MARCUS CORPORATION (MCS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MCS - US5663301068 - Common Stock
15.68 USD
+0.01 (+0.06%)
15.68 USD
0 (0%)
MCS gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 80 industry peers in the Entertainment industry. While MCS is still in line with the averages on profitability rating, there are concerns on its financial health. MCS has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year MCS was profitable.
In the past year MCS had a positive cash flow from operations.
MCS had negative earnings in 4 of the past 5 years.
MCS had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.77%, MCS is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
MCS's Return On Equity of 1.70% is fine compared to the rest of the industry. MCS outperforms 66.25% of its industry peers.
With a decent Return On Invested Capital value of 1.44%, MCS is doing good in the industry, outperforming 63.75% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for MCS is significantly below the industry average of 8.91%.
| 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
Looking at the Profit Margin, with a value of 1.02%, MCS is in the better half of the industry, outperforming 63.75% of the companies in the same industry.
Looking at the Operating Margin, with a value of 2.41%, MCS is in the better half of the industry, outperforming 61.25% of the companies in the same industry.
MCS's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 38.48%, MCS is in line with its industry, outperforming 48.75% of the companies in the same industry.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), MCS is destroying value.
The number of shares outstanding for MCS has been reduced compared to 1 year ago.
Compared to 5 years ago, MCS has more shares outstanding
Compared to 1 year ago, MCS has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.59, we must say that MCS is in the distress zone and has some risk of bankruptcy.
MCS's Altman-Z score of 1.59 is in line compared to the rest of the industry. MCS outperforms 57.50% of its industry peers.
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.
The Debt to FCF ratio of MCS (101.21) is comparable to the rest of the industry.
MCS has a Debt/Equity ratio of 0.38. This is a healthy value indicating a solid balance between debt and equity.
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 | 1.59 |
ROIC/WACC0.19
WACC7.69%
2.3 Liquidity
A Current Ratio of 0.35 indicates that MCS may have some problems paying its short term obligations.
MCS has a worse Current ratio (0.35) than 87.50% of its industry peers.
MCS has a Quick Ratio of 0.35. This is a bad value and indicates that MCS is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.35, MCS is doing worse than 86.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.35 | ||
| Quick Ratio | 0.35 |
3. Growth
3.1 Past
MCS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 170.59%, which is quite impressive.
Looking at the last year, MCS shows a small growth in Revenue. The Revenue has grown by 6.28% in the last year.
MCS shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -2.17% yearly.
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
MCS is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 77.74% yearly.
The Revenue is expected to grow by 3.98% on average over the next years.
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
Based on the Price/Earnings ratio of 65.33, the valuation of MCS can be described as expensive.
Based on the Price/Earnings ratio, MCS is valued a bit cheaper than the industry average as 67.50% of the companies are valued more expensively.
MCS is valuated expensively when we compare the Price/Earnings ratio to 26.22, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 23.42 indicates a rather expensive 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 23.58, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 65.33 | ||
| Fwd PE | 23.42 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MCS is valued cheaply inside the industry as 82.50% of the companies are valued more expensively.
MCS's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 280.45 | ||
| EV/EBITDA | 7.33 |
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.
MCS's earnings are expected to grow with 77.74% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.26
PEG (5Y)N/A
EPS Next 2Y113.88%
EPS Next 3Y77.74%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.00%, MCS has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 7.71, MCS pays a better dividend. On top of this MCS pays more dividend than 90.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 1.87, MCS has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2% |
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
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%
15.68
+0.01 (+0.06%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners82.47%
Inst Owner Change1.85%
Ins Owners5.53%
Ins Owner Change-0.42%
Market Cap481.53M
Revenue(TTM)753.27M
Net Income(TTM)7.72M
Analysts84.44
Price Target24.48 (56.12%)
Short Float %4.05%
Short Ratio3.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2% |
Yearly Dividend0.28
Dividend Growth(5Y)-13.79%
DP115.61%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.28%
Min EPS beat(2)1.25%
Max EPS beat(2)15.3%
EPS beat(4)2
Avg EPS beat(4)-16.67%
Min EPS beat(4)-73%
Max EPS beat(4)15.3%
EPS beat(8)4
Avg EPS beat(8)-321.71%
EPS beat(12)5
Avg EPS beat(12)-224.9%
EPS beat(16)8
Avg EPS beat(16)-143.33%
Revenue beat(2)1
Avg Revenue beat(2)-0.69%
Min Revenue beat(2)-3.13%
Max Revenue beat(2)1.76%
Revenue beat(4)3
Avg Revenue beat(4)1.45%
Min Revenue beat(4)-3.13%
Max Revenue beat(4)5.29%
Revenue beat(8)6
Avg Revenue beat(8)3%
Revenue beat(12)10
Avg Revenue beat(12)2.66%
Revenue beat(16)14
Avg Revenue beat(16)4.88%
PT rev (1m)0%
PT rev (3m)-4%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.23%
EPS NY rev (1m)21.93%
EPS NY rev (3m)1.65%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.86%
Revenue NY rev (1m)-0.98%
Revenue NY rev (3m)-2.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 65.33 | ||
| Fwd PE | 23.42 | ||
| P/S | 0.64 | ||
| P/FCF | 280.45 | ||
| P/OCF | 5.47 | ||
| P/B | 1.06 | ||
| P/tB | 1.27 | ||
| EV/EBITDA | 7.33 |
EPS(TTM)0.24
EY1.53%
EPS(NY)0.67
Fwd EY4.27%
FCF(TTM)0.06
FCFY0.36%
OCF(TTM)2.86
OCFY18.27%
SpS24.53
BVpS14.79
TBVpS12.35
PEG (NY)0.26
PEG (5Y)N/A
Graham Number8.94
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.77% | ||
| ROE | 1.7% | ||
| ROCE | 2.11% | ||
| ROIC | 1.44% | ||
| ROICexc | 1.45% | ||
| ROICexgc | 1.59% | ||
| OM | 2.41% | ||
| PM (TTM) | 1.02% | ||
| GM | 38.48% | ||
| FCFM | 0.23% |
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
ROICexgc growth 3YN/A
ROICexgc 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-Score6
Asset Turnover0.75
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | 101.21 | ||
| Debt/EBITDA | 1.93 | ||
| Cap/Depr | 122.78% | ||
| Cap/Sales | 11.45% | ||
| Interest Coverage | 1.75 | ||
| Cash Conversion | 99.52% | ||
| Profit Quality | 22.24% | ||
| Current Ratio | 0.35 | ||
| Quick Ratio | 0.35 | ||
| Altman-Z | 1.59 |
F-Score6
WACC7.69%
ROIC/WACC0.19
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)170.59%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-28.77%
EPS Next Y247.42%
EPS Next 2Y113.88%
EPS Next 3Y77.74%
EPS Next 5YN/A
Revenue 1Y (TTM)6.28%
Revenue growth 3Y17.09%
Revenue growth 5Y-2.17%
Sales Q2Q%-9.68%
Revenue Next Year3.92%
Revenue Next 2Y4.59%
Revenue Next 3Y4.39%
Revenue Next 5Y3.98%
EBIT growth 1Y-11.37%
EBIT growth 3YN/A
EBIT growth 5Y-20.28%
EBIT Next Year287.21%
EBIT Next 3Y69.32%
EBIT Next 5Y51.8%
FCF growth 1Y-97.41%
FCF growth 3Y-5.39%
FCF growth 5Y-20.4%
OCF growth 1Y-13.25%
OCF growth 3Y30.94%
OCF growth 5Y-5.98%
MARCUS CORPORATION / MCS FAQ
What is the fundamental rating for MCS stock?
ChartMill assigns a fundamental rating of 4 / 10 to MCS.
What is the valuation status for MCS stock?
ChartMill assigns a valuation rating of 5 / 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 is the valuation of MARCUS CORPORATION based on its PE and PB ratios?
The Price/Earnings (PE) ratio for MARCUS CORPORATION (MCS) is 65.33 and the Price/Book (PB) ratio is 1.06.
What is the expected EPS growth for MARCUS CORPORATION (MCS) stock?
The Earnings per Share (EPS) of MARCUS CORPORATION (MCS) is expected to grow by 247.42% in the next year.