Taking everything into account, MCS scores 4 out of 10 in our fundamental rating. MCS was compared to 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.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

MCS had positive earnings in the past year.
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

MCS has a Return On Assets of 0.77%. This is in the better half of the industry: MCS outperforms 63.75% of its industry peers.
MCS has a better Return On Equity (1.70%) than 67.50% 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 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

Looking at the Profit Margin, with a value of 1.02%, MCS is in the better half of the industry, outperforming 63.75% of the companies in the same industry.
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's Gross Margin of 38.48% is in line compared to the rest of the industry. MCS outperforms 47.50% of its industry peers.
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%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

MCS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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

Based on the Altman-Z score of 1.57, we must say that MCS is in the distress zone and has some risk of bankruptcy.
MCS has a Altman-Z score (1.57) 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.
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	1.57

ROIC/WACC0.16

WACC9.07%

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: 86.25% 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.
With a Quick ratio value of 0.35, MCS is not doing good in the industry: 86.25% of the companies in the same industry are doing better.

		Industry Rank	Sector Rank
Current Ratio	0.35
Quick Ratio	0.35

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 170.59% over the past year.
The Revenue has been growing slightly by 6.28% in the past year.
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 77.74% yearly.
The Revenue is expected to grow by 3.98% on average over the next years.

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

The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 62.88, the valuation of MCS can be described as expensive.
70.00% of the companies in the same industry are more expensive than MCS, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 28.32. MCS is valued rather expensively when compared to this.
With a Price/Forward Earnings ratio of 22.54, MCS is valued on the expensive side.
78.75% of the companies in the same industry are more expensive than MCS, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 25.57. MCS is around the same levels.

		Industry Rank	Sector Rank
PE	62.88
Fwd PE	22.54

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, MCS is valued cheaper than 82.50% of the companies in the same industry.
MCS's Price/Free Cash Flow is on the same level as the industry average.

		Industry Rank	Sector Rank
P/FCF	269.9
EV/EBITDA	7.13

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 77.74% in the coming years.

PEG (NY)0.25

PEG (5Y)N/A

EPS Next 2Y113.88%

EPS Next 3Y77.74%

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5. Dividend

5.1 Amount

MCS has a Yearly Dividend Yield of 2.12%. Purely for dividend investing, there may be better candidates out there.
MCS's Dividend Yield is rather good when compared to the industry average which is at 7.59. MCS pays more dividend than 90.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 1.83, MCS has a dividend comparable with the average S&P500 company.

		Industry Rank	Sector Rank
Dividend Yield	2.12%

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%

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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 62.88 and the Price/Book (PB) ratio is 1.02.

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.