MADISON SQUARE GARDEN ENTERT (MSGE) Stock Fundamental Analysis
NYSE:MSGE - New York Stock Exchange, Inc. - US5582561032 - Common Stock - Currency: USD
Taking everything into account, MSGE scores 4 out of 10 in our fundamental rating. MSGE was compared to 72 industry peers in the Entertainment industry. There are concerns on the financial health of MSGE while its profitability can be described as average. MSGE has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year MSGE was profitable.
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 Return On Assets of 7.56%. This is amongst the best in the industry. MSGE outperforms 88.89% of its industry peers.
With an excellent Return On Equity value of 1380.80%, MSGE belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 9.96%, MSGE belongs to the top of the industry, outperforming 86.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.56% | ||
| ROE | 1380.8% | ||
| ROIC | 9.96% |
ROA(3y)2.01%
ROA(5y)-0.45%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 13.50%, MSGE belongs to the top of the industry, outperforming 88.89% of the companies in the same industry.
MSGE has a Operating Margin of 15.55%. This is amongst the best in the industry. MSGE outperforms 86.11% of its industry peers.
MSGE's Gross Margin of 42.95% is in line compared to the rest of the industry. MSGE outperforms 47.22% of its industry peers.
MSGE's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.55% | ||
| PM (TTM) | 13.5% | ||
| GM | 42.95% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y80.27%
GM growth 5Y3.57%
2. Health
2.1 Basic Checks
MSGE has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
MSGE has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, MSGE has more shares outstanding
The debt/assets ratio for MSGE has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.48, we must say that MSGE is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.48, MSGE perfoms like the industry average, outperforming 52.78% of the companies in the same industry.
The Debt to FCF ratio of MSGE is 5.06, which is a neutral value as it means it would take MSGE, 5.06 years of fcf income to pay off all of its debts.
MSGE's Debt to FCF ratio of 5.06 is fine compared to the rest of the industry. MSGE outperforms 68.06% of its industry peers.
A Debt/Equity ratio of 60.61 is on the high side and indicates that MSGE has dependencies on debt financing.
With a Debt to Equity ratio value of 60.61, MSGE is not doing good in the industry: 80.56% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 60.61 | ||
| Debt/FCF | 5.06 | ||
| Altman-Z | 1.48 |
ROIC/WACC1.29
WACC7.72%
2.3 Liquidity
MSGE has a Current Ratio of 0.57. 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 Current ratio of 0.57. This is in the lower half of the industry: MSGE underperforms 73.61% of its industry peers.
A Quick Ratio of 0.56 indicates that MSGE may have some problems paying its short term obligations.
MSGE's Quick ratio of 0.56 is on the low side compared to the rest of the industry. MSGE is outperformed by 72.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.57 | ||
| Quick Ratio | 0.56 |
3. Growth
3.1 Past
MSGE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 124.59%, which is quite impressive.
MSGE shows a small growth in Revenue. In the last year, the Revenue has grown by 5.82%.
Measured over the past years, MSGE shows a decrease in Revenue. The Revenue has been decreasing by -1.77% on average per year.
EPS 1Y (TTM)124.59%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%183.33%
Revenue 1Y (TTM)5.82%
Revenue growth 3Y127.19%
Revenue growth 5Y-1.77%
Sales Q2Q%6.2%
3.2 Future
Based on estimates for the next years, MSGE will show a very negative growth in Earnings Per Share. The EPS will decrease by -10.43% on average per year.
MSGE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.57% yearly.
EPS Next Y-72.44%
EPS Next 2Y-19.99%
EPS Next 3Y-10.43%
EPS Next 5YN/A
Revenue Next Year-0.61%
Revenue Next 2Y2.97%
Revenue Next 3Y3.57%
Revenue Next 5YN/A
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 14.41, MSGE is valued correctly.
Based on the Price/Earnings ratio, MSGE is valued cheaper than 87.50% of the companies in the same industry.
MSGE is valuated rather cheaply when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 19.89, the valuation of MSGE can be described as rather expensive.
Based on the Price/Forward Earnings ratio, MSGE is valued a bit cheaper than the industry average as 79.17% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 21.76. MSGE is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.41 | ||
| Fwd PE | 19.89 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MSGE is valued a bit cheaper than 76.39% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MSGE indicates a rather cheap valuation: MSGE is cheaper than 84.72% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.64 | ||
| EV/EBITDA | 11.43 |
4.3 Compensation for Growth
MSGE has a very decent profitability rating, which may justify a higher PE ratio.
MSGE's earnings are expected to decrease with -10.43% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-19.99%
EPS Next 3Y-10.43%
5. Dividend
5.1 Amount
MSGE does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
39.48
+0.32 (+0.82%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners99.29%
Inst Owner Change0%
Ins Owners2.79%
Ins Owner Change-0.41%
Market Cap1.87B
Analysts82.67
Price Target45.77 (15.93%)
Short Float %3.35%
Short Ratio4.22
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-34.11%
Min EPS beat(2)-38.19%
Max EPS beat(2)-30.04%
EPS beat(4)2
Avg EPS beat(4)86.48%
Min EPS beat(4)-38.19%
Max EPS beat(4)364.06%
EPS beat(8)4
Avg EPS beat(8)31.72%
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)1.13%
Min Revenue beat(2)-0.58%
Max Revenue beat(2)2.85%
Revenue beat(4)2
Avg Revenue beat(4)1.83%
Min Revenue beat(4)-2.49%
Max Revenue beat(4)7.56%
Revenue beat(8)4
Avg Revenue beat(8)0.07%
Revenue beat(12)5
Avg Revenue beat(12)-10.95%
Revenue beat(16)7
Avg Revenue beat(16)4.1%
PT rev (1m)2.87%
PT rev (3m)-2.45%
EPS NQ rev (1m)-4.54%
EPS NQ rev (3m)-36.24%
EPS NY rev (1m)-7.15%
EPS NY rev (3m)-24.07%
Revenue NQ rev (1m)-0.87%
Revenue NQ rev (3m)-14.62%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)-1.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.41 | ||
| Fwd PE | 19.89 | ||
| P/S | 1.92 | ||
| P/FCF | 15.64 | ||
| P/OCF | 13.15 | ||
| P/B | 196.7 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.43 |
EPS(TTM)2.74
EY6.94%
EPS(NY)1.98
Fwd EY5.03%
FCF(TTM)2.52
FCFY6.4%
OCF(TTM)3
OCFY7.61%
SpS20.54
BVpS0.2
TBVpS-2.6
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.56% | ||
| ROE | 1380.8% | ||
| ROCE | 12.61% | ||
| ROIC | 9.96% | ||
| ROICexc | 10.76% | ||
| ROICexgc | 12.22% | ||
| OM | 15.55% | ||
| PM (TTM) | 13.5% | ||
| GM | 42.95% | ||
| FCFM | 12.29% |
ROA(3y)2.01%
ROA(5y)-0.45%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y80.27%
GM growth 5Y3.57%
F-Score8
Asset Turnover0.56
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 60.61 | ||
| Debt/FCF | 5.06 | ||
| Debt/EBITDA | 2.78 | ||
| Cap/Depr | 40.35% | ||
| Cap/Sales | 2.33% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 68.59% | ||
| Profit Quality | 91.1% | ||
| Current Ratio | 0.57 | ||
| Quick Ratio | 0.56 | ||
| Altman-Z | 1.48 |
F-Score8
WACC7.72%
ROIC/WACC1.29
Cap/Depr(3y)30.91%
Cap/Depr(5y)28.68%
Cap/Sales(3y)2.24%
Cap/Sales(5y)4.88%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)124.59%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%183.33%
EPS Next Y-72.44%
EPS Next 2Y-19.99%
EPS Next 3Y-10.43%
EPS Next 5YN/A
Revenue 1Y (TTM)5.82%
Revenue growth 3Y127.19%
Revenue growth 5Y-1.77%
Sales Q2Q%6.2%
Revenue Next Year-0.61%
Revenue Next 2Y2.97%
Revenue Next 3Y3.57%
Revenue Next 5YN/A
EBIT growth 1Y32.73%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year70.81%
EBIT Next 3Y26.33%
EBIT Next 5YN/A
FCF growth 1Y-20.17%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-14.86%
OCF growth 3YN/A
OCF growth 5Y3.94%