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Madison Square Garden Entertainment Corp. (MSGE)
NYSE:MSGE
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Madison Square Garden Entertainment Corp.
(NYSE:MSGE)
63Neutral
Positive Factors
Event Performance
Christmas Spectacular results outperformed expectations and management spoke to opportunity to continue to ramp show count next year.
Market Position
MSGE's solid market position should continue to help the company benefit from strong demand trends for live music/entertainment events.
Negative Factors
Concert Bookings
Near-term softness in concert bookings remains a headwind, and likely will continue through FY25.
Guidance and Costs
MSGE lowered FY25 guidance, citing slower concert bookings and incremental expense associated with bringing sponsorship sales back in-house.
Madison Square Garden Entertainment Corp. (MSGE) vs. S&P 500 (SPY)
Market Cap
$1.42B
Dividend YieldN/A
Average Volume (3M)359.16K
Price to Earnings (P/E)11.2
Beta (1Y)1.19
Revenue Growth7.44%
EPS Growth71.46%
CountryUS
Employees1,200
SectorConsumer Cyclical
Sector Strength60
IndustryEntertainment
Share Statistics
EPS (TTM)2.62
Shares Outstanding40,974,854
10 Day Avg. Volume299,718
30 Day Avg. Volume359,163
Financial Highlights & Ratios
PEG Ratio0.16
Price to Book (P/B)N/A
Price to Sales (P/S)1.69
Price to Cash Flow (P/CF)3.60
P/FCF Ratio3.60
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$44.80Price Target Upside51.81% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
Madison Square Garden Entertainment Corp. Business Overview & Revenue Model
Company DescriptionMadison Square Garden Entertainment Corp. engages in the entertainment business. It produces, presents, or hosts various live entertainment events, including concerts, family shows, and special events, as well as sporting events, such as professional boxing, college basketball and hockey, professional bull riding, mixed martial arts, and esports and wrestling in its venues, including The Garden, Hulu Theater, Radio City Music Hall, and the Beacon Theatre in New York City; and The Chicago Theatre. The company also operates 70 entertainment dining and nightlife venues spanning 20 markets across five continents under the Tao, Marquee, Lavo, Beauty & Essex, Cathédrale, Hakkasan, and Omnia brand names; and creates and operates New England's premier music festival. In addition, it features the Radio City Rockettes, which serves as the star for its Christmas Spectacular at Radio City Music Hall. The company was founded in 2006 and is based in New York, New York.
How the Company Makes MoneyMSGE generates revenue through multiple streams, primarily from the operation of its renowned venues and the hosting of live events. Revenue is earned from ticket sales, venue rentals, and sponsorships, as well as food and beverage concessions during events. The company also benefits from licensing and merchandising opportunities related to its events and productions. Additionally, MSGE collaborates with various partners for broadcasting rights and special event promotions, further enhancing its earnings potential. These diverse revenue streams allow MSGE to maintain its position as a leading entertainment provider.
Madison Square Garden Entertainment Corp. Financial Statement Overview
Summary
Madison Square Garden Entertainment Corp. has shown a commendable turnaround in profitability and revenue growth, with improving margins and cash flow metrics. However, the high leverage and weak equity position pose potential financial risks that need to be managed carefully to sustain growth.Income Statement
The company has shown significant improvement in revenue over the years, with a strong revenue growth rate from negative to positive figures, indicating recovery. The TTM gross profit margin is robust at 59.27%, and net profit margin has improved to 23.56% from previous losses, highlighting enhanced profitability. However, historical volatility in margins poses potential risk.72
Positive
Balance Sheet
The balance sheet shows a weak equity position, with a negative stockholders' equity in recent years, though it has improved slightly to $10.33 million in TTM. The debt-to-equity ratio remains high, indicating significant leverage. The equity ratio is low, suggesting potential solvency risks despite asset growth.48
Neutral
Cash Flow
Cash flow has improved with positive free cash flow growth in recent years. The operating cash flow to net income ratio is healthy, indicating good cash conversion. However, cash flow from financing activities shows consistent outflows, which may impact financial flexibility.65
Positive
| Breakdown | |||||
| TTM | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 | Jun 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 955.86M | 959.26M | 851.50M | 653.49M | 81.81M | 584.60M | Gross Profit |
| 369.59M | 336.55M | 351.57M | 233.68M | -14.42M | 204.07M | EBIT |
| 133.67M | 111.94M | 105.01M | -64.99M | -237.29M | 225.33M | EBITDA |
| 180.43M | 164.12M | 202.91M | -1.91M | -103.19M | 359.40M | Net Income Common Stockholders |
| 126.29M | 144.30M | 76.60M | -202.83M | -219.31M | 171.73M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 1.11B | 33.55M | 76.09M | 58.10M | 317.82M | 1.24B | Total Assets |
| 3.58B | 1.55B | 1.40B | 1.53B | 1.70B | 3.72B | Total Debt |
| 275.91M | 1.07B | 902.92M | 956.79M | 735.92M | 261.16M | Net Debt |
| 0.00 | 1.04B | 826.83M | 898.69M | 418.10M | 0.00 | Total Liabilities |
| 891.08M | 1.58B | 1.47B | 1.53B | 1.20B | 844.77M | Stockholders Equity |
| 2.61B | -23.16M | -69.47M | -1.48M | 495.90M | 2.84B |
| Cash Flow | Free Cash Flow | ||||
| 63.38M | 87.08M | 120.51M | 79.55M | -158.43M | 1.88M | Operating Cash Flow |
| 91.53M | 111.27M | 135.69M | 95.35M | -148.12M | 31.53M | Investing Cash Flow |
| -15.92M | -62.37M | 30.30M | 45.44M | -10.34M | 276.39M | Financing Cash Flow |
| -57.96M | -99.69M | -144.22M | -396.29M | 473.49M | -315.38M |
Madison Square Garden Entertainment Corp. Technical Analysis
Negative
29.51
Price Trends
34.36
Negative
35.00
Negative
37.29
Negative
Market Momentum
-0.28
Negative
46.93
Neutral
38.46
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MSGE, the sentiment is Negative. The current price of 29.51 is below the 20-day moving average (MA) of 32.56, below the 50-day MA of 34.36, and below the 200-day MA of 37.29, indicating a bearish trend. The MACD of -0.28 indicates Negative momentum. The RSI at 46.93 is Neutral, neither overbought nor oversold. The STOCH value of 38.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MSGE.
Madison Square Garden Entertainment Corp. Risk Analysis
Madison Square Garden Entertainment Corp. disclosed 40 risk factors in its most recent earnings report. Madison Square Garden Entertainment Corp. reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Madison Square Garden Entertainment Corp. Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $1.29B | 50.74 | 9.10% | ― | -6.04% | 6.43% | |
68 Neutral | $27.93B | 44.53 | 827.53% | ― | 1.79% | 99.46% | |
66 Neutral | $2.90B | 11.94 | 67.31% | 0.33% | -0.56% | 63.92% | |
63 Neutral | $1.42B | 11.24 | 1222.83% | ― | 7.44% | 71.46% | |
59 Neutral | $11.18B | 10.04 | -1.58% | 3.96% | 1.31% | -16.97% | |
50 Neutral | $1.14B | ― | 20.03% | ― | -3.64% | 48.94% | |
35 Underperform | $38.77M | ― | -245.80% | ― | -5.48% | -14.32% |
* Consumer Cyclical Sector Average
Performance Comparison
MSGE
Madison Square Garden Entertainment Corp.
29.51
-10.28
-25.84%
CNK
Cinemark Holdings
25.70
6.68
35.12%
IMAX
IMAX
24.47
7.86
47.32%
LYV
Live Nation Entertainment
119.23
16.50
16.06%
AMC
AMC Entertainment
2.75
-0.22
-7.41%
RDI
Reading International
1.25
-0.56
-30.94%
Madison Square Garden Entertainment Corp. Earnings Call Summary
Earnings Call Date: Feb 6, 2025 | % Change Since: -17.73% | Next Earnings Date: May 8, 2025
Earnings Call Sentiment Positive
The earnings call reflected a positive outlook driven by record revenue from the Christmas Spectacular and strong demand for in-person events despite facing tough comparisons in concert bookings and higher expenses. The company is optimistic about future growth in bookings and continues to return capital to shareholders.Highlights
Record Revenue from Christmas Spectacular
The Christmas Spectacular achieved over $170 million in total revenue, a new record for the production, driven by robust ticket demand and the show's strongest sell-through rate in 25 years.
Strong In-Person Event Demand
Hosted nearly 2.7 million guests at more than 440 live events, with strong per cap spending on food, beverage, and merchandise at record levels.
Positive Momentum for Knicks and Rangers
Positive momentum in economic arrangements with Knicks and Rangers, with three additional home games played in the quarter compared to the prior year.
AOI Growth and Share Repurchase
Adjusted Operating Income (AOI) increased by 2%, and the company repurchased $25 million of Class A common stock, with $85 million remaining under the buyback authorization.
Encouraging Bookings Outlook for Fiscal 2026
Pacing up for the first quarter of fiscal 2026 in concert bookings at the Garden, driven by a diverse set of acts.
New Sponsorship Deals
Announced new multiyear sponsorship deals with Lenovo, Motorola, and others, enhancing marketing partnerships.
Lowlights
Decrease in Concert Events
Year-over-year decrease in the number of concerts, primarily due to the absence of three Billy Joel performances and a shift from promoted events to rentals.
Higher SG&A Expenses
Increase in selling, general, and administrative expenses, including $3.1 million in executive transition costs.
Concert Revenue Decline
Lower concert revenues due to a mixed shift at the Garden and fewer concerts compared to the previous year.
Challenges with Comparisons to Prior Year
Facing tough year-over-year comparisons at The Garden due to the previous year's record number of concerts.
Company Guidance
During the fiscal 2025 second quarter earnings call for Madison Square Garden Entertainment Corp., the company reported strong financial and operational performance. Revenues reached $407 million, with an adjusted operating income of $164 million, driven largely by the success of the Christmas Spectacular, which generated over $170 million in revenue. The production saw a record sell-through rate in 25 years, with 1.1 million tickets sold across 200 performances, marking a significant increase from the previous year. The company also hosted 440 live events across its venues, welcoming nearly 2.7 million guests, and continued to experience robust demand for concerts and sporting events, despite fewer concerts compared to the previous year. Additionally, MSG Entertainment resumed its stock buyback program, repurchasing $25 million of Class A common stock. The company remains on track to achieve mid to high single-digit AOI growth for the fiscal year, bolstered by strong consumer demand and strategic pricing initiatives.Madison Square Garden Entertainment Corp. Corporate Events
Executive/Board Changes
Madison Square Garden Entertainment Announces CFO Transition
Neutral
Nov 15, 2024
Madison Square Garden Entertainment Corp. is undergoing a leadership change as Michael J. Grau, the CFO, is set to leave the company, with his role being filled by Lee Weinberg on an interim basis. Weinberg brings extensive experience from his previous roles in the company and its predecessors. This transition is amicable, with no underlying disputes over financial practices or management issues, ensuring stability in the company’s financial operations.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.