Taking everything into account, MSGE scores 4 out of 10 in our fundamental rating. 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.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

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

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.
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

The Profit Margin of MSGE (3.65%) is better than 68.75% of its industry peers.
In the last couple of years the Profit Margin of MSGE has declined.
The Operating Margin of MSGE (14.35%) is better than 85.00% of its industry peers.
MSGE has a Gross Margin of 43.85%. This is comparable to the rest of the industry: MSGE outperforms 50.00% of its industry peers.
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%

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ROA

ROE

ROIC

Operating and Profit Margin

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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.
Compared to 1 year ago, MSGE has less shares outstanding
Compared to 5 years ago, MSGE has more shares outstanding
Compared to 1 year ago, MSGE has an improved debt to assets ratio.

2.2 Solvency

Based on the Altman-Z score of 1.75, we must say that MSGE is in the distress zone and has some risk of bankruptcy.
MSGE has a Altman-Z score (1.75) which is in line with its industry peers.
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 has a better Debt to FCF ratio (4.37) than 76.25% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	N/A
Debt/FCF	4.37
Altman-Z	1.75

ROIC/WACC1

WACC9.6%

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.
Looking at the Current ratio, with a value of 0.48, MSGE is doing worse than 80.00% of the companies in the same industry.
A Quick Ratio of 0.47 indicates that MSGE may have some problems paying 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

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

The earnings per share for MSGE have decreased strongly by -66.67% in the last year.
Measured over the past years, MSGE shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -25.26% on average per year.
The Revenue has been growing slightly by 0.68% in the past 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
The Revenue is expected to grow by 6.15% on average over the next years.

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

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 50.20, which means the current valuation is very expensive for MSGE.
Based on the Price/Earnings ratio, MSGE is valued a bit cheaper than 73.75% of the companies in the same industry.
MSGE is valuated expensively when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
MSGE is valuated quite expensively with a Price/Forward Earnings ratio of 25.92.
Based on the Price/Forward Earnings ratio, MSGE is valued a bit cheaper than 77.50% of the companies in the same industry.
MSGE is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.

		Industry Rank	Sector Rank
PE	50.2
Fwd PE	25.92

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.
MSGE's Price/Free Cash Flow ratio is rather cheap when compared to the industry. MSGE is cheaper than 82.50% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	20.63
EV/EBITDA	17.71

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.