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MADISON SQUARE GARDEN SPORTS (MSGS) Stock Fundamental Analysis

NYSE:MSGS - New York Stock Exchange, Inc. - US55825T1034 - Common Stock

217  +1.8 (+0.84%)

After market: 217 0 (0%)

Fundamental Rating

4

MSGS gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 72 industry peers in the Entertainment industry. There are concerns on the financial health of MSGS while its profitability can be described as average. While showing a medium growth rate, MSGS is valued expensive at the moment.


Dividend Valuation Growth Profitability Health

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6

1. Profitability

1.1 Basic Checks

In the past year MSGS was profitable.
MSGS had a positive operating cash flow in the past year.
In multiple years MSGS reported negative net income over the last 5 years.
Of the past 5 years MSGS 4 years had a positive operating cash flow.
MSGS Yearly Net Income VS EBIT VS OCF VS FCFMSGS Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 100M -100M 200M -200M -300M

1.2 Ratios

MSGS has a Return On Assets of 5.10%. This is amongst the best in the industry. MSGS outperforms 83.33% of its industry peers.
With an excellent Return On Invested Capital value of 14.55%, MSGS belongs to the best of the industry, outperforming 93.94% of the companies in the same industry.
MSGS had an Average Return On Invested Capital over the past 3 years of 9.95%. This is significantly below the industry average of 94.24%.
The 3 year average ROIC (9.95%) for MSGS is below the current ROIC(14.55%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 5.1%
ROE N/A
ROIC 14.55%
ROA(3y)3.92%
ROA(5y)-0.82%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)9.95%
ROIC(5y)N/A
MSGS Yearly ROA, ROE, ROICMSGS Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 40 60 80

1.3 Margins

MSGS has a Profit Margin of 6.75%. This is amongst the best in the industry. MSGS outperforms 83.33% of its industry peers.
In the last couple of years the Profit Margin of MSGS has grown nicely.
With an excellent Operating Margin value of 14.71%, MSGS belongs to the best of the industry, outperforming 84.85% of the companies in the same industry.
The Gross Margin of MSGS (46.64%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of MSGS has grown nicely.
Industry RankSector Rank
OM 14.71%
PM (TTM) 6.75%
GM 46.64%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5Y29.63%
GM growth 3Y4.22%
GM growth 5Y3.26%
MSGS Yearly Profit, Operating, Gross MarginsMSGS Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 40

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3

2. Health

2.1 Basic Checks

MSGS has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
MSGS has more shares outstanding than it did 1 year ago.
The number of shares outstanding for MSGS has been increased compared to 5 years ago.
The debt/assets ratio for MSGS has been reduced compared to a year ago.
MSGS Yearly Shares OutstandingMSGS Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5M 10M 15M 20M
MSGS Yearly Total Debt VS Total AssetsMSGS Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B

2.2 Solvency

An Altman-Z score of 2.58 indicates that MSGS is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.58, MSGS is in the better half of the industry, outperforming 75.76% of the companies in the same industry.
The Debt to FCF ratio of MSGS is 2.57, which is a good value as it means it would take MSGS, 2.57 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of MSGS (2.57) is better than 77.27% of its industry peers.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 2.57
Altman-Z 2.58
ROIC/WACC1.63
WACC8.95%
MSGS Yearly LT Debt VS Equity VS FCFMSGS Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M 1B 1.5B 2B 2.5B

2.3 Liquidity

MSGS has a Current Ratio of 0.41. This is a bad value and indicates that MSGS is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of MSGS (0.41) is worse than 92.42% of its industry peers.
A Quick Ratio of 0.41 indicates that MSGS may have some problems paying its short term obligations.
MSGS's Quick ratio of 0.41 is on the low side compared to the rest of the industry. MSGS is outperformed by 92.42% of its industry peers.
Industry RankSector Rank
Current Ratio 0.41
Quick Ratio 0.41
MSGS Yearly Current Assets VS Current LiabilitesMSGS Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B

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5

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 58.15% over the past year.
Measured over the past years, MSGS shows a very strong growth in Earnings Per Share. The EPS has been growing by 39.50% on average per year.
Looking at the last year, MSGS shows a quite strong growth in Revenue. The Revenue has grown by 14.47% in the last year.
The Revenue has been growing slightly by 7.09% on average over the past years.
EPS 1Y (TTM)58.15%
EPS 3YN/A
EPS 5Y39.5%
EPS Q2Q%60.76%
Revenue 1Y (TTM)14.47%
Revenue growth 3Y35.19%
Revenue growth 5Y7.09%
Sales Q2Q%23.84%

3.2 Future

Based on estimates for the next years, MSGS will show a small growth in Earnings Per Share. The EPS will grow by 5.40% on average per year.
Based on estimates for the next years, MSGS will show a small growth in Revenue. The Revenue will grow by 6.11% on average per year.
EPS Next Y-70.53%
EPS Next 2Y-18.12%
EPS Next 3Y-7.35%
EPS Next 5Y5.4%
Revenue Next Year-0.51%
Revenue Next 2Y3.94%
Revenue Next 3Y4.68%
Revenue Next 5Y6.11%

3.3 Evolution

The EPS growth rate is decreasing: in the next years the growth will be less 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 stable.
MSGS Yearly Revenue VS EstimatesMSGS Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 500M 1B 1.5B
MSGS Yearly EPS VS EstimatesMSGS Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 0 2 -2 4 -4 6 -6

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3

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 74.57, the valuation of MSGS can be described as expensive.
Based on the Price/Earnings ratio, MSGS is valued a bit cheaper than the industry average as 65.15% of the companies are valued more expensively.
MSGS's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.96.
With a Price/Forward Earnings ratio of 133.18, MSGS can be considered very expensive at the moment.
The rest of the industry has a similar Price/Forward Earnings ratio as MSGS.
When comparing the Price/Forward Earnings ratio of MSGS to the average of the S&P500 Index (24.11), we can say MSGS is valued expensively.
Industry RankSector Rank
PE 74.57
Fwd PE 133.18
MSGS Price Earnings VS Forward Price EarningsMSGS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80 100

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MSGS is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MSGS indicates a somewhat cheap valuation: MSGS is cheaper than 66.67% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 43.87
EV/EBITDA 34.58
MSGS Per share dataMSGS EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 -20 40

4.3 Compensation for Growth

MSGS has a very decent profitability rating, which may justify a higher PE ratio.
MSGS's earnings are expected to decrease with -7.35% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)1.89
EPS Next 2Y-18.12%
EPS Next 3Y-7.35%

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0

5. Dividend

5.1 Amount

MSGS does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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MADISON SQUARE GARDEN SPORTS

NYSE:MSGS (1/17/2025, 8:16:10 PM)

After market: 217 0 (0%)

217

+1.8 (+0.84%)

Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)11-01 2024-11-01/bmo
Earnings (Next)01-30 2025-01-30/amc
Inst Owners76.4%
Inst Owner ChangeN/A
Ins Owners3.78%
Ins Owner Change7.33%
Market Cap5.21B
Analysts81.67
Price Target270.1 (24.47%)
Short Float %2.3%
Short Ratio3.84
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly Dividend0.03
Dividend Growth(5Y)N/A
DP0.92%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)120.71%
Min EPS beat(2)64.86%
Max EPS beat(2)176.57%
EPS beat(4)3
Avg EPS beat(4)53.73%
Min EPS beat(4)-32.44%
Max EPS beat(4)176.57%
EPS beat(8)5
Avg EPS beat(8)8.66%
EPS beat(12)7
Avg EPS beat(12)33.26%
EPS beat(16)11
Avg EPS beat(16)57.28%
Revenue beat(2)2
Avg Revenue beat(2)26.31%
Min Revenue beat(2)19.67%
Max Revenue beat(2)32.96%
Revenue beat(4)3
Avg Revenue beat(4)12.8%
Min Revenue beat(4)-1.61%
Max Revenue beat(4)32.96%
Revenue beat(8)7
Avg Revenue beat(8)16.69%
Revenue beat(12)9
Avg Revenue beat(12)18.21%
Revenue beat(16)12
Avg Revenue beat(16)13.99%
PT rev (1m)3.6%
PT rev (3m)7.73%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-74.63%
EPS NY rev (1m)0%
EPS NY rev (3m)-56.36%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.79%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.76%
Valuation
Industry RankSector Rank
PE 74.57
Fwd PE 133.18
P/S 5.02
P/FCF 43.87
P/OCF 43.36
P/B N/A
P/tB N/A
EV/EBITDA 34.58
EPS(TTM)2.91
EY1.34%
EPS(NY)1.63
Fwd EY0.75%
FCF(TTM)4.95
FCFY2.28%
OCF(TTM)5.01
OCFY2.31%
SpS43.24
BVpS-11.57
TBVpS-25.33
PEG (NY)N/A
PEG (5Y)1.89
Profitability
Industry RankSector Rank
ROA 5.1%
ROE N/A
ROCE 19.11%
ROIC 14.55%
ROICexc 15.53%
ROICexgc 27.02%
OM 14.71%
PM (TTM) 6.75%
GM 46.64%
FCFM 11.44%
ROA(3y)3.92%
ROA(5y)-0.82%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)9.95%
ROIC(5y)N/A
ROICexc(3y)10.94%
ROICexc(5y)N/A
ROICexgc(3y)19.37%
ROICexgc(5y)N/A
ROCE(3y)12.8%
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 5Y29.63%
GM growth 3Y4.22%
GM growth 5Y3.26%
F-Score7
Asset Turnover0.76
Health
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 2.57
Debt/EBITDA 1.96
Cap/Depr 44.82%
Cap/Sales 0.14%
Interest Coverage 250
Cash Conversion 77.1%
Profit Quality 169.4%
Current Ratio 0.41
Quick Ratio 0.41
Altman-Z 2.58
F-Score7
WACC8.95%
ROIC/WACC1.63
Cap/Depr(3y)60.18%
Cap/Depr(5y)115.51%
Cap/Sales(3y)0.24%
Cap/Sales(5y)12.19%
Profit Quality(3y)274.96%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)58.15%
EPS 3YN/A
EPS 5Y39.5%
EPS Q2Q%60.76%
EPS Next Y-70.53%
EPS Next 2Y-18.12%
EPS Next 3Y-7.35%
EPS Next 5Y5.4%
Revenue 1Y (TTM)14.47%
Revenue growth 3Y35.19%
Revenue growth 5Y7.09%
Sales Q2Q%23.84%
Revenue Next Year-0.51%
Revenue Next 2Y3.94%
Revenue Next 3Y4.68%
Revenue Next 5Y6.11%
EBIT growth 1Y42.61%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year-43.41%
EBIT Next 3Y-3.98%
EBIT Next 5Y5.64%
FCF growth 1Y-39.98%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-39.57%
OCF growth 3YN/A
OCF growth 5Y-10.6%