MADISON SQUARE GARDEN ENTERT (MSGE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MSGE - US5582561032 - Common Stock
60.54 USD
+1.2 (+2.02%)
60.54 USD
0 (0%)
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 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.
- MSGE had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- The Return On Assets of MSGE (2.09%) is better than 75.00% of its industry peers.
- MSGE has a Return On Invested Capital of 9.64%. This is amongst the best in 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 Profit Margin of 3.65%. This is in the better half of the industry: MSGE outperforms 68.75% of its industry peers.
- In the last couple of years the Profit Margin of MSGE has declined.
- Looking at the Operating Margin, with a value of 14.35%, MSGE belongs to the top of the industry, outperforming 85.00% of the companies in the same industry.
- MSGE has a Gross Margin (43.85%) which is in line with 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%
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
- Compared to 1 year ago, MSGE has an improved debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 1.73, we must say that MSGE is in the distress zone and has some risk of bankruptcy.
- MSGE has a Altman-Z score of 1.73. This is comparable to the rest of the industry: MSGE outperforms 58.75% of 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.
- The Debt to FCF ratio of MSGE (4.37) is better than 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
WACC10.29%
2.3 Liquidity
- A Current Ratio of 0.48 indicates that MSGE may have some problems paying 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.
- MSGE has a Quick ratio of 0.47. This is amonst the worse of the industry: MSGE underperforms 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%.
- The earnings per share for MSGE have been decreasing by -25.26% on average. This is quite bad
- 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
- 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.
- 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.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 49.62, which means the current valuation is very expensive for MSGE.
- MSGE's Price/Earnings ratio is a bit cheaper when compared to the industry. MSGE is cheaper than 73.75% of the companies in the same industry.
- MSGE is valuated expensively when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
- MSGE is valuated quite expensively with a Price/Forward Earnings ratio of 25.62.
- 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 24.32, MSGE is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.62 | ||
| Fwd PE | 25.62 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, MSGE is valued a bit cheaper than the industry average as 63.75% of the companies are valued more expensively.
- 82.50% of the companies in the same industry are more expensive than MSGE, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.4 | ||
| 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)0.42
PEG (5Y)N/A
EPS Next 2Y54.5%
EPS Next 3Y39.15%
5. Dividend
5.1 Amount
- No dividends for MSGE!.
| 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 49.62 and the Price/Book (PB) ratio is -43.46.
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.