Macerich
Market Cap
US$3.3b
Last Updated
2020/02/28 00:17 UTC
Data Sources
Company Financials +
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.
Rewards
Risk Analysis
Earnings are forecast to decline by an average of -24.8% per year for the next 3 years
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
| MAC | Industry | Market | |
|---|---|---|---|
| 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
1 week ago | Simply Wall St
Insider Buying: The The Macerich Company (NYSE:MAC) Independent Director Just Bought US$467k Worth Of Shares3 weeks ago | Simply Wall St
Read This Before Judging The Macerich Company's (NYSE:MAC) ROE1 month ago | Simply Wall St
Those Who Purchased Macerich (NYSE:MAC) Shares Five Years Ago Have A 69% Loss To Show For ItValuation
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
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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 1.1yrs | US$9.36m | 0.061% $2.0m | |
| President & Director | 25.8yrs | US$6.61m | 0.26% $8.6m | |
| Executive VP | 1.9yrs | US$2.66m | no data | |
| Executive Vice President of Leasing | 0yrs | US$982.27k | 0.023% $732.8k | |
| Executive VP | 1.1yrs | no data | 0.015% $482.0k | |
| Senior VP & Chief Accounting Officer | 1.1yrs | no data | 0.0040% $130.4k | |
| Senior VP & Chief Information Officer | 0yrs | no data | no data | |
| Vice President of Investor Relations | 11.7yrs | no data | no data | |
| Senior Vice President of Real Estate | 0yrs | no data | no data | |
| Executive Vice President of Business Development | 1.1yrs | no data | 0.018% $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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 1.1yrs | US$9.36m | 0.061% $2.0m | |
| President & Director | 25.8yrs | US$6.61m | 0.26% $8.6m | |
| Vice Chairman Emeritus | 0yrs | no data | 0.085% $2.8m | |
| Independent Director | 6.1yrs | US$239.09k | 0.000020% $650.5 | |
| Independent Director | 4.8yrs | US$207.50k | 0.013% $435.2k | |
| Independent Director | 16.3yrs | US$207.50k | 0.0088% $286.9k | |
| Independent Director | 7.1yrs | US$240.00k | 0.051% $1.7m | |
| Independent Director | 1.7yrs | no data | 0.0032% $103.4k | |
| Independent Chairman | 1.7yrs | US$307.43k | 0.012% $388.4k | |
| Independent Director | 1.9yrs | US$178.57k | 0.0015% $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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| MAC | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Mar 1994 |
| M6G | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Mar 1994 |
| 0JX5 | LSE (London Stock Exchange) | Yes | Common Stock | GB | USD | Mar 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/28 00:17 |
| End of Day Share Price | 2020/02/27 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.