NYSE:MMI

Stock Analysis Report

Executive Summary

Marcus & Millichap, Inc., a brokerage company, provides real estate investment brokerage and financing services to sellers and buyers of commercial real estate in the United States and Canada.

Snowflake

Fundamentals

Flawless balance sheet with proven track record.


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


Market Performance


7 Day Return

3.8%

MMI

4.0%

US Real Estate

3.4%

US Market


1 Year Return

10.0%

MMI

3.6%

US Real Estate

5.4%

US Market

Return vs Industry: MMI exceeded the US Real Estate industry which returned 3.6% over the past year.

Return vs Market: MMI exceeded the US Market which returned 5.4% over the past year.


Shareholder returns

MMIIndustryMarket
7 Day3.8%4.0%3.4%
30 Day-5.5%-3.0%-1.0%
90 Day12.5%-1.0%-0.4%
1 Year10.0%10.0%4.6%3.6%7.7%5.4%
3 Year44.3%44.3%31.4%27.8%46.2%36.8%
5 Year27.1%27.1%13.5%9.1%65.6%47.5%

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?

16.56x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: MMI ($35.43) is trading above our estimate of fair value ($14.25)

Significantly Undervalued: MMI is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: MMI is good value based on its PE Ratio (16.6x) compared to the Real Estate industry average (20.5x).

PE vs Market: MMI is good value based on its PE Ratio (16.6x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: MMI is poor value based on its PEG Ratio (6.6x)


Price to Book Ratio

PB vs Industry: MMI is overvalued based on its PB Ratio (3.1x) compared to the US Real Estate industry average (1.5x).


Next Steps

Future Growth

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

2.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MMI's forecast earnings growth (2.5% per year) is below the savings rate (2.7%).

Earnings vs Market: MMI's earnings (2.5% per year) are forecast to grow slower than the US market (14.3% per year).

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

Revenue vs Market: MMI's revenue (3.4% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: MMI's revenue (3.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High 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?

12.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: MMI's earnings have grown by 12.4% per year over the past 5 years.

Accelerating Growth: MMI's earnings growth over the past year (31%) exceeds its 5-year average (12.4% per year).

Earnings vs Industry: MMI earnings growth over the past year (31%) exceeded the Real Estate industry -20%.


Return on Equity

High ROE: MMI's Return on Equity (18.6%) is considered low.


Return on Assets

ROA vs Industry: MMI has a higher Return on Assets than the Real Estate industry average last year.


Return on Capital Employed

ROCE Improving: MMI's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Marcus & Millichap's financial position?


Financial Position Analysis

Short Term Liabilities: MMI's short term assets ($352.0M) exceeds its short term liabilities ($80.8M)

Long Term Liabilities: MMI's short term assets (352.0M) exceeds its long term liabilities (108.4M)


Debt to Equity History and Analysis

Debt Level: MMI's debt to equity ratio (1.5%) is considered satisfactory

Reducing Debt: MMI's debt to equity ratio has reduced from 13.5% to 1.5% over the past 5 years.

Debt Coverage: MMI's debt is well covered by operating cash flow (1065%).

Interest Coverage: MMI earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: MMI has a low level of unsold assets or inventory.

Debt Coverage by Assets: MMI's debt is covered by short term assets (assets are 53.629340x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.8%industryaverage2.6%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

What is the CEO of Marcus & Millichap's salary, the management and board of directors tenure and is there insider trading?

4.0yrs

Average management tenure


CEO

Hessam Nadji (54yo)

3.6yrs

Tenure

US$3,070,174

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 ($USD3.07M) is about average for companies of similar size in the US market ($USD4.07M).

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


Management Age and Tenure

4.0yrs

Average Tenure

59.5yo

Average Age

Experienced Management: MMI's management team is considered experienced (4 years average tenure).


Board Age and Tenure

6.0yrs

Average Tenure

74.5yo

Average Age

Experienced Board: MMI's board of directors are considered experienced (6 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$354,68020 Aug 19
Hessam Nadji
EntityIndividual
Role
Chief Executive Officer
President
Shares10,000
Max PriceUS$35.47
SellUS$330,72611 Jun 19
Mitchell LaBar
EntityIndividual
Role
Chief Operating Officer
Executive VP & COO
Shares10,586
Max PriceUS$31.24
SellUS$30,26815 Mar 19
Mitchell LaBar
EntityIndividual
Role
Chief Operating Officer
Executive VP & COO
Shares787
Max PriceUS$38.46
SellUS$386,20904 Mar 19
Hessam Nadji
EntityIndividual
Role
Chief Executive Officer
President
Shares10,000
Max PriceUS$38.62
SellUS$359,99826 Feb 19
Mitchell LaBar
EntityIndividual
Role
Chief Operating Officer
Executive VP & COO
Shares9,127
Max PriceUS$39.44
SellUS$3,587,14429 Nov 18
Phoenix Investments Holdings LLC
EntityCompany
Shares96,883
Max PriceUS$37.04
SellUS$217,17028 Nov 18
Hessam Nadji
EntityIndividual
Role
Chief Executive Officer
President
Shares5,900
Max PriceUS$36.81
SellUS$1,287,14720 Nov 18
Phoenix Investments Holdings LLC
EntityCompany
Shares34,783
Max PriceUS$37.01
SellUS$5,570,40015 Nov 18
Phoenix Investments Holdings LLC
EntityCompany
Shares150,000
Max PriceUS$37.31

Ownership Breakdown


Management Team

  • George Marcus (78yo)

    Co-Founder & Co-Chairman

    • Tenure: 48.8yrs
    • Compensation: US$139.97k
  • Bill Millichap (75yo)

    Co-Founder & Co-Chairman

    • Tenure: 19.8yrs
    • Compensation: US$139.97k
  • Hessam Nadji (54yo)

    President

    • Tenure: 3.6yrs
    • Compensation: US$3.07m
  • Mitch LaBar (59yo)

    Executive VP & COO

    • Tenure: 3.6yrs
    • Compensation: US$2.03m
  • Glen Kunofsky

    Exec. VP of Investments and Senior Director of National Retail Group & Net Leased Properties Group

    • Tenure: 7.2yrs
  • Marty Louie (58yo)

    Senior VP & CFO

    • Tenure: 9.8yrs
    • Compensation: US$983.03k
  • Evelyn Infurna

    Managing Director

    • Tenure: 3.8yrs
  • Kurt Schwarz (60yo)

    VP of Finance & Chief Accounting Officer

    • Tenure: 5.4yrs
  • Gregory LaBerge

    Senior VP & Chief Administrative Officer

    • Tenure: 4yrs
  • Tyler Theobald

    First Vice President & General Counsel

    • Tenure: 0.5yrs

Board Members

  • Lauralee Martin (68yo)

    Director

    • Tenure: 0.2yrs
  • George Shaheen (75yo)

    Independent Director

    • Tenure: 6yrs
    • Compensation: US$159.97k
  • George Marcus (78yo)

    Co-Founder & Co-Chairman

    • Tenure: 48.8yrs
    • Compensation: US$139.97k
  • Bill Millichap (75yo)

    Co-Founder & Co-Chairman

    • Tenure: 19.8yrs
    • Compensation: US$139.97k
  • Don Watters (76yo)

    Lead Independent Director

    • Tenure: 0yrs
    • Compensation: US$164.97k
  • Hessam Nadji (54yo)

    President

    • Tenure: 3.6yrs
    • Compensation: US$3.07m
  • Nicholas McClanahan (74yo)

    Independent Director

    • Tenure: 6yrs
    • Compensation: US$154.97k
  • Norma Lawrence (64yo)

    Independent Director

    • Tenure: 6yrs
    • Compensation: US$164.97k

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$1.385b
  • Shares outstanding: 39.09m
  • 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., a 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  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/16 00:22
End of Day Share Price2019/10/15 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.