NYSE:MAC

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

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. More Details


Snowflake Analysis

Average dividend payer and fair 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 is more volatile than 75% of US stocks over the past 3 months, typically moving +/- 14% a week.

Volatility Over Time: MAC's weekly volatility (14%) has been stable over the past year, but is still higher than 75% of US stocks.


Market Performance


7 Day Return

-1.1%

MAC

-3.1%

US REITs

-0.7%

US Market


1 Year Return

-37.0%

MAC

-4.6%

US REITs

36.6%

US Market

Return vs Industry: MAC underperformed the US REITs industry which returned -4.6% over the past year.

Return vs Market: MAC underperformed the US Market which returned 36.6% over the past year.


Shareholder returns

MACIndustryMarket
7 Day-1.1%-3.1%-0.7%
30 Day-17.2%2.6%4.3%
90 Day25.0%3.6%8.1%
1 Year-27.8%-37.0%-0.2%-4.6%39.6%36.6%
3 Year-70.5%-78.0%32.3%16.1%53.5%43.7%
5 Year-75.7%-83.4%44.9%15.6%123.7%98.8%

Long-Term 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 ($13) is trading below our estimate of fair value ($44.37)

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


Price To Earnings Ratio

PE vs Industry: MAC is unprofitable, so we can't compare its PE Ratio to the US REITs industry average.

PE vs Market: MAC is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate MAC's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: MAC is good value based on its PB Ratio (0.9x) compared to the US REITs industry average (1.6x).


Next Steps

Future Growth

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

63.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MAC is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: MAC is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: MAC is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: MAC's revenue (3.5% per year) is forecast to grow slower than the US market (10.3% per year).

High Growth Revenue: MAC's revenue (3.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MAC is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has Macerich performed over the past 5 years?

-64.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MAC is currently unprofitable.

Growing Profit Margin: MAC is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: MAC is unprofitable, and losses have increased over the past 5 years at a rate of 64.2% per year.

Accelerating Growth: Unable to compare MAC's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: MAC is unprofitable, making it difficult to compare its past year earnings growth to the REITs industry (-6.1%).


Return on Equity

High ROE: MAC has a negative Return on Equity (-10.04%), as it is currently unprofitable.


Next Steps

Financial Health

How is Macerich's financial position?


Financial Position Analysis

Short Term Liabilities: MAC's short term assets ($723.5M) do not cover its short term liabilities ($1.0B).

Long Term Liabilities: MAC's short term assets ($723.5M) do not cover its long term liabilities ($5.7B).


Debt to Equity History and Analysis

Debt Level: MAC's debt to equity ratio (252.8%) is considered high.

Reducing Debt: MAC's debt to equity ratio has increased from 103.5% to 252.8% over the past 5 years.

Debt Coverage: MAC's debt is not well covered by operating cash flow (2%).

Interest Coverage: MAC is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

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

4.61%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MAC's dividend (4.62%) is higher than the bottom 25% of dividend payers in the US market (1.32%).

High Dividend: MAC's dividend (4.62%) is in the top 25% of dividend payers in the US market (3.72%)


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 fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (53%), MAC's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MAC's dividends in 3 years are forecast to be well covered by earnings (43.4% payout ratio).


Next Steps

Management

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

2.2yrs

Average management tenure


CEO

Tom O'Hern (64 yo)

2.17yrs

Tenure

US$6,938,049

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 ($USD6.94M) is above average for companies of similar size in the US market ($USD3.63M).

Compensation vs Earnings: Tom's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Thomas O'Hern
CEO & Director2.17yrsUS$6.94m0.084%
$ 1.8m
Edward Coppola
President & Director26.83yrsUS$6.56m0.38%
$ 8.1m
Scott Kingsmore
Senior EVP2.17yrsUS$2.06m0.017%
$ 365.3k
Kenneth Volk
Executive Vice President of Business Development2.17yrsUS$2.22m0.023%
$ 491.3k
Douglas Healey
Senior EVP & Head of Leasingno dataUS$2.29m0.037%
$ 806.4k
Christopher Zecchini
Senior VP & Chief Accounting Officer2.17yrsno data0.0067%
$ 144.1k
Jean Wood
Vice President of Investor Relations12.75yrsno datano data
Ann Menard
Senior EVP3yrsUS$2.66m0.0065%
$ 139.0k
Olivia Leigh
Executive Vice President of Portfolio Operations & People1.17yrsno datano data
Robert Beffa
Senior Vice President of Real Estateno datano datano data
Jamie Bourbeau
Senior Vice President of Outlet Divisionno datano datano data
Michael Slavin
Senior Vice President of Information Technologyno datano datano data

2.2yrs

Average Tenure

57yo

Average Age

Experienced Management: MAC's management team is considered experienced (2.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Thomas O'Hern
CEO & Director2.17yrsUS$6.94m0.084%
$ 1.8m
Edward Coppola
President & Director26.83yrsUS$6.56m0.38%
$ 8.1m
Eric Brandt
Independent Director2.75yrsUS$217.50k0.0035%
$ 75.5k
Dana Anderson
Vice Chairman Emeritusno datano data0.049%
$ 1.0m
Steven Soboroff
Independent Director7.17yrsUS$257.50k0.011%
$ 231.9k
John Alschuler
Independent Director5.83yrsUS$231.25k0.014%
$ 291.7k
Diana Laing
Independent Director17.42yrsUS$218.73k0.0081%
$ 173.4k
Andrea Stephen
Independent Director8.17yrsUS$250.00k0.052%
$ 1.1m
Daniel Hirsch
Independent Director2.75yrsUS$228.97k0.0071%
$ 152.9k
Steven Hash
Independent Chairman2.75yrsUS$320.62k0.019%
$ 407.8k
Peggy Alford
Independent Director3yrsUS$238.36k0.0039%
$ 83.2k

4.4yrs

Average Tenure

64yo

Average Age

Experienced Board: MAC's board of directors are considered experienced (4.4 years average tenure).


Ownership

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


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 9%.


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$2.151b
  • Market Cap: US$2.012b
  • Shares outstanding: 165.47m
  • 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 throu...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/03/03 00:03
End of Day Share Price2021/03/02 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.