MCSThe Marcus Corporation
Is the business good?
The checks split: nothing decisive, though earnings fully cash-backed (4.1×).
Operating profit is fully backed by cash. Conversion is worsening vs a year ago.
Positive operating leverage, operating profit is growing faster than sales, so margins widen as the business scales.
A balanced mix of margins, efficiency, and leverage. ROE 3% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is MCS?
The Marcus Corporation earns 4.4% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 4.6 points below what the capital costs: growth destroys value
- Operating margin
- 4.1%
Operating margin · Entertainment median 4.3% · 12 months to Q2 2026
- Cash conversion
- 4.12×
Cash conversion · 4.33× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- −1.2%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | −75% |
| FY2022 | 1.2% |
| FY2023 | 4.7% |
| FY2024 | 2.2% |
| FY2025 | 2.3% |
Details›
- Operating margin12 months to Q2 2026
- 4.1%
- Net margin12 months to Q2 2026
- 2.9%
- Free cash flow margin
- 8.4%
- Revenue, trailing twelve months
- $790M
- Free cash flow, trailing twelve months
- $67M
- Net income, trailing twelve months
- $23M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 4.4%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.