Marcus (MCS) AI Stock Analysis

• Market Cap: $458.03M
• Dividend Yield: 1.88%
• Average Volume (3M): 252.52K
• Price to Earnings (P/E): 64.9
• Beta (1Y): 0.65
• Revenue Growth: 6.28%
• EPS Growth: N/A
• Country: US
• Employees: 2,907
• Sector: Communication Services
• Sector Strength: 97
• Industry: Entertainment
• EPS (TTM): 0.52
• Shares Outstanding: 23,729,172
• 10 Day Avg. Volume: 226,295
• 30 Day Avg. Volume: 252,523
• PEG Ratio: 0.59
• Price to Book (P/B): 1.49
• Price to Sales (P/S): 0.94
• P/FCF Ratio: 27.98
• Enterprise Value/Market Cap: 1.78
• Enterprise Value/Revenue: 1.08
• Enterprise Value/Gross Profit: 2.07
• Enterprise Value/Ebitda: 9.43
• 1Y Price Target: $23.50
• Price Target Upside: 51.03% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 0.28
• Revenue Forecast (FY): $762.80M

• Rating: 57 Neutral
• Price Target: $15.00 ▼(-3.60% Downside)

Marcus Corporation's overall score is driven by mixed financial performance, with strong gross profit margins but challenges in profitability and cash flow. The technical analysis indicates a bearish trend, and the high P/E ratio raises valuation concerns. The earnings call highlighted strengths in the hotel division but weaknesses in the theater division, impacting overall sentiment.

Positive Factors

Strong Gross Profit Margins

High gross profit margins indicate effective cost management and pricing power, which can support long-term profitability and competitive positioning.

Hotel Division Performance

The hotel division's growth and strong group business suggest resilience and potential for sustained revenue, supporting overall company stability.

Balanced Debt-to-Equity Ratio

A balanced debt-to-equity ratio reflects prudent financial management, providing flexibility for future investments and stability in financial operations.

Negative Factors

Theater Division Revenue Decline

Declining theater revenues highlight challenges in attracting audiences, which could impact long-term revenue growth and market competitiveness.

Declining Free Cash Flow

Declining free cash flow limits the company's ability to reinvest in growth opportunities and manage debt, potentially affecting future financial health.

Low Net Profit Margin

A low net profit margin suggests challenges in converting revenue into profit, which may hinder long-term financial performance and shareholder returns.

Marcus Business Overview & Revenue Model

Company Description

Marcus (MCS) is a financial services company that focuses on providing personal banking solutions, including savings accounts, personal loans, and investment products. Operating primarily in the digital banking sector, Marcus aims to offer simple, accessible, and user-friendly financial services to consumers. As a brand of Goldman Sachs, it leverages the bank's extensive resources and expertise to deliver competitive interest rates and innovative financial products.

How the Company Makes Money

Marcus generates revenue primarily through interest income from personal loans and savings accounts. The company attracts deposits from customers by offering competitive interest rates, which allows them to use these funds for lending at higher rates. Additionally, Marcus earns fees from various financial products and services, such as loan origination fees and investment management fees. Partnerships with financial technology companies and integrations with digital platforms also contribute to its revenue by expanding its customer base and enhancing its service offerings.

Marcus Financial Statement Overview

Summary

Marcus shows a mixed financial performance with strong gross profit margins but struggles with profitability and revenue growth. The balance sheet is stable with a balanced debt-to-equity ratio, but returns on equity are low. Cash flow management is a concern, with declining free cash flow growth.

Income Statement

Marcus has shown a mixed performance in its income statement. The TTM data indicates a gross profit margin of 77.87%, which is strong, but the net profit margin is low at 1.02%, indicating limited profitability. Revenue growth has been negative recently, at -2.90% TTM, suggesting challenges in maintaining sales momentum. However, the company has improved its gross profit margin significantly compared to previous years, indicating better cost management.

Balance Sheet

The balance sheet reflects a moderate financial position with a debt-to-equity ratio of 0.77, indicating a balanced use of debt and equity. The return on equity is low at 1.71% TTM, suggesting limited returns for shareholders. However, the equity ratio is stable, showing a solid equity base relative to total assets. The company has reduced its debt levels over the years, improving financial stability.

Cash Flow

Cash flow analysis reveals some concerns, with a significant decline in free cash flow growth at -138.43% TTM. The operating cash flow to net income ratio is 0.61, indicating adequate cash generation relative to net income. However, the free cash flow to net income ratio is low at 0.02, suggesting limited cash available after capital expenditures. The company needs to improve its cash flow management to enhance liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	753.27M	735.56M	729.58M	677.39M	458.24M	237.69M
Gross Profit	393.23M	327.84M	286.54M	257.39M	183.74M	68.34M
EBITDA	86.52M	68.72M	101.67M	80.41M	31.84M	-104.47M
Net Income	7.72M	-7.79M	14.79M	-11.97M	-43.29M	-124.84M
Balance Sheet
Total Assets	1.00B	1.04B	1.07B	1.06B	1.19B	1.25B
Cash, Cash Equivalents and Short-Term Investments	10.48M	48.98M	60.95M	25.64M	22.27M	8.16M
Total Debt	351.54M	352.63M	379.06M	407.77M	515.10M	563.47M
Total Liabilities	549.96M	579.66M	593.93M	607.68M	734.75M	755.46M
Stockholders Equity	454.34M	464.87M	471.17M	456.92M	453.61M	498.72M
Cash Flow
Free Cash Flow	1.72M	24.73M	63.85M	56.37M	29.17M	-89.92M
Operating Cash Flow	87.97M	103.94M	102.63M	93.21M	46.25M	-68.55M
Investing Cash Flow	-70.11M	-81.90M	-36.75M	-346.00K	10.88M	-12.07M
Financing Cash Flow	-40.42M	-37.30M	-30.55M	-92.41M	-47.17M	69.10M

Marcus Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 15.56
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MCS, the sentiment is Positive. The current price of 15.56 is above the 20-day moving average (MA) of 14.83, above the 50-day MA of 14.70, and below the 200-day MA of 16.35, indicating a neutral trend. The MACD of 0.25 indicates Positive momentum. The RSI at 55.10 is Neutral, neither overbought nor oversold. The STOCH value of 15.62 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MCS.

Marcus Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IMAX	71 Outperform	$1.94B	50.40	12.38%	―	9.30%	67.19%
CNK	67 Neutral	$3.46B	28.68	32.60%	0.90%	9.70%	-31.62%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
MCS	57 Neutral	$458.03M	64.94	1.68%	1.88%	6.28%	―
AMCX	56 Neutral	$372.15M	―	-12.87%	―	-7.38%	-483.59%
AMC	45 Neutral	$1.13B	―	―	―	9.74%	12.29%
STRZ	42 Neutral	$180.43M	-9.03	―	―	-2.85%	75.96%

Marcus Corporate Events

Marcus Corp. Earnings Call: Mixed Results and Strategic Outlook

During the recent earnings call, Marcus Corp. painted a mixed picture of its financial performance. The company highlighted strong results in its hotel division, which helped offset challenges faced by its theater division. Despite these hurdles, Marcus Corp. maintained a commitment to returning capital to shareholders through increased share repurchases.

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.

The most recent analyst rating on (MCS) stock is a Buy with a $27.00 price target. To see the full list of analyst forecasts on Marcus stock, see the MCS Stock Forecast page.