Madison Square Garden Sports (MSGS) AI Stock Analysis

• Market Cap: $4.59B
• Dividend Yield: N/A
• Average Volume (3M): 124.86K
• Price to Earnings (P/E): 971.6
• Beta (1Y): 0.82
• Revenue Growth: 14.64%
• EPS Growth: -79.70%
• Country: US
• Employees: 533
• Sector: Communication Services
• Sector Strength: 88
• Industry: Entertainment
• EPS (TTM): -0.59
• Shares Outstanding: 19,488,096
• 10 Day Avg. Volume: 107,435
• 30 Day Avg. Volume: 124,863
• PEG Ratio: -0.75
• Price to Book (P/B): -16.05
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 30.27
• 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: $233.00
• Price Target Upside: 21.85% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 52 Neutral
• Price Target: $192.00 ▲(0.41%Upside)

The overall stock score for Madison Square Garden Sports is influenced primarily by its financial performance and technical analysis. Despite revenue growth and improved cash flow management, significant balance sheet challenges and high valuation risk weigh heavily on the stock. The technical indicators suggest a bearish trend, which further impacts the score.

Positive Factors

Asset Value

Pro sports franchises, especially in major markets like the Knicks and Rangers, are expected to continue to compound in value over time.

Revenue Growth

Year-over-year growth in average per-game revenues from ticketing, sponsorship, and premium hospitality was encouraging, with no sign of slowing consumer spending.

Negative Factors

Financial Performance

The F2Q revenue and adjusted operating income were negatively impacted by the previously announced reduction in local media rights with MSG Networks.

Media Rights

The reduction in media rights revenues accepted by the Knicks and Rangers was necessary to prevent MSG Networks from going into restructuring, which could have led to greater downside risk to the teams' local rights revenues.

Madison Square Garden Sports Business Overview & Revenue Model

Company Description

Madison Square Garden Sports Corp. (MSGS) is a leading professional sports company, engaged in the ownership and management of sports teams and franchises. The company is primarily focused on the operation of iconic sports teams such as the New York Knicks of the National Basketball Association (NBA) and the New York Rangers of the National Hockey League (NHL). MSGS is dedicated to delivering world-class sports entertainment and experiences to fans through its well-established teams and the utilization of its notable sports venues.

How the Company Makes Money

Madison Square Garden Sports Corp. generates revenue through various streams, primarily anchored around its professional sports teams. The key revenue sources include ticket sales for home games, which contribute significantly to the company's earnings, alongside revenue from the sale of premium seating and suites. Additionally, MSGS benefits from broadcasting rights agreements, which provide a substantial portion of its income through contracts with regional and national television networks. Merchandising and licensing deals also bolster revenue, as fans purchase team-related apparel and memorabilia. Corporate sponsorships and partnerships play a crucial role, offering MSGS a steady influx of cash through strategic alliances with brands looking to associate with its prestigious sports teams. Overall, MSGS leverages its strong brand and team assets to maximize revenue through multiple channels, including live events, media, merchandise, and partnerships.

Madison Square Garden Sports Financial Statement Overview

Summary

Madison Square Garden Sports demonstrates notable revenue growth and operational improvements, yet faces significant balance sheet challenges due to high debt and negative equity. Focus on leveraging free cash flow for debt reduction could 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
1.06B	1.03B	887.45M	821.35M	415.72M	603.32M
	Gross Profit
384.49M	410.63M	338.64M	320.79M	133.83M	243.35M
	EBIT
89.69M	146.04M	85.17M	86.08M	-78.44M	-93.87M
	EBITDA
71.86M	136.42M	116.38M	90.71M	-73.18M	-76.05M
	Net Income Common Stockholders
65.85M	58.77M	47.79M	51.13M	-15.90M	-118.64M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
0.00	89.14M	40.40M	91.02M	64.90M	77.85M
	Total Assets
0.00	1.35B	1.32B	1.30B	1.31B	1.23B
	Total Debt
1.17B	1.11B	1.12B	993.29M	1.12B	1.07B
	Net Debt
1.17B	1.02B	1.08B	902.27M	1.05B	990.33M
	Total Liabilities
1.79B	1.61B	1.65B	1.45B	1.51B	1.44B
	Stockholders Equity
-283.45M	-266.31M	-337.23M	-147.09M	-204.31M	-206.99M
Cash Flow		Free Cash Flow
149.87M	90.68M	151.29M	177.12M	-35.79M	-358.91M
	Operating Cash Flow
150.24M	92.13M	152.47M	178.06M	-35.33M	3.57M
	Investing Cash Flow
-8.56M	-8.90M	-17.76M	-2.93M	-466.00K	-514.86M
	Financing Cash Flow
-81.42M	-28.79M	-185.27M	-156.14M	17.16M	-520.59M

Madison Square Garden Sports Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 191.22
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MSGS, the sentiment is Neutral. The current price of 191.22 is below the 20-day moving average (MA) of 192.43, below the 50-day MA of 191.26, and below the 200-day MA of 208.22, indicating a bearish trend. The MACD of -0.79 indicates Positive momentum. The RSI at 49.45 is Neutral, neither overbought nor oversold. The STOCH value of 56.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	77 Outperform	$33.41B	49.35	827.53%	―	-2.92%	166.63%
BATRA	64 Neutral	$2.55B	―	-4.43%	―	4.04%	82.47%
MSGE	63 Neutral	$1.79B	13.82	1222.83%	―	5.81%	133.05%
Sector *	61 Neutral	$14.59B	5.85	-4.31%	3.69%	2.76%	-30.36%
SPHR	56 Neutral	$1.36B	―	-15.64%	―	-5.04%	-155.66%
MSGS	52 Neutral	$4.59B	971.65	-20.85%	―	14.64%	-79.70%
MANU	49 Neutral	$2.80B	―	-34.14%	―	-4.57%	20.00%

Madison Square Garden Sports Corporate Events

MSG Sports Amends Media Rights Agreements

On April 24, 2025, Madison Square Garden Sports Corp.’s subsidiaries, the New York Knicks and New York Rangers, entered into a Transaction Support Agreement with MSG Networks to amend media rights agreements and restructure debt. The amendments, effective January 1, 2025, include significant reductions in annual rights fees and changes to contract expiration dates, aimed at facilitating MSG Networks’ debt restructuring and ensuring continued game availability for fans. The transactions are expected to be completed by June 27, 2025.