Marcus & Millichap, Inc. Fundamental Analysis
Marcus & Millichap, Inc. (MMI) shows moderate financial fundamentals with a PE ratio of -1956.58, profit margin of -0.08%, and ROE of -0.10%. The company generates $0.8B in annual revenue with moderate year-over-year growth of 8.49%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 40.3/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze MMI's fundamental strength across five key dimensions:
Efficiency Score
WeakMMI struggles to generate sufficient returns from assets.
Valuation Score
ModerateMMI shows balanced valuation metrics.
Growth Score
ExcellentMMI delivers strong and consistent growth momentum.
Financial Health Score
ExcellentMMI maintains a strong and stable balance sheet.
Profitability Score
WeakMMI struggles to sustain strong margins.
Key Financial Metrics
Is MMI Expensive or Cheap?
P/E Ratio
MMI trades at -1956.58 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, MMI's PEG of 82.09 indicates potential overvaluation.
Price to Book
The market values Marcus & Millichap, Inc. at 2.02 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 43.72 times EBITDA. This signals the market has high growth expectations.
How Well Does MMI Make Money?
Net Profit Margin
For every $100 in sales, Marcus & Millichap, Inc. keeps $-0.08 as profit after all expenses.
Operating Margin
Core operations generate -0.02 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-0.10 in profit for every $100 of shareholder equity.
ROA
Marcus & Millichap, Inc. generates $-0.08 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Marcus & Millichap, Inc. produces operating cash flow of $91.01M, showing steady but balanced cash generation.
Free Cash Flow
Marcus & Millichap, Inc. generates strong free cash flow of $81.75M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $2.16 in free cash annually.
FCF Yield
MMI converts 7.28% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-1956.58
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
82.09
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.02
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.45
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.13
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.65
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.00
vs 25 benchmark
ROA
Return on assets percentage
-0.00
vs 25 benchmark
ROCE
Return on capital employed
-0.00
vs 25 benchmark
How MMI Stacks Against Its Sector Peers
| Metric | MMI Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -1956.58 | 23.27 | Better (Cheaper) |
| ROE | -0.10% | 680.00% | Weak |
| Net Margin | -0.08% | 1953.00% | Weak |
| Debt/Equity | 0.13 | -17.04 (disorted) | Distorted |
| Current Ratio | 2.65 | 23.29 | Strong Liquidity |
| ROA | -0.08% | -758.00% (disorted) | Weak |
MMI outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Marcus & Millichap, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
7.23%
Industry Style: Income, Inflation Hedge, REIT
GrowingEPS CAGR
-104.54%
Industry Style: Income, Inflation Hedge, REIT
DecliningFCF CAGR
78.15%
Industry Style: Income, Inflation Hedge, REIT
High Growth