NYSE:MAC

Stock Analysis Report

Executive Summary

Macerich is a fully integrated, self-managed and self-administered real estate investment trust, which focuses on the acquisition, leasing, management, development and redevelopment of regional malls throughout the United States.


Snowflake Analysis

Established dividend payer and good value.


Similar Companies

Share Price & News

How has Macerich's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MAC's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-9.8%

MAC

-10.1%

US REITs

-10.6%

US Market


1 Year Return

-50.2%

MAC

5.9%

US REITs

5.2%

US Market

Return vs Industry: MAC underperformed the US REITs industry which returned 11.6% over the past year.

Return vs Market: MAC underperformed the US Market which returned 10.2% over the past year.


Shareholder returns

MACIndustryMarket
7 Day-9.8%-10.1%-10.6%
30 Day-9.9%-6.5%-8.5%
90 Day-20.6%-4.5%-4.6%
1 Year-44.9%-50.2%10.1%5.9%7.4%5.2%
3 Year-60.5%-67.9%24.8%9.3%31.7%23.2%
5 Year-65.8%-75.4%48.4%17.9%56.4%39.3%

Price Volatility Vs. Market

How volatile is Macerich's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Macerich undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MAC ($21.43) is trading below our estimate of fair value ($49.03)

Significantly Below Fair Value: MAC is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: MAC is good value based on its PE Ratio (31.3x) compared to the REITs industry average (36.3x).

PE vs Market: MAC is poor value based on its PE Ratio (31.3x) compared to the US market (17.1x).


Price to Earnings Growth Ratio

PEG Ratio: MAC's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: MAC is good value based on its PB Ratio (1.2x) compared to the US REITs industry average (1.9x).


Next Steps

Future Growth

How is Macerich forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

-24.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MAC's earnings are forecast to decline over the next 3 years (-24.8% per year).

Earnings vs Market: MAC's earnings are forecast to decline over the next 3 years (-24.8% per year).

High Growth Earnings: MAC's earnings are forecast to decline over the next 3 years.

Revenue vs Market: MAC's revenue is expected to decline over the next 3 years (-4.4% per year).

High Growth Revenue: MAC's revenue is forecast to decline over the next 3 years (-4.4% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MAC's Return on Equity is forecast to be low in 3 years time (3.5%).


Next Steps

Past Performance

How has Macerich performed over the past 5 years?

-61.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MAC has high quality earnings.

Growing Profit Margin: MAC's current net profit margins (9.9%) are higher than last year (5.7%).


Past Earnings Growth Analysis

Earnings Trend: MAC's earnings have declined by -61.3% per year over the past 5 years.

Accelerating Growth: MAC's earnings growth over the past year (64.3%) exceeds its 5-year average (-61.3% per year).

Earnings vs Industry: MAC earnings growth over the past year (64.3%) exceeded the REITs industry 5%.


Return on Equity

High ROE: MAC's Return on Equity (3.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Macerich's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: MAC has a high level of physical assets or inventory.

Debt Coverage by Assets: MAC's debt is not covered by short term assets (assets are 0x debt).


Financial Institutions Analysis

Asset Level: MAC's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if MAC has a sufficient allowance for bad loans.

Low Risk Liabilities: MAC reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if MAC has an acceptable proportion of non-loan assets held.

Low Risk Deposits: MAC has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if MAC has an appropriate level of bad loans.


Next Steps

Dividend

What is Macerich's current dividend yield, its reliability and sustainability?

14.04%

Current Dividend Yield


Dividend Yield vs Market

company14.0%marketbottom25%1.6%markettop25%4.1%industryaverage3.9%forecastin3Years13.3%

Current dividend yield vs market & industry

Notable Dividend: MAC's dividend (14%) is higher than the bottom 25% of dividend payers in the US market (1.53%).

High Dividend: MAC's dividend (14%) is in the top 25% of dividend payers in the US market (3.96%)


Stability and Growth of Payments

Stable Dividend: MAC's dividend payments have been volatile in the past 10 years.

Growing Dividend: MAC's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (88.2%), MAC's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MAC's dividends in 3 years are forecast to be thoroughly covered by earnings (0.5% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.1yrs

Average management tenure


CEO

Tom O'Hern (63yo)

1.1yrs

Tenure

US$9,355,527

Compensation

Mr. Thomas E. O'Hern, also known as Tom, CPA, has been Director at Macerich Company since June 22, 2018 and its Chief Executive Officer since January 1, 2019. He served as the Chief Financial Officer and T ...


CEO Compensation Analysis

Compensation vs Market: Tom's total compensation ($USD9.36M) is above average for companies of similar size in the US market ($USD4.98M).

Compensation vs Earnings: Tom's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Thomas O'Hern
CEO & Director1.1yrsUS$9.36m0.061% $2.0m
Edward Coppola
President & Director25.8yrsUS$6.61m0.26% $8.6m
Ann Menard
Executive VP1.9yrsUS$2.66mno data
Douglas Healey
Executive Vice President of Leasing0yrsUS$982.27k0.023% $732.8k
Scott Kingsmore
Executive VP1.1yrsno data0.015% $482.0k
Christopher Zecchini
Senior VP & Chief Accounting Officer1.1yrsno data0.0040% $130.4k
J. Jones
Senior VP & Chief Information Officer0yrsno datano data
Jean Wood
Vice President of Investor Relations11.7yrsno datano data
Robert Beffa
Senior Vice President of Real Estate0yrsno datano data
Kenneth Volk
Executive Vice President of Business Development1.1yrsno data0.018% $583.2k

1.1yrs

Average Tenure

56yo

Average Age

Experienced Management: MAC's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Thomas O'Hern
CEO & Director1.1yrsUS$9.36m0.061% $2.0m
Edward Coppola
President & Director25.8yrsUS$6.61m0.26% $8.6m
Dana Anderson
Vice Chairman Emeritus0yrsno data0.085% $2.8m
Steven Soboroff
Independent Director6.1yrsUS$239.09k0.000020% $650.5
John Alschuler
Independent Director4.8yrsUS$207.50k0.013% $435.2k
Diana Laing
Independent Director16.3yrsUS$207.50k0.0088% $286.9k
Andrea Stephen
Independent Director7.1yrsUS$240.00k0.051% $1.7m
Daniel Hirsch
Independent Director1.7yrsno data0.0032% $103.4k
Steven Hash
Independent Chairman1.7yrsUS$307.43k0.012% $388.4k
Peggy Alford
Independent Director1.9yrsUS$178.57k0.0015% $47.5k

4.8yrs

Average Tenure

63.5yo

Average Age

Experienced Board: MAC's board of directors are considered experienced (4.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: MAC insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

The Macerich Company's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: The Macerich Company
  • Ticker: MAC
  • Exchange: NYSE
  • Founded: 1965
  • Industry: Retail REITs
  • Sector: Real Estate
  • Implied Market Cap: US$3.253b
  • Market Cap: US$3.028b
  • Shares outstanding: 151.78m
  • Website: https://www.macerich.com

Number of Employees


Location

  • The Macerich Company
  • 401 Wilshire Boulevard
  • Suite 700
  • Santa Monica
  • California
  • 90401
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MACNYSE (New York Stock Exchange)YesCommon StockUSUSDMar 1994
M6GDB (Deutsche Boerse AG)YesCommon StockDEEURMar 1994
0JX5LSE (London Stock Exchange)YesCommon StockGBUSDMar 1994

Biography

Macerich is a fully integrated, self-managed and self-administered real estate investment trust, which focuses on the acquisition, leasing, management, development and redevelopment of regional malls throughout the United States. Macerich currently owns 51 million square feet of real estate consisting primarily of interests in 47 regional shopping centers. Macerich specializes in successful retail properties in many of the country's most attractive, densely populated markets with significant presence in the West Coast, Arizona, Chicago and the Metro New York to Washington, DC corridor. A recognized leader in sustainability, Macerich has achieved the #1 GRESB ranking in the North American Retail Sector for five straight years (2015 – 2019). 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/28 00:17
End of Day Share Price2020/02/27 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.