Marcus (MCS) AI Stock Analysis

• Market Cap: $473.88M
• Dividend Yield: 1.88%
• Average Volume (3M): 263.78K
• Price to Earnings (P/E): 35.6
• Beta (1Y): 0.55
• Revenue Growth: 13.28%
• EPS Growth: N/A
• Country: US
• Employees: 2,907
• Sector: Communication Services
• Sector Strength: 91
• Industry: Entertainment
• EPS (TTM): 0.23
• Shares Outstanding: 24,326,492
• 10 Day Avg. Volume: 249,699
• 30 Day Avg. Volume: 263,781
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.85
• Enterprise Value/Revenue: 1.13
• Enterprise Value/Gross Profit: 1.45
• Enterprise Value/Ebitda: 10.86
• 1Y Price Target: $24.67
• Price Target Upside: 59.78% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 63 Neutral
• Price Target: $16.00 ▲(3.63% Upside)

Marcus Corporation's overall stock score reflects a strong financial recovery and positive corporate developments. However, technical indicators suggest bearish momentum, and valuation metrics indicate potential overvaluation. Earnings call insights show promising long-term strategies but highlight short-term challenges, particularly in the hotel segment.

Positive Factors

Box Office Growth

Box office growth is supported by a larger film slate, which is expected to support profitability for MCS.

Financial Performance

Marcus delivered a strong second quarter, with both revenue and AEBITDA surpassing consensus estimates.

Hotel Demand

Hotel demand remains supportive, with group and business travel continuing to improve.

Negative Factors

Admission Sales

Admission sales underperformed peers slightly due to strategic pricing decisions focused on promotions to prioritize attendance over average ticket prices.

Film Slate Volume

Management noted that while the film slate volume is expected to be below pre-pandemic trends, studios remain committed to investing in theatrical content.

Theatre Performance

Theatres performance continues to trail the national box office growth rate, with admissions revenue rising 29.3% compared to a 36.5% increase for the broader U.S. box office.

Marcus Business Overview & Revenue Model

Company Description

The Marcus Corporation, together with its subsidiaries, owns and operates movie theatres, and hotels and resorts in the United States. It operates in two segments, Theatres, and Hotels and Resorts. The Theatres segment operates multiscreen motion picture theatres, as well as Funset Boulevard, a family entertainment center. The Hotels and Resorts segment owns and operates full-service hotels and resorts, as well as manages full-service hotels, resorts, and other properties. The company also provides hospitality management services, including check-in, housekeeping, and maintenance for a vacation ownership development. As of December 30, 2021, it owned or operated 1,064 screens at 85 movie theatre locations in 17 states under the Marcus Theatres, Movie Tavern by Marcus, and BistroPlex brands; and operated 8 wholly-owned or majority-owned hotels and resorts, as well as managed 11 hotels, resorts, and other properties for third parties. The company was founded in 1935 and is headquartered in Milwaukee, Wisconsin.

How the Company Makes Money

Marcus generates revenue primarily through interest income from its savings accounts and personal loans. By offering competitive interest rates on savings, the company attracts deposits which it can then use to fund loans to other customers at higher interest rates, thus creating a spread. Additionally, Marcus earns fees from its personal loans, including origination fees and late payment fees. The platform’s partnerships with other financial services and technology companies also contribute to its revenue through referral programs and collaborative financial products. Overall, the company's emphasis on digital innovation and customer-centric services positions it for sustainable growth in the competitive banking sector.

Marcus Financial Statement Overview

Summary

Marcus Corporation shows potential with revenue growth and improved gross margins. However, challenges include negative net income and free cash flow, impacting long-term profitability and financial stability.

Income Statement

The company has demonstrated consistent revenue growth over the years, with a recent TTM increase. Gross profit margins have improved, reflecting operational efficiency. However, profitability remains a concern with negative net income and EBIT in the latest TTM and previous annual reports.

Balance Sheet

The debt-to-equity ratio reflects moderate leverage, and the company maintains a healthy equity ratio. However, the decline in stockholders' equity over the recent periods is a concern that could impact future financial stability.

Cash Flow

Operating cash flow remains positive, indicating strong cash generation capability. However, free cash flow has turned negative in the TTM, indicating potential challenges in covering capital expenditures. The cash flow to net income ratios indicate a need for improvement in converting profits into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	775.79M	735.56M	729.58M	677.39M	458.24M	237.69M
Gross Profit	605.48M	327.84M	323.96M	257.39M	183.74M	51.14M
EBITDA	80.86M	68.72M	101.67M	74.53M	31.84M	-104.47M
Net Income	14.80M	-7.79M	14.79M	-9.10M	-43.29M	-124.87M
Balance Sheet
Total Assets	1.02B	1.04B	1.07B	1.06B	1.19B	1.25B
Cash, Cash Equivalents and Short-Term Investments	14.90M	48.98M	60.95M	21.70M	17.66M	6.75M
Total Debt	411.29M	352.63M	379.06M	407.77M	515.10M	563.47M
Total Liabilities	477.70M	579.66M	593.93M	607.68M	734.75M	755.46M
Stockholders Equity	1.02B	464.87M	471.17M	456.92M	453.61M	498.72M
Cash Flow
Free Cash Flow	-4.47M	24.73M	63.85M	56.37M	29.17M	-89.92M
Operating Cash Flow	79.37M	103.94M	102.63M	93.21M	46.25M	-68.55M
Investing Cash Flow	-72.80M	-81.90M	-36.75M	-346.00K	10.88M	-12.07M
Financing Cash Flow	-27.66M	-37.30M	-30.55M	-92.41M	-47.17M	69.10M

Marcus Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 15.44
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MCS, the sentiment is Neutral. The current price of 15.44 is above the 20-day moving average (MA) of 15.15, below the 50-day MA of 16.35, and below the 200-day MA of 18.27, indicating a neutral trend. The MACD of -0.31 indicates Negative momentum. The RSI at 46.87 is Neutral, neither overbought nor oversold. The STOCH value of 68.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for MCS.

Marcus Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MCS	63 Neutral	$473.88M	35.61	3.30%	1.88%	13.28%	―
SPHR	62 Neutral	$1.62B	―	-2.03%	―	25.25%	-106.76%
CNK	61 Neutral	$3.01B	14.57	70.99%	0.93%	13.80%	109.00%
Sector *	60 Neutral	$43.56B	3.79	-13.01%	4.09%	1.89%	-42.25%
RDI	53 Neutral	$55.97M	―	-540.12%	―	7.59%	61.22%
AMCX	51 Neutral	$310.19M	13.94	-17.26%	―	-7.25%	-395.48%
AMC	51 Neutral	$1.48B	―	20.03%	―	9.42%	39.83%

Marcus Corporate Events

Marcus Appoints Paul A. Leff to Board

On August 5, 2025, The Marcus Corporation expanded its Board of Directors to 11 members and appointed Paul A. Leff as a new independent director. Leff, founder of Warbasse67 and former managing director of Perry Capital, is expected to bring valuable financial management and strategic planning expertise to the company as it seeks growth opportunities for its Marcus Theatres and Marcus Hotels & Resorts divisions.