Madison Square Garden Sports (MSGS) AI Stock Analysis

• Market Cap: $4.88B
• Dividend Yield: N/A
• Average Volume (3M): 210.00K
• Price to Earnings (P/E): 1033.1
• Beta (1Y): 0.82
• Revenue Growth: 14.64%
• EPS Growth: -79.70%
• Country: US
• Employees: 533
• Sector: Communication Services
• Sector Strength: 76
• Industry: Entertainment
• EPS (TTM): -0.59
• Shares Outstanding: 19,488,096
• 10 Day Avg. Volume: 178,674
• 30 Day Avg. Volume: 210,002
• PEG Ratio: -0.82
• Price to Book (P/B): -17.40
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 32.82
• Enterprise Value/Market Cap: 1.22
• Enterprise Value/Revenue: 1.42
• Enterprise Value/Gross Profit: 15.54
• Enterprise Value/Ebitda: 11.60
• 1Y Price Target: $233.00
• Price Target Upside: 15.23% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

• Rating: 58 Neutral
• Price Target: $212.00 ▲(4.85%Upside)

Madison Square Garden Sports exhibits strong revenue growth and cash flow, reflected in a moderate financial performance score. However, high leverage risk and substantial overvaluation significantly impact the overall score. Technical analysis shows moderate stability, but valuation concerns limit upside potential.

Positive Factors

Market Valuation

MSG shares trade at an approximately 50% discount to private market value, limiting downside risk.

Revenue Growth

YoY growth in average per-game revenues (ticketing, sponsorship and premium hospitality) was encouraging, with no sign of slowing consumer spending.

Negative Factors

Financial Impact

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

Media Rights Revenue

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. 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, the high leverage and negative stockholders' equity pose significant financial risks. 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	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	1.03B	887.45M	821.35M	415.72M	603.32M
Gross Profit	410.63M	338.64M	320.79M	133.83M	243.35M
EBITDA	136.42M	116.38M	90.71M	-73.18M	-76.05M
Net Income	58.77M	47.79M	51.13M	-15.90M	-118.64M
Balance Sheet
Total Assets	1.35B	1.32B	1.30B	1.31B	1.23B
Cash, Cash Equivalents and Short-Term Investments	89.14M	40.40M	91.02M	64.90M	77.85M
Total Debt	1.11B	1.12B	993.29M	1.12B	1.07B
Total Liabilities	1.61B	1.65B	1.45B	1.51B	1.44B
Stockholders Equity	-266.31M	-337.23M	-147.09M	-204.31M	-206.99M
Cash Flow
Free Cash Flow	90.68M	151.29M	177.12M	-35.79M	-358.91M
Operating Cash Flow	92.13M	152.47M	178.06M	-35.33M	3.57M
Investing Cash Flow	-8.90M	-17.76M	-2.93M	-466.00K	-514.86M
Financing Cash Flow	-28.79M	-185.27M	-156.14M	17.16M	-520.59M

Madison Square Garden Sports Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 202.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 202.2 is below the 20-day moving average (MA) of 205.89, above the 50-day MA of 198.65, and below the 200-day MA of 207.35, indicating a neutral trend. The MACD of 1.49 indicates Positive momentum. The RSI at 47.99 is Neutral, neither overbought nor oversold. The STOCH value of 16.67 is Positive, 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	$35.44B	52.35	827.53%	―	-2.92%	166.63%
BATRA	73 Outperform	$2.87B	―	-4.43%	―	4.04%	82.47%
Sector *	66 Neutral	¥382.85B	15.25	2.24%	2.38%	5.42%	-14.79%
MSGE	63 Neutral	$1.88B	14.56	1222.83%	―	5.81%	133.05%
SPHR	60 Neutral	$1.63B	―	-15.64%	―	-5.04%	-155.66%
MSGS	58 Neutral	$4.88B	1,033.08	-20.85%	―	14.64%	-79.70%
MANU	48 Neutral	$3.07B	―	-34.14%	―	-4.57%	20.00%

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.