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 129 industry peers in the Diversified REITs industry. MAC may be in some trouble as it scores bad on both profitability and health. MAC is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year MAC was profitable.
In the past year MAC had a positive cash flow from operations.
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
Looking at the Return On Assets, with a value of -3.76%, MAC is doing worse than 81.40% of the companies in the same industry.
The Return On Equity of MAC (-11.67%) is worse than 76.74% of its industry peers.
With a Return On Invested Capital value of 1.89%, MAC is not doing good in the industry: 69.77% of the companies in the same industry are doing better.
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 3.18%.
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 has a Operating Margin of 17.20%. This is in the lower half of the industry: MAC underperforms 62.02% of its industry peers.
In the last couple of years the Operating Margin of MAC has declined.
With a Gross Margin value of 52.60%, MAC is not doing good in the industry: 76.74% of the companies in the same industry are doing better.
MAC's Gross Margin has declined in the last couple of years.
| 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.
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
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.
Looking at the Altman-Z score, with a value of 0.06, MAC is doing worse than 75.19% of the companies in the same industry.
MAC has a debt to FCF ratio of 92.05. This is a negative value and a sign of low solvency as MAC would need 92.05 years to pay back of all of its debts.
MAC has a Debt to FCF ratio (92.05) which is comparable to the rest of the industry.
A Debt/Equity ratio of 1.81 is on the high side and indicates that MAC has dependencies on debt financing.
The Debt to Equity ratio of MAC (1.81) is worse than 67.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.81 | ||
| Debt/FCF | 92.05 | ||
| Altman-Z | 0.06 |
ROIC/WACC0.29
WACC6.49%
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 77.52% of its industry peers.
MAC has a Quick 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.
Looking at the Quick ratio, with a value of 0.54, MAC is doing worse than 76.74% of the companies in the same industry.
| 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 141.22%, which is quite impressive.
MAC shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.81% yearly.
Looking at the last year, MAC shows a very strong growth in Revenue. The Revenue has grown by 27.46%.
The Revenue has been decreasing by -0.20% on average over the past years.
EPS 1Y (TTM)141.22%
EPS 3YN/A
EPS 5Y6.81%
EPS Q2Q%88%
Revenue 1Y (TTM)27.46%
Revenue growth 3Y2.71%
Revenue growth 5Y-0.2%
Sales Q2Q%14.66%
3.2 Future
MAC is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -10.05% yearly.
Based on estimates for the next years, MAC will show a small growth in Revenue. The Revenue will grow by 5.86% on average per year.
EPS Next Y-124.94%
EPS Next 2Y-79.11%
EPS Next 3Y-33.11%
EPS Next 5Y-10.05%
Revenue Next Year4.31%
Revenue Next 2Y3.9%
Revenue Next 3Y-2.07%
Revenue Next 5Y5.86%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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 31.26 indicates a quite expensive valuation of MAC.
Based on the Price/Earnings ratio, MAC is valued a bit cheaper than the industry average as 62.02% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 29.35, MAC is valued at the same level.
The Forward Price/Earnings Ratio is negative for MAC. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.26 | ||
| Fwd PE | N/A |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MAC is valued a bit more expensive than 79.07% of the companies in the same industry.
MAC's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 78.51 | ||
| EV/EBITDA | 18.35 |
4.3 Compensation for Growth
A cheap valuation may be justified as MAC's earnings are expected to decrease with -33.11% in the coming years.
PEG (NY)N/A
PEG (5Y)4.59
EPS Next 2Y-79.11%
EPS Next 3Y-33.11%
5. Dividend
5.1 Amount
MAC has a Yearly Dividend Yield of 3.87%. Purely for dividend investing, there may be better candidates out there.
The stock price of MAC dropped by -23.65% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
MAC's Dividend Yield is slightly below the industry average, which is at 19.09.
Compared to an average S&P500 Dividend Yield of 2.33, MAC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.87% |
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
MAC has negative earnings and hence a negative payout ratio. The dividend may be in danger.
MAC's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP-46.26%
EPS Next 2Y-79.11%
EPS Next 3Y-33.11%
16.88
-0.71 (-4.04%)
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 Change19.01%
Ins Owners0.29%
Ins Owner Change0.23%
Market Cap4.26B
Analysts54.55
Price Target21.31 (26.24%)
Short Float %5.64%
Short Ratio7.64
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.87% |
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)1
Avg EPS beat(2)39.79%
Min EPS beat(2)-800.09%
Max EPS beat(2)879.68%
EPS beat(4)2
Avg EPS beat(4)404.81%
Min EPS beat(4)-800.09%
Max EPS beat(4)2110%
EPS beat(8)4
Avg EPS beat(8)-89.25%
EPS beat(12)4
Avg EPS beat(12)-118.09%
EPS beat(16)6
Avg EPS beat(16)-62.65%
Revenue beat(2)2
Avg Revenue beat(2)11.78%
Min Revenue beat(2)2.09%
Max Revenue beat(2)21.46%
Revenue beat(4)3
Avg Revenue beat(4)6.76%
Min Revenue beat(4)-0.58%
Max Revenue beat(4)21.46%
Revenue beat(8)7
Avg Revenue beat(8)4.89%
Revenue beat(12)9
Avg Revenue beat(12)3.47%
Revenue beat(16)13
Avg Revenue beat(16)4.74%
PT rev (1m)-1.57%
PT rev (3m)20.47%
EPS NQ rev (1m)0%
EPS NQ rev (3m)11.76%
EPS NY rev (1m)0%
EPS NY rev (3m)26.51%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.04%
Revenue NY rev (1m)1.68%
Revenue NY rev (3m)0.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.26 | ||
| Fwd PE | N/A | ||
| P/S | 3.78 | ||
| P/FCF | 78.51 | ||
| P/OCF | 15.04 | ||
| P/B | 1.55 | ||
| P/tB | 1.68 | ||
| EV/EBITDA | 18.35 |
EPS(TTM)0.54
EY3.2%
EPS(NY)-0.13
Fwd EYN/A
FCF(TTM)0.21
FCFY1.27%
OCF(TTM)1.12
OCFY6.65%
SpS4.46
BVpS10.92
TBVpS10.02
PEG (NY)N/A
PEG (5Y)4.59
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 | 0.06 |
F-Score3
WACC6.49%
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)141.22%
EPS 3YN/A
EPS 5Y6.81%
EPS Q2Q%88%
EPS Next Y-124.94%
EPS Next 2Y-79.11%
EPS Next 3Y-33.11%
EPS Next 5Y-10.05%
Revenue 1Y (TTM)27.46%
Revenue growth 3Y2.71%
Revenue growth 5Y-0.2%
Sales Q2Q%14.66%
Revenue Next Year4.31%
Revenue Next 2Y3.9%
Revenue Next 3Y-2.07%
Revenue Next 5Y5.86%
EBIT growth 1Y9.11%
EBIT growth 3Y9.58%
EBIT growth 5Y-4.36%
EBIT Next Year236.91%
EBIT Next 3Y27.76%
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%