MARCUS CORPORATION (MCS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MCS - US5663301068 - Common Stock
15.6 USD
-0.2 (-1.27%)
15.6 USD
0 (0%)
We assign a fundamental rating of 3 out of 10 to MCS. MCS was compared to 80 industry peers in the Entertainment industry. MCS has a medium profitability rating, but doesn't score so well on its financial health evaluation. MCS has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- In the past year MCS was profitable.
- MCS had a positive operating cash flow in the past year.
- MCS had negative earnings in 4 of the past 5 years.
- Of the past 5 years MCS 4 years had a positive operating cash flow.
1.2 Ratios
- MCS's Return On Assets of 0.77% is fine compared to the rest of the industry. MCS outperforms 63.75% of its industry peers.
- MCS has a better Return On Equity (1.70%) than 67.50% of its industry peers.
- With a decent Return On Invested Capital value of 1.44%, MCS is doing good in the industry, outperforming 62.50% of the companies in the same industry.
- MCS had an Average Return On Invested Capital over the past 3 years of 1.74%. This is significantly below the industry average of 8.74%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.77% | ||
| ROE | 1.7% | ||
| ROIC | 1.44% |
ROA(3y)-0.16%
ROA(5y)-2.82%
ROE(3y)-0.39%
ROE(5y)-7.15%
ROIC(3y)1.74%
ROIC(5y)N/A
1.3 Margins
- MCS has a Profit Margin of 1.02%. This is in the better half of the industry: MCS outperforms 63.75% of its industry peers.
- MCS has a Operating Margin of 2.41%. This is comparable to the rest of the industry: MCS outperforms 60.00% of its industry peers.
- In the last couple of years the Operating Margin of MCS has declined.
- MCS has a Gross Margin (38.48%) which is in line with its industry peers.
- MCS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.41% | ||
| PM (TTM) | 1.02% | ||
| GM | 38.48% |
OM growth 3YN/A
OM growth 5Y-18.51%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.86%
GM growth 5Y-0.54%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so MCS is destroying value.
- The number of shares outstanding for MCS has been reduced compared to 1 year ago.
- The number of shares outstanding for MCS has been increased compared to 5 years ago.
- The debt/assets ratio for MCS has been reduced compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of 1.60, we must say that MCS is in the distress zone and has some risk of bankruptcy.
- The Altman-Z score of MCS (1.60) is comparable to the rest of the industry.
- MCS has a debt to FCF ratio of 101.21. This is a negative value and a sign of low solvency as MCS would need 101.21 years to pay back of all of its debts.
- With a Debt to FCF ratio value of 101.21, MCS perfoms like the industry average, outperforming 58.75% of the companies in the same industry.
- A Debt/Equity ratio of 0.38 indicates that MCS is not too dependend on debt financing.
- MCS has a Debt to Equity ratio (0.38) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | 101.21 | ||
| Altman-Z | 1.6 |
ROIC/WACC0.15
WACC9.79%
2.3 Liquidity
- A Current Ratio of 0.35 indicates that MCS may have some problems paying its short term obligations.
- With a Current ratio value of 0.35, MCS is not doing good in the industry: 86.25% of the companies in the same industry are doing better.
- A Quick Ratio of 0.35 indicates that MCS may have some problems paying its short term obligations.
- MCS has a Quick ratio of 0.35. This is amonst the worse of the industry: MCS underperforms 86.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.35 | ||
| Quick Ratio | 0.35 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 170.59% over the past year.
- MCS shows a small growth in Revenue. In the last year, the Revenue has grown by 6.28%.
- The Revenue has been decreasing by -2.17% on average over the past years.
EPS 1Y (TTM)170.59%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-28.77%
Revenue 1Y (TTM)6.28%
Revenue growth 3Y17.09%
Revenue growth 5Y-2.17%
Sales Q2Q%-9.68%
3.2 Future
- Based on estimates for the next years, MCS will show a very strong growth in Earnings Per Share. The EPS will grow by 77.74% on average per year.
- Based on estimates for the next years, MCS will show a small growth in Revenue. The Revenue will grow by 3.98% on average per year.
EPS Next Y247.42%
EPS Next 2Y113.88%
EPS Next 3Y77.74%
EPS Next 5YN/A
Revenue Next Year3.92%
Revenue Next 2Y4.59%
Revenue Next 3Y4.39%
Revenue Next 5Y3.98%
3.3 Evolution
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 65.00, MCS can be considered very expensive at the moment.
- Compared to the rest of the industry, the Price/Earnings ratio of MCS indicates a somewhat cheap valuation: MCS is cheaper than 68.75% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, MCS is valued quite expensively.
- The Price/Forward Earnings ratio is 23.31, which indicates a rather expensive current valuation of MCS.
- Based on the Price/Forward Earnings ratio, MCS is valued a bit cheaper than the industry average as 78.75% of the companies are valued more expensively.
- MCS is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 65 | ||
| Fwd PE | 23.31 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MCS indicates a somewhat cheap valuation: MCS is cheaper than 80.00% of the companies listed in the same industry.
- MCS's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 279.02 | ||
| EV/EBITDA | 7.37 |
4.3 Compensation for Growth
- MCS's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- A more expensive valuation may be justified as MCS's earnings are expected to grow with 77.74% in the coming years.
PEG (NY)0.26
PEG (5Y)N/A
EPS Next 2Y113.88%
EPS Next 3Y77.74%
5. Dividend
5.1 Amount
- MCS has a Yearly Dividend Yield of 2.01%. Purely for dividend investing, there may be better candidates out there.
- MCS's Dividend Yield is rather good when compared to the industry average which is at 7.66. MCS pays more dividend than 90.00% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, MCS has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.01% |
5.2 History
- The dividend of MCS decreases each year by -13.79%.
- MCS has paid a dividend for at least 10 years, which is a reliable track record.
- The dividend of MCS decreased in the last 3 years.
Dividend Growth(5Y)-13.79%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
- 115.61% of the earnings are spent on dividend by MCS. This is not a sustainable payout ratio.
DP115.61%
EPS Next 2Y113.88%
EPS Next 3Y77.74%
MARCUS CORPORATION / MCS FAQ
What is the fundamental rating for MCS stock?
ChartMill assigns a fundamental rating of 3 / 10 to MCS.
Can you provide the valuation status for MARCUS CORPORATION?
ChartMill assigns a valuation rating of 4 / 10 to MARCUS CORPORATION (MCS). This can be considered as Fairly Valued.
What is the profitability of MCS stock?
MARCUS CORPORATION (MCS) has a profitability rating of 4 / 10.
What are the PE and PB ratios of MARCUS CORPORATION (MCS) stock?
The Price/Earnings (PE) ratio for MARCUS CORPORATION (MCS) is 65 and the Price/Book (PB) ratio is 1.05.
What is the earnings growth outlook for MARCUS CORPORATION?
The Earnings per Share (EPS) of MARCUS CORPORATION (MCS) is expected to grow by 247.42% in the next year.