Marcus & Millichap (MMI) AI Stock Analysis

• Market Cap: $1.20B
• Dividend Yield: 1.63%
• Average Volume (3M): 125.09K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.07
• Revenue Growth: 14.79%
• EPS Growth: 82.32%
• Country: US
• Employees: 897
• Sector: Real Estate
• Sector Strength: 63
• Industry: Real Estate - Services
• EPS (TTM): -0.11
• Shares Outstanding: 38,976,875
• 10 Day Avg. Volume: 157,841
• 30 Day Avg. Volume: 125,093
• PEG Ratio: -0.49
• Price to Book (P/B): 1.93
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 700.11
• Enterprise Value/Market Cap: 1.02
• Enterprise Value/Revenue: 0.46
• Enterprise Value/Gross Profit: 4.59
• Enterprise Value/Ebitda: -13.88
• 1Y Price Target: $30.00
• Price Target Upside: -3.13% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 0

• Rating: 54 Neutral
• Price Target: $31.00 ▲(0.10%Upside)

Marcus & Millichap's overall stock score reflects financial challenges with declining revenues and profitability. The balance sheet provides some stability with low leverage, and earnings call data shows potential for recovery. However, technical indicators and valuation remain areas of concern, highlighting the need for strategic improvements to support long-term growth.

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 (MMI) is a leading commercial real estate brokerage firm specializing in investment sales, financing, research, and advisory services. The company operates across various sectors including multifamily, retail, office, and industrial properties, providing tailored solutions to meet the needs of real estate investors and owners. With a vast network of experienced agents and a strong market presence, Marcus & Millichap is dedicated to delivering exceptional value and insights to its clients.

How the Company Makes Money

Marcus & Millichap generates revenue primarily through commissions earned on the sale and financing of commercial real estate properties. The firm operates on a transaction-based model where it facilitates property sales and financing deals, earning a percentage of the transaction value as a commission. Additionally, the company provides advisory and research services, which contribute to its revenue streams. Key factors contributing to its earnings include a large and diverse network of agents, a wide range of property types, and strategic partnerships with financial institutions and investors that enhance its service offerings.

Marcus & Millichap Financial Statement Overview

Summary

Marcus & Millichap faces financial headwinds with declining revenues and profitability. The income statement indicates ongoing losses with negative profit margins. However, the balance sheet shows financial stability with low leverage and a strong equity base, providing a buffer against financial challenges. Positive operating cash flow offers some hope, yet operational efficiency needs improvement.

Income Statement

The income statement reflects a challenging financial period for Marcus & Millichap. The company has experienced a decline in revenue over the past years, marked by a significant drop from 2022 to 2023. Gross profit margin stood at 37.3% for TTM, a decline from previous years, and net profit margin remains negative, indicating ongoing losses. The EBIT and EBITDA margins are also negative, highlighting operational challenges.

Balance Sheet

The balance sheet shows a strong equity base with a debt-to-equity ratio of 0.14 for TTM, indicating low leverage and financial stability. The equity ratio is high at 77.0%, which underscores the company's strong asset base relative to its liabilities. However, the decline in stockholders' equity over recent years may be a concern if it continues.

Cash Flow

Despite negative net income, operating cash flow remains positive, with a TTM operating cash flow to net income ratio of -2.93, suggesting some efficiency in cash generation. Free cash flow growth is sluggish, and the free cash flow to net income ratio is -1.94, indicating that cash flow does not fully cover losses.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
711.99M	696.06M	645.93M	1.30B	1.30B	716.91M
	Gross Profit
265.71M	264.59M	239.28M	450.82M	456.23M	269.03M
	EBIT
-30.24M	-32.91M	-59.37M	137.40M	189.36M	53.61M
	EBITDA
-2.34M	2.75M	-25.89M	150.65M	201.08M	64.51M
	Net Income Common Stockholders
-6.80M	-12.36M	-34.03M	104.22M	142.47M	42.84M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
264.81M	349.46M	349.13M	489.29M	566.01M	401.41M
	Total Assets
802.02M	869.80M	878.41M	1.00B	1.05B	779.12M
	Total Debt
83.94M	84.22M	87.74M	82.09M	77.31M	78.60M
	Net Debt
-55.09M	-69.22M	-83.01M	-153.76M	-304.83M	-164.55M
	Total Liabilities
184.47M	238.98M	233.14M	290.20M	348.89M	232.29M
	Stockholders Equity
617.55M	630.82M	645.27M	713.51M	696.30M	546.84M
Cash Flow		Free Cash Flow
13.17M	13.84M	-81.80M	1.96M	249.05M	31.14M
	Operating Cash Flow
19.89M	21.71M	-72.43M	13.63M	255.90M	38.09M
	Investing Cash Flow
68.87M	-9.90M	74.87M	-53.98M	-108.36M	-17.23M
	Financing Cash Flow
-29.33M	-28.75M	-67.68M	-105.56M	-5.92M	-10.33M

Marcus & Millichap Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 30.97
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MMI, the sentiment is Neutral. The current price of 30.97 is above the 20-day moving average (MA) of 29.29, above the 50-day MA of 30.28, and below the 200-day MA of 36.06, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 60.58 is Neutral, neither overbought nor oversold. The STOCH value of 90.45 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for MMI.

Marcus & Millichap Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JLL	77 Outperform	$11.27B	21.48	8.16%	―	13.63%	78.40%
CBRE	74 Outperform	$39.60B	40.87	12.15%	―	13.14%	1.70%
CWK	71 Outperform	$2.49B	15.39	9.53%	―	1.24%	1205.18%
NMRK	65 Neutral	$2.16B	29.81	5.32%	1.02%	13.87%	90.42%
Sector *	61 Neutral	$2.86B	10.96	0.41%	6.08%	5.73%	-21.25%
MMI	54 Neutral	$1.20B	―	-1.09%	1.63%	14.79%	82.32%
RDFN	50 Neutral	$1.31B	―	199.35%	―	5.11%	-29.67%

Marcus & Millichap Corporate Events

Marcus & Millichap Appoints New Chief Growth Officer

On April 29, 2025, Marcus & Millichap announced that Richard Matricaria, previously the Chief Operating Officer for the Western Division, was appointed as the Senior Vice President and Chief Growth Officer effective May 1, 2025. The company entered into an employment agreement with Mr. Matricaria on June 5, 2025, detailing his compensation package, which includes a base salary of $400,000, a potential annual bonus of $600,000, equity grants, and a relocation allowance. This strategic appointment is aimed at driving growth and enhancing the company’s market position.

The most recent analyst rating on (MMI) stock is a Sell with a $20.00 price target. To see the full list of analyst forecasts on Marcus & Millichap stock, see the MMI Stock Forecast page.

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.