Marcus & Millichap (MMI) AI Stock Analysis

• Market Cap: $1.29B
• Dividend Yield: 1.51%
• Average Volume (3M): 122.27K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.02
• Revenue Growth: 17.89%
• EPS Growth: 65.32%
• Country: US
• Employees: 897
• Sector: Real Estate
• Sector Strength: 52
• Industry: Real Estate - Services
• EPS (TTM): -0.28
• Shares Outstanding: 38,996,975
• 10 Day Avg. Volume: 116,396
• 30 Day Avg. Volume: 122,266
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.82
• Enterprise Value/Revenue: 1.46
• Enterprise Value/Gross Profit: 3.85
• Enterprise Value/Ebitda: 257.19
• 1Y Price Target: $33.00
• Price Target Upside: -0.36% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 55 Neutral
• Price Target: $33.00 ▼(-0.36% Downside)

Marcus & Millichap's overall stock score reflects significant profitability challenges and valuation concerns, despite a strong balance sheet and recent strategic initiatives. The technical indicators suggest moderate bullish momentum, but the stock's performance is hindered by negative earnings and valuation metrics. The company's strategic focus on growth and recent executive appointment are positive, but operational improvements are necessary for a more favorable outlook.

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 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 profitability challenges with negative margins and declining returns on equity. While the balance sheet remains strong with low leverage, the company needs to address its operational inefficiencies to improve profitability. Cash flow improvements are a positive sign, but historical volatility suggests caution.

Income Statement

Marcus & Millichap's income statement shows a challenging period with declining profitability. The TTM data indicates a negative net profit margin of -1.69% and an EBIT margin of -3.04%, reflecting operational difficulties. Revenue growth is modest at 1.95% TTM, but the company has faced significant revenue declines in previous years. The gross profit margin remains relatively stable, suggesting some resilience in cost management.

Balance Sheet

The balance sheet reveals a stable financial structure with a low debt-to-equity ratio of 0.14 TTM, indicating conservative leverage. However, the return on equity is negative at -1.99% TTM, highlighting profitability challenges. The equity ratio remains strong, suggesting a solid capital base, but the company needs to improve its return metrics to enhance shareholder value.

Cash Flow

Cash flow analysis shows significant improvement in free cash flow growth at 418.70% TTM, indicating better cash generation capabilities. The operating cash flow to net income ratio is 0.83 TTM, suggesting decent cash conversion efficiency. However, the company has experienced volatility in cash flows over the years, which poses a risk to financial stability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	725.90M	696.06M	645.93M	1.30B	1.30B	716.91M
Gross Profit	274.42M	264.59M	239.28M	450.82M	456.23M	269.03M
EBITDA	4.11M	4.37M	-25.89M	156.14M	205.60M	71.16M
Net Income	-12.29M	-12.36M	-34.03M	104.22M	142.47M	42.84M
Balance Sheet
Total Assets	792.21M	869.80M	878.41M	1.00B	1.05B	779.12M
Cash, Cash Equivalents and Short-Term Investments	222.41M	349.46M	349.13M	489.29M	566.01M	401.41M
Total Debt	82.42M	84.22M	87.74M	82.09M	77.31M	78.60M
Total Liabilities	184.43M	238.98M	233.14M	290.20M	348.89M	232.29M
Stockholders Equity	607.77M	630.82M	645.27M	713.51M	696.30M	546.84M
Cash Flow
Free Cash Flow	68.31M	13.84M	-81.80M	1.96M	249.05M	31.14M
Operating Cash Flow	71.88M	21.71M	-72.43M	13.63M	255.90M	38.09M
Investing Cash Flow	-68.68M	-9.90M	74.87M	-53.98M	-108.36M	-17.23M
Financing Cash Flow	-11.53M	-28.75M	-67.68M	-105.56M	-5.92M	-10.33M

Marcus & Millichap Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 33.12
• 50DMA: Positive
• 100DMA: Positive
• 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 33.12 is above the 20-day moving average (MA) of 31.48, above the 50-day MA of 31.40, and below the 200-day MA of 33.96, indicating a neutral trend. The MACD of 0.46 indicates Negative momentum. The RSI at 61.63 is Neutral, neither overbought nor oversold. The STOCH value of 68.98 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	78 Outperform	$14.76B	26.77	8.40%	―	13.47%	47.52%
CWK	75 Outperform	$3.67B	18.84	11.62%	―	4.63%	887.64%
CBRE	74 Outperform	$48.11B	46.05	13.13%	―	14.96%	19.11%
NMRK	66 Neutral	$3.17B	42.02	6.00%	0.65%	16.29%	69.89%
Sector *	65 Neutral	$2.11B	15.89	3.79%	4.97%	4.78%	6.63%
MMI	55 Neutral	$1.29B	―	-1.99%	1.51%	17.89%	65.32%
RDFN	55 Neutral		―		―	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.