Madison Square Garden Sports Corp. Fundamental Analysis (NYSE: MSGS)
Madison Square Garden Sports Corp. Fundamental Analysis (NYSE: MSGS)
Madison Square Garden Sports Corp. (NYSE: MSGS) shows weak financial fundamentals with a PE ratio of 1265.53, profit margin of 0.67%, and ROE of -2.73%. The company generates $1.2B in annual revenue with weak year-over-year growth of 1.18%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 68.7/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze MSGS's fundamental strength across five key dimensions:
Efficiency Score
WeakMSGS struggles to generate sufficient returns from assets.
Valuation Score
WeakMSGS trades at a premium to fair value.
Growth Score
WeakMSGS faces weak or negative growth trends.
Financial Health Score
ModerateMSGS shows balanced financial health with some risks.
Profitability Score
WeakMSGS struggles to sustain strong margins.
Key Financial Metrics
Is MSGS Expensive or Cheap?
P/E Ratio
MSGS trades at 1265.53 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, MSGS's PEG of 14.66 indicates potential overvaluation.
Price to Book
The market values Madison Square Garden Sports Corp. at -37.15 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 207.60 times EBITDA. This signals the market has high growth expectations.
How Well Does MSGS Make Money?
Net Profit Margin
For every $100 in sales, Madison Square Garden Sports Corp. keeps $0.67 as profit after all expenses.
Operating Margin
Core operations generate 2.50 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-2.73 in profit for every $100 of shareholder equity.
ROA
Madison Square Garden Sports Corp. generates $0.50 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Madison Square Garden Sports Corp. generates limited operating cash flow of $64.06M, signaling weaker underlying cash strength.
Free Cash Flow
Madison Square Garden Sports Corp. produces free cash flow of $61.10M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $2.54 in free cash annually.
FCF Yield
MSGS converts 0.63% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
1265.53
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
14.66
vs 25 benchmark
P/B Ratio
Price to book value ratio
-37.15
vs 25 benchmark
P/S Ratio
Price to sales ratio
8.45
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-4.34
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.50
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.03
vs 25 benchmark
ROA
Return on assets percentage
0.005
vs 25 benchmark
ROCE
Return on capital employed
0.03
vs 25 benchmark
How MSGS Stacks Against Its Sector Peers
| Metric | MSGS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 1265.53 | 19.45 | Worse (Expensive) |
| ROE | -2.73% | 581.00% | Weak |
| Net Margin | 0.67% | 492.00% | Weak |
| Debt/Equity | -4.34 | 0.89 | Strong (Low Leverage) |
| Current Ratio | 0.50 | 1.91 | Weak Liquidity |
| ROA | 0.50% | -15.00% (disorted) | Weak |
MSGS outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Madison Square Garden Sports Corp.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
71.20%
Industry Style: Growth, Technology, Streaming
High GrowthEPS CAGR
87.77%
Industry Style: Growth, Technology, Streaming
High GrowthFCF CAGR
2451.79%
Industry Style: Growth, Technology, Streaming
High Growth