MARCUS CORPORATION (MCS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MCS - US5663301068 - Common Stock
15.46 USD
-0.26 (-1.65%)
15.46 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. 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
In the past year MCS was profitable.
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
With a decent Return On Assets value of 0.77%, MCS is doing good in 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.
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 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.
With a Operating Margin value of 2.41%, MCS perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
MCS's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 38.48%, MCS perfoms like the industry average, outperforming 48.75% 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
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
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.
MCS has a Altman-Z score of 1.59. This is comparable to the rest of the industry: MCS outperforms 56.25% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 101.21, MCS is in line with its industry, outperforming 56.25% of the companies in the same industry.
MCS has a Debt/Equity ratio of 0.38. This is a healthy value indicating a solid balance between debt and equity.
MCS's Debt to Equity ratio of 0.38 is in line compared to the rest of the industry. MCS outperforms 48.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | 101.21 | ||
| Altman-Z | 1.59 |
ROIC/WACC0.19
WACC7.63%
2.3 Liquidity
MCS has a Current 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.
With a Current ratio value of 0.35, MCS is not doing good in the industry: 87.50% of the companies in the same industry are doing better.
A Quick Ratio of 0.35 indicates that MCS may have some problems paying 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
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
The Earnings Per Share is expected to grow by 72.94% on average over the next years. This is a very strong growth
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
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 64.42, which means the current valuation is very expensive for MCS.
Based on the Price/Earnings ratio, MCS is valued a bit cheaper than the industry average as 67.50% of the companies are valued more expensively.
MCS is valuated expensively when we compare the Price/Earnings ratio to 26.15, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 23.43, MCS is valued on the expensive side.
MCS's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. MCS is cheaper than 77.50% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.22, MCS is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 64.42 | ||
| Fwd PE | 23.43 |
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 | 276.52 | ||
| EV/EBITDA | 7.34 |
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.
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
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 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.
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%
15.46
-0.26 (-1.65%)
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 Cap474.78M
Revenue(TTM)753.27M
Net Income(TTM)7.72M
Analysts84.44
Price Target24.48 (58.34%)
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 | 64.42 | ||
| Fwd PE | 23.43 | ||
| P/S | 0.63 | ||
| P/FCF | 276.52 | ||
| P/OCF | 5.4 | ||
| P/B | 1.04 | ||
| P/tB | 1.25 | ||
| EV/EBITDA | 7.34 |
EPS(TTM)0.24
EY1.55%
EPS(NY)0.66
Fwd EY4.27%
FCF(TTM)0.06
FCFY0.36%
OCF(TTM)2.86
OCFY18.53%
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
WACC7.63%
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 64.42 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.