MADISON SQUARE GARDEN ENTERT (MSGE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MSGE - US5582561032 - Common Stock
61.24 USD
+0.7 (+1.16%)
61.24 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to MSGE. MSGE was compared to 80 industry peers in the Entertainment industry. While MSGE is still in line with the averages on profitability rating, there are concerns on its financial health. MSGE has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- MSGE had positive earnings in the past year.
- MSGE had a positive operating cash flow in the past year.
- The reported net income has been mixed in the past 5 years: MSGE reported negative net income in multiple years.
- Of the past 5 years MSGE 4 years had a positive operating cash flow.
1.2 Ratios
- MSGE has a better Return On Assets (2.09%) than 75.00% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 9.64%, MSGE belongs to the top of the industry, outperforming 86.25% of the companies in the same industry.
- MSGE had an Average Return On Invested Capital over the past 3 years of 9.68%. This is in line with the industry average of 8.74%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.09% | ||
| ROE | N/A | ||
| ROIC | 9.64% |
ROA(3y)5.67%
ROA(5y)-0.92%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)9.68%
ROIC(5y)N/A
1.3 Margins
- The Profit Margin of MSGE (3.65%) is better than 68.75% of its industry peers.
- MSGE's Profit Margin has declined in the last couple of years.
- The Operating Margin of MSGE (14.35%) is better than 85.00% of its industry peers.
- The Gross Margin of MSGE (43.85%) is comparable to the rest of the industry.
- In the last couple of years the Gross Margin of MSGE has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.35% | ||
| PM (TTM) | 3.65% | ||
| GM | 43.85% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5Y-32.98%
GM growth 3Y4.85%
GM growth 5Y3.53%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so MSGE is destroying value.
- Compared to 1 year ago, MSGE has less shares outstanding
- Compared to 5 years ago, MSGE has more shares outstanding
- MSGE has a better debt/assets ratio than last year.
2.2 Solvency
- MSGE has an Altman-Z score of 1.73. This is a bad value and indicates that MSGE is not financially healthy and even has some risk of bankruptcy.
- The Altman-Z score of MSGE (1.73) is comparable to the rest of the industry.
- The Debt to FCF ratio of MSGE is 4.37, which is a neutral value as it means it would take MSGE, 4.37 years of fcf income to pay off all of its debts.
- With a decent Debt to FCF ratio value of 4.37, MSGE is doing good in the industry, outperforming 76.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.37 | ||
| Altman-Z | 1.73 |
ROIC/WACC0.94
WACC10.29%
2.3 Liquidity
- MSGE has a Current Ratio of 0.48. This is a bad value and indicates that MSGE is not financially healthy enough and could expect problems in meeting its short term obligations.
- MSGE has a worse Current ratio (0.48) than 80.00% of its industry peers.
- MSGE has a Quick Ratio of 0.48. This is a bad value and indicates that MSGE is not financially healthy enough and could expect problems in meeting its short term obligations.
- With a Quick ratio value of 0.47, MSGE is not doing good in the industry: 80.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.48 | ||
| Quick Ratio | 0.47 |
3. Growth
3.1 Past
- MSGE shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -66.67%.
- MSGE shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -25.26% yearly.
- Looking at the last year, MSGE shows a small growth in Revenue. The Revenue has grown by 0.68% in the last year.
- MSGE shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.03% yearly.
EPS 1Y (TTM)-66.67%
EPS 3YN/A
EPS 5Y-25.26%
EPS Q2Q%57.5%
Revenue 1Y (TTM)0.68%
Revenue growth 3Y12.99%
Revenue growth 5Y10.03%
Sales Q2Q%14.09%
3.2 Future
- The Earnings Per Share is expected to grow by 39.15% on average over the next years. This is a very strong growth
- MSGE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.12% yearly.
EPS Next Y117.39%
EPS Next 2Y54.5%
EPS Next 3Y39.15%
EPS Next 5YN/A
Revenue Next Year7.51%
Revenue Next 2Y6.51%
Revenue Next 3Y6.12%
Revenue Next 5YN/A
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- MSGE is valuated quite expensively with a Price/Earnings ratio of 50.20.
- Based on the Price/Earnings ratio, MSGE is valued a bit cheaper than 73.75% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, MSGE is valued quite expensively.
- Based on the Price/Forward Earnings ratio of 25.92, the valuation of MSGE can be described as expensive.
- MSGE's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. MSGE is cheaper than 76.25% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, MSGE is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 50.2 | ||
| Fwd PE | 25.92 |
4.2 Price Multiples
- MSGE's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. MSGE is cheaper than 63.75% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, MSGE is valued cheaper than 82.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.63 | ||
| EV/EBITDA | 17.54 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- A more expensive valuation may be justified as MSGE's earnings are expected to grow with 39.15% in the coming years.
PEG (NY)0.43
PEG (5Y)N/A
EPS Next 2Y54.5%
EPS Next 3Y39.15%
5. Dividend
5.1 Amount
- MSGE does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
MADISON SQUARE GARDEN ENTERT / MSGE FAQ
What is the fundamental rating for MSGE stock?
ChartMill assigns a fundamental rating of 4 / 10 to MSGE.
Can you provide the valuation status for MADISON SQUARE GARDEN ENTERT?
ChartMill assigns a valuation rating of 5 / 10 to MADISON SQUARE GARDEN ENTERT (MSGE). This can be considered as Fairly Valued.
Can you provide the profitability details for MADISON SQUARE GARDEN ENTERT?
MADISON SQUARE GARDEN ENTERT (MSGE) has a profitability rating of 5 / 10.
Can you provide the PE and PB ratios for MSGE stock?
The Price/Earnings (PE) ratio for MADISON SQUARE GARDEN ENTERT (MSGE) is 50.2 and the Price/Book (PB) ratio is -43.96.
What is the expected EPS growth for MADISON SQUARE GARDEN ENTERT (MSGE) stock?
The Earnings per Share (EPS) of MADISON SQUARE GARDEN ENTERT (MSGE) is expected to grow by 117.39% in the next year.