NYSE:MCS

Stock Analysis Report

Executive Summary

The Marcus Corporation, together with its subsidiaries, owns and operates movie theatres, and hotels and resorts in the United States.

Snowflake

Fundamentals

Adequate balance sheet average dividend payer.


Similar Companies

Share Price & News

How has Marcus's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MCS has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.5%

MCS

3.6%

US Entertainment

0.2%

US Market


1 Year Return

-22.3%

MCS

18.1%

US Entertainment

12.2%

US Market

Return vs Industry: MCS underperformed the US Entertainment industry which returned 18.1% over the past year.

Return vs Market: MCS underperformed the US Market which returned 12.2% over the past year.


Shareholder returns

MCSIndustryMarket
7 Day-2.5%3.6%0.2%
30 Day-1.6%6.1%3.5%
90 Day-4.8%3.7%6.3%
1 Year-21.0%-22.3%19.0%18.1%14.7%12.2%
3 Year23.4%17.2%60.7%55.3%47.8%38.3%
5 Year118.7%100.0%101.8%88.8%62.1%44.1%

Price Volatility Vs. Market

How volatile is Marcus's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Marcus undervalued compared to its fair value and its price relative to the market?

23.3x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MCS ($33.34) is trading above our estimate of fair value ($24.1)

Significantly Below Fair Value: MCS is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: MCS is good value based on its PE Ratio (23.3x) compared to the Entertainment industry average (26.3x).

PE vs Market: MCS is poor value based on its PE Ratio (23.3x) compared to the US market (18.1x).


Price to Earnings Growth Ratio

PEG Ratio: MCS is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: MCS is good value based on its PB Ratio (1.7x) compared to the US Entertainment industry average (2.8x).


Next Steps

Future Growth

How is Marcus forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

18.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MCS's forecast earnings growth (18.2% per year) is above the savings rate (2.7%).

Earnings vs Market: MCS's earnings (18.2% per year) are forecast to grow faster than the US market (14.3% per year).

High Growth Earnings: MCS's earnings are forecast to grow, but not significantly.

Revenue vs Market: MCS's revenue (6.1% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: MCS's revenue (6.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MCS's Return on Equity is forecast to be low in 3 years time (9.3%).


Next Steps

Past Performance

How has Marcus performed over the past 5 years?

16.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MCS has high quality earnings.

Growing Profit Margin: MCS's current net profit margins (5.7%) are lower than last year (11.9%).


Past Earnings Growth Analysis

Earnings Trend: MCS's earnings have grown by 16.8% per year over the past 5 years.

Accelerating Growth: MCS's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: MCS had negative earnings growth (-45.7%) over the past year, making it difficult to compare to the Entertainment industry average (12%).


Return on Equity

High ROE: MCS's Return on Equity (6.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Marcus's financial position?


Financial Position Analysis

Short Term Liabilities: MCS's short term assets ($54.9M) do not cover its short term liabilities ($150.6M)

Long Term Liabilities: MCS's short term assets (54.9M) do not cover its long term liabilities (567.1M)


Debt to Equity History and Analysis

Debt Level: MCS's debt to equity ratio (39.7%) is considered satisfactory

Reducing Debt: MCS's debt to equity ratio has reduced from 70.5% to 39.7% over the past 5 years.

Debt Coverage: MCS's debt is well covered by operating cash flow (59.2%).

Interest Coverage: MCS's interest payments on its debt are well covered by EBIT (6.5x coverage).


Balance Sheet

Inventory Level: MCS has a high level of physical assets or inventory.

Debt Coverage by Assets: MCS's debt is not covered by short term assets (assets are 0.2x debt).


Next Steps

Dividend

What is Marcus's current dividend yield, its reliability and sustainability?

1.92%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Marcus before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company1.9%marketbottom25%1.4%markettop25%3.6%industryaverage1.2%forecastin3Years1.3%

Current dividend yield vs market & industry

Notable Dividend: MCS's dividend (1.92%) is higher than the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: MCS's dividend (1.92%) is low compared to the top 25% of dividend payers in the US market (3.65%).


Stability and Growth of Payments

Stable Dividend: MCS's dividends per share have been stable in the past 10 years.

Growing Dividend: MCS's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (44%), MCS's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Marcus's salary, the management and board of directors tenure and is there insider trading?

6.3yrs

Average management tenure


CEO

Greg Marcus (54yo)

10.8yrs

Tenure

US$2,930,386

Compensation

Mr. Gregory S. Marcus, also known as Greg, has been the President and Chief Executive Officer at The Marcus Corporation since January 8, 2008 and January 6, 2009 respectively. Mr. Marcus served as Senior V ...


CEO Compensation Analysis

Compensation vs Market: Greg's total compensation ($USD2.93M) is about average for companies of similar size in the US market ($USD2.64M).

Compensation vs Earnings: Greg's compensation has been consistent with company performance over the past year.


Management Age and Tenure

6.3yrs

Average Tenure

59yo

Average Age

Experienced Management: MCS's management team is seasoned and experienced (6.3 years average tenure).


Board Age and Tenure

23.6yrs

Average Tenure

69.5yo

Average Age

Experienced Board: MCS's board of directors are seasoned and experienced ( 23.6 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$1,456,61919 Mar 19
GAMCO Investors, Inc.
EntityCompany
Shares34,900
Max PriceUS$43.01
SellUS$93,14419 Mar 19
Teton Advisors, Inc
EntityCompany
Shares2,300
Max PriceUS$40.50
SellUS$68,706,75006 Feb 19
Vss-Southern Holdings LLC
EntityCompany
Shares1,725,000
Max PriceUS$39.83
SellUS$121,77711 Jan 19
Thomas Kissinger
EntityIndividual
Role
Chief Legal Officer
Senior EVP
Shares2,850
Max PriceUS$42.73
SellUS$211,61927 Nov 18
PLM Foundation, Endowment Arm
EntityCompany
Shares5,000
Max PriceUS$42.32

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 7.3%.


Management Team

  • Doug Neis (60yo)

    Executive VP

    • Tenure: 23.2yrs
    • Compensation: US$1.09m
  • Tom Kissinger (59yo)

    Senior EVP

    • Tenure: 24.3yrs
    • Compensation: US$1.34m
  • Rolando Rodriguez (59yo)

    Executive Vice President

    • Tenure: 6.3yrs
    • Compensation: US$1.99m
  • Bill Reynolds (70yo)

    Senior Managing Director of MCS Capital LLC

    • Tenure: 8.3yrs
  • Greg Marcus (54yo)

    President

    • Tenure: 10.8yrs
    • Compensation: US$2.93m
  • Kim Lueck

    Chief Information Officer

    • Tenure: 5.2yrs
  • Steven Bartelt

    Director of Legal Affairs & Assistant Secretary

    • Tenure: 6.3yrs
  • Joseph Khairallah

    President of Marcus Hotels & Resorts and Chief Operating Officer of Marcus Hotels & Resorts

    • Tenure: 3.1yrs
  • Jim Waldvogel

    MD for The Hilton Minneapolis/Bloomington Hotel & Crowne Plaza Minneapolis Northstar Downtown

    • Tenure: 4yrs
  • John Murray

    Vice President of Human Resources

    • Tenure: 3.6yrs

Board Members

  • Steve Marcus (84yo)

    Chairman of the Board

    • Tenure: 27.9yrs
    • Compensation: US$1.00m
  • Bruce Olson (69yo)

    Director

    • Tenure: 23.6yrs
    • Compensation: US$128.23k
  • Tim Hoeksema (72yo)

    Independent Director

    • Tenure: 24.8yrs
    • Compensation: US$130.91k
  • Diane Gershowitz (80yo)

    Director

    • Tenure: 34.8yrs
    • Compensation: US$254.71k
  • Phil Milstein (70yo)

    Lead Independent Director

    • Tenure: 0yrs
    • Compensation: US$136.41k
  • Bud Selig (84yo)

    Independent Director

    • Tenure: 24.8yrs
    • Compensation: US$131.41k
  • Brian Stark (64yo)

    Independent Director

    • Tenure: 7.8yrs
    • Compensation: US$138.91k
  • Greg Marcus (54yo)

    President

    • Tenure: 10.8yrs
    • Compensation: US$2.93m
  • Katherine Gehl (55yo)

    Independent Director

    • Tenure: 4.8yrs
    • Compensation: US$136.54k
  • David Baum (54yo)

    Independent Director

    • Tenure: 3.8yrs
    • Compensation: US$136.01k

Company Information

The Marcus Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: The Marcus Corporation
  • Ticker: MCS
  • Exchange: NYSE
  • Founded: 1935
  • Industry: Movies and Entertainment
  • Sector: Media
  • Market Cap: US$1.031b
  • Shares outstanding: 30.92m
  • Website: https://www.marcuscorp.com

Number of Employees


Location

  • The Marcus Corporation
  • 100 East Wisconsin Avenue
  • Suite 1900
  • Milwaukee
  • Wisconsin
  • 53202
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MCSNYSE (New York Stock Exchange)YesCommon StockUSUSDDec 1993
3L1DB (Deutsche Boerse AG)YesCommon StockDEEURDec 1993

Biography

The Marcus Corporation, together with its subsidiaries, owns and operates movie theatres, and hotels and resorts in the United States. As of March 12, 2019, it owned or operated 1,098 screens at 90 locatio ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/14 23:40
End of Day Share Price2019/11/14 00:00
Earnings2019/09/26
Annual Earnings2018/12/27


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.