MADISON SQUARE GARDEN ENTERT (MSGE) Stock Fundamental Analysis
NYSE:MSGE - New York Stock Exchange, Inc. - US5582561032 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to MSGE. MSGE was compared to 72 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 valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year MSGE was profitable.
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.
Of the past 5 years MSGE 4 years had a positive operating cash flow.
1.2 Ratios
MSGE's Return On Assets of 7.56% is amongst the best of the industry. MSGE outperforms 88.89% of its industry peers.
With an excellent Return On Equity value of 1380.80%, MSGE belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
MSGE has a better Return On Invested Capital (9.96%) than 86.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.56% | ||
| ROE | 1380.8% | ||
| ROIC | 9.96% |
ROA(3y)2.01%
ROA(5y)-0.45%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
MSGE has a Profit Margin of 13.50%. This is amongst the best in the industry. MSGE outperforms 88.89% of its industry peers.
With an excellent Operating Margin value of 15.55%, MSGE belongs to the best of the industry, outperforming 86.11% of the companies in the same industry.
With a Gross Margin value of 42.95%, MSGE perfoms like the industry average, outperforming 47.22% of the companies in the same industry.
MSGE's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.55% | ||
| PM (TTM) | 13.5% | ||
| GM | 42.95% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y80.27%
GM growth 5Y3.57%
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
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 1.50. 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 of 1.50. This is comparable to the rest of the industry: MSGE outperforms 55.56% of its industry peers.
The Debt to FCF ratio of MSGE is 5.06, which is a neutral value as it means it would take MSGE, 5.06 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of MSGE (5.06) is better than 68.06% of its industry peers.
A Debt/Equity ratio of 60.61 is on the high side and indicates that MSGE has dependencies on debt financing.
MSGE's Debt to Equity ratio of 60.61 is on the low side compared to the rest of the industry. MSGE is outperformed by 80.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 60.61 | ||
| Debt/FCF | 5.06 | ||
| Altman-Z | 1.5 |
ROIC/WACC1.28
WACC7.8%
2.3 Liquidity
A Current Ratio of 0.57 indicates that MSGE may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.57, MSGE is doing worse than 73.61% of the companies in the same industry.
A Quick Ratio of 0.56 indicates that MSGE may have some problems paying its short term obligations.
With a Quick ratio value of 0.56, MSGE is not doing good in the industry: 72.22% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.57 | ||
| Quick Ratio | 0.56 |
3. Growth
3.1 Past
MSGE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 124.59%, which is quite impressive.
Looking at the last year, MSGE shows a small growth in Revenue. The Revenue has grown by 5.82% in the last year.
Measured over the past years, MSGE shows a decrease in Revenue. The Revenue has been decreasing by -1.77% on average per year.
EPS 1Y (TTM)124.59%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%183.33%
Revenue 1Y (TTM)5.82%
Revenue growth 3Y127.19%
Revenue growth 5Y-1.77%
Sales Q2Q%6.2%
3.2 Future
The Earnings Per Share is expected to decrease by -10.43% on average over the next years. This is quite bad
Based on estimates for the next years, MSGE will show a small growth in Revenue. The Revenue will grow by 3.57% on average per year.
EPS Next Y-72.44%
EPS Next 2Y-19.99%
EPS Next 3Y-10.43%
EPS Next 5YN/A
Revenue Next Year-0.61%
Revenue Next 2Y2.97%
Revenue Next 3Y3.57%
Revenue Next 5YN/A
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 14.77, MSGE is valued correctly.
MSGE's Price/Earnings ratio is rather cheap when compared to the industry. MSGE is cheaper than 87.50% of the companies in the same industry.
MSGE's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.51.
Based on the Price/Forward Earnings ratio of 20.40, the valuation of MSGE can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MSGE indicates a somewhat cheap valuation: MSGE is cheaper than 77.78% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.58, MSGE is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.77 | ||
| Fwd PE | 20.4 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MSGE is valued a bit cheaper than the industry average as 76.39% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, MSGE is valued cheaper than 80.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.03 | ||
| EV/EBITDA | 11.73 |
4.3 Compensation for Growth
MSGE has a very decent profitability rating, which may justify a higher PE ratio.
MSGE's earnings are expected to decrease with -10.43% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-19.99%
EPS Next 3Y-10.43%
5. Dividend
5.1 Amount
MSGE does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
40.48
+1 (+2.53%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners99.29%
Inst Owner Change0%
Ins Owners2.79%
Ins Owner Change-0.41%
Market Cap1.92B
Analysts82.67
Price Target45.77 (13.07%)
Short Float %4.03%
Short Ratio5.01
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-34.11%
Min EPS beat(2)-38.19%
Max EPS beat(2)-30.04%
EPS beat(4)2
Avg EPS beat(4)86.48%
Min EPS beat(4)-38.19%
Max EPS beat(4)364.06%
EPS beat(8)4
Avg EPS beat(8)31.72%
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)1.13%
Min Revenue beat(2)-0.58%
Max Revenue beat(2)2.85%
Revenue beat(4)2
Avg Revenue beat(4)1.83%
Min Revenue beat(4)-2.49%
Max Revenue beat(4)7.56%
Revenue beat(8)4
Avg Revenue beat(8)0.07%
Revenue beat(12)5
Avg Revenue beat(12)-10.95%
Revenue beat(16)7
Avg Revenue beat(16)4.1%
PT rev (1m)0.56%
PT rev (3m)-2.45%
EPS NQ rev (1m)-4.54%
EPS NQ rev (3m)-36.24%
EPS NY rev (1m)-7.15%
EPS NY rev (3m)-24.07%
Revenue NQ rev (1m)-0.87%
Revenue NQ rev (3m)-14.62%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)-1.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.77 | ||
| Fwd PE | 20.4 | ||
| P/S | 1.97 | ||
| P/FCF | 16.03 | ||
| P/OCF | 13.48 | ||
| P/B | 201.68 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.73 |
EPS(TTM)2.74
EY6.77%
EPS(NY)1.98
Fwd EY4.9%
FCF(TTM)2.52
FCFY6.24%
OCF(TTM)3
OCFY7.42%
SpS20.54
BVpS0.2
TBVpS-2.6
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.56% | ||
| ROE | 1380.8% | ||
| ROCE | 12.61% | ||
| ROIC | 9.96% | ||
| ROICexc | 10.76% | ||
| ROICexgc | 12.22% | ||
| OM | 15.55% | ||
| PM (TTM) | 13.5% | ||
| GM | 42.95% | ||
| FCFM | 12.29% |
ROA(3y)2.01%
ROA(5y)-0.45%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
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 5YN/A
GM growth 3Y80.27%
GM growth 5Y3.57%
F-Score8
Asset Turnover0.56
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 60.61 | ||
| Debt/FCF | 5.06 | ||
| Debt/EBITDA | 2.78 | ||
| Cap/Depr | 40.35% | ||
| Cap/Sales | 2.33% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 68.59% | ||
| Profit Quality | 91.1% | ||
| Current Ratio | 0.57 | ||
| Quick Ratio | 0.56 | ||
| Altman-Z | 1.5 |
F-Score8
WACC7.8%
ROIC/WACC1.28
Cap/Depr(3y)30.91%
Cap/Depr(5y)28.68%
Cap/Sales(3y)2.24%
Cap/Sales(5y)4.88%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)124.59%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%183.33%
EPS Next Y-72.44%
EPS Next 2Y-19.99%
EPS Next 3Y-10.43%
EPS Next 5YN/A
Revenue 1Y (TTM)5.82%
Revenue growth 3Y127.19%
Revenue growth 5Y-1.77%
Sales Q2Q%6.2%
Revenue Next Year-0.61%
Revenue Next 2Y2.97%
Revenue Next 3Y3.57%
Revenue Next 5YN/A
EBIT growth 1Y32.73%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year70.81%
EBIT Next 3Y26.33%
EBIT Next 5YN/A
FCF growth 1Y-20.17%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-14.86%
OCF growth 3YN/A
OCF growth 5Y3.94%