Marcus Corporation (The) Common Stock (MCS)

FairStock Score: 37/100 — MIXED

Key Financials

Concerns

• Trades significantly above Graham Number ($12) with negative 59% margin of safety—limited downside protection
• Altman Z-Score of 1.1 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

Marcus Corporation (The) Common Stock is a micro-cap communication services company valued at $573 million. The business generates $718 million in annual revenue with a 0.8% net margin. From a quality standpoint, Marcus shows solid Piotroski F-Score of 6/9 and distressed Altman Z-Score of 1.1 warrants caution. On valuation, the stock is commanding a steep 45.4x multiple, with trades above its Graham Number with a negative 59% margin. Growth dynamics show revenue growing at 2.8% and profit growth of 504.1%. The 1.7% dividend yield adds an income component for patient holders. Our composite FairStock Score of 37/100 reflects below-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. Operational leverage in the business model means incremental revenue growth could disproportionately boost bottom-line profitability.

Bear Case

At 45x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer