Services-Miscellaneous Amusement & Recreation
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.
Discounted Cash Flow Valuation of Madison Square Garden Sports Corp.
Growth
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Discount
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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 |
In the chart Earnings are multiplied by this value.
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.
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% |
The average Net Margin over the past 5 years is -3.15%.
The trend of Net Margin over the past 5 years is +0.91%.
The average ROA over the past 5 years is +0.05%.
The trend of ROA over the past 5 years is +1.52%.
The average ROE over the past 5 years is +11.42%.
The trend of ROE over the past 5 years is -8.27%.
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.
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% |
The Debt/FCF trailing twelve month is 17.80.
The trend of Debt/FCF over the past 5 years is -0.21.
Graham’s Stability measure stands at -11.49.
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.
Years | 06-2016 | 06-2018 | 06-2020 | 06-2022 | Trend |
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Revenue | -3.2% | -11% | 14% | 8% | 1.1% |
Net Income | - | -19% | - | -6.7% | - |
Stockholders Equity | - | - | - | - | -10% |
FCF | 16% | 39% | - | -15% | -92% |
The Revenue CAGR over the past 5 years is -10.66%.
The trend of Revenue growth rate over the past 5 years is +1.06%.
The Earnings CAGR over the past 5 years is -19.44%.
The trend of Earnings growth rate over the past 5 years is -.
The Equity CAGR over the past 5 years is -.
The trend of Equity growth rate over the past 5 years is -10.46%.
The FCF CAGR over the past 5 years is +39.41%.
The trend of FCF growth rate over the past 5 years is -91.99%.