Macerich Stock Buy Hold or Sell Recommendation

MAC
 Stock
  

USD 12.39  0.08  0.65%   

Considering the 90-day investment horizon and your above-average risk tolerance, our recommendation regarding Macerich Company is 'Strong Buy'. Macroaxis provides Macerich buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding Macerich positions. The advice algorithm takes into account all of Macerich's available fundamental, technical, and predictive indicators you will find on this site.
  
The advice is provided from Macerich's buy-and-hold perspective. Additionally, see Macerich Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. We conduct extensive research on individual companies such as Macerich and provide practical buy, sell, or hold advice based on selected investing horizon and risk tolerance towards Macerich Company.

Execute Macerich Buy or Sell Advice

The Macerich recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Macerich Company. Macroaxis does not own or have any residual interests in Macerich Company or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Macerich's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell MacerichBuy Macerich
Strong Buy

Volatility

Details

Hype Condition

Details

Current Valuation

Details

Odds of Distress

Details

Economic Sensitivity

Details

Analyst Consensus

Details

Financial Strenth (F Score)

Details

Financial Leverage

Inapplicable
Details

Reporting Quality (M-Score)

Details
For the selected time horizon Macerich Company has a Risk Adjusted Performance of 0.232, Jensen Alpha of 0.3773, Total Risk Alpha of 0.3381, Sortino Ratio of 0.148 and Treynor Ratio of 0.3071
Our investment recommendation tool can cross-verify current analyst consensus on Macerich Company and to analyze the entity potential to grow in the current economic cycle. To make sure Macerich is not overpriced, please verify all Macerich Company fundamentals, including its price to sales, cash per share, and the relationship between the number of shares shorted and ebitda . Given that Macerich has a price to earning of 53.00 X, we recommend you to check Macerich market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your last-minute risk tolerance and investing horizon.

Macerich Trading Alerts and Improvement Suggestions

Macerich has very high historical volatility over the last 90 days
The company has 4.53 B in debt with debt to equity (D/E) ratio of 1.53, which is OK given its current industry classification. Macerich has a current ratio of 0.44, suggesting that it has not enough short term capital to pay financial commitments when the payables are due. Debt can assist Macerich until it has trouble settling it off, either with new capital or with free cash flow. So, Macerich's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Macerich sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Macerich to invest in growth at high rates of return. When we think about Macerich's use of debt, we should always consider it together with cash and equity.
Macerich has a poor financial position based on the latest SEC disclosures
Over 84.0% of Macerich shares are owned by institutional investors
On 2nd of December 2022 Macerich paid $ 0.17 per share dividend to its current shareholders
Latest headline from news.google.com: Deutsche Bank Adjusts Macerich Company Price Target to 16 From 13, Maintains Buy Rating - Marketscreener.com

Macerich Returns Distribution Density

The distribution of Macerich's historical returns is an attempt to chart the uncertainty of Macerich's future price movements. The chart of the probability distribution of Macerich stock daily returns describes the distribution of returns around its average expected value. We use Macerich Company price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Macerich returns is essential to provide solid investment advice for Macerich.
Mean Return0.49Value At Risk-3.73
Potential Upside6.16Standard Deviation3.24
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Macerich historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Macerich Cash Flow Accounts

201720182019202020212022 (projected)
Capital Expenditure(202.15 M)(237.23 M)(187.91 M)(68.3 M)(108.21 M)(116.75 M)
Depreciation Amortization and Accretion341.27 M334.68 M337.67 M326.06 M324.4 M318.75 M
Net Cash Flow or Change in Cash and Cash Equivalents(892 K)6.2 M(35.09 M)368.44 M(315.69 M)(324 M)
Net Cash Flow Business Acquisitions and Disposals150.43 M355.4 M13.45 M(148.23 M)7.08 M7.27 M
Issuance Purchase of Equity Shares(219.56 M)1.57 M1.52 M1.53 M831.59 M897.24 M
Issuance Repayment of Debt Securities210.27 M(54.81 M)199.49 M628.61 M(1.5 B)(1.54 B)
Payment of Dividends and Other Cash Distributions(443.84 M)(453.63 M)(474.53 M)(179.86 M)(143.45 M)(154.77 M)
Net Cash Flow from Financing(566.27 M)(514.44 M)(278.22 M)446.45 M(837.02 M)(859.05 M)
Net Cash Flow from Investing176.87 M176.32 M(112.03 M)(202.85 M)234.97 M253.52 M
Net Cash Flow Investment Acquisitions and Disposals7.07 M1.04 M68.82 M1.3 M1.5 M2.01 M
Net Cash Flow from Operations386.39 M344.31 M355.16 M124.84 M286.37 M346.92 M
Share Based Compensation30.8 M27.37 M12.03 M13.84 M14.27 M16.63 M

Macerich Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Macerich or Equity Real Estate Investment Trusts (REITs) sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Macerich's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Macerich stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over NYSE Composite
0.38
β
Beta against NYSE Composite1.56
σ
Overall volatility
3.28
Ir
Information ratio 0.13

Macerich Volatility Alert

Macerich Company currently demonstrates below-average downside deviation. It has Information Ratio of 0.13 and Jensen Alpha of 0.38. However, we advise investors to further question Macerich Company expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Macerich's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Macerich's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Macerich Fundamentals Vs Peers

Comparing Macerich's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Macerich's direct or indirect competition across all of the common fundamentals between Macerich and the related equities. This way, we can detect undervalued stocks with similar characteristics as Macerich or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Macerich's fundamental indicators could also be used in its relative valuation, which is a method of valuing Macerich by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Macerich to competition
FundamentalsMacerichPeer Average
Return On Equity(0.0301) %(0.31) %
Return On Asset0.0092 %(0.14) %
Profit Margin(0.10) %(1.27) %
Operating Margin0.14 %(5.51) %
Current Valuation7.03 B16.62 B
Shares Outstanding214.78 M571.82 M
Shares Owned by Insiders4.08 %10.09 %
Shares Owned by Institutions83.52 %39.21 %
Number of Shares Shorted16.9 M4.71 M
Price to Earning53.00 X28.72 X
Price to Book0.93 X9.51 X
Price to Sales3.28 X11.42 X
Revenue847.44 M9.43 B
Gross Profit487.08 M27.38 B
EBITDA525.02 M3.9 B
Net Income14.26 M570.98 M
Cash and Equivalents112.45 M2.7 B
Cash per Share0.50 X5.01 X
Total Debt4.53 B5.32 B
Debt to Equity1.52 %48.70 %
Current Ratio0.45 X2.16 X
Book Value Per Share13.48 X1.93 K
Cash Flow from Operations286971.22 M
Short Ratio5.51 X4.00 X
Earnings Per Share0.24 X3.12 X
Price to Earnings To Growth(485.00) X4.89 X
Target Price11.79
Number of Employees63918.84 K
Beta2.05-0.15
Market Capitalization2.77 B19.03 B
Total Asset8.35 B29.47 B
Retained Earnings(2 B)9.33 B
Working Capital(557.48 M)1.48 B
   Sale by Christopher Zecchini of 2000 shares of Macerich [view details]

About Macerich Buy or Sell Advice

When is the right time to buy or sell Macerich Company? Buying financial instruments such as Macerich Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
 2019 2020 2021 2022 (projected)
Accounts Payable51.03 M68.83 M59.23 M71.63 M
Receivables144.03 M239.19 M211.36 M168.69 M

Use Investing Ideas to Build Portfolios

In addition to having Macerich in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Transportation Thematic Idea Now

Transportation
Transportation Theme
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Transportation theme has 13 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Transportation Theme or any other thematic opportunities.
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Additionally, see Macerich Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. Note that the Macerich information on this page should be used as a complementary analysis to other Macerich's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.

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Is Macerich's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Macerich. If investors know Macerich will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Macerich listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Market Capitalization
2.8 B
Quarterly Revenue Growth YOY
0.031
Return On Assets
0.0092
Return On Equity
(0.0301) 
The market value of Macerich is measured differently than its book value, which is the value of Macerich that is recorded on the company's balance sheet. Investors also form their own opinion of Macerich's value that differs from its market value or its book value, called intrinsic value, which is Macerich's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Macerich's market value can be influenced by many factors that don't directly affect Macerich's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Macerich's value and its price as these two are different measures arrived at by different means. Investors typically determine Macerich value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Macerich's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.