MARCUS CORPORATION (MCS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MCS - US5663301068 - Common Stock
15.44 USD
-0.02 (-0.13%)
15.44 USD
0 (0%)
We assign a fundamental rating of 4 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 has a correct valuation and a medium 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.
MCS had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
MCS has a Return On Assets of 0.77%. This is in the better half of the industry: MCS outperforms 61.25% of its industry peers.
MCS has a Return On Equity of 1.70%. This is in the better half of the industry: MCS outperforms 65.00% of its industry peers.
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.
MCS had an Average Return On Invested Capital over the past 3 years of 1.74%. This 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 better Profit Margin (1.02%) than 62.50% of its industry peers.
MCS's Operating Margin of 2.41% is in line compared to the rest of the industry. MCS outperforms 60.00% of its industry peers.
In the last couple of years the Operating Margin of MCS has declined.
The Gross Margin of MCS (38.48%) 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.
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.
MCS has a better debt/assets ratio than last year.
2.2 Solvency
MCS has an Altman-Z score of 1.59. This is a bad value and indicates that MCS is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.59, MCS perfoms like the industry average, outperforming 56.25% of the companies in the same 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.
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.
Looking at the Debt to Equity ratio, with a value of 0.38, MCS is in line with its industry, outperforming 48.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | 101.21 | ||
| Altman-Z | 1.59 |
ROIC/WACC0.19
WACC7.62%
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 worse Quick ratio (0.35) than 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
Based on estimates for the next years, MCS will show a very strong growth in Earnings Per Share. The EPS will grow by 72.94% on average per year.
Based on estimates for the next years, MCS will show a small growth in Revenue. The Revenue will grow by 3.98% on average per year.
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 64.33, 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.
When comparing the Price/Earnings ratio of MCS to the average of the S&P500 Index (26.37), we can say MCS is valued expensively.
MCS is valuated rather expensively with a Price/Forward Earnings ratio of 23.40.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MCS indicates a somewhat cheap valuation: MCS is cheaper than 77.50% of the companies listed in the same industry.
MCS's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 36.20.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 64.33 | ||
| Fwd PE | 23.4 |
4.2 Price Multiples
81.25% of the companies in the same industry are more expensive than MCS, based on the Enterprise Value to EBITDA ratio.
The rest of the industry has a similar Price/Free Cash Flow ratio as MCS.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 276.16 | ||
| EV/EBITDA | 7.25 |
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 72.94% in the coming years.
PEG (NY)0.29
PEG (5Y)N/A
EPS Next 2Y113.02%
EPS Next 3Y72.94%
5. Dividend
5.1 Amount
MCS has a Yearly Dividend Yield of 2.03%.
MCS's Dividend Yield is rather good when compared to the industry average which is at 37.67. MCS pays more dividend than 90.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, MCS has a dividend comparable with the average S&P500 company.
| 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 2Y113.02%
EPS Next 3Y72.94%
15.44
-0.02 (-0.13%)
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 Cap474.16M
Revenue(TTM)753.27M
Net Income(TTM)7.72M
Analysts84.44
Price Target24.48 (58.55%)
Short Float %4.1%
Short Ratio3.75
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.03% |
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 | 64.33 | ||
| Fwd PE | 23.4 | ||
| P/S | 0.63 | ||
| P/FCF | 276.16 | ||
| P/OCF | 5.39 | ||
| P/B | 1.04 | ||
| P/tB | 1.25 | ||
| EV/EBITDA | 7.25 |
EPS(TTM)0.24
EY1.55%
EPS(NY)0.66
Fwd EY4.27%
FCF(TTM)0.06
FCFY0.36%
OCF(TTM)2.86
OCFY18.55%
SpS24.53
BVpS14.79
TBVpS12.35
PEG (NY)0.29
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
WACC7.62%
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 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 64.33 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 220.91% in the next year.