Marcus & Millichap (MMI) AI Stock Analysis

• Market Cap: $1.15B
• Dividend Yield: 1.65%
• Average Volume (3M): 123.62K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.04
• Revenue Growth: 20.74%
• EPS Growth: 78.92%
• Country: US
• Employees: 897
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): 0.01
• Shares Outstanding: 38,996,975
• 10 Day Avg. Volume: 119,304
• 30 Day Avg. Volume: 123,620
• PEG Ratio: 1.88
• Price to Book (P/B): 2.35
• Price to Sales (P/S): 2.13
• P/FCF Ratio: 106.92
• Enterprise Value/Market Cap: 0.92
• Enterprise Value/Revenue: 1.41
• Enterprise Value/Gross Profit: 3.73
• Enterprise Value/Ebitda: 104.56
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: $30.00 ▲(1.39% Upside)

The overall stock score of 56 reflects Marcus & Millichap's strong revenue and transaction growth, as highlighted in the earnings call, which is a positive indicator of strategic success. However, the company's financial performance is weighed down by profitability challenges and a negative P/E ratio, which are significant concerns. The technical indicators suggest a bearish trend, further impacting the score.

Positive Factors

Revenue Growth

Consistent revenue growth over multiple quarters indicates strong market demand and effective business strategies, enhancing long-term stability.

Transaction Growth

Outpacing market transaction growth suggests competitive advantages and strong client relationships, supporting sustained business expansion.

Financing Revenue Increase

Significant growth in financing revenue highlights the company's ability to capitalize on favorable market conditions and diversify income streams.

Negative Factors

Profitability Challenges

Persistent profitability issues may hinder long-term financial health and limit the company's ability to reinvest in growth opportunities.

Larger Deals Revenue Decline

Declines in large deal revenues suggest potential challenges in capturing high-value transactions, which could impact overall revenue growth.

Legal Reserve Impact

The legal reserve increases operating expenses, reducing profitability and potentially affecting financial flexibility and future earnings.

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. Founded in 1971, the company operates across various sectors including multifamily, retail, office, industrial, and hospitality properties. MMI serves a diverse clientele comprising individual investors, financial institutions, and large corporate clients, leveraging its extensive market research and analysis capabilities to provide tailored solutions.

How the Company Makes Money

Marcus & Millichap generates revenue primarily through brokerage commissions earned from the sale of commercial properties. When transactions are completed, the company receives a percentage of the sale price as its commission, which is typically shared between the brokerage and the agents involved. Additionally, MMI earns income through financing services, where it assists clients in obtaining loans and mortgages for property acquisitions, receiving fees for these services. The company's significant partnerships with various financial institutions and real estate investment firms also enhance its revenue streams by providing access to a broader range of financing options and investment opportunities for clients. Moreover, the firm's robust research and advisory services contribute to its earnings by offering clients valuable insights and strategic advice, further establishing MMI as a trusted advisor in the commercial real estate space.

Marcus & Millichap Financial Statement Overview

Summary

Marcus & Millichap faces challenges with profitability, as seen in the negative net profit margins and declining EBIT. However, the company maintains a stable balance sheet with low leverage and a strong cash flow position, showing resilience in cash generation. The focus should be on improving profitability while maintaining financial stability.

Income Statement

The income statement shows a concerning trend with declining profitability. The TTM data indicates a negative net profit margin of -0.92%, and EBIT margin is also negative at -0.74%. Although there is a slight revenue growth of 3.5% TTM, the company has struggled with profitability over the past few years, as evidenced by consistent negative net income figures.

Balance Sheet

The balance sheet reflects moderate financial stability. The debt-to-equity ratio is relatively low at 0.13, indicating manageable leverage. However, the return on equity is negative at -1.12% TTM, highlighting challenges in generating returns for shareholders. The equity ratio remains stable, suggesting a solid capital structure.

Cash Flow

Cash flow analysis reveals a strong improvement in free cash flow, with a growth rate of 49.1% TTM. The operating cash flow to net income ratio is 0.68, indicating decent cash generation relative to net income. The free cash flow to net income ratio is robust at 1.32, suggesting effective cash management despite profitability issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	751.28M	696.06M	645.93M	1.30B	1.30B	716.91M
Gross Profit	283.55M	264.59M	239.28M	450.82M	456.23M	269.03M
EBITDA	10.12M	4.37M	-25.89M	156.14M	205.60M	71.16M
Net Income	-6.67M	-12.36M	-34.03M	104.22M	142.47M	42.84M
Balance Sheet
Total Assets	812.49M	869.80M	878.41M	1.00B	1.05B	779.12M
Cash, Cash Equivalents and Short-Term Investments	246.78M	349.46M	349.13M	489.31M	565.99M	401.41M
Total Debt	78.56M	84.22M	87.74M	82.09M	77.31M	78.60M
Total Liabilities	210.25M	238.98M	233.14M	290.20M	348.89M	232.29M
Stockholders Equity	602.24M	630.82M	645.27M	713.51M	696.30M	546.84M
Cash Flow
Free Cash Flow	101.86M	13.84M	-81.80M	1.96M	249.05M	31.14M
Operating Cash Flow	77.04M	21.71M	-72.43M	13.63M	255.90M	38.09M
Investing Cash Flow	-94.42M	-9.90M	74.87M	-53.98M	-108.36M	-17.23M
Financing Cash Flow	-37.83M	-28.75M	-67.68M	-105.56M	-5.92M	-10.33M

Marcus & Millichap Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 29.59
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MMI, the sentiment is Positive. The current price of 29.59 is below the 20-day moving average (MA) of 29.98, below the 50-day MA of 30.19, and below the 200-day MA of 31.74, indicating a neutral trend. The MACD of 0.10 indicates Negative momentum. The RSI at 52.75 is Neutral, neither overbought nor oversold. The STOCH value of 71.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MMI.

Marcus & Millichap Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JLL	72 Outperform	$14.15B	23.65	9.14%	―	12.51%	32.34%
CBRE	69 Neutral	$45.18B	38.26	14.26%	―	14.61%	30.19%
CWK	68 Neutral	$3.69B	16.69	12.21%	―	6.77%	150.72%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
NMRK	59 Neutral	$3.12B	29.90	8.08%	0.66%	22.22%	94.52%
KW	58 Neutral	$1.33B	―	0.52%	4.90%	-3.75%	90.10%
MMI	56 Neutral	$1.15B	-92.57	-1.09%	1.65%	20.74%	78.92%

Marcus & Millichap Corporate Events

Marcus & Millichap Earnings Call Highlights Growth and Challenges

The recent earnings call for Marcus & Millichap Inc. revealed a generally positive sentiment, underscored by strong revenue and transaction growth, particularly in the private client and financing segments. Despite these successes, the company faces challenges, including a decline in larger deal revenue and the impact of a significant legal reserve on operating expenses.

Marcus & Millichap Reports Strong Q3 2025 Results

Marcus & Millichap, Inc. is a leading national real estate services firm specializing in commercial real estate investment sales, financing, research, and advisory services. The company operates in the commercial real estate sector, offering a blend of brokerage and financial services to clients across the United States.

Marcus & Millichap’s Mixed Earnings Call Highlights Growth and Challenges

The recent earnings call from Marcus & Millichap Inc. presented a mixed outlook, highlighting both positive growth metrics and ongoing challenges. While the company experienced significant growth in total and financing revenue, and maintains a strong cash position, it also faced a decline in larger transactions and increased operating expenses, culminating in a net loss for the quarter.