Madison Square Garden Sports (MSGS) AI Stock Analysis

• Market Cap: $4.63B
• Dividend Yield: N/A
• Average Volume (3M): 179.56K
• Price to Earnings (P/E): 1028.9
• Beta (1Y): 0.79
• Revenue Growth: 1.18%
• EPS Growth: -138.15%
• Country: US
• Employees: 533
• Sector: Communication Services
• Sector Strength: 92
• Industry: Entertainment
• EPS (TTM): -0.07
• Shares Outstanding: 19,488,096
• 10 Day Avg. Volume: 234,970
• 30 Day Avg. Volume: 179,560
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.31
• Enterprise Value/Revenue: 5.71
• Enterprise Value/Gross Profit: 17.20
• Enterprise Value/Ebitda: 74.10
• 1Y Price Target: $226.00
• Price Target Upside: 14.37% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 52 Neutral
• Price Target: $201.00 ▲(1.72% Upside)

The overall stock score for Madison Square Garden Sports reflects strong revenue growth and cash flow generation, which are counterbalanced by significant financial risks due to high leverage and negative stockholders' equity. The technical analysis indicates bearish trends, and the valuation suggests the stock is overvalued. These factors collectively result in a cautious stock assessment.

Positive Factors

Consumer Spending

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

Food and Beverage

Food and beverage per capita spending increased year-over-year, excluding the previous year's NY Rangers’ jersey launches.

Negative Factors

Media Rights Revenues

A lower than expected increase in national rights revenues and reduced local rights have led to revised lower media rights revenues.

Profitability Concerns

MSG Sports is anticipated to be only modestly profitable in the upcoming fiscal year due to shared revenues and higher player payrolls.

Season Ticket Renewals

The season ticket renewal rate for the Knicks and Rangers has dropped to approximately 90%, which is below the previous year's rate of 94%.

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 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 exhibits strong revenue growth and robust cash flow generation, enhancing its operational profile. However, high leverage and negative stockholders' equity pose significant financial risks. While profitability is stable, improving operational efficiencies and addressing leverage concerns will be critical for long-term sustainability.

Income Statement

Madison Square Garden Sports has demonstrated robust revenue growth with a notable increase in revenue from $821.4M in 2022 to $1.06B in TTM (Trailing-Twelve-Months) 2025, reflecting a strong revenue growth rate. Gross Profit Margin stands at 36.2% and Net Profit Margin at 6.2%, indicating stable profitability. However, the EBIT and EBITDA margins are relatively low at 8.4% and 7.7% respectively, suggesting room for improvement in operational efficiencies.

Balance Sheet

The balance sheet reveals significant leverage with a high Debt-to-Equity ratio due to negative stockholders' equity, posing a risk to financial stability. The negative equity is a concern, indicating potential financial distress. Although the company has a substantial asset base, the leverage and negative equity ratio require careful monitoring.

Cash Flow

Cash flow analysis shows strong free cash flow generation with a growth to $149.9M in TTM 2025. The Operating Cash Flow to Net Income Ratio is favorable, indicating effective cash conversion. The positive Free Cash Flow to Net Income ratio highlights the company's ability to generate cash from its operations efficiently.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.06B	1.04B	1.03B	887.45M	821.35M	415.72M
Gross Profit	352.90M	280.88M	410.63M	338.64M	320.79M	133.83M
EBITDA	81.89M	7.60M	136.42M	116.38M	90.71M	-73.18M
Net Income	78.55M	-22.44M	58.77M	47.79M	51.13M	-13.95M
Balance Sheet
Total Assets	1.50B	1.47B	1.35B	1.32B	1.30B	1.31B
Cash, Cash Equivalents and Short-Term Investments	96.54M	153.19M	89.14M	40.40M	91.02M	64.90M
Total Debt	1.19B	1.16B	1.11B	1.12B	993.29M	1.12B
Total Liabilities	1.79B	1.75B	1.61B	1.65B	1.45B	1.51B
Stockholders Equity	-283.45M	-281.44M	-266.31M	-337.23M	-147.09M	-204.31M
Cash Flow
Free Cash Flow	149.87M	87.99M	90.68M	151.29M	177.12M	-35.79M
Operating Cash Flow	150.24M	91.61M	92.13M	152.47M	178.06M	-35.33M
Investing Cash Flow	-8.56M	-6.92M	-8.90M	-17.76M	-2.93M	-466.00K
Financing Cash Flow	-81.42M	0.00	-28.79M	-185.27M	-156.14M	17.16M

Madison Square Garden Sports Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 197.61
• 50DMA: Negative
• 100DMA: Positive
• 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 Negative. The current price of 197.61 is below the 20-day moving average (MA) of 201.02, below the 50-day MA of 200.97, and below the 200-day MA of 206.06, indicating a bearish trend. The MACD of -1.73 indicates Positive momentum. The RSI at 45.20 is Neutral, neither overbought nor oversold. The STOCH value of 39.66 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	60 Neutral	$37.48B	69.90	345.87%	―	-0.39%	108.72%
Sector *	60 Neutral	$44.04B	1.92	-11.93%	4.00%	2.47%	-38.33%
SPHR	58 Neutral	$1.42B	―	-2.03%	―	25.25%	-106.76%
MSGE	52 Neutral	$1.72B	48.04	1222.83%	―	-1.72%	-75.17%
MSGS	52 Neutral	$4.63B	1,028.86	-20.85%	―	1.18%	-138.15%
MANU	48 Neutral	$2.97B	―	-34.14%	―	-4.57%	20.00%
BATRA	48 Neutral	$2.74B	―	-4.06%	―	6.51%	65.80%

Madison Square Garden Sports Corporate Events

Madison Square Garden Sports Amends Media Rights Agreements

On June 27, 2025, Madison Square Garden Sports Corp. amended media rights agreements for its subsidiaries, the New York Knicks and New York Rangers, with MSG Networks. The amendments, effective January 1, 2025, include a reduction in annual rights fees and changes to contract expiration dates, as part of MSG Networks’ debt workout process. Additionally, MSG Networks issued penny warrants to the company for 19.9% equity interests.

The most recent analyst rating on (MSGS) stock is a Buy with a $240.00 price target. To see the full list of analyst forecasts on Madison Square Garden Sports stock, see the MSGS Stock Forecast page.

Madison Square Garden Sports Redomesticates to Nevada

On June 10, 2025, Madison Square Garden Sports held a Special Meeting where stockholders voted on a proposal to redomesticate the company from Delaware to Nevada. The proposal was approved by both Class A and Class B stockholders, who voted together as a single class, with a significant majority in favor.

The most recent analyst rating on (MSGS) stock is a Buy with a $240.00 price target. To see the full list of analyst forecasts on Madison Square Garden Sports stock, see the MSGS Stock Forecast page.