MADISON SQUARE GARDEN SPORTS (MSGS)
US55825T1034 - Common Stock
MSGS gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 76 industry peers in the Entertainment industry. MSGS has a medium profitability rating, but doesn't score so well on its financial health evaluation. MSGS does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
MSGS had positive earnings in the past year.
In the past year MSGS had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: MSGS reported negative net income in multiple years.
Of the past 5 years MSGS 4 years had a positive operating cash flow.
1.2 Ratios
MSGS has a Return On Assets of 2.82%. This is in the better half of the industry: MSGS outperforms 75.00% of its industry peers.
MSGS has a better Return On Invested Capital (5.85%) than 78.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.82% | ||
| ROE | N/A | ||
| ROIC | 5.85% |
ROA(3y)2.11%
ROA(5y)-1.63%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 4.39%, MSGS is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
In the last couple of years the Profit Margin of MSGS has declined.
The Operating Margin of MSGS (9.54%) is better than 76.32% of its industry peers.
MSGS has a Gross Margin (43.79%) which is comparable to the rest of the industry.
MSGS's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.54% | ||
| PM (TTM) | 4.39% | ||
| GM | 43.79% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5Y-23.64%
GM growth 3Y4.32%
GM growth 5Y2.19%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), MSGS is destroying value.
MSGS has less shares outstanding than it did 1 year ago.
The number of shares outstanding for MSGS has been increased compared to 5 years ago.
Compared to 1 year ago, MSGS has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 1.91 indicates that MSGS is not a great score, but indicates only limited risk for bankruptcy at the moment.
MSGS has a better Altman-Z score (1.91) than 72.37% of its industry peers.
The Debt to FCF ratio of MSGS is 3.74, which is a good value as it means it would take MSGS, 3.74 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of MSGS (3.74) is better than 82.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.74 | ||
| Altman-Z | 1.91 |
ROIC/WACC0.66
WACC8.84%
2.3 Liquidity
A Current Ratio of 0.38 indicates that MSGS may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.38, MSGS is doing worse than 90.79% of the companies in the same industry.
A Quick Ratio of 0.38 indicates that MSGS may have some problems paying its short term obligations.
The Quick ratio of MSGS (0.38) is worse than 90.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.38 | ||
| Quick Ratio | 0.38 |
3. Growth
3.1 Past
MSGS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -27.73%.
MSGS shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -20.62% yearly.
The Revenue has decreased by -1.27% in the past year.
Measured over the past years, MSGS shows a small growth in Revenue. The Revenue has been growing by 4.49% on average per year.
EPS 1Y (TTM)-27.73%
EPS 3YN/A
EPS 5Y-20.62%
EPS growth Q2Q-29.76%
Revenue 1Y (TTM)-1.27%
Revenue growth 3Y13.73%
Revenue growth 5Y4.49%
Revenue growth Q2Q-7.58%
3.2 Future
Based on estimates for the next years, MSGS will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.03% on average per year.
MSGS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.16% yearly.
EPS Next Y14.35%
EPS Next 2Y6.98%
EPS Next 3Y12.86%
EPS Next 5Y13.03%
Revenue Next Year2.7%
Revenue Next 2Y2.74%
Revenue Next 3Y3.27%
Revenue Next 5Y3.16%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 116.13, which means the current valuation is very expensive for MSGS.
Compared to the rest of the industry, the Price/Earnings ratio of MSGS indicates a somewhat cheap valuation: MSGS is cheaper than 63.16% of the companies listed in the same industry.
MSGS is valuated expensively when we compare the Price/Earnings ratio to 28.28, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 84.91 indicates a quite expensive valuation of MSGS.
67.11% of the companies in the same industry are more expensive than MSGS, based on the Price/Forward Earnings ratio.
MSGS is valuated expensively when we compare the Price/Forward Earnings ratio to 20.88, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 116.13 | ||
| Fwd PE | 84.91 |
4.2 Price Multiples
MSGS's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MSGS indicates a somewhat cheap valuation: MSGS is cheaper than 71.05% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 45.99 | ||
| EV/EBITDA | 54.06 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as MSGS's earnings are expected to grow with 12.86% in the coming years.
PEG (NY)8.09
PEG (5Y)N/A
EPS Next 2Y6.98%
EPS Next 3Y12.86%
5. Dividend
5.1 Amount
No dividends for MSGS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
MADISON SQUARE GARDEN SPORTS
NYSE:MSGS (5/3/2024, 7:07:22 PM)
After market: 184.65 0 (0%)184.65
+1.34 (+0.73%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap4.42B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 116.13 | ||
| Fwd PE | 84.91 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)8.09
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.82% | ||
| ROE | N/A | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 9.54% | ||
| PM (TTM) | 4.39% | ||
| GM | 43.79% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.64
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.38 | ||
| Quick Ratio | 0.38 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-27.73%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y14.35%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-1.27%
Revenue growth 3Y13.73%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y