MARCUS CORPORATION (MCS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MCS - US5663301068 - Common Stock
15.23 USD
+0.04 (+0.26%)
15.23 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 is not valued too expensively and it also shows a decent growth rate.
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.
- 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
- MCS has a better Return On Assets (0.77%) than 63.75% of its industry peers.
- Looking at the Return On Equity, with a value of 1.70%, MCS is in the better half of the industry, outperforming 67.50% of the companies in the same industry.
- MCS has a Return On Invested Capital of 1.44%. This is in the better half of the industry: MCS outperforms 62.50% 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 8.74%.
| 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
- With a decent Profit Margin value of 1.02%, MCS is doing good in the industry, outperforming 63.75% of the companies in the same industry.
- The Operating Margin of MCS (2.41%) is comparable to the rest of the industry.
- In the last couple of years the Operating Margin of MCS has declined.
- With a Gross Margin value of 38.48%, MCS perfoms like the industry average, outperforming 47.50% 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so MCS 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.
- 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.
- The Debt to FCF ratio of MCS is 101.21, which is on the high side as it means it would take MCS, 101.21 years of fcf income to pay off all of its debts.
- MCS's Debt to FCF ratio of 101.21 is in line compared to the rest of the industry. MCS outperforms 58.75% of its industry peers.
- 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 | 1.58 |
ROIC/WACC0.16
WACC9.09%
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 86.25% of its industry peers.
- A Quick Ratio of 0.35 indicates that MCS may have some problems paying 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.
- MCS shows a small growth in Revenue. In the last year, the Revenue has grown by 6.28%.
- Measured over the past years, MCS shows a decrease in Revenue. The Revenue has been decreasing by -2.17% on average per year.
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
- The Price/Earnings ratio is 63.46, which means the current valuation is very expensive for MCS.
- 68.75% of the companies in the same industry are more expensive than MCS, based on the Price/Earnings ratio.
- When comparing the Price/Earnings ratio of MCS to the average of the S&P500 Index (28.87), we can say MCS is valued expensively.
- A Price/Forward Earnings ratio of 22.75 indicates a rather expensive valuation of MCS.
- MCS's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. MCS is cheaper than 78.75% of the companies in the same industry.
- MCS's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.96.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 63.46 | ||
| Fwd PE | 22.75 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, MCS is valued cheaper than 81.25% of the companies in the same industry.
- The rest of the industry has a similar Price/Free Cash Flow ratio as MCS.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 272.4 | ||
| EV/EBITDA | 7.16 |
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 77.74% in the coming years.
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 2.03%, MCS has a reasonable but not impressive dividend return.
- MCS's Dividend Yield is rather good when compared to the industry average which is at 7.58. MCS pays more dividend than 90.00% of the companies in the same industry.
- MCS's Dividend Yield is comparable with the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.03% |
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%
MARCUS CORPORATION / MCS FAQ
What is the fundamental rating for MCS stock?
ChartMill assigns a fundamental rating of 4 / 10 to MCS.
Can you provide the valuation status for MARCUS CORPORATION?
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 are the PE and PB ratios of MARCUS CORPORATION (MCS) stock?
The Price/Earnings (PE) ratio for MARCUS CORPORATION (MCS) is 63.46 and the Price/Book (PB) ratio is 1.03.
What is the earnings growth outlook for MARCUS CORPORATION?
The Earnings per Share (EPS) of MARCUS CORPORATION (MCS) is expected to grow by 247.42% in the next year.