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. There are concerns on the financial health of MSGE while its profitability can be described as average. MSGE has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- In the past year MSGE was profitable.
- In the past year MSGE had a positive cash flow from operations.
- In multiple years MSGE reported negative net income over the last 5 years.
- MSGE had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- With a decent Return On Assets value of 2.09%, MSGE is doing good in the industry, outperforming 75.00% of the companies in the same industry.
- 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.
- Measured over the past 3 years, the Average Return On Invested Capital for MSGE 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
- Looking at the Profit Margin, with a value of 3.65%, MSGE is in the better half of the industry, outperforming 68.75% of the companies in the same industry.
- MSGE's Profit Margin has declined in the last couple of years.
- With an excellent Operating Margin value of 14.35%, MSGE belongs to the best of the industry, outperforming 85.00% of the companies in the same industry.
- Looking at the Gross Margin, with a value of 43.85%, MSGE is in line with its industry, outperforming 50.00% of the companies in the same industry.
- MSGE's Gross Margin has improved in the last couple of years.
| 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.
- MSGE has less shares outstanding than it did 1 year ago.
- MSGE has more shares outstanding than it did 5 years ago.
- 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.
- With a Altman-Z score value of 1.73, MSGE perfoms like the industry average, outperforming 58.75% of the companies in the same 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.
- MSGE's Debt to FCF ratio of 4.37 is fine compared to the rest of the industry. MSGE outperforms 76.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.37 | ||
| Altman-Z | 1.73 |
ROIC/WACC0.94
WACC10.3%
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 Current ratio of 0.48. This is amonst the worse of the industry: MSGE underperforms 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.
- The Quick ratio of MSGE (0.47) is worse than 80.00% of its industry peers.
| 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.
- The Revenue has been growing by 10.03% on average over the past years. This is quite good.
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
- MSGE is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 39.15% yearly.
- 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
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- 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
- A Price/Earnings ratio of 50.20 indicates a quite expensive valuation of MSGE.
- Compared to the rest of the industry, the Price/Earnings ratio of MSGE indicates a somewhat cheap valuation: MSGE is cheaper than 73.75% of the companies listed in the same industry.
- When comparing the Price/Earnings ratio of MSGE to the average of the S&P500 Index (27.21), we can say MSGE is valued expensively.
- A Price/Forward Earnings ratio of 25.92 indicates a quite expensive valuation of MSGE.
- Based on the Price/Forward Earnings ratio, MSGE is valued a bit cheaper than the industry average as 76.25% of the companies are valued more expensively.
- When comparing the Price/Forward Earnings ratio of MSGE to the average of the S&P500 Index (24.26), we can say MSGE is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 50.2 | ||
| Fwd PE | 25.92 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, MSGE is valued a bit 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
- MSGE's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- MSGE's earnings are expected to grow with 39.15% in the coming years. This may justify a more expensive valuation.
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.