MADISON SQUARE GARDEN ENTERT (MSGE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MSGE - US5582561032 - Common Stock
60.4 USD
-0.33 (-0.54%)
Overall MSGE gets a fundamental rating of 4 out of 10. We evaluated MSGE against 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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year MSGE was profitable.
- MSGE had a positive operating cash flow in the past year.
- In multiple years MSGE reported negative net income over the last 5 years.
- Of the past 5 years MSGE 4 years had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 2.09%, MSGE is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
- MSGE's Return On Invested Capital of 9.64% is amongst the best of the industry. MSGE outperforms 86.25% of its industry peers.
- The Average Return On Invested Capital over the past 3 years 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
- MSGE has a better Profit Margin (3.65%) 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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), MSGE is creating some value.
- The number of shares outstanding for MSGE has been reduced compared to 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
- MSGE has an Altman-Z score of 1.74. This is a bad value and indicates that MSGE is not financially healthy and even has some risk of bankruptcy.
- MSGE has a Altman-Z score (1.74) which 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.
- Looking at the Debt to FCF ratio, with a value of 4.37, MSGE is in the better half of 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 | 1.74 |
ROIC/WACC1.01
WACC9.56%
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.
- Looking at the Quick ratio, with a value of 0.47, MSGE is doing worse than 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.48 | ||
| Quick Ratio | 0.47 |
3. Growth
3.1 Past
- The earnings per share for MSGE have decreased strongly by -66.67% in the last year.
- The earnings per share for MSGE have been decreasing by -25.26% on average. This is quite bad
- The Revenue has been growing slightly by 0.68% in the past year.
- Measured over the past years, MSGE shows a quite strong growth in Revenue. The Revenue has been growing by 10.03% on average per year.
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
- Based on estimates for the next years, MSGE will show a very strong growth in Earnings Per Share. The EPS will grow by 39.15% on average per year.
- MSGE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.15% yearly.
EPS Next Y117.39%
EPS Next 2Y54.5%
EPS Next 3Y39.15%
EPS Next 5YN/A
Revenue Next Year7.82%
Revenue Next 2Y6.71%
Revenue Next 3Y6.15%
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
- Based on the Price/Earnings ratio of 49.51, the valuation of MSGE can be described as expensive.
- 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.
- Compared to an average S&P500 Price/Earnings ratio of 28.82, MSGE is valued quite expensively.
- A Price/Forward Earnings ratio of 25.56 indicates a quite expensive valuation of MSGE.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of MSGE indicates a somewhat cheap valuation: MSGE is cheaper than 77.50% of the companies listed in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.95. MSGE is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.51 | ||
| Fwd PE | 25.56 |
4.2 Price Multiples
- 65.00% of the companies in the same industry are more expensive than MSGE, based on the Enterprise Value to EBITDA ratio.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of MSGE indicates a rather cheap valuation: MSGE is cheaper than 83.75% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.35 | ||
| EV/EBITDA | 17.59 |
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)0.42
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 49.51 and the Price/Book (PB) ratio is -43.36.
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.