Marcus Corp (MCS) stock analysis

P/E below its 5-year median

Marcus's P/E of 34.3 is below its own 5-year median of 47.8.

P/E above the industry

Marcus's P/E of 34.3 is above the Communication services median of 16.8.

EV/EBITDA above its 5-year median

Marcus's EV/EBITDA of 8.5 is above its 5-year median of 8.3.

P/B above the industry

Marcus's price-to-book of 1.77 is above the Communication services median of 1.71.

Trading above fair value

The share price of $27.40 is above our fair value estimate of $24.91.

Margin of safety under 20%

The price is 10.0% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew 3.8% a year over the last three fiscal years, short of the 10% we look for.

EPS growth over 3 years

Needs positive EPS three years ago and today.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing slower than the industry

Revenue grew 8.5% over the last twelve months; the Communication services median is 8.5%.

Company guidance

No outlook found in earnings releases from the last twelve months.

Gross margin trend

This company does not report gross profit.

Return on equity under 15%

Return on equity was 5.4% over the last twelve months and averaged -1.5% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was 6.2%, below the 10% that usually covers the cost of capital.

Return on equity above the industry

Marcus's return on equity of 5.4% is above the Communication services median of -18.7%.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin above its 5-year average

Net margin was 3.1% over the last twelve months, against a 5-year average of -1.7%.

Net margin above the industry

Marcus's net margin of 3.1% is above the Communication services median of -2.6%.

Low debt

Debt is 31.1% of shareholders' equity, under the 40% we consider low.

Debt falling against equity

Debt to equity fell from 58.3% five years ago to 31.1%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 84.5% of total debt.

Interest not well covered

Operating income covers interest expense 3.7 times; we look for at least 5.

Short-term assets don't cover short-term debts

Current assets are 0.67 times current liabilities.

Bankruptcy risk in the grey zone

The Altman Z-score is 2.19; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Marcus paid dividends worth 1.2% of the share price over the last twelve months.

Yield below Treasuries

The 1.2% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Marcus yields 1.2%.

Dividend stability

Fewer than five years of dividend history.

Covered by earnings

Dividends take 39.5% of net income.

Covered by free cash flow

Dividends take 12.9% of free cash flow.