MARCUS CORPORATION (MCS) Stock Fundamental Analysis
NYSE:MCS - New York Stock Exchange, Inc. - US5663301068 - Common Stock - Currency: USD
MCS gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 72 industry peers in the Entertainment industry. MCS may be in some trouble as it scores bad on both profitability and health. MCS has a valuation in line with the averages, but on the other hand it scores bad on growth.
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.
In the past 5 years MCS reported 4 times negative net income.
Of the past 5 years MCS 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of MCS (-1.25%) is better than 62.50% of its industry peers.
The Return On Equity of MCS (-2.88%) is better than 65.28% of its industry peers.
MCS has a Return On Invested Capital of 1.39%. This is in the better half of the industry: MCS outperforms 63.89% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for MCS is significantly below the industry average of 22.90%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.25% | ||
| ROE | -2.88% | ||
| ROIC | 1.39% |
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's Operating Margin of 2.39% is fine compared to the rest of the industry. MCS outperforms 65.28% of its industry peers.
In the last couple of years the Operating Margin of MCS has declined.
MCS has a Gross Margin of 38.67%. This is comparable to the rest of the industry: MCS outperforms 41.67% of its industry peers.
MCS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.39% | ||
| PM (TTM) | N/A | ||
| GM | 38.67% |
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
MCS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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.
MCS has a better debt/assets ratio than last year.
2.2 Solvency
MCS has an Altman-Z score of 1.58. This is a bad value and indicates that MCS is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.58, MCS perfoms like the industry average, outperforming 55.56% of the companies in the same industry.
A Debt/Equity ratio of 0.45 indicates that MCS is not too dependend on debt financing.
The Debt to Equity ratio of MCS (0.45) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.58 |
ROIC/WACC0.18
WACC7.55%
2.3 Liquidity
A Current Ratio of 0.42 indicates that MCS may have some problems paying its short term obligations.
MCS has a Current ratio of 0.42. This is amonst the worse of the industry: MCS underperforms 84.72% of its industry peers.
MCS has a Quick Ratio of 0.42. This is a bad value and indicates that MCS is not financially healthy enough and could expect problems in meeting its short term obligations.
MCS has a Quick ratio of 0.42. This is amonst the worse of the industry: MCS underperforms 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.42 | ||
| Quick Ratio | 0.42 |
3. Growth
3.1 Past
The earnings per share for MCS have decreased strongly by -282.61% in the last year.
Looking at the last year, MCS shows a small growth in Revenue. The Revenue has grown by 4.18% in the last year.
The Revenue has been decreasing by -2.17% on average over the past years.
EPS 1Y (TTM)-282.61%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-42.11%
Revenue 1Y (TTM)4.18%
Revenue growth 3Y17.09%
Revenue growth 5Y-2.17%
Sales Q2Q%7.38%
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 69.10% on average per year.
MCS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.05% yearly.
EPS Next Y273.51%
EPS Next 2Y114.54%
EPS Next 3Y69.1%
EPS Next 5YN/A
Revenue Next Year6.49%
Revenue Next 2Y5.35%
Revenue Next 3Y4.05%
Revenue Next 5YN/A
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for MCS. In the last year negative earnings were reported.
The Price/Forward Earnings ratio is 24.86, which indicates a rather expensive current valuation of MCS.
70.83% of the companies in the same industry are more expensive than MCS, based on the Price/Forward Earnings ratio.
MCS's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.74.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 24.86 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MCS is valued cheaper than 84.72% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.28 |
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 69.10% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y114.54%
EPS Next 3Y69.1%
5. Dividend
5.1 Amount
MCS has a Yearly Dividend Yield of 1.61%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 6.55, MCS pays a better dividend. On top of this MCS pays more dividend than 88.89% of the companies listed in the same industry.
MCS's Dividend Yield is slightly below the S&P500 average, which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.61% |
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.
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
The earnings of MCS are negative and hence is the payout ratio. MCS will probably not be able to sustain this dividend level.
DP-68.74%
EPS Next 2Y114.54%
EPS Next 3Y69.1%
16.82
-0.6 (-3.44%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners79.45%
Inst Owner Change0%
Ins Owners5.01%
Ins Owner Change5.16%
Market Cap526.47M
Analysts82.5
Price Target25.76 (53.15%)
Short Float %2.88%
Short Ratio3.86
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.61% |
Yearly Dividend0.28
Dividend Growth(5Y)-13.79%
DP-68.74%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-41.62%
Min EPS beat(2)-73%
Max EPS beat(2)-10.24%
EPS beat(4)1
Avg EPS beat(4)-665.19%
Min EPS beat(4)-2634.65%
Max EPS beat(4)57.12%
EPS beat(8)3
Avg EPS beat(8)-322.39%
EPS beat(12)5
Avg EPS beat(12)-206.41%
EPS beat(16)8
Avg EPS beat(16)-135.95%
Revenue beat(2)2
Avg Revenue beat(2)3.59%
Min Revenue beat(2)1.88%
Max Revenue beat(2)5.29%
Revenue beat(4)4
Avg Revenue beat(4)5.54%
Min Revenue beat(4)1.88%
Max Revenue beat(4)8.6%
Revenue beat(8)7
Avg Revenue beat(8)3.58%
Revenue beat(12)11
Avg Revenue beat(12)4.64%
Revenue beat(16)15
Avg Revenue beat(16)7.84%
PT rev (1m)-1.62%
PT rev (3m)-4.11%
EPS NQ rev (1m)-17.04%
EPS NQ rev (3m)273.34%
EPS NY rev (1m)-6.94%
EPS NY rev (3m)11.67%
Revenue NQ rev (1m)-1.1%
Revenue NQ rev (3m)0.92%
Revenue NY rev (1m)-0.33%
Revenue NY rev (3m)1.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 24.86 | ||
| P/S | 0.71 | ||
| P/FCF | N/A | ||
| P/OCF | 6.29 | ||
| P/B | 1.19 | ||
| P/tB | 1.44 | ||
| EV/EBITDA | 8.28 |
EPS(TTM)-0.42
EYN/A
EPS(NY)0.68
Fwd EY4.02%
FCF(TTM)-0.1
FCFYN/A
OCF(TTM)2.67
OCFY15.9%
SpS23.83
BVpS14.11
TBVpS11.72
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.25% | ||
| ROE | -2.88% | ||
| ROCE | 2.04% | ||
| ROIC | 1.39% | ||
| ROICexc | 1.41% | ||
| ROICexgc | 1.55% | ||
| OM | 2.39% | ||
| PM (TTM) | N/A | ||
| GM | 38.67% | ||
| FCFM | N/A |
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-Score4
Asset Turnover0.73
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.27 | ||
| Cap/Depr | 124.35% | ||
| Cap/Sales | 11.64% | ||
| Interest Coverage | 2.14 | ||
| Cash Conversion | 95.52% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.42 | ||
| Quick Ratio | 0.42 | ||
| Altman-Z | 1.58 |
F-Score4
WACC7.55%
ROIC/WACC0.18
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)-282.61%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-42.11%
EPS Next Y273.51%
EPS Next 2Y114.54%
EPS Next 3Y69.1%
EPS Next 5YN/A
Revenue 1Y (TTM)4.18%
Revenue growth 3Y17.09%
Revenue growth 5Y-2.17%
Sales Q2Q%7.38%
Revenue Next Year6.49%
Revenue Next 2Y5.35%
Revenue Next 3Y4.05%
Revenue Next 5YN/A
EBIT growth 1Y-34.6%
EBIT growth 3YN/A
EBIT growth 5Y-20.28%
EBIT Next Year325.97%
EBIT Next 3Y68.8%
EBIT Next 5YN/A
FCF growth 1Y-107.68%
FCF growth 3Y-5.39%
FCF growth 5Y-20.4%
OCF growth 1Y5.96%
OCF growth 3Y30.94%
OCF growth 5Y-5.98%