Marcus & Millichap Is A Great Long-Term Play

Sep. 25, 2022 8:08 AM ETMarcus & Millichap, Inc. (MMI)
Gavin Barwell profile picture
Gavin Barwell
513 Followers

Summary

  • Although it has underperformed the market and some peers in recent years, the company’s business model will make it more robust in a recessionary period.
  • Wider industry trends provide the basis for long-term growth.
  • The company has shown an ability to grow revenue and profitability at elite levels, while dramatically scaling its free cash flows.
  • The company’s free cash flows are trading at a yield of 15.7%.

Wall street sign in New York with New York Stock Exchange background

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Real estate investment services firm, Marcus & Millichap, Inc. (NYSE:MMI) is a small, but fast-growing player in the real estate market. The company has had a great 5-year run, growing revenues, widening profitability, and spitting out free cash flows

Source: Google Finance

Source: Google Finance

Source: 2021 Annual Report

Source: 2021 Annual Report

Source: 2021 Annual Report

Source: 2021 Annual Report

Source: Statista

Source: Statista

Source: August 2022 Investor Relations

Source: August 2022 Investor Relations

Source: Bank of England

Source: Bank of England

Source: FRED

Source: FRED

This article was written by

Gavin Barwell profile picture
513 Followers
I'm a UK-based entrepreneur and manage a portfolio of mostly UK stocks. I maintain a broad overview of US markets and analyse stocks for my edification only. None of my investment advice should be acted upon. I occasionally collaborate with Seeking Alpha author Ted Littlefield on my analysis, however, neither of us comment on each other's articles, cover the same stock and are completely independent in our opinions.

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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