MADISON SQUARE GARDEN ENTERT (MSGE) Stock Fundamental Analysis
NYSE:MSGE - New York Stock Exchange, Inc. - US5582561032 - Common Stock - Currency: USD
MSGE gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 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 is valued correctly, 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.
MSGE had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
The Return On Assets of MSGE (7.56%) is better than 88.89% of its industry peers.
MSGE has a better Return On Equity (1380.80%) than 100.00% of its industry peers.
MSGE's Return On Invested Capital of 9.96% is amongst the best of the industry. MSGE outperforms 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
The Profit Margin of MSGE (13.50%) is better than 88.89% of its industry peers.
Looking at the Operating Margin, with a value of 15.55%, MSGE belongs to the top of the industry, outperforming 86.11% of the companies in the same industry.
Looking at the Gross Margin, with a value of 42.95%, MSGE is in line with its industry, outperforming 47.22% of the companies in the same industry.
In the last couple of years the Gross Margin of MSGE has grown nicely.
| 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.
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
Compared to 1 year ago, MSGE has an improved debt to assets ratio.
2.2 Solvency
MSGE has an Altman-Z score of 1.45. This is a bad value and indicates that MSGE is not financially healthy and even has some risk of bankruptcy.
MSGE's Altman-Z score of 1.45 is in line compared to the rest of the industry. MSGE outperforms 54.17% 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.
MSGE has a Debt to FCF ratio of 5.06. This is in the better half of the industry: MSGE outperforms 68.06% of its industry peers.
MSGE has a Debt/Equity ratio of 60.61. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of MSGE (60.61) is worse than 80.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 60.61 | ||
| Debt/FCF | 5.06 | ||
| Altman-Z | 1.45 |
ROIC/WACC1.29
WACC7.72%
2.3 Liquidity
MSGE has a Current Ratio of 0.57. 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 0.57. This is in the lower half of the industry: MSGE underperforms 73.61% of its industry peers.
A Quick Ratio of 0.56 indicates that MSGE may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.56, MSGE is doing worse than 72.22% of the companies in the same industry.
| 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.
MSGE shows a small growth in Revenue. In the last year, the Revenue has grown by 5.82%.
MSGE shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.77% yearly.
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 -8.22% on average over the next years.
MSGE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.54% yearly.
EPS Next Y-70.32%
EPS Next 2Y-19.16%
EPS Next 3Y-8.22%
EPS Next 5YN/A
Revenue Next Year-0.65%
Revenue Next 2Y3.07%
Revenue Next 3Y3.54%
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
The Price/Earnings ratio is 14.03, which indicates a correct valuation of MSGE.
Based on the Price/Earnings ratio, MSGE is valued 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 26.35.
MSGE is valuated rather expensively with a Price/Forward Earnings ratio of 18.98.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MSGE indicates a rather cheap valuation: MSGE is cheaper than 80.56% of the companies listed in the same industry.
MSGE's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.19.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.03 | ||
| Fwd PE | 18.98 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MSGE indicates a somewhat cheap valuation: MSGE is cheaper than 76.39% of the companies listed in the same industry.
84.72% 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 | 15.22 | ||
| EV/EBITDA | 11.03 |
4.3 Compensation for Growth
The decent profitability rating of MSGE may justify a higher PE ratio.
MSGE's earnings are expected to decrease with -8.22% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-19.16%
EPS Next 3Y-8.22%
5. Dividend
5.1 Amount
No dividends for MSGE!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
38.44
+1.05 (+2.81%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners99.29%
Inst Owner Change5.64%
Ins Owners2.79%
Ins Owner Change-0.41%
Market Cap1.82B
Analysts82.67
Price Target45.52 (18.42%)
Short Float %3.7%
Short Ratio5.21
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)2.29%
PT rev (3m)-2.99%
EPS NQ rev (1m)-12.33%
EPS NQ rev (3m)-30.32%
EPS NY rev (1m)0%
EPS NY rev (3m)-18.13%
Revenue NQ rev (1m)-4.48%
Revenue NQ rev (3m)-13.87%
Revenue NY rev (1m)-0.48%
Revenue NY rev (3m)-1.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.03 | ||
| Fwd PE | 18.98 | ||
| P/S | 1.87 | ||
| P/FCF | 15.22 | ||
| P/OCF | 12.8 | ||
| P/B | 191.51 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.03 |
EPS(TTM)2.74
EY7.13%
EPS(NY)2.03
Fwd EY5.27%
FCF(TTM)2.52
FCFY6.57%
OCF(TTM)3
OCFY7.81%
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 | 1.45 |
F-Score8
WACC7.72%
ROIC/WACC1.29
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-70.32%
EPS Next 2Y-19.16%
EPS Next 3Y-8.22%
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-0.65%
Revenue Next 2Y3.07%
Revenue Next 3Y3.54%
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%