Madison Square Garden Sports (MSGS) AI Stock Analysis

• Market Cap: $4.29B
• Dividend Yield: N/A
• Average Volume (3M): 168.64K
• Price to Earnings (P/E): 74.5
• Beta (1Y): 0.90
• Revenue Growth: 21.45%
• EPS Growth: 47.50%
• Country: US
• Employees: 533
• Sector: Communication Services
• Sector Strength: 98
• Industry: Entertainment
• EPS (TTM): 2.36
• Shares Outstanding: 19,480,345
• 10 Day Avg. Volume: 190,880
• 30 Day Avg. Volume: 168,636
• PEG Ratio: 1.57
• Price to Book (P/B): N/A
• Price to Sales (P/S): 4.46
• Price to Cash Flow (P/CF): 19.30
• P/FCF Ratio: 19.30
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $242.50
• Price Target Upside: 28.53% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

Madison Square Garden Sports has strong revenue and operational growth but faces significant financial instability due to high debt and negative equity. Technical indicators suggest bearish momentum, and the stock appears overvalued. Revenue growth and strategic sponsorships are positive, but media rights challenges and increased expenses are significant concerns. Recent leadership retention efforts are positive but have a limited impact on stock performance.

Positive Factors

Revenue and Earnings

MSGS delivered solid revenue and earnings beats.

Strategic Partnerships

MSG also struck a multi-year marketing partnership with the Abu Dhabi Dept of Culture and Tourism, which will see 'Experience Abu Dhabi' as the official Knicks uniform patch.

Negative Factors

Regulatory Challenges

Concerns about potential regulatory challenges may impact the company's future operations.

Rights Fees

The 50% reduction in rights fees in FY26 will lower FY26 AOI by 50% as well and leave forecasting a business only modestly FCF positive.

Madison Square Garden Sports Business Overview & Revenue Model

Company Description

Madison Square Garden Sports Corp. operates as a professional sports company. The company owns and operates a portfolio of assets that consists of the New York Knickerbockers of the National Basketball Association (NBA) and the New York Rangers of the National Hockey League. Its other professional franchises include two development league teams, the Hartford Wolf Pack of the American Hockey League and the Westchester Knicks of the NBA G League. It also owns Knicks Gaming, an esports franchise that competes in the NBA 2K League, as well as a controlling interest in Counter Logic Gaming, a North American esports organization. In addition, the company operates two professional sports team performance centers, the Madison Square Garden Training Center in Greenburgh and the CLG Performance Center in Los Angeles. The company was formerly known as The Madison Square Garden Company. Madison Square Garden Sports Corp. was incorporated in 2015 and is based in New York, New York.

How the Company Makes Money

Madison Square Garden Sports generates revenue through multiple streams primarily centered around its professional sports franchises. Key revenue streams include ticket sales for home games, which are bolstered by the loyalty and large fan bases of the New York Knicks and the New York Rangers. Additionally, the company earns significant revenue from broadcasting rights, as these teams attract substantial viewership, leading to lucrative television and digital media contracts. Sponsorship and advertising partnerships also contribute to earnings, with brands eager to associate with high-profile teams and events. Merchandise sales, including team apparel and memorabilia, further enhance revenue, driven by fan enthusiasm and brand affinity. These diverse revenue streams are supported by the company's strategic focus on enhancing fan engagement and leveraging its iconic sports franchises.

Madison Square Garden Sports Financial Statement Overview

Summary

Madison Square Garden Sports shows strong revenue growth and operational improvements but faces significant balance sheet challenges due to high debt and negative equity. Effective cash management is noted, with a focus on using free cash flow for debt reduction to enhance financial stability.

Income Statement

Madison Square Garden Sports shows a strong recovery in revenue, with a revenue growth rate of approximately 20.8% in the TTM, driven by increased gross profit margins of 37.6%. The TTM net profit margin stands at 5.3%, indicating moderate profitability improvement. However, the EBIT margin of 12.8% suggests room for efficiency improvements.

Balance Sheet

The balance sheet reflects a significant leverage challenge with a negative stockholders' equity and a high debt-to-equity ratio, indicating financial instability. The equity ratio is negative due to negative equity, highlighting potential risk in financial structure.

Cash Flow

Cash flow analysis shows improvement in operating cash flow, with a strong operating cash flow to net income ratio of approximately 2.6 in the TTM. Free cash flow growth is positive, reflecting effective cash management, although high leverage remains a concern.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
1.07B	1.03B	887.45M	821.35M	415.72M	603.32M
	Gross Profit
401.18M	410.63M	338.64M	320.79M	133.83M	243.35M
	EBIT
137.09M	146.04M	85.17M	86.08M	-78.44M	-93.87M
	EBITDA
133.87M	136.42M	116.38M	90.71M	-73.18M	-76.05M
	Net Income Common Stockholders
56.94M	58.77M	47.79M	51.13M	-15.90M	-118.64M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
18.06M	89.14M	40.40M	91.02M	64.90M	77.85M
	Total Assets
2.17B	1.35B	1.32B	1.30B	1.31B	1.23B
	Total Debt
0.00	1.11B	1.12B	993.29M	1.12B	1.07B
	Net Debt
-18.06M	1.02B	1.08B	902.27M	1.05B	990.33M
	Total Liabilities
946.10M	1.61B	1.65B	1.45B	1.51B	1.44B
	Stockholders Equity
1.22B	-266.31M	-337.23M	-147.09M	-204.31M	-206.99M
Cash Flow		Free Cash Flow
146.66M	90.68M	151.29M	177.12M	-35.79M	-358.91M
	Operating Cash Flow
148.01M	92.13M	152.47M	178.06M	-35.33M	3.57M
	Investing Cash Flow
-5.96M	-8.90M	-17.76M	-2.93M	-466.00K	-514.86M
	Financing Cash Flow
-67.43M	-28.79M	-185.27M	-156.14M	17.16M	-520.59M

Madison Square Garden Sports Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 188.67
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MSGS, the sentiment is Negative. The current price of 188.67 is below the 20-day moving average (MA) of 192.39, below the 50-day MA of 200.14, and below the 200-day MA of 209.00, indicating a bearish trend. The MACD of -1.61 indicates Negative momentum. The RSI at 50.17 is Neutral, neither overbought nor oversold. The STOCH value of 50.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MSGS.

Madison Square Garden Sports Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LYV	68 Neutral	$27.56B	43.78	827.53%	―	1.79%	99.46%
MSGE	63 Neutral	$1.41B	11.01	1222.83%	―	7.44%	71.46%
Sector *	58 Neutral	$27.01B	3.11	-10.53%	4.44%	2.30%	-43.13%
MSGS	55 Neutral	$4.29B	74.45	-20.85%	―	21.45%	47.50%
BATRA	53 Neutral	$2.29B	―	-5.94%	―	3.45%	75.21%
SPHR	53 Neutral	$1.11B	―	-14.99%	―	22.32%	-184.25%
MANU	46 Neutral	$2.29B	―	-92.34%	―	-11.35%	-837.48%

Madison Square Garden Sports Corporate Events

Madison Square Garden Sports Signs New CFO Agreement

Madison Square Garden Sports Corp. has entered into a new employment agreement with Victoria M. Mink, their Executive Vice President, Chief Financial Officer, and Treasurer, effective from January 1, 2025, to January 1, 2028. The agreement includes a base salary of no less than $1,000,000 and annual incentives valued at not less than $1,500,000, reflecting the company’s commitment to retain key leadership amid competitive industry dynamics.