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. MCS has a bad profitability rating. Also its financial health evaluation is rather negative. 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
In the past year MCS has reported negative net income.
MCS had a positive operating cash flow in the past year.
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
MCS has a Return On Assets of -1.25%. This is in the better half of the industry: MCS outperforms 62.50% 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 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
The Operating Margin of MCS (2.39%) is better than 65.28% of its industry peers.
MCS's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 38.67%, MCS perfoms like the industry average, outperforming 41.67% of the companies in the same 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 | 2.39% | ||
| 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.
MCS has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.59, we must say that MCS is in the distress zone and has some risk of bankruptcy.
MCS's Altman-Z score of 1.59 is fine compared to the rest of the industry. MCS outperforms 61.11% of its industry peers.
A Debt/Equity ratio of 0.45 indicates that MCS is not too dependend on debt financing.
MCS has a Debt to Equity ratio of 0.45. This is comparable to the rest of the industry: MCS outperforms 48.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.59 |
ROIC/WACC0.11
WACC12.83%
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.
MCS's Current ratio of 0.42 is on the low side compared to the rest of the industry. MCS is outperformed by 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
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.
Measured over the past years, MCS shows a decrease in Revenue. The Revenue has been decreasing by -2.17% on average per year.
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
The Earnings Per Share is expected to grow by 69.10% on average over the next years. This is a very strong growth
MCS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.05% yearly.
EPS Next Y286.46%
EPS Next 2Y114.99%
EPS Next 3Y69.1%
EPS Next 5YN/A
Revenue Next Year6.85%
Revenue Next 2Y5.43%
Revenue Next 3Y4.05%
Revenue Next 5YN/A
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
The Price/Earnings Ratio is negative for MCS. In the last year negative earnings were reported.
With a Price/Forward Earnings ratio of 25.05, MCS can be considered very expensive at the moment.
MCS's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. MCS is cheaper than 70.83% of the companies in the same industry.
MCS's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.13.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 25.05 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MCS is valued cheaper than 84.72% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.38 |
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.
MCS's earnings are expected to grow with 69.10% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y114.99%
EPS Next 3Y69.1%
5. Dividend
5.1 Amount
MCS has a Yearly Dividend Yield of 1.62%.
MCS's Dividend Yield is rather good when compared to the industry average which is at 6.31. MCS pays more dividend than 87.50% of the companies in the same industry.
MCS's Dividend Yield is slightly below the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.62% |
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
MCS has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-68.74%
EPS Next 2Y114.99%
EPS Next 3Y69.1%
17.08
-0.25 (-1.44%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners79.45%
Inst Owner Change-0.96%
Ins Owners5.01%
Ins Owner Change6.95%
Market Cap534.60M
Analysts82.5
Price Target25.76 (50.82%)
Short Float %2.7%
Short Ratio3.41
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.62% |
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)-2.88%
EPS NQ rev (1m)0%
EPS NQ rev (3m)350%
EPS NY rev (1m)0%
EPS NY rev (3m)-15.04%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)4.74%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 25.05 | ||
| P/S | 0.72 | ||
| P/FCF | N/A | ||
| P/OCF | 6.39 | ||
| P/B | 1.21 | ||
| P/tB | 1.46 | ||
| EV/EBITDA | 8.38 |
EPS(TTM)-0.42
EYN/A
EPS(NY)0.68
Fwd EY3.99%
FCF(TTM)-0.1
FCFYN/A
OCF(TTM)2.67
OCFY15.66%
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
WACC12.83%
ROIC/WACC0.11
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 Y286.46%
EPS Next 2Y114.99%
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 Year6.85%
Revenue Next 2Y5.43%
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%