MADISON SQUARE GARDEN SPORTS (MSGS) Stock Fundamental Analysis
NYSE:MSGS - New York Stock Exchange, Inc. - US55825T1034 - Common Stock - Currency: USD
We assign a fundamental rating of 3 out of 10 to MSGS. MSGS was compared to 72 industry peers in the Entertainment industry. While MSGS is still in line with the averages on profitability rating, there are concerns on its financial health. MSGS is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
MSGS had positive earnings in the past year.
MSGS had a positive operating cash flow in the past year.
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 0.32%. This is in the better half of the industry: MSGS outperforms 66.67% of its industry peers.
MSGS has a better Return On Invested Capital (7.77%) than 79.17% of its industry peers.
MSGS had an Average Return On Invested Capital over the past 3 years of 9.95%. This is significantly below the industry average of 22.63%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.32% | ||
| ROE | N/A | ||
| ROIC | 7.77% |
ROA(3y)3.92%
ROA(5y)-0.82%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)9.95%
ROIC(5y)N/A
1.3 Margins
With a decent Profit Margin value of 0.45%, MSGS is doing good in the industry, outperforming 68.06% of the companies in the same industry.
In the last couple of years the Profit Margin of MSGS has grown nicely.
Looking at the Operating Margin, with a value of 8.44%, MSGS is in the better half of the industry, outperforming 76.39% of the companies in the same industry.
MSGS has a Gross Margin (39.77%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of MSGS has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.44% | ||
| PM (TTM) | 0.45% | ||
| GM | 39.77% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5Y29.63%
GM growth 3Y4.22%
GM growth 5Y3.26%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), MSGS is creating some value.
The number of shares outstanding for MSGS has been increased compared to 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.
2.2 Solvency
MSGS has an Altman-Z score of 2.07. This is not the best score and indicates that MSGS is in the grey zone with still only limited risk for bankruptcy at the moment.
MSGS has a Altman-Z score of 2.07. This is in the better half of the industry: MSGS outperforms 65.28% of its industry peers.
MSGS has a debt to FCF ratio of 1.98. This is a very positive value and a sign of high solvency as it would only need 1.98 years to pay back of all of its debts.
MSGS has a better Debt to FCF ratio (1.98) than 76.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 1.98 | ||
| Altman-Z | 2.07 |
ROIC/WACC0.88
WACC8.82%
2.3 Liquidity
MSGS has a Current Ratio of 0.52. This is a bad value and indicates that MSGS is not financially healthy enough and could expect problems in meeting its short term obligations.
MSGS has a Current ratio of 0.52. This is in the lower half of the industry: MSGS underperforms 79.17% of its industry peers.
MSGS has a Quick Ratio of 0.52. 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 Quick ratio of MSGS (0.52) is worse than 77.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.52 | ||
| Quick Ratio | 0.52 |
3. Growth
3.1 Past
The earnings per share for MSGS have decreased strongly by -78.57% in the last year.
The Earnings Per Share has been growing by 39.50% on average over the past years. This is a very strong growth
The Revenue has grown by 14.65% in the past year. This is quite good.
MSGS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.09% yearly.
EPS 1Y (TTM)-78.57%
EPS 3YN/A
EPS 5Y39.5%
EPS Q2Q%-137.58%
Revenue 1Y (TTM)14.65%
Revenue growth 3Y35.19%
Revenue growth 5Y7.09%
Sales Q2Q%-1.34%
3.2 Future
The Earnings Per Share is expected to grow by 5.40% on average over the next years.
The Revenue is expected to grow by 6.11% on average over the next years.
EPS Next Y-113.85%
EPS Next 2Y-17.18%
EPS Next 3Y-11.7%
EPS Next 5Y5.4%
Revenue Next Year0.27%
Revenue Next 2Y3.75%
Revenue Next 3Y3.91%
Revenue Next 5Y6.11%
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 decreasing.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 910.57, MSGS can be considered very expensive at the moment.
MSGS's Price/Earnings ratio is a bit cheaper when compared to the industry. MSGS is cheaper than 62.50% of the companies in the same industry.
MSGS is valuated expensively when we compare the Price/Earnings ratio to 26.52, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 114.73, the valuation of MSGS can be described as expensive.
MSGS's Price/Forward Earnings is on the same level as the industry average.
MSGS's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.25.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 910.57 | ||
| Fwd PE | 114.73 |
4.2 Price Multiples
MSGS's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, MSGS is valued a bit cheaper than the industry average as 68.06% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.33 | ||
| EV/EBITDA | 50.91 |
4.3 Compensation for Growth
MSGS's earnings are expected to decrease with -11.70% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)23.05
EPS Next 2Y-17.18%
EPS Next 3Y-11.7%
5. Dividend
5.1 Amount
No dividends for MSGS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
191.22
+1.47 (+0.77%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners76.99%
Inst Owner ChangeN/A
Ins Owners2.74%
Ins Owner Change-10.37%
Market Cap4.59B
Analysts80
Price Target250.71 (31.11%)
Short Float %3.14%
Short Ratio3.5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0.03
Dividend Growth(5Y)N/A
DP13.53%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-112.6%
Min EPS beat(2)-141.27%
Max EPS beat(2)-83.94%
EPS beat(4)2
Avg EPS beat(4)4.05%
Min EPS beat(4)-141.27%
Max EPS beat(4)176.57%
EPS beat(8)4
Avg EPS beat(8)-17.37%
EPS beat(12)7
Avg EPS beat(12)21.08%
EPS beat(16)9
Avg EPS beat(16)36.07%
Revenue beat(2)0
Avg Revenue beat(2)-1.8%
Min Revenue beat(2)-3.05%
Max Revenue beat(2)-0.55%
Revenue beat(4)2
Avg Revenue beat(4)12.26%
Min Revenue beat(4)-3.05%
Max Revenue beat(4)32.96%
Revenue beat(8)5
Avg Revenue beat(8)14.75%
Revenue beat(12)9
Avg Revenue beat(12)18.28%
Revenue beat(16)10
Avg Revenue beat(16)12.21%
PT rev (1m)-0.41%
PT rev (3m)-5.39%
EPS NQ rev (1m)47.44%
EPS NQ rev (3m)52.29%
EPS NY rev (1m)-153.86%
EPS NY rev (3m)-148.06%
Revenue NQ rev (1m)11.36%
Revenue NQ rev (3m)10.85%
Revenue NY rev (1m)0.12%
Revenue NY rev (3m)-0.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 910.57 | ||
| Fwd PE | 114.73 | ||
| P/S | 4.32 | ||
| P/FCF | 31.33 | ||
| P/OCF | 30.57 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 50.91 |
EPS(TTM)0.21
EY0.11%
EPS(NY)1.67
Fwd EY0.87%
FCF(TTM)6.1
FCFY3.19%
OCF(TTM)6.25
OCFY3.27%
SpS44.23
BVpS-11.8
TBVpS-25.55
PEG (NY)N/A
PEG (5Y)23.05
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.32% | ||
| ROE | N/A | ||
| ROCE | 10.11% | ||
| ROIC | 7.77% | ||
| ROICexc | 8.7% | ||
| ROICexgc | 14.62% | ||
| OM | 8.44% | ||
| PM (TTM) | 0.45% | ||
| GM | 39.77% | ||
| FCFM | 13.8% |
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-Score6
Asset Turnover0.71
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 1.98 | ||
| Debt/EBITDA | 3.13 | ||
| Cap/Depr | 113.39% | ||
| Cap/Sales | 0.34% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 161.76% | ||
| Profit Quality | 3042.54% | ||
| Current Ratio | 0.52 | ||
| Quick Ratio | 0.52 | ||
| Altman-Z | 2.07 |
F-Score6
WACC8.82%
ROIC/WACC0.88
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)-78.57%
EPS 3YN/A
EPS 5Y39.5%
EPS Q2Q%-137.58%
EPS Next Y-113.85%
EPS Next 2Y-17.18%
EPS Next 3Y-11.7%
EPS Next 5Y5.4%
Revenue 1Y (TTM)14.65%
Revenue growth 3Y35.19%
Revenue growth 5Y7.09%
Sales Q2Q%-1.34%
Revenue Next Year0.27%
Revenue Next 2Y3.75%
Revenue Next 3Y3.91%
Revenue Next 5Y6.11%
EBIT growth 1Y10.1%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year-44.78%
EBIT Next 3Y-11.87%
EBIT Next 5Y5.64%
FCF growth 1Y-35.61%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-34.31%
OCF growth 3YN/A
OCF growth 5Y-10.6%