Marcus (MCS) AI Stock Analysis

• Market Cap: $483.85M
• Dividend Yield: 1.86%
• Average Volume (3M): 264.45K
• Price to Earnings (P/E): 68.6
• 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: 281,141
• 30 Day Avg. Volume: 264,449
• 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: 1.69
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: $16.50 ▲(6.04% Upside)

Marcus Corporation's overall stock score reflects a mixed financial performance with strong cost management but challenges in profitability and revenue growth. Technical indicators are slightly positive, while valuation metrics suggest the stock may be overvalued. The earnings call highlighted strengths in the hotel division but weaknesses in the theater division. The recent board appointment is a positive strategic move.

Positive Factors

Strong Hotel Division Performance

The hotel division's growth, driven by strong group sales and occupancy rates, indicates a robust market position and potential for sustained revenue expansion.

Board Expansion

The addition of David J. Marcus to the board enhances strategic oversight and supports growth in key divisions, leveraging his financial expertise for long-term benefits.

Share Repurchase Program

The expanded share repurchase program reflects confidence in the company's financial health and commitment to returning capital to shareholders, enhancing shareholder value.

Negative Factors

Theater Division Revenue Decline

The significant revenue decline in the theater division due to a weak film slate suggests challenges in maintaining competitive positioning and revenue stability.

Declining Free Cash Flow

The sharp decline in free cash flow growth indicates potential liquidity issues and limits the company's ability to invest in growth or return capital to shareholders.

Low Profitability

The low net profit margin highlights challenges in achieving profitability, which could impact long-term financial sustainability 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	7.39M	48.98M	60.95M	25.64M	22.27M	8.16M
Total Debt	342.57M	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: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 15.47, above the 50-day MA of 14.65, and below the 200-day MA of 15.90, indicating a bullish trend. The MACD of 0.31 indicates Negative momentum. The RSI at 62.11 is Neutral, neither overbought nor oversold. The STOCH value of 89.39 is Negative, 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	76 Outperform	$2.05B	53.38	12.38%	―	9.30%	67.19%
MCS	63 Neutral	$483.85M	68.60	1.68%	1.86%	6.28%	―
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
CNK	58 Neutral	$2.90B	23.97	32.60%	1.34%	9.70%	-31.62%
AMCX	57 Neutral	$435.70M	-2.67	-12.87%	―	-7.38%	-483.59%
AMC	47 Neutral	$1.09B	-1.50	―	―	9.74%	12.29%
STRZ	45 Neutral	$202.78M	-10.14	―	―	-2.85%	75.96%

Marcus Corporate Events

Marcus Expands Board with New Director Appointment

On November 5, 2025, The Marcus Corporation expanded its Board of Directors to 12 members, electing David J. Marcus as a new director. David Marcus, who is also the CEO of Marcus Investments LLC, brings strategic vision and financial expertise to the board, continuing the family’s active involvement in the company’s leadership. His addition is expected to enhance the board’s oversight as the company aims to grow its Marcus Theatres and Marcus Hotels & Resorts divisions.