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MARCUS & MILLICHAP INC (MMI) Stock Fundamental Analysis

NYSE:MMI - New York Stock Exchange, Inc. - US5663241090 - Common Stock

37.77  +1.14 (+3.11%)

After market: 37.77 0 (0%)

Fundamental Rating

4

MMI gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 65 industry peers in the Real Estate Management & Development industry. No worries on liquidiy or solvency for MMI as it has an excellent financial health rating, but there are worries on the profitability. MMI does not seem to be growing, but still is valued expensively.


Dividend Valuation Growth Profitability Health

2

1. Profitability

1.1 Basic Checks

In the past year MMI has reported negative net income.
In the past year MMI has reported a negative cash flow from operations.
Of the past 5 years MMI 4 years were profitable.
Of the past 5 years MMI 4 years had a positive operating cash flow.
MMI Yearly Net Income VS EBIT VS OCF VS FCFMMI Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 100M 200M

1.2 Ratios

Looking at the Return On Assets, with a value of -3.74%, MMI is in line with its industry, outperforming 47.54% of the companies in the same industry.
MMI has a Return On Equity (-5.04%) which is comparable to the rest of the industry.
Industry RankSector Rank
ROA -3.74%
ROE -5.04%
ROIC N/A
ROA(3y)6.71%
ROA(5y)7.3%
ROE(3y)9.93%
ROE(5y)10.63%
ROIC(3y)N/A
ROIC(5y)N/A
MMI Yearly ROA, ROE, ROICMMI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 10 20 30

1.3 Margins

With a decent Gross Margin value of 38.10%, MMI is doing good in the industry, outperforming 67.21% of the companies in the same industry.
In the last couple of years the Gross Margin of MMI has remained more or less at the same level.
MMI does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
Industry RankSector 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 3Y-0.43%
GM growth 5Y-0.65%
MMI Yearly Profit, Operating, Gross MarginsMMI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 10 20 30

9

2. Health

2.1 Basic Checks

MMI does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, MMI has less shares outstanding
Compared to 5 years ago, MMI has less shares outstanding
MMI has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
MMI Yearly Shares OutstandingMMI Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 10M 20M 30M
MMI Yearly Total Debt VS Total AssetsMMI Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M 800M 1B

2.2 Solvency

An Altman-Z score of 5.70 indicates that MMI is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.70, MMI belongs to the top of the industry, outperforming 81.97% of the companies in the same industry.
MMI has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF N/A
Altman-Z 5.7
ROIC/WACCN/A
WACC9.25%
MMI Yearly LT Debt VS Equity VS FCFMMI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 200M 400M 600M

2.3 Liquidity

A Current Ratio of 3.15 indicates that MMI has no problem at all paying its short term obligations.
MMI's Current ratio of 3.15 is fine compared to the rest of the industry. MMI outperforms 77.05% of its industry peers.
A Quick Ratio of 3.15 indicates that MMI has no problem at all paying its short term obligations.
MMI has a better Quick ratio (3.15) than 81.97% of its industry peers.
Industry RankSector Rank
Current Ratio 3.15
Quick Ratio 3.15
MMI Yearly Current Assets VS Current LiabilitesMMI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M

3

3. Growth

3.1 Past

The earnings per share for MMI have decreased strongly by -92.86% in the last year.
MMI shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -16.15%.
Measured over the past years, MMI shows a decrease in Revenue. The Revenue has been decreasing by -4.54% on average per year.
EPS 1Y (TTM)-92.86%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%41.67%
Revenue 1Y (TTM)-16.15%
Revenue growth 3Y-3.42%
Revenue growth 5Y-4.54%
Sales Q2Q%4%

3.2 Future

Based on estimates for the next years, MMI will show a very strong growth in Earnings Per Share. The EPS will grow by 41.99% on average per year.
MMI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 15.69% yearly.
EPS Next Y26.24%
EPS Next 2Y43.81%
EPS Next 3Y41.99%
EPS Next 5YN/A
Revenue Next Year0.74%
Revenue Next 2Y12.55%
Revenue Next 3Y15.69%
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.
MMI Yearly Revenue VS EstimatesMMI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 200M 400M 600M 800M 1B
MMI Yearly EPS VS EstimatesMMI Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 1 2 3

1

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for MMI. In the last year negative earnings were reported.
The Price/Forward Earnings ratio is 623.27, which means the current valuation is very expensive for MMI.
60.66% of the companies in the same industry are more expensive than MMI, based on the Price/Forward Earnings ratio.
MMI's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 24.44.
Industry RankSector Rank
PE N/A
Fwd PE 623.27
MMI Price Earnings VS Forward Price EarningsMMI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 200 400 600

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA N/A
MMI Per share dataMMI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 10 15

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as MMI's earnings are expected to grow with 41.99% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y43.81%
EPS Next 3Y41.99%

2

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 1.38%, MMI has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.56, MMI pays a better dividend. On top of this MMI pays more dividend than 86.89% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.28, MMI is paying slightly less dividend.
Industry RankSector Rank
Dividend Yield 1.38%

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
MMI Yearly Dividends per shareMMI Yearly Dividends per shareYearly Dividends per share 2022 2023 2024 0.5 1

5.3 Sustainability

The earnings of MMI are negative and hence is the payout ratio. MMI will probably not be able to sustain this dividend level.
DP-64.83%
EPS Next 2Y43.81%
EPS Next 3Y41.99%
MMI Yearly Income VS Free CF VS DividendMMI Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 100M 200M

MARCUS & MILLICHAP INC

NYSE:MMI (1/21/2025, 8:14:43 PM)

After market: 37.77 0 (0%)

37.77

+1.14 (+3.11%)

Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryReal Estate Management & Development
Earnings (Last)11-08 2024-11-08/bmo
Earnings (Next)02-14 2025-02-14/bmo
Inst Owners98.25%
Inst Owner Change0.37%
Ins Owners3.25%
Ins Owner Change-0.01%
Market Cap1.47B
Analysts42.5
Price Target30.6 (-18.98%)
Short Float %1.13%
Short Ratio4.75
Dividend
Industry RankSector Rank
Dividend Yield 1.38%
Yearly Dividend0.52
Dividend Growth(5Y)N/A
DP-64.83%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
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)0%
EPS NQ rev (3m)-116.67%
EPS NY rev (1m)0%
EPS NY rev (3m)-25%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-27.49%
Revenue NY rev (1m)3.08%
Revenue NY rev (3m)-0.35%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 623.27
P/S 2.36
P/FCF N/A
P/OCF N/A
P/B 2.37
P/tB 2.57
EV/EBITDA N/A
EPS(TTM)-0.81
EYN/A
EPS(NY)0.06
Fwd EY0.16%
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 RankSector 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)6.71%
ROA(5y)7.3%
ROE(3y)9.93%
ROE(5y)10.63%
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 3Y-0.43%
GM growth 5Y-0.65%
F-Score4
Asset Turnover0.75
Health
Industry RankSector 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 5.7
F-Score4
WACC9.25%
ROIC/WACCN/A
Cap/Depr(3y)71.68%
Cap/Depr(5y)77.67%
Cap/Sales(3y)0.96%
Cap/Sales(5y)0.99%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-92.86%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%41.67%
EPS Next Y26.24%
EPS Next 2Y43.81%
EPS Next 3Y41.99%
EPS Next 5YN/A
Revenue 1Y (TTM)-16.15%
Revenue growth 3Y-3.42%
Revenue growth 5Y-4.54%
Sales Q2Q%4%
Revenue Next Year0.74%
Revenue Next 2Y12.55%
Revenue Next 3Y15.69%
Revenue Next 5YN/A
EBIT growth 1Y-56.51%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year49.91%
EBIT Next 3Y41.13%
EBIT Next 5YN/A
FCF growth 1Y-121.23%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-114.03%
OCF growth 3YN/A
OCF growth 5YN/A