MARCUS CORPORATION (MCS) Stock Fundamental Analysis
NYSE:MCS - New York Stock Exchange, Inc. - US5663301068 - Common Stock - Currency: USD
We assign a fundamental rating of 3 out of 10 to MCS. MCS was compared to 72 industry peers in the Entertainment industry. There are concerns on the financial health of MCS while its profitability can be described as average. MCS is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year MCS has reported negative net income.
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
Looking at the Return On Assets, with a value of -0.75%, MCS is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
MCS has a better Return On Equity (-1.68%) than 70.83% of its industry peers.
MCS has a Return On Invested Capital of 1.81%. This is in the better half of the industry: MCS outperforms 62.50% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MCS is significantly below the industry average of 21.79%.
The last Return On Invested Capital (1.81%) for MCS is above the 3 year average (1.74%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.75% | ||
| ROE | -1.68% | ||
| ROIC | 1.81% |
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
With a decent Operating Margin value of 3.13%, MCS is doing good in the industry, outperforming 63.89% of the companies in the same industry.
In the last couple of years the Operating Margin of MCS has declined.
MCS has a Gross Margin (39.07%) which is comparable to the rest of the industry.
MCS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.13% | ||
| PM (TTM) | N/A | ||
| GM | 39.07% |
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.
Compared to 1 year ago, MCS has less shares outstanding
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 1.58, we must say that MCS is in the distress zone and has some risk of bankruptcy.
MCS has a Altman-Z score of 1.58. This is in the better half of the industry: MCS outperforms 61.11% of its industry peers.
The Debt to FCF ratio of MCS is 6.96, which is on the high side as it means it would take MCS, 6.96 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 6.96, MCS is doing good in the industry, outperforming 69.44% of the companies in the same industry.
A Debt/Equity ratio of 0.34 indicates that MCS is not too dependend on debt financing.
MCS has a Debt to Equity ratio of 0.34. This is comparable to the rest of the industry: MCS outperforms 58.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 6.96 | ||
| Altman-Z | 1.58 |
ROIC/WACC0.24
WACC7.51%
2.3 Liquidity
A Current Ratio of 0.52 indicates that MCS may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.52, MCS is doing worse than 72.22% of the companies in the same industry.
MCS has a Quick Ratio of 0.52. This is a bad value and indicates that MCS is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.52, MCS is not doing good in the industry: 69.44% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.52 | ||
| Quick Ratio | 0.52 |
3. Growth
3.1 Past
The earnings per share for MCS have decreased strongly by -186.67% in the last year.
The Revenue has been growing slightly by 0.81% in the past year.
The Revenue has been decreasing by -2.17% on average over the past years.
EPS 1Y (TTM)-186.67%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%160%
Revenue 1Y (TTM)0.81%
Revenue growth 3Y17.09%
Revenue growth 5Y-2.17%
Sales Q2Q%16.58%
3.2 Future
MCS is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 63.00% yearly.
The Revenue is expected to grow by 3.42% on average over the next years.
EPS Next Y274.81%
EPS Next 2Y113.18%
EPS Next 3Y63%
EPS Next 5YN/A
Revenue Next Year4.84%
Revenue Next 2Y5.02%
Revenue Next 3Y3.42%
Revenue Next 5YN/A
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
MCS reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
The Price/Forward Earnings ratio is 36.41, which means the current valuation is very expensive for MCS.
76.39% of the companies in the same industry are more expensive than MCS, based on the Price/Forward Earnings ratio.
MCS is valuated expensively when we compare the Price/Forward Earnings ratio to 21.38, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 36.41 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MCS indicates a rather cheap valuation: MCS is cheaper than 83.33% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, MCS is valued a bit cheaper than 76.39% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.21 | ||
| EV/EBITDA | 7.25 |
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 63.00% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y113.18%
EPS Next 3Y63%
5. Dividend
5.1 Amount
MCS has a Yearly Dividend Yield of 1.70%.
Compared to an average industry Dividend Yield of 7.28, MCS pays a better dividend. On top of this MCS pays more dividend than 87.50% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.46, MCS is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.7% |
5.2 History
The dividend of MCS decreases each year by -13.79%.
MCS has been paying a dividend for at least 10 years, so it has a reliable track record.
MCS has decreased its dividend in the last 3 years.
Dividend Growth(5Y)-13.79%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
The earnings of MCS are negative and hence is the payout ratio. MCS will probably not be able to sustain this dividend level.
DP-112.8%
EPS Next 2Y113.18%
EPS Next 3Y63%
16.55
-0.1 (-0.6%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners79.91%
Inst Owner Change-0.01%
Ins Owners5.57%
Ins Owner Change5.95%
Market Cap524.63M
Analysts82.86
Price Target26.86 (62.3%)
Short Float %2.88%
Short Ratio3.08
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.7% |
Yearly Dividend0.28
Dividend Growth(5Y)-13.79%
DP-112.8%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-7.94%
Min EPS beat(2)-73%
Max EPS beat(2)57.12%
EPS beat(4)1
Avg EPS beat(4)-662.71%
Min EPS beat(4)-2634.65%
Max EPS beat(4)57.12%
EPS beat(8)3
Avg EPS beat(8)-328.8%
EPS beat(12)5
Avg EPS beat(12)-208.22%
EPS beat(16)9
Avg EPS beat(16)-133.99%
Revenue beat(2)2
Avg Revenue beat(2)5.24%
Min Revenue beat(2)1.88%
Max Revenue beat(2)8.6%
Revenue beat(4)3
Avg Revenue beat(4)4.14%
Min Revenue beat(4)-0.3%
Max Revenue beat(4)8.6%
Revenue beat(8)7
Avg Revenue beat(8)3.01%
Revenue beat(12)11
Avg Revenue beat(12)5.47%
Revenue beat(16)15
Avg Revenue beat(16)8.68%
PT rev (1m)1.28%
PT rev (3m)5.33%
EPS NQ rev (1m)-11.36%
EPS NQ rev (3m)-34.25%
EPS NY rev (1m)12.5%
EPS NY rev (3m)-17.43%
Revenue NQ rev (1m)-2.92%
Revenue NQ rev (3m)-7.83%
Revenue NY rev (1m)0.49%
Revenue NY rev (3m)-1.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 36.41 | ||
| P/S | 0.71 | ||
| P/FCF | 21.21 | ||
| P/OCF | 5.05 | ||
| P/B | 1.13 | ||
| P/tB | 1.35 | ||
| EV/EBITDA | 7.25 |
EPS(TTM)-0.26
EYN/A
EPS(NY)0.45
Fwd EY2.75%
FCF(TTM)0.78
FCFY4.71%
OCF(TTM)3.28
OCFY19.81%
SpS23.2
BVpS14.66
TBVpS12.3
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.75% | ||
| ROE | -1.68% | ||
| ROCE | 2.65% | ||
| ROIC | 1.81% | ||
| ROICexc | 1.9% | ||
| ROICexgc | 2.09% | ||
| OM | 3.13% | ||
| PM (TTM) | N/A | ||
| GM | 39.07% | ||
| FCFM | 3.36% |
ROA(3y)-0.16%
ROA(5y)-2.82%
ROE(3y)-0.39%
ROE(5y)-7.15%
ROIC(3y)1.74%
ROIC(5y)N/A
ROICexc(3y)1.83%
ROICexc(5y)N/A
ROICexgc(3y)2.03%
ROICexgc(5y)N/A
ROCE(3y)2.54%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y-14.17%
ROICexc growth 3YN/A
ROICexc growth 5Y-14.65%
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%
F-Score5
Asset Turnover0.7
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 6.96 | ||
| Debt/EBITDA | 1.75 | ||
| Cap/Depr | 116.56% | ||
| Cap/Sales | 10.77% | ||
| Interest Coverage | 2.65 | ||
| Cash Conversion | 114.28% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.52 | ||
| Quick Ratio | 0.52 | ||
| Altman-Z | 1.58 |
F-Score5
WACC7.51%
ROIC/WACC0.24
Cap/Depr(3y)76.34%
Cap/Depr(5y)56.25%
Cap/Sales(3y)7.17%
Cap/Sales(5y)6.85%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-186.67%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%160%
EPS Next Y274.81%
EPS Next 2Y113.18%
EPS Next 3Y63%
EPS Next 5YN/A
Revenue 1Y (TTM)0.81%
Revenue growth 3Y17.09%
Revenue growth 5Y-2.17%
Sales Q2Q%16.58%
Revenue Next Year4.84%
Revenue Next 2Y5.02%
Revenue Next 3Y3.42%
Revenue Next 5YN/A
EBIT growth 1Y-34.21%
EBIT growth 3YN/A
EBIT growth 5Y-20.28%
EBIT Next Year319.6%
EBIT Next 3Y65.29%
EBIT Next 5YN/A
FCF growth 1Y-61.27%
FCF growth 3Y-5.39%
FCF growth 5Y-20.4%
OCF growth 1Y1.28%
OCF growth 3Y30.94%
OCF growth 5Y-5.98%