Mid-America Apartment Communities (MAA) is back in focus after reporting fourth quarter and full year 2025 results. The company beat Wall Street expectations on funds from operations and laid out fresh 2026 earnings guidance.

Despite beating expectations on funds from operations and outlining 2026 guidance, the recent earnings release and news of a planned US$53 million class action settlement have coincided with a 1 month share price return decline of 5.39% and a 1 year total shareholder return decline of 14.15%, suggesting momentum has cooled after a mixed few years for investors.

If earnings news has you reassessing your watchlist, it could be a good moment to broaden your search and check out our screener of 22 top founder-led companies for fresh ideas beyond apartments.

With the share price down over the past year, a value score of 4 and the stock trading below the average analyst price target, the key question is whether this is a genuine discount or if the market already reflects future growth.

Most Popular Narrative: 11.2% Undervalued

With Mid-America Apartment Communities last closing at $130.72 versus a narrative fair value of $147.20, the widely followed view frames MAA as undervalued and leans heavily on Sunbelt demand trends and supply dynamics to justify that gap.

Absorption in MAA's core Sun Belt markets has materially outpaced new supply for four consecutive quarters, leading to a significant reduction in available units and firming occupancy, which positions the company for improved pricing power and accelerating revenue growth as new supply continues to decline in the back half of 2025 and into 2026.

Curious what earnings path and margin reset underpin that fair value, even with forecast profit declines and a richer future multiple than many peers? The full narrative lays out the revenue curve, margin compression, and valuation bridge that hold this $147.20 figure together.

Result: Fair Value of $147.20 (UNDERVALUED)

However, that fair value view could be challenged if elevated new supply in markets like Austin or Phoenix keeps rent growth soft, or if higher interest rates continue to pressure financing costs and deal activity.

Build Your Own Mid-America Apartment Communities Narrative

If you are not fully on board with this view or want to stress test the assumptions yourself, you can build a fresh thesis in under three minutes with Do it your way.

A great starting point for your Mid-America Apartment Communities research is our analysis highlighting 3 key rewards and 3 important warning signs that could impact your investment decision.

Looking for more investment ideas?

If MAA has you thinking harder about where your capital goes next, do not stop here. Your next strong idea could be sitting one screen away.

• Target long term compounding potential by scanning companies that look mispriced on quality and value using our 55 high quality undervalued stocks.
• Prioritise resilience by filtering for companies with robust finances and low debt using the solid balance sheet and fundamentals stocks screener (46 results).
• Hunt for early stage opportunities that many investors may be overlooking with our screener containing 25 high quality undiscovered gems.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.