Madison Square Garden Sports Corp.

MSGS

Services-Miscellaneous Amusement & Recreation

Mkt Cap

$4.4B

PE

184.05

Debt

$360M

Cash

$44.78M

EV

$4.716B

FCF

$20.22M

Market Cap

$4.4B

P/E Ratio

184.05

Debt

$360M

Cash

$44.78M

EV

$4.716B

FCF

$20.22M

Charts data: {"Earnings":[{"time":"2014-06-29","value":-116933000},{"time":"2015-06-29","value":-40684000},{"time":"2016-06-29","value":-77290000},{"time":"2017-06-29","value":-76789000},{"time":"2018-06-29","value":134448000},{"time":"2019-06-29","value":-3117000},{"time":"2020-06-29","value":-208863000},{"time":"2021-06-29","value":-15897000},{"time":"2022-06-29","value":48880000},{"time":"2023-06-29","value":45628000}],"Sales":[{"time":"2014-06-29","value":913615000},{"time":"2015-06-29","value":1071551000},{"time":"2016-06-29","value":1115311000},{"time":"2017-06-29","value":1318452000},{"time":"2018-06-29","value":1559095000},{"time":"2019-06-29","value":1631068000},{"time":"2020-06-29","value":603319000},{"time":"2021-06-29","value":415721000},{"time":"2022-06-29","value":821354000},{"time":"2023-06-29","value":887447000}],"Net Margins":[{"time":"2014-06-29","value":-0.12798936094525593},{"time":"2015-06-29","value":-0.03796739492567316},{"time":"2016-06-29","value":-0.06929905649634945},{"time":"2017-06-29","value":-0.0582417865800196},{"time":"2018-06-29","value":0.08623464253300793},{"time":"2019-06-29","value":-0.001911017811642433},{"time":"2020-06-29","value":-0.3461899923589345},{"time":"2021-06-29","value":-0.03823958857021897},{"time":"2022-06-29","value":0.0595114895647918},{"time":"2023-06-29","value":0.051414901396928496}],"Assets":[{"time":"2015-06-29","value":2148942000},{"time":"2016-06-29","value":3543950000},{"time":"2017-06-29","value":3712753000},{"time":"2018-06-29","value":3736173000},{"time":"2019-06-29","value":3763551000},{"time":"2020-06-29","value":1233798000},{"time":"2021-06-29","value":1309939000},{"time":"2022-06-29","value":1301966000},{"time":"2023-06-29","value":1315017000}],"Stockholders Equity":[{"time":"2014-06-29","value":1191203000},{"time":"2015-06-29","value":1223275000},{"time":"2016-06-29","value":2586421000},{"time":"2017-06-29","value":2419861000},{"time":"2018-06-29","value":2554035000},{"time":"2019-06-29","value":2638760000},{"time":"2020-06-29","value":-203435000},{"time":"2021-06-29","value":-201866000},{"time":"2022-06-29","value":-145377000},{"time":"2023-06-29","value":-337234000}],"ROE":[{"time":"2014-06-29","value":-0.09816378904351315},{"time":"2015-06-29","value":-0.03325826163372913},{"time":"2016-06-29","value":-0.029882992753306595},{"time":"2017-06-29","value":-0.03173281440545552},{"time":"2018-06-29","value":0.05264140859463555},{"time":"2019-06-29","value":-0.0011812366414528036},{"time":"2020-06-29","value":1.0266817410966649},{"time":"2021-06-29","value":0.07875026007351411},{"time":"2022-06-29","value":-0.3362292522200898},{"time":"2023-06-29","value":-0.13530071107895408}],"ROA":[{"time":"2015-06-29","value":-0.0001889301805260449},{"time":"2016-06-29","value":-0.016543969299792603},{"time":"2017-06-29","value":-0.01625640057391375},{"time":"2018-06-29","value":0.005052228577209888},{"time":"2019-06-29","value":-0.00047003481552395596},{"time":"2020-06-29","value":-0.07607890432631598},{"time":"2021-06-29","value":-0.059882941114051874},{"time":"2022-06-29","value":0.06611539779072571},{"time":"2023-06-29","value":0.06838010459180376}]}

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.

Sector

10-Q
9/30/23
10-K
6/30/23
10-Q
3/31/23
10-Q
12/31/22
10-Q
9/30/22
10-K
6/30/22
10-Q
3/31/22
10-Q
12/31/21
10-Q
9/30/21
10-K
6/30/21
10-Q
3/31/21
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12/31/20
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9/30/20
10-K
6/30/20
10-Q
3/31/20
10-Q
12/31/19
10-Q
9/30/19
10-K
6/30/19
10-Q
3/31/19
10-Q
12/31/18
10-Q
9/30/18
10-K
6/30/18
10-Q
3/31/18
10-Q
12/31/17

DCF

Discounted Cash Flow Valuation of Madison Square Garden Sports Corp.

Calculate

Growth Years

Growth

Start

End

Discount

Start

End

Multiple

g\r	+10%	+11%	+12%	+13%	+14%
0%	10	9	8	8	7
+1%	11	10	9	8	8
+2%	13	11	10	9	8
+3%	14	13	11	10	9
+4%	17	14	12	11	10

Years	0	1	2	3	4	5	6	7	8	9	10	TV
FCF	$20.22M	$21.46M	$22.74M	$24.08M	$25.46M	$26.89M	$28.37M	$29.89M	$31.46M	$33.07M	$34.73M	$347.3M
DCF		$18.66M	$17.2M	$15.83M	$14.56M	$13.37M	$12.26M	$11.24M	$10.29M	$9.402M	$8.584M	$85.84M
Value	$217.2M

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth -5.3%

Earnings Stability -64%

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

The Net Margin is too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Over time the ROA has been increasing indicating a higher marginal ROA with respect to the calculated one, giving a good sign for continued growth.

Years	06-2015	06-2016	06-2017	06-2018	06-2019	06-2020	06-2021	06-2022	06-2023	TTM
Net Margin	-3.8%	-6.9%	-5.8%	8.6%	-0.19%	-35%	-3.8%	6%	5.1%	2.6%
ROA	-0.019%	-1.7%	-1.6%	0.51%	-0.047%	-7.6%	-6%	6.6%	6.8%	5.9%
ROE	-3.3%	-3%	-3.2%	5.3%	-0.12%	100%	7.9%	-34%	-14%	-8.1%

What is the average Net Margin?

The average Net Margin over the past 5 years is -3.15%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is +0.91%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +0.05%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is +1.52%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is +11.42%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is -8.27%.

Safety & Stabiliy

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

The company has high debt with respect to the cashflow it generates.

The Graham’s stability indicate a relevant drawdown, consider checking when it has occured and why.

Years	06-2015	06-2016	06-2017	06-2018	06-2019	06-2020	06-2021	06-2022	06-2023	TTM
Debt FCF	-	-	0.61	3.68	-1.98	-0.98	-10.76	1.41	2.15	17.80
Debt Equity	-	-	0.04	0.04	0.02	-1.72	-1.91	-1.72	-0.96	-1.22
MIN
Graham Stability	-	-	-	-	-	-1.1K%	-	-	-	-1.1K%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 17.80.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is -0.21.

What is the Graham’s Stability?

Graham’s Stability measure stands at -11.49.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Data are missing

Years	06-2016	06-2018	06-2020	06-2022	Trend
Revenue	-3.2%	-11%	14%	8%	1.1%
Net Income	-	-19%	-	-6.7%	-
Stockholders Equity	-	-	-	-	-10%
FCF	16%	39%	-	-15%	-92%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is -10.66%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is +1.06%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is -19.44%.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is -.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is -.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is -10.46%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is +39.41%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is -91.99%.