MARCUS CORPORATION (MCS) Stock Fundamental Analysis
NYSE:MCS - New York Stock Exchange, Inc. - US5663301068 - Common Stock - Currency: USD
Taking everything into account, MCS scores 3 out of 10 in our fundamental rating. MCS was compared to 72 industry peers in the Entertainment industry. Both the profitability and financial health of MCS have multiple concerns. MCS is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
MCS had negative earnings in the past year.
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
The Return On Assets of MCS (-1.25%) is better than 62.50% of its industry peers.
With a decent Return On Equity value of -2.88%, MCS is doing good in the industry, outperforming 65.28% of the companies in the same industry.
With a decent Return On Invested Capital value of 1.39%, MCS is doing good in the industry, outperforming 63.89% 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 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 has a better Operating Margin (2.39%) than 65.28% of its industry peers.
MCS's Operating Margin has declined in the last couple of years.
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.
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 | 2.39% | ||
| 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
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.
MCS has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, MCS has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.60, we must say that MCS is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.60, MCS perfoms like the industry average, outperforming 54.17% of the companies in the same industry.
A Debt/Equity ratio of 0.45 indicates that MCS is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.45, MCS perfoms like the industry average, outperforming 48.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.6 |
ROIC/WACC0.18
WACC7.59%
2.3 Liquidity
A Current Ratio of 0.42 indicates that MCS may have some problems paying its short term obligations.
MCS has a worse Current ratio (0.42) than 84.72% of its industry peers.
A Quick Ratio of 0.42 indicates that MCS may have some problems paying its short term obligations.
With a Quick ratio value of 0.42, MCS is not doing good in the industry: 83.33% of the companies in the same industry are doing better.
| 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.
MCS shows a small growth in Revenue. In the last year, the Revenue has grown by 4.18%.
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
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
The Price/Earnings Ratio is negative for MCS. In the last year negative earnings were reported.
A Price/Forward Earnings ratio of 25.74 indicates a quite expensive valuation of MCS.
Based on the Price/Forward Earnings ratio, MCS is valued a bit cheaper than the industry average as 70.83% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.90, MCS is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 25.74 |
4.2 Price Multiples
MCS's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. MCS is cheaper than 84.72% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.5 |
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
With a Yearly Dividend Yield of 1.61%, 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 6.60. MCS pays more dividend than 88.89% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.38, MCS is paying slightly less dividend.
| 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.
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
MCS has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-68.74%
EPS Next 2Y114.54%
EPS Next 3Y69.1%
17.42
+0.32 (+1.87%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners79.45%
Inst Owner Change-54.43%
Ins Owners5.01%
Ins Owner Change5.16%
Market Cap545.25M
Analysts82.5
Price Target25.76 (47.88%)
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 | 25.74 | ||
| P/S | 0.73 | ||
| P/FCF | N/A | ||
| P/OCF | 6.51 | ||
| P/B | 1.23 | ||
| P/tB | 1.49 | ||
| EV/EBITDA | 8.5 |
EPS(TTM)-0.42
EYN/A
EPS(NY)0.68
Fwd EY3.88%
FCF(TTM)-0.1
FCFYN/A
OCF(TTM)2.67
OCFY15.35%
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 | 1.6 |
F-Score4
WACC7.59%
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%