MARCUS CORPORATION (MCS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MCS - US5663301068 - Common Stock
15.69 USD
+0.6 (+3.98%)
15.69 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. There are concerns on the financial health of MCS while its profitability can be described as average. 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.
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
Looking at the Return On Assets, with a value of 0.77%, MCS is in the better half of the industry, outperforming 61.25% of the companies in the same industry.
With a decent Return On Equity value of 1.70%, MCS is doing good in the industry, outperforming 65.00% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 1.44%, MCS is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for MCS is significantly below the industry average of 9.33%.
| 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 62.50% of its industry peers.
With a Operating Margin value of 2.41%, MCS perfoms like the industry average, outperforming 60.00% 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 (38.48%) which is comparable to the rest of the 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.
Compared to 1 year ago, MCS has less shares outstanding
MCS has more shares outstanding than it did 5 years ago.
The debt/assets ratio for MCS has been reduced compared to a year ago.
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.
MCS has a Altman-Z score (1.58) which 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.
MCS has a Debt to FCF ratio (101.21) which is comparable to the rest of the 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 | 1.58 |
ROIC/WACC0.2
WACC7.36%
2.3 Liquidity
A Current Ratio of 0.35 indicates that MCS may have some problems paying its short term obligations.
MCS has a Current ratio of 0.35. This is amonst the worse of the industry: MCS underperforms 87.50% of its industry peers.
A Quick Ratio of 0.35 indicates that MCS may have some problems paying its short term obligations.
The Quick ratio of MCS (0.35) is worse than 86.25% of its industry peers.
| 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.
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
MCS is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 72.94% yearly.
MCS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.98% yearly.
EPS Next Y220.91%
EPS Next 2Y113.02%
EPS Next 3Y72.94%
EPS Next 5YN/A
Revenue Next Year4.95%
Revenue Next 2Y4.89%
Revenue Next 3Y4.51%
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
Based on the Price/Earnings ratio of 65.38, the valuation of MCS can be described as expensive.
Based on the Price/Earnings ratio, MCS is valued a bit cheaper than 67.50% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.98, MCS is valued quite expensively.
MCS is valuated rather expensively with a Price/Forward Earnings ratio of 23.78.
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.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.79, MCS is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 65.38 | ||
| Fwd PE | 23.78 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MCS is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
The rest of the industry has a similar Price/Free Cash Flow ratio as MCS.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 286.11 | ||
| EV/EBITDA | 7.23 |
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 72.94% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.3
PEG (5Y)N/A
EPS Next 2Y113.02%
EPS Next 3Y72.94%
5. Dividend
5.1 Amount
MCS has a Yearly Dividend Yield of 2.17%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 44.94, MCS pays a better dividend. On top of this MCS pays more dividend than 91.25% of the companies listed in the same industry.
MCS's Dividend Yield is comparable with the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.17% |
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 2Y113.02%
EPS Next 3Y72.94%
15.69
+0.6 (+3.98%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners78.83%
Inst Owner Change1.85%
Ins Owners4.98%
Ins Owner Change-0.42%
Market Cap491.25M
Revenue(TTM)753.27M
Net Income(TTM)7.72M
Analysts84.44
Price Target24.48 (56.02%)
Short Float %4.09%
Short Ratio3.91
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.17% |
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)-4%
PT rev (3m)-4%
EPS NQ rev (1m)-7.78%
EPS NQ rev (3m)-4.23%
EPS NY rev (1m)-18.09%
EPS NY rev (3m)-16.63%
Revenue NQ rev (1m)-2.58%
Revenue NQ rev (3m)-2.86%
Revenue NY rev (1m)-0.97%
Revenue NY rev (3m)-1.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 65.38 | ||
| Fwd PE | 23.78 | ||
| P/S | 0.65 | ||
| P/FCF | 286.11 | ||
| P/OCF | 5.58 | ||
| P/B | 1.08 | ||
| P/tB | 1.3 | ||
| EV/EBITDA | 7.23 |
EPS(TTM)0.24
EY1.53%
EPS(NY)0.66
Fwd EY4.21%
FCF(TTM)0.05
FCFY0.35%
OCF(TTM)2.81
OCFY17.91%
SpS24.06
BVpS14.51
TBVpS12.12
PEG (NY)0.3
PEG (5Y)N/A
Graham Number8.85
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 | 1.58 |
F-Score6
WACC7.36%
ROIC/WACC0.2
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 Y220.91%
EPS Next 2Y113.02%
EPS Next 3Y72.94%
EPS Next 5YN/A
Revenue 1Y (TTM)6.28%
Revenue growth 3Y17.09%
Revenue growth 5Y-2.17%
Sales Q2Q%-9.68%
Revenue Next Year4.95%
Revenue Next 2Y4.89%
Revenue Next 3Y4.51%
Revenue Next 5Y3.98%
EBIT growth 1Y-11.37%
EBIT growth 3YN/A
EBIT growth 5Y-20.28%
EBIT Next Year312.54%
EBIT Next 3Y65.19%
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 65.38 and the Price/Book (PB) ratio is 1.08.
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 220.91% in the next year.