Marcus & Millichap (NYSE:MMI) - Share price, News & Analysis

Q: What is the Fair Price of MMI when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

MMI ($36.92) is trading below our estimate of [[fair value]] ($609.43)

MMI fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	2/6
Past Performance	6/6
Financial Health	6/6
Dividends	2/6

MMI Stock Overview

Rewards

Trading at 93.9% below our estimate of its fair value

Earnings are forecast to grow 9.22% per year

Earnings grew by 257.8% over the past year

Risk Analysis

Significant insider selling over the past 3 months

Marcus & Millichap Competitors

Anywhere Real Estate

NYSE:HOUS

US$1.2b

Newmark Group

NasdaqGS:NMRK

US$2.1b

Offerpad Solutions

NYSE:OPAD

US$645.0m

Cushman & Wakefield

NYSE:CWK

US$3.4b

Price History & Performance

Summary of all time highs, changes and price drops for Marcus & Millichap
Historical stock prices
Current Share Price	US$36.92
52 Week High	US$58.33
52 Week Low	US$34.13
Beta	0.93
1 Month Change	-12.07%
3 Month Change	-27.44%
1 Year Change	-6.53%
3 Year Change	19.99%
5 Year Change	37.71%
Change since IPO	165.42%

Recent News & Updates

Jun 23

Here's Why We Think Marcus & Millichap (NYSE:MMI) Might Deserve Your Attention Today

For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to...

Apr 19

What Does Marcus & Millichap, Inc.'s (NYSE:MMI) Share Price Indicate?

While Marcus & Millichap, Inc. ( NYSE:MMI ) might not be the most widely known stock at the moment, it saw a...

Shareholder Returns

	MMI	US Real Estate	US Market
7D	3.1%	7.5%	6.3%
1Y	-6.5%	-51.4%	-18.8%

Return vs Industry: MMI exceeded the US Real Estate industry which returned -51.2% over the past year.

Return vs Market: MMI exceeded the US Market which returned -18.4% over the past year.

Price Volatility

Is MMI's price volatile compared to industry and market?
MMI volatility
MMI Average Weekly Movement	6.5%
Real Estate Industry Average Movement	8.4%
Market Average Movement	8.1%
10% most volatile stocks in US Market	16.7%
10% least volatile stocks in US Market	3.2%

Stable Share Price: MMI is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: MMI's weekly volatility (7%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1971	801	Hessam Nadji	https://www.marcusmillichap.com

Marcus & Millichap, Inc., an investment brokerage company, provides real estate investment brokerage and financing services to sellers and buyers of commercial real estate in the United States and Canada. The company offers commercial real estate investment sales, financing, research, and advisory services for multifamily, retail, office, industrial, single-tenant net lease, seniors housing, self-storage, hospitality, medical office, and manufactured housing. It also operates as a financial intermediary that provides commercial real estate capital markets solutions, including senior debt, mezzanine debt, joint venture, and preferred equity, as well as loan sales and consultative/due diligence services to commercial real estate owners, developers, investors, and capital providers.

Marcus & Millichap Fundamentals Summary

How do Marcus & Millichap's earnings and revenue compare to its market cap?
MMI fundamental statistics
Market Cap	US$1.44b
Earnings (TTM)	US$160.24m
Revenue (TTM)	US$1.43b

9.0x

P/E Ratio

1.0x

P/S Ratio

Is MMI overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
MMI income statement (TTM)
Revenue	US$1.43b
Cost of Revenue	US$927.87m
Gross Profit	US$504.05m
Other Expenses	US$343.81m
Earnings	US$160.24m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	4.12
Gross Margin	35.20%
Net Profit Margin	11.19%
Debt/Equity Ratio	0%

How did MMI perform over the long term?

See historical performance and comparison

Dividends

1.4%

Current Dividend Yield

6%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is MMI undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for MMI?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for MMI. This is calculated by dividing MMI's market cap by their current preferred multiple.
What is MMI's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$1.44b

MMI key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.6x
Enterprise Value/EBITDA	4x
PEG Ratio	1x

Price to Earnings Ratio vs Peers

How does MMI's PE Ratio compare to its peers?

MMI PE Ratio vs Peers

The above table shows the PE ratio for MMI vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	7.7x
HOUS Anywhere Real Estate	3.6x	1.8%	US$1.2b
NMRK Newmark Group	2.6x	-80.1%	US$2.1b
OPAD Offerpad Solutions	13.5x	30.9%	US$645.0m
CWK Cushman & Wakefield	10.9x	4.1%	US$3.4b
MMI Marcus & Millichap	9x	9.2%	US$1.4b

Forward PE

Price-To-Earnings vs Peers: MMI is expensive based on its Price-To-Earnings Ratio (9x) compared to the peer average (7.7x).

Price to Earnings Ratio vs Industry

How does MMI's PE Ratio compare vs other companies in the US Real Estate Industry?

Price-To-Earnings vs Industry: MMI is good value based on its Price-To-Earnings Ratio (9x) compared to the US Real Estate industry average (10.2x)

Price to Earnings Ratio vs Fair Ratio

What is MMI's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

MMI PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	9x
Fair PE Ratio	32.2x

Price-To-Earnings vs Fair Ratio: MMI is good value based on its Price-To-Earnings Ratio (9x) compared to the estimated Fair Price-To-Earnings Ratio (32.2x).

Share Price vs Fair Value

What is the Fair Price of MMI when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: MMI ($36.92) is trading below our estimate of fair value ($609.43)

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

Price to Earnings Growth Ratio

PEG Ratio: MMI is good value based on its PEG Ratio (1x)

Discover undervalued companies

Future Growth

How is Marcus & Millichap forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

Future Growth Score

2/6

Future Growth Score 2/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

9.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: MMI's forecast earnings growth (9.2% per year) is above the savings rate (1.9%).

Earnings vs Market: MMI's earnings (9.2% per year) are forecast to grow slower than the US market (13.9% per year).

High Growth Earnings: MMI's earnings are forecast to grow, but not significantly.

Revenue vs Market: MMI's revenue (9.9% per year) is forecast to grow faster than the US market (8.4% per year).

High Growth Revenue: MMI's revenue (9.9% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: Insufficient data to determine if MMI's Return on Equity is forecast to be high in 3 years time

Discover growth companies

Past Performance

How has Marcus & Millichap performed over the past 5 years?

Past Performance Score

6/6

Past Performance Score 6/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

12.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: MMI has high quality earnings.

Growing Profit Margin: MMI's current net profit margins (11.2%) are higher than last year (6.3%).

Past Earnings Growth Analysis

Earnings Trend: MMI's earnings have grown by 12.6% per year over the past 5 years.

Accelerating Growth: MMI's earnings growth over the past year (257.8%) exceeds its 5-year average (12.6% per year).

Earnings vs Industry: MMI earnings growth over the past year (257.8%) exceeded the Real Estate industry 116.4%.

Return on Equity

High ROE: MMI's Return on Equity (23.7%) is considered high.

Discover strong past performing companies

Financial Health

How is Marcus & Millichap's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: MMI's short term assets ($570.8M) exceed its short term liabilities ($192.3M).

Long Term Liabilities: MMI's short term assets ($570.8M) exceed its long term liabilities ($112.5M).

Debt to Equity History and Analysis

Debt Level: MMI is debt free.

Reducing Debt: MMI has no debt compared to 5 years ago when its debt to equity ratio was 3.6%.

Debt Coverage: MMI has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: MMI has no debt, therefore coverage of interest payments is not a concern.

Balance Sheet

Discover healthy companies

Dividend

What is Marcus & Millichap current dividend yield, its reliability and sustainability?

Dividend Score

1/6

Dividend Score 1/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

1.35%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: MMI's dividend (1.35%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.57%).

High Dividend: MMI's dividend (1.35%) is low compared to the top 25% of dividend payers in the US market (4.23%).

Stability and Growth of Payments

Stable Dividend: Too early to tell whether MMI's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if MMI's dividend payments are increasing as they only just started paying a dividend.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (6.2%), MMI's dividend payments are thoroughly covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (9.7%), MMI's dividend payments are thoroughly covered by cash flows.

Discover strong dividend paying companies

Management

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

4.8yrs

Average management tenure

CEO

Hessam Nadji (56 yo)

6.25yrs

Tenure

US$8,224,777

Compensation

Mr. Hessam Nadji has been the President, Chief Executive Officer and Director of Marcus & Millichap Inc. since March 31, 2016. Prior to this, Mr. Nadji served as a Senior Executive Vice President from May...

CEO Compensation Analysis

Compensation vs Market: Hessam's total compensation ($USD8.22M) is above average for companies of similar size in the US market ($USD5.46M).

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

Leadership Team

Experienced Management: MMI's management team is considered experienced (4.8 years average tenure).

Board Members

Experienced Board: MMI's board of directors are considered experienced (8.7 years average tenure).

Ownership

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

Insider Trading Volume

Insider Buying: MMI insiders have only sold shares in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

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

Data	Last Updated (UTC time)
Company Analysis	2022/06/27 00:00
End of Day Share Price	2022/06/27 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31