altman-Z | 0.25 |
F-Score5
WACC6.57%
ROIC/WACC0.33
Cap/Depr(3y)25.28%
Cap/Depr(5y)17.83%
Cap/Sales(3y)8.77%
Cap/Sales(5y)6.3%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)120.65%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%59.02%
EPS Next Y129.41%
EPS Next 2Y36.67%
EPS Next 3Y25.93%
EPS Next 5Y17.09%
Revenue 1Y (TTM)24.99%
Revenue growth 3Y4%
Revenue growth 5Y-1.64%
Sales Q2Q%0.95%
Revenue Next Year0.83%
Revenue Next 2Y1.87%
Revenue Next 3Y4.29%
Revenue Next 5Y5.21%
EBIT growth 1Y18.31%
EBIT growth 3Y26.27%
EBIT growth 5Y-3.15%
EBIT Next Year177.03%
EBIT Next 3Y42%
EBIT Next 5Y15.04%
FCF growth 1Y-43.99%
FCF growth 3Y19.66%
FCF growth 5Y-9.57%
OCF growth 1Y-22.74%
OCF growth 3Y33.29%
OCF growth 5Y-3.01%