NYSE:MMI

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

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. More Details


Snowflake Analysis

Flawless balance sheet and overvalued.


Similar Companies

Share Price & News

How has Marcus & Millichap's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MMI has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.8%

MMI

-0.3%

US Real Estate

-1.4%

US Market


1 Year Return

-14.6%

MMI

-15.4%

US Real Estate

17.8%

US Market

Return vs Industry: MMI matched the US Real Estate industry which returned -14.4% over the past year.

Return vs Market: MMI underperformed the US Market which returned 18.2% over the past year.


Shareholder returns

MMIIndustryMarket
7 Day-0.8%-0.3%-1.4%
30 Day10.9%22.8%4.7%
90 Day10.5%15.5%8.2%
1 Year-14.6%-14.6%-13.1%-15.4%20.5%17.8%
3 Year14.3%14.3%-12.3%-18.8%42.2%32.7%
5 Year-27.1%-27.1%-12.5%-21.9%83.4%62.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Marcus & Millichap undervalued compared to its fair value and its price relative to the market?

22.91x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate MMI's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate MMI's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: MMI is good value based on its PE Ratio (22.9x) compared to the US Real Estate industry average (37x).

PE vs Market: MMI is poor value based on its PE Ratio (22.9x) compared to the US market (18.8x).


Price to Earnings Growth Ratio

PEG Ratio: MMI is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: MMI is overvalued based on its PB Ratio (2.4x) compared to the US Real Estate industry average (1x).


Next Steps

Future Growth

How is Marcus & Millichap forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

13.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MMI's forecast earnings growth (13.1% per year) is above the savings rate (2.2%).

Earnings vs Market: MMI's earnings (13.1% per year) are forecast to grow slower than the US market (22.1% per year).

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

Revenue vs Market: MMI's revenue (6.3% per year) is forecast to grow slower than the US market (10.1% per year).

High Growth Revenue: MMI's revenue (6.3% 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


Next Steps

Past Performance

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

4.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MMI has a high level of non-cash earnings.

Growing Profit Margin: MMI's current net profit margins (7.1%) are lower than last year (10.4%).


Past Earnings Growth Analysis

Earnings Trend: MMI's earnings have grown by 4% per year over the past 5 years.

Accelerating Growth: MMI's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: MMI had negative earnings growth (-36.7%) over the past year, making it difficult to compare to the Real Estate industry average (7.1%).


Return on Equity

High ROE: MMI's Return on Equity (10.4%) is considered low.


Next Steps

Financial Health

How is Marcus & Millichap's financial position?


Financial Position Analysis

Short Term Liabilities: MMI's short term assets ($347.7M) exceed its short term liabilities ($58.6M).

Long Term Liabilities: MMI's short term assets ($347.7M) exceed its long term liabilities ($99.3M).


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 6.9%.

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


Next Steps

Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate MMI's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate MMI's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if MMI's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if MMI's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of MMI's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

4.6yrs

Average management tenure


CEO

Hessam Nadji (55 yo)

4.58yrs

Tenure

US$5,787,225

Compensation

Mr. Hessam Nadji has been President, Chief Executive Officer and Director of Marcus & Millichap Inc. since March 31, 2016. Prior to his appointment as President and Chief Executive Officer of the Company, ...


CEO Compensation Analysis

Compensation vs Market: Hessam's total compensation ($USD5.79M) is about average for companies of similar size in the US market ($USD4.48M).

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


Leadership Team

NamePositionTenureCompensationOwnership
George Marcus
Co-Founder & Chairman49.75yrsUS$139.99k37.72%
$ 457.1m
Hessam Nadji
President4.58yrsUS$5.79m0.64%
$ 7.8m
Gregory LaBerge
Senior VP & Chief Administrative Officer5yrsUS$694.02k0.019%
$ 235.7k
Martin Louie
Senior Vice President of Corporate Initiatives0.17yrUS$848.88k0.21%
$ 2.6m
Steven DeGennaro
Executive VP & Chief Financial Officer0.17yrno datano data
Glen Kunofsky
Exec. VP of Investments and Senior Director of National Retail Group & Net Leased Properties Group8.17yrsno datano data
Kurt Schwarz
First VP & Chief Accounting Officer6.42yrsno data0.012%
$ 142.5k
Ken Sayward
First VP & Chief Information Officer0.75yrno datano data
Evelyn Infurna
Managing Director4.75yrsno datano data
Tyler Theobald
First Vice President & General Counsel1.5yrsno datano data
Gina Relva
Public Relations Directorno datano datano data
Ron Houghtaling
VP & Director of Marketing0.75yrno datano data

4.6yrs

Average Tenure

58yo

Average Age

Experienced Management: MMI's management team is considered experienced (4.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
George Marcus
Co-Founder & Chairman49.75yrsUS$139.99k37.72%
$ 457.1m
Hessam Nadji
President4.58yrsUS$5.79m0.64%
$ 7.8m
Lauralee Martin
Independent Director1.17yrsUS$128.73k0.013%
$ 155.7k
George Shaheen
Independent Director7yrsUS$159.99k0.034%
$ 408.0k
Don Watters
Lead Independent Directorno dataUS$164.99k0.057%
$ 695.8k
Nicholas McClanahan
Independent Director7yrsUS$154.99k0.057%
$ 695.8k
Norma Lawrence
Independent Director7yrsUS$164.99k0.054%
$ 656.5k

7.0yrs

Average Tenure

75yo

Average Age

Experienced Board: MMI's board of directors are considered experienced (7 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

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


Top Shareholders

Company Information

Marcus & Millichap, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Marcus & Millichap, Inc.
  • Ticker: MMI
  • Exchange: NYSE
  • Founded: 1971
  • Industry: Real Estate Services
  • Sector: Real Estate
  • Market Cap: US$1.212b
  • Shares outstanding: 39.31m
  • Website: https://www.marcusmillichap.com

Number of Employees


Location

  • Marcus & Millichap, Inc.
  • 23975 Park Sorrento
  • Suite 400
  • Calabasas
  • California
  • 91302
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MMINYSE (New York Stock Exchange)YesNew Common StockUSUSDNov 2013
M6MDB (Deutsche Boerse AG)YesNew Common StockDEEURNov 2013

Biography

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. ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/20 23:45
End of Day Share Price2020/10/20 00:00
Earnings2020/06/30
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.