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Why Marcus & Millichap, Inc. (NYSE:MMI) Is An Attractive Investment To Consider

Simply Wall St

Building up an investment case requires looking at a stock holistically. Today I've chosen to put the spotlight on Marcus & Millichap, Inc. (NYSE:MMI) due to its excellent fundamentals in more than one area. MMI is a company with great financial health as well as a a strong track record of performance. Below, I've touched on some key aspects you should know on a high level. If you're interested in understanding beyond my broad commentary, read the full report on Marcus & Millichap here.

Flawless balance sheet with proven track record

Over the past year, MMI has grown its earnings by 31%, with its most recent figure exceeding its annual average over the past five years. Not only did MMI outperformed its past performance, its growth also surpassed the Real Estate industry expansion, which generated a -26% earnings growth. This paints a buoyant picture for the company. MMI is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This suggests prudent control over cash and cost by management, which is a key determinant of the company’s health. MMI's has produced operating cash levels of 10.65x total debt over the past year, which implies that MMI's management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.

NYSE:MMI Income Statement, August 16th 2019

Next Steps:

For Marcus & Millichap, I've compiled three fundamental aspects you should further research:

  1. Future Outlook: What are well-informed industry analysts predicting for MMI’s future growth? Take a look at our free research report of analyst consensus for MMI’s outlook.
  2. Valuation: What is MMI worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether MMI is currently mispriced by the market.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of MMI? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.