MARCUS CORPORATION (MCS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MCS - US5663301068 - Common Stock
15.32 USD
-0.16 (-1.03%)
15.32 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. While MCS is still in line with the averages on profitability rating, there are concerns on its financial health. MCS is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
MCS had positive earnings in the past year.
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 62.50% of its industry peers.
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.
MCS's Return On Invested Capital of 1.44% is fine compared to the rest of the industry. MCS outperforms 63.75% 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 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
MCS's Profit Margin of 1.02% is fine compared to the rest of the industry. MCS outperforms 63.75% of its industry peers.
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.
In the last couple of years the Operating Margin of MCS has declined.
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.
In the last couple of years the Gross Margin of MCS has remained more or less at the same level.
| 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.
MCS has less shares outstanding than it did 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 1.59, we must say that MCS is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of MCS (1.59) 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.
Looking at the Debt to FCF ratio, with a value of 101.21, MCS is in line with its industry, 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.
The Debt to Equity ratio of MCS (0.38) 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
WACC7.67%
2.3 Liquidity
A Current Ratio of 0.35 indicates that MCS may have some problems paying its short term obligations.
The Current ratio of MCS (0.35) is worse 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.
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
The Earnings Per Share is expected to grow by 77.74% on average over the next years. This is a very strong growth
MCS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.98% yearly.
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
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
A Price/Earnings ratio of 63.83 indicates a quite expensive valuation of MCS.
67.50% of the companies in the same industry are more expensive than MCS, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.38, MCS is valued quite expensively.
A Price/Forward Earnings ratio of 22.89 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.
When comparing the Price/Forward Earnings ratio of MCS to the average of the S&P500 Index (23.83), we can say MCS is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 63.83 | ||
| Fwd PE | 22.89 |
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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MCS is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 274.01 | ||
| EV/EBITDA | 7.26 |
4.3 Compensation for Growth
The 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
MCS has a Yearly Dividend Yield of 2.07%. 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 7.65. MCS pays more dividend than 90.00% of the companies 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 | 2.07% |
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
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%
15.32
-0.16 (-1.03%)
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 Cap470.48M
Revenue(TTM)753.27M
Net Income(TTM)7.72M
Analysts84.44
Price Target24.48 (59.79%)
Short Float %4.05%
Short Ratio3.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.07% |
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 | 63.83 | ||
| Fwd PE | 22.89 | ||
| P/S | 0.62 | ||
| P/FCF | 274.01 | ||
| P/OCF | 5.35 | ||
| P/B | 1.04 | ||
| P/tB | 1.24 | ||
| EV/EBITDA | 7.26 |
EPS(TTM)0.24
EY1.57%
EPS(NY)0.67
Fwd EY4.37%
FCF(TTM)0.06
FCFY0.36%
OCF(TTM)2.86
OCFY18.7%
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
WACC7.67%
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 3 / 10 to MCS.
What is the valuation status for MCS stock?
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 is the valuation of MARCUS CORPORATION based on its PE and PB ratios?
The Price/Earnings (PE) ratio for MARCUS CORPORATION (MCS) is 63.83 and the Price/Book (PB) ratio is 1.04.
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.