MACERICH CO/THE (MAC) Stock Fundamental Analysis
NYSE:MAC - New York Stock Exchange, Inc. - US5543821012 - REIT - Currency: USD
We assign a fundamental rating of 3 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 was profitable.
In the past year MAC had a positive cash flow from operations.
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
Looking at the Return On Assets, with a value of -0.64%, MAC is doing worse than 66.14% of the companies in the same industry.
With a Return On Equity value of -1.93%, MAC is not doing good in the industry: 66.14% of the companies in the same industry are doing better.
The Return On Invested Capital of MAC (2.15%) is worse than 65.35% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for MAC is in line with the industry average of 3.12%.
The 3 year average ROIC (1.58%) for MAC is below the current ROIC(2.15%), indicating increased profibility in the last year.
| 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
Looking at the Operating Margin, with a value of 17.88%, MAC is doing worse than 62.99% of the companies in the same industry.
In the last couple of years the Operating Margin of MAC has declined.
Looking at the Gross Margin, with a value of 53.34%, MAC is doing worse than 78.74% of the companies in the same industry.
In the last couple of years the Gross Margin of MAC has remained more or less at the same level.
| 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
MAC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, MAC has more shares outstanding
The number of shares outstanding for MAC has been increased compared to 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 0.25, we must say that MAC is in the distress zone and has some risk of bankruptcy.
MAC has a worse Altman-Z score (0.25) than 70.87% of its industry peers.
The Debt to FCF ratio of MAC is 25.88, which is on the high side as it means it would take MAC, 25.88 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 25.88, MAC is in the better half of the industry, outperforming 70.08% of the companies in the same industry.
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 67.72% 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
WACC6.54%
2.3 Liquidity
A Current Ratio of 0.61 indicates that MAC may have some problems paying its short term obligations.
The Current ratio of MAC (0.61) is worse than 83.46% of its industry peers.
A Quick Ratio of 0.61 indicates that MAC may have some problems paying its short term obligations.
MAC has a worse Quick ratio (0.61) than 80.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.61 | ||
| Quick Ratio | 0.61 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 120.65% over the past year.
Looking at the last year, MAC shows a very strong growth in Revenue. The Revenue has grown by 24.99%.
MAC shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.64% yearly.
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
Based on estimates for the next years, MAC will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.81% on average per year.
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 Y120.39%
EPS Next 2Y37.74%
EPS Next 3Y26.37%
EPS Next 5Y17.81%
Revenue Next Year0.5%
Revenue Next 2Y1.26%
Revenue Next 3Y1.59%
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 63.41 indicates a quite expensive valuation of MAC.
Compared to the rest of the industry, the Price/Earnings ratio of MAC is on the same level as its industry peers.
MAC's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 28.47.
The Forward Price/Earnings Ratio is negative for MAC. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 63.41 | ||
| Fwd PE | N/A |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MAC is valued more expensive than 81.10% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MAC indicates a somewhat cheap valuation: MAC is cheaper than 63.78% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.64 | ||
| EV/EBITDA | 19.49 |
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.
MAC's earnings are expected to grow with 26.37% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.53
PEG (5Y)N/A
EPS Next 2Y37.74%
EPS Next 3Y26.37%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.26%, MAC has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 18.71, MAC is paying slightly less dividend.
MAC's Dividend Yield is a higher than the S&P500 average which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.26% |
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 2Y37.74%
EPS Next 3Y26.37%
MACERICH CO/THE
NYSE:MAC (2/4/2025, 8:04:00 PM)
After market: 20.29 0 (0%)20.29
-0.16 (-0.78%)
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 Change-0.05%
Ins Owners0.36%
Ins Owner Change0%
Market Cap5.31B
Analysts51.82
Price Target21.65 (6.7%)
Short Float %5.57%
Short Ratio6.32
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.26% |
Yearly Dividend0.68
Dividend Growth(5Y)-25.79%
DP-303.15%
Div Incr Years2
Div Non Decr Years3
Ex-DateN/A
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)4.3%
PT rev (3m)31.83%
EPS NQ rev (1m)-16.18%
EPS NQ rev (3m)-50%
EPS NY rev (1m)-30.67%
EPS NY rev (3m)-52.41%
Revenue NQ rev (1m)-2.29%
Revenue NQ rev (3m)-1.18%
Revenue NY rev (1m)-0.33%
Revenue NY rev (3m)-0.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 63.41 | ||
| Fwd PE | N/A | ||
| P/S | 4.87 | ||
| P/FCF | 31.64 | ||
| P/OCF | 19.12 | ||
| P/B | 2.12 | ||
| P/tB | 2.22 | ||
| EV/EBITDA | 19.49 |
EPS(TTM)0.32
EY1.58%
EPS(NY)-0.13
Fwd EYN/A
FCF(TTM)0.64
FCFY3.16%
OCF(TTM)1.06
OCFY5.23%
SpS4.17
BVpS9.59
TBVpS9.13
PEG (NY)0.53
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
WACC6.54%
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 Y120.39%
EPS Next 2Y37.74%
EPS Next 3Y26.37%
EPS Next 5Y17.81%
Revenue 1Y (TTM)24.99%
Revenue growth 3Y4%
Revenue growth 5Y-1.64%
Sales Q2Q%0.95%
Revenue Next Year0.5%
Revenue Next 2Y1.26%
Revenue Next 3Y1.59%
Revenue Next 5Y5.21%
EBIT growth 1Y18.31%
EBIT growth 3Y26.27%
EBIT growth 5Y-3.15%
EBIT Next Year177.12%
EBIT Next 3Y42.04%
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%