MARCUS & MILLICHAP INC (MMI) Stock Fundamental Analysis
NYSE:MMI - New York Stock Exchange, Inc. - US5663241090 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to MMI. MMI was compared to 64 industry peers in the Real Estate Management & Development industry. While MMI has a great health rating, there are worries on its profitability. While showing a medium growth rate, MMI is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year MMI has reported negative net income.
MMI had a negative operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: MMI reported negative net income in multiple years.
The reported operating cash flow has been mixed in the past 5 years: MMI reported negative operating cash flow in multiple years.
1.2 Ratios
MMI has a Return On Assets (-3.74%) which is in line with its industry peers.
MMI's Return On Equity of -5.04% is in line compared to the rest of the industry. MMI outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.74% | ||
| ROE | -5.04% | ||
| ROIC | N/A |
ROA(3y)1.7%
ROA(5y)4.84%
ROE(3y)2.46%
ROE(5y)7.13%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With a decent Gross Margin value of 38.10%, MMI is doing good in the industry, outperforming 66.67% of the companies in the same industry.
MMI's Gross Margin has been stable in the last couple of years.
MMI does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 38.1% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.61%
GM growth 5Y-0.07%
2. Health
2.1 Basic Checks
MMI does not have a ROIC to compare to the WACC, probably because it is not profitable.
MMI has more shares outstanding than it did 1 year ago.
MMI has less shares outstanding than it did 5 years ago.
MMI has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
MMI has an Altman-Z score of 5.80. This indicates that MMI is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.80, MMI belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
There is no outstanding debt for MMI. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 5.8 |
ROIC/WACCN/A
WACC9.06%
2.3 Liquidity
A Current Ratio of 3.15 indicates that MMI has no problem at all paying its short term obligations.
The Current ratio of MMI (3.15) is better than 76.67% of its industry peers.
MMI has a Quick Ratio of 3.15. This indicates that MMI is financially healthy and has no problem in meeting its short term obligations.
With an excellent Quick ratio value of 3.15, MMI belongs to the best of the industry, outperforming 81.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.15 | ||
| Quick Ratio | 3.15 |
3. Growth
3.1 Past
MMI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 64.04%, which is quite impressive.
The Revenue has been growing slightly by 7.76% in the past year.
The Revenue has been decreasing by -2.90% on average over the past years.
EPS 1Y (TTM)64.04%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%181.48%
Revenue 1Y (TTM)7.76%
Revenue growth 3Y-18.72%
Revenue growth 5Y-2.9%
Sales Q2Q%44.42%
3.2 Future
MMI is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 115.67% yearly.
Based on estimates for the next years, MMI will show a very strong growth in Revenue. The Revenue will grow by 23.98% on average per year.
EPS Next Y125.25%
EPS Next 2Y115.67%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year25.74%
Revenue Next 2Y23.98%
Revenue Next 3YN/A
Revenue Next 5YN/A
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
MMI reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
With a Price/Forward Earnings ratio of 463.86, MMI can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MMI indicates a somewhat cheap valuation: MMI is cheaper than 65.00% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of MMI to the average of the S&P500 Index (22.68), we can say MMI is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 463.86 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates MMI does not grow enough to justify the current Price/Earnings ratio.
A more expensive valuation may be justified as MMI's earnings are expected to grow with 115.67% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y115.67%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.29%, MMI has a reasonable but not impressive dividend return.
MMI's Dividend Yield is rather good when compared to the industry average which is at 3.26. MMI pays more dividend than 88.33% of the companies in the same industry.
With a Dividend Yield of 1.29, MMI pays less dividend than the S&P500 average, which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.29% |
5.2 History
MMI has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
MMI has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-64.83%
EPS Next 2Y115.67%
EPS Next 3YN/A
37.48
-1.18 (-3.05%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryReal Estate Management & Development
Earnings (Last)
Earnings (Next)
Inst Owners97.56%
Inst Owner Change-0.3%
Ins Owners3.23%
Ins Owner Change-0.01%
Market Cap1.45B
Analysts42.5
Price Target30.6 (-18.36%)
Short Float %0.98%
Short Ratio4.14
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.29% |
Yearly Dividend0.52
Dividend Growth(5Y)N/A
DP-64.83%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)17.32%
Min EPS beat(2)7.59%
Max EPS beat(2)27.05%
EPS beat(4)4
Avg EPS beat(4)11.81%
Min EPS beat(4)4.53%
Max EPS beat(4)27.05%
EPS beat(8)8
Avg EPS beat(8)9.21%
EPS beat(12)11
Avg EPS beat(12)13.4%
EPS beat(16)15
Avg EPS beat(16)47.95%
Revenue beat(2)1
Avg Revenue beat(2)0.63%
Min Revenue beat(2)-2.43%
Max Revenue beat(2)3.69%
Revenue beat(4)2
Avg Revenue beat(4)-0.59%
Min Revenue beat(4)-3.86%
Max Revenue beat(4)3.69%
Revenue beat(8)3
Avg Revenue beat(8)-0.06%
Revenue beat(12)5
Avg Revenue beat(12)3.66%
Revenue beat(16)9
Avg Revenue beat(16)11.77%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)66.67%
EPS NQ rev (3m)-105.56%
EPS NY rev (1m)13.85%
EPS NY rev (3m)13.85%
Revenue NQ rev (1m)6.39%
Revenue NQ rev (3m)-22.86%
Revenue NY rev (1m)0%
Revenue NY rev (3m)3.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 463.86 | ||
| P/S | 2.34 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 2.36 | ||
| P/tB | 2.55 | ||
| EV/EBITDA | N/A |
EPS(TTM)-0.32
EYN/A
EPS(NY)0.08
Fwd EY0.22%
FCF(TTM)-0.73
FCFYN/A
OCF(TTM)-0.52
OCFYN/A
SpS16.03
BVpS15.91
TBVpS14.71
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.74% | ||
| ROE | -5.04% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 38.1% | ||
| FCFM | N/A |
ROA(3y)1.7%
ROA(5y)4.84%
ROE(3y)2.46%
ROE(5y)7.13%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.61%
GM growth 5Y-0.07%
F-Score4
Asset Turnover0.75
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 54.79% | ||
| Cap/Sales | 1.29% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 3.15 | ||
| Quick Ratio | 3.15 | ||
| Altman-Z | 5.8 |
F-Score4
WACC9.06%
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)64.04%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%181.48%
EPS Next Y125.25%
EPS Next 2Y115.67%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)7.76%
Revenue growth 3Y-18.72%
Revenue growth 5Y-2.9%
Sales Q2Q%44.42%
Revenue Next Year25.74%
Revenue Next 2Y23.98%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-56.51%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year120.13%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y60.99%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y67.15%
OCF growth 3YN/A
OCF growth 5YN/A