Marcus & Millichap (MMI) AI Stock Analysis

• Market Cap: $1.14B
• Dividend Yield: 1.71%
• Average Volume (3M): 117.66K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.08
• Revenue Growth: 14.79%
• EPS Growth: 82.32%
• Country: US
• Employees: 897
• Sector: Real Estate
• Sector Strength: 56
• Industry: Real Estate - Services
• EPS (TTM): -0.11
• Shares Outstanding: 38,976,875
• 10 Day Avg. Volume: 111,543
• 30 Day Avg. Volume: 117,657
• PEG Ratio: -1.55
• Price to Book (P/B): 1.83
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 83.95
• Enterprise Value/Market Cap: 0.95
• Enterprise Value/Revenue: 0.43
• Enterprise Value/Gross Profit: 4.24
• Enterprise Value/Ebitda: -8.75
• 1Y Price Target: $30.00
• Price Target Upside: 6.99% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 0

• Rating: 53 Neutral
• Price Target: $30.00 ▲( 6.99% Upside)

Marcus & Millichap faces significant financial headwinds, with declining revenues and profitability being primary concerns. The strong balance sheet and strategic investments offer some hope, but technical indicators and valuation metrics suggest caution. The earnings call's positive revenue growth and strategic direction provide a slightly optimistic outlook amidst ongoing challenges.

Positive Factors

Deal Volumes

Raising estimates slightly on modestly better deal volumes.

Larger Deals

Larger deals beginning to pick up, but smaller transactions remain challenged.

Negative Factors

Economic Uncertainty

Depressed deal activity, the challenging capital markets environment, and continued economic uncertainty present headwinds for MMI's brokerage and financing businesses.

External Growth

Investors are looking for more meaningful external growth, which has not materialized for the company.

Transaction Volumes

Transaction volumes continue to fall, with a significant year-over-year decrease as reported by RCA.

Marcus & Millichap Business Overview & Revenue Model

Company Description

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. In addition, the company provides various ancillary services, including research, advisory, and consulting services to developers, lenders, owners, real estate investment trusts, high net worth individuals, pension fund advisors, and other institutions. Marcus & Millichap, Inc. was founded in 1971 and is headquartered in Calabasas, California.

How the Company Makes Money

Marcus & Millichap makes money primarily through commissions earned on the sale and financing of commercial real estate properties. The company's revenue model is heavily reliant on transaction volume, with agents earning fees based on the value of the real estate deals they facilitate. This includes sales of multifamily apartment buildings, retail centers, office properties, and more. In addition to sales commissions, Marcus & Millichap generates revenue from its financing services, where it arranges debt and equity financing for clients, earning fees for successfully securing funding. The company also benefits from its research and advisory services, which, although not a primary revenue source, enhance its brokerage services by providing clients with valuable market insights and strategic guidance.

Marcus & Millichap Financial Statement Overview

Summary

Marcus & Millichap is facing significant financial challenges, with declining revenues, negative profitability, and cash flow issues. While the balance sheet remains relatively stable, the income and cash flow statements indicate operational and financial stress. The company needs to address its revenue generation and cost management strategies to regain financial stability.

Income Statement

Marcus & Millichap has faced a challenging period with declining revenue and profitability. The TTM shows negative EBIT and net income, indicating operational challenges. Revenue growth has been negative over the past two years, with a significant decline in 2023 compared to 2022. Margins have also deteriorated, reflecting increased operational inefficiencies.

Balance Sheet

The company's balance sheet remains stable with a reasonable debt-to-equity ratio and a strong equity base. However, the decline in stockholders' equity and assets since 2022 poses some concern. Despite this, the equity ratio remains solid, providing a buffer against financial instability.

Cash Flow

Marcus & Millichap has struggled with cash flow, reporting negative free cash flow and operating cash flow in recent periods. Despite this, there is a slight improvement in free cash flow in the TTM compared to 2023, but the operating cash flow to net income ratio remains unfavorable.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
696.06M	645.93M	1.30B	1.30B	716.91M
	Gross Profit
264.59M	239.28M	450.82M	456.23M	269.03M
	EBIT
-32.91M	-59.37M	137.40M	189.36M	53.61M
	EBITDA
2.75M	-25.89M	150.65M	201.08M	64.51M
	Net Income Common Stockholders
-12.36M	-34.03M	104.22M	142.47M	42.84M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
349.46M	349.13M	489.29M	566.01M	401.41M
	Total Assets
869.80M	878.41M	1.00B	1.05B	779.12M
	Total Debt
84.22M	87.74M	82.09M	77.31M	78.60M
	Net Debt
-69.22M	-83.01M	-153.76M	-304.83M	-164.55M
	Total Liabilities
238.98M	233.14M	290.20M	348.89M	232.29M
	Stockholders Equity
630.82M	645.27M	713.51M	696.30M	546.84M
Cash Flow		Free Cash Flow
13.84M	-81.80M	1.96M	249.05M	31.14M
	Operating Cash Flow
21.71M	-72.43M	13.63M	255.90M	38.09M
	Investing Cash Flow
-9.90M	74.87M	-53.98M	-108.36M	-17.23M
	Financing Cash Flow
-28.75M	-67.68M	-105.56M	-5.92M	-10.33M

Marcus & Millichap Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 28.04
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MMI, the sentiment is Negative. The current price of 28.04 is below the 20-day moving average (MA) of 30.02, below the 50-day MA of 31.92, and below the 200-day MA of 36.60, indicating a bearish trend. The MACD of -0.81 indicates Positive momentum. The RSI at 31.47 is Neutral, neither overbought nor oversold. The STOCH value of 9.69 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MMI.

Marcus & Millichap Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JLL	76 Outperform	$10.99B	20.69	8.16%	―	13.63%	78.40%
CWK	74 Outperform	$2.40B	14.80	9.53%	―	1.24%	1205.18%
CBRE	74 Outperform	$38.90B	39.19	12.15%	―	13.14%	1.70%
Sector *	60 Neutral	$2.82B	10.38	0.33%	8508.19%	5.98%	-17.49%
NMRK	56 Neutral	$2.14B	29.48	5.32%	1.05%	13.87%	90.42%
MMI	53 Neutral	$1.14B	―	-1.09%	1.71%	14.79%	82.32%
RDFN	52 Neutral	$1.30B	―	199.35%	―	5.11%	-29.67%

Marcus & Millichap Corporate Events

Marcus & Millichap Reports Q1 2025 Revenue Growth

On May 1, 2025, Marcus & Millichap held its Annual Meeting of Stockholders, where stockholders elected directors and approved various proposals, including the ratification of Ernst & Young LLP as the independent registered public accounting firm for 2025. The company also reported a 12.3% revenue growth in the first quarter of 2025 compared to the same period in 2024, driven by increased brokerage commissions and financing fees. Despite a net loss of $4.4 million, the company showed improved financial performance and remains well-positioned for long-term growth, focusing on enhancing client value and investing in talent.

Marcus & Millichap Announces Management Reorganization

On April 29, 2025, Marcus & Millichap, Inc. announced a management reorganization, promoting John David Parker to Executive Vice President and Chief Operating Officer, overseeing all brokerage operations. Richard Matricaria has been named Senior Vice President and Chief Growth Officer, focusing on growth initiatives, while Greg LaBerge will transition to Senior Vice President, Chief Client Officer, overseeing specialty divisions.

Marcus & Millichap Appoints New Acting Chief Accounting Officer

Marcus & Millichap, Inc. announced the resignation of its Chief Accounting Officer, Kurt Schwarz, effective March 24, 2025. He will remain with the company until April 18, 2025, with no disagreements or issues related to his departure. Fabrice De Bosschère has been appointed as the acting Chief Accounting Officer effective March 25, 2025, pending formal appointment by the Board on May 1, 2025. De Bosschère, who has been with the company since January 2022, brings extensive international finance and accounting experience from his previous roles at Publicis Groupe.