Madison Square Garden Entertainment Corp.
Madison Square Garden Entertainment Corp. Fundamental Analysis
Madison Square Garden Entertainment Corp. (MSGE) shows weak financial fundamentals with a PE ratio of 49.78, profit margin of 4.81%, and ROE of 8.89%. The company generates $1.3B in annual revenue with weak year-over-year growth of -1.72%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 49.7/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze MSGE's fundamental strength across five key dimensions:
Efficiency Score
WeakMSGE struggles to generate sufficient returns from assets.
Valuation Score
ModerateMSGE shows balanced valuation metrics.
Growth Score
WeakMSGE faces weak or negative growth trends.
Financial Health Score
ExcellentMSGE maintains a strong and stable balance sheet.
Profitability Score
WeakMSGE struggles to sustain strong margins.
Key Financial Metrics
Is MSGE Expensive or Cheap?
P/E Ratio
MSGE trades at 49.78 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, MSGE's PEG of -0.83 indicates potential undervaluation.
Price to Book
The market values Madison Square Garden Entertainment Corp. at 1.08 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 19.65 times EBITDA. This signals the market has high growth expectations.
How Well Does MSGE Make Money?
Net Profit Margin
For every $100 in sales, Madison Square Garden Entertainment Corp. keeps $4.81 as profit after all expenses.
Operating Margin
Core operations generate 14.64 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $8.89 in profit for every $100 of shareholder equity.
ROA
Madison Square Garden Entertainment Corp. generates $1.16 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Madison Square Garden Entertainment Corp. generates strong operating cash flow of $449.66M, reflecting robust business health.
Free Cash Flow
Madison Square Garden Entertainment Corp. generates strong free cash flow of $431.17M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $9.11 in free cash annually.
FCF Yield
MSGE converts 10.10% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
49.78
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.83
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.08
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.16
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.08
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.22
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.09
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How MSGE Stacks Against Its Sector Peers
| Metric | MSGE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 49.78 | 23.90 | Worse (Expensive) |
| ROE | 8.89% | 1020.00% | Weak |
| Net Margin | 4.81% | -59468.00% (disorted) | Weak |
| Debt/Equity | 0.08 | 0.77 | Strong (Low Leverage) |
| Current Ratio | 1.22 | 1.69 | Neutral |
| ROA | 1.16% | -6587.00% (disorted) | Weak |
MSGE outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Madison Square Garden Entertainment Corp.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-19.40%
Industry Style: Growth, Technology, Streaming
DecliningEPS CAGR
-89.11%
Industry Style: Growth, Technology, Streaming
DecliningFCF CAGR
82.77%
Industry Style: Growth, Technology, Streaming
High Growth