Marcus Stock Beneish M Score

MCS Stock  USD 10.68  0.22  2.02%   
This module uses fundamental data of Marcus to approximate the value of its Beneish M Score. Marcus M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Check out Marcus Piotroski F Score and Marcus Altman Z Score analysis.
For more information on how to buy Marcus Stock please use our How to Invest in Marcus guide.
  
At this time, Marcus' Short Term Debt is comparatively stable compared to the past year. Long Term Debt is likely to gain to about 174.1 M in 2024, whereas Net Debt is likely to drop slightly above 240.5 M in 2024. At this time, Marcus' Capex To Operating Cash Flow is comparatively stable compared to the past year. Days Payables Outstanding is likely to gain to 31.71 in 2024, whereas Dividend Yield is likely to drop 0.01 in 2024.
At this time, it appears that Marcus is a possible manipulator. The earnings manipulation may begin if Marcus' top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by Marcus executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of Marcus' earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-1.96
Beneish M Score - Possible Manipulator
Elasticity of Receivables

1.74

Focus
Asset Quality

1.46

Focus
Expense Coverage

1.27

Focus
Gross Margin Strengs

1.67

Focus
Accruals Factor

1.27

Focus
Depreciation Resistance

1.23

Focus
Net Sales Growth

0.55

Focus
Financial Leverage Condition

1.03

Focus

Marcus Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if Marcus' auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Net Receivables7.3 M7.6 M
Notably Down
Slightly volatile
Total Revenue397.7 M729.6 M
Way Down
Slightly volatile
Total Assets725.7 M1.1 B
Way Down
Slightly volatile
Total Current Assets53.7 M101.7 M
Way Down
Slightly volatile
Non Current Assets Total680.1 M963.4 M
Way Down
Slightly volatile
Property Plant Equipment755.9 MB
Way Down
Slightly volatile
Depreciation And Amortization39 M67.3 M
Way Down
Slightly volatile
Selling General Administrative72.4 M104.7 M
Way Down
Slightly volatile
Total Current Liabilities100.2 M164.4 M
Way Down
Slightly volatile
Non Current Liabilities Total291.1 M429.5 M
Way Down
Slightly volatile
Net Debt240.5 M319.2 M
Way Down
Slightly volatile
Short Term Debt30.8 M28.2 M
Significantly Up
Pretty Stable
Long Term Debt174.1 M159.5 M
Significantly Up
Slightly volatile
Short Term InvestmentsM5.4 M
Significantly Down
Slightly volatile
Long Term InvestmentsM1.7 M
Way Up
Slightly volatile
Gross Profit Margin0.360.2152
Way Up
Slightly volatile

Marcus Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between Marcus' different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Marcus in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Marcus' degree of accounting gimmicks and manipulations.

About Marcus Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Other Operating Expenses

363.14 Million

At this time, Marcus' Other Operating Expenses is comparatively stable compared to the past year.

Marcus Earnings Manipulation Drivers

Although earnings manipulation is typically not the result of intentional misconduct by the c-level executives, it is still a widespread practice by the senior management of public companies such as Marcus. It is usually done by a series of misrepresentations of various accounting rules and operating activities across multiple financial cycles. The best way to spot the manipulation is to examine the historical financial statement to find inconsistencies in earning reports to find trends in assets or liabilities that are not sustainable in the future.
201920202021202220232024 (projected)
Net Receivables35.4M39.2M55.7M21.5M7.6M7.3M
Total Revenue820.9M237.7M458.2M677.4M729.6M397.7M
Total Assets1.4B1.3B1.2B1.1B1.1B725.7M
Total Current Assets79.3M67.8M99.9M63.9M101.7M53.7M
Net Debt459.5M556.7M497.4M386.1M319.2M240.5M
Short Term Debt25.8M120.1M77.7M27.5M28.2M30.8M
Long Term Debt206.4M193.0M204.2M170.0M159.5M174.1M
Operating Income68.2M(153.7M)(38.3M)8.3M35.0M25.0M
Investments(93.9M)5.2M(2.1M)141K(4.4M)(4.6M)

Marcus ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Marcus' sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Marcus' managers, analysts, and investors.
Environmental
Governance
Social

About Marcus Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Marcus's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Marcus using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Marcus based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.

Pair Trading with Marcus

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Marcus position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Marcus will appreciate offsetting losses from the drop in the long position's value.

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The ability to find closely correlated positions to Marcus could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Marcus when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Marcus - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Marcus to buy it.
The correlation of Marcus is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Marcus moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Marcus moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Marcus can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching
When determining whether Marcus is a strong investment it is important to analyze Marcus' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Marcus' future performance. For an informed investment choice regarding Marcus Stock, refer to the following important reports:
Check out Marcus Piotroski F Score and Marcus Altman Z Score analysis.
For more information on how to buy Marcus Stock please use our How to Invest in Marcus guide.
Note that the Marcus information on this page should be used as a complementary analysis to other Marcus' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.

Complementary Tools for Marcus Stock analysis

When running Marcus' price analysis, check to measure Marcus' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Marcus is operating at the current time. Most of Marcus' value examination focuses on studying past and present price action to predict the probability of Marcus' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Marcus' price. Additionally, you may evaluate how the addition of Marcus to your portfolios can decrease your overall portfolio volatility.
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Is Marcus' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Marcus. If investors know Marcus will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Marcus listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
2.695
Dividend Share
0.26
Earnings Share
0.39
Revenue Per Share
21.387
Quarterly Revenue Growth
(0.09)
The market value of Marcus is measured differently than its book value, which is the value of Marcus that is recorded on the company's balance sheet. Investors also form their own opinion of Marcus' value that differs from its market value or its book value, called intrinsic value, which is Marcus' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Marcus' market value can be influenced by many factors that don't directly affect Marcus' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Marcus' value and its price as these two are different measures arrived at by different means. Investors typically determine if Marcus is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Marcus' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.