MARCUS CORPORATION (MCS) Stock Fundamental Analysis
NYSE:MCS - New York Stock Exchange, Inc. - US5663301068 - Common Stock - Currency: USD
Overall MCS gets a fundamental rating of 3 out of 10. We evaluated MCS against 72 industry peers in the Entertainment industry. Both the profitability and financial health of MCS have multiple concerns. MCS has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
MCS had negative earnings in the past year.
MCS had a positive operating cash flow in the past year.
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
The Return On Assets of MCS (-1.25%) is better than 61.11% of its industry peers.
Looking at the Return On Equity, with a value of -2.88%, MCS is in the better half of the industry, outperforming 63.89% of the companies in the same industry.
The Return On Invested Capital of MCS (1.39%) is better than 63.89% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MCS is significantly below the industry average of 23.07%.
| 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 Operating Margin of 2.39%. This is in the better half of the industry: MCS outperforms 65.28% of its industry peers.
In the last couple of years the Operating Margin of MCS has declined.
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.
MCS's Gross Margin has been stable in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so MCS is destroying value.
Compared to 1 year ago, MCS has less shares outstanding
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 (1.59) which is in line with its industry peers.
MCS has a Debt/Equity ratio of 0.45. This is a healthy value indicating a solid balance between debt and equity.
MCS has a Debt to Equity ratio (0.45) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.59 |
ROIC/WACC0.18
WACC7.71%
2.3 Liquidity
MCS has a Current Ratio of 0.42. 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 0.42, MCS is not doing good in the industry: 84.72% of the companies in the same industry are doing better.
A Quick Ratio of 0.42 indicates that MCS may have some problems paying its short term obligations.
MCS has a worse Quick ratio (0.42) than 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.42 | ||
| Quick Ratio | 0.42 |
3. Growth
3.1 Past
MCS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -282.61%.
The Revenue has been growing slightly by 4.18% in the past year.
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.
Based on estimates for the next years, MCS will show a small growth in Revenue. The Revenue will grow by 4.05% on average per year.
EPS Next Y273.51%
EPS Next 2Y114.54%
EPS Next 3Y69.1%
EPS Next 5YN/A
Revenue Next Year6.56%
Revenue Next 2Y5.38%
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
MCS reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
MCS is valuated quite expensively with a Price/Forward Earnings ratio of 26.36.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MCS indicates a somewhat cheap valuation: MCS is cheaper than 72.22% of the companies listed in the same industry.
MCS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 36.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 26.36 |
4.2 Price Multiples
83.33% of the companies in the same industry are more expensive than MCS, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.43 |
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
MCS has a Yearly Dividend Yield of 1.63%.
MCS's Dividend Yield is rather good when compared to the industry average which is at 6.66. MCS pays more dividend than 88.89% of the companies in the same industry.
MCS's Dividend Yield is slightly below the S&P500 average, which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.63% |
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
The earnings of MCS are negative and hence is the payout ratio. MCS will probably not be able to sustain this dividend level.
DP-68.74%
EPS Next 2Y114.54%
EPS Next 3Y69.1%
17.84
+0.6 (+3.48%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners79.45%
Inst Owner Change0%
Ins Owners5.01%
Ins Owner Change5.16%
Market Cap558.39M
Analysts82.5
Price Target25.76 (44.39%)
Short Float %2.75%
Short Ratio3.45
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.63% |
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)0%
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)1.16%
Revenue NQ rev (3m)3.23%
Revenue NY rev (1m)-0.27%
Revenue NY rev (3m)1.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 26.36 | ||
| P/S | 0.75 | ||
| P/FCF | N/A | ||
| P/OCF | 6.67 | ||
| P/B | 1.26 | ||
| P/tB | 1.52 | ||
| EV/EBITDA | 8.43 |
EPS(TTM)-0.42
EYN/A
EPS(NY)0.68
Fwd EY3.79%
FCF(TTM)-0.1
FCFYN/A
OCF(TTM)2.67
OCFY14.99%
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 | 1.59 |
F-Score4
WACC7.71%
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 Year6.56%
Revenue Next 2Y5.38%
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%