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Madison Square Garden Sports (MSGS)
NYSE:MSGS
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Madison Square Garden Sports
(NYSE:MSGS)
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Rating:52Neutral
Price Target:
$201.00
▼(-7.48% Downside)
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
Revenue Growth
Strong revenue growth reflects effective monetization of sports assets and increased market demand, bolstering long-term financial stability.
Cash Flow Generation
Robust cash flow generation indicates efficient operations and provides financial flexibility for future investments and debt management.
Media Rights Agreements
The amended agreements could lead to improved financial terms and strategic benefits, enhancing revenue streams from broadcasting rights.
Negative Factors
High Leverage
High leverage poses financial risks, potentially limiting the company's ability to invest in growth opportunities and manage economic downturns.
Negative Stockholders' Equity
Negative stockholders' equity can signal financial instability, affecting investor confidence and the company's ability to raise capital.
Low Operational Efficiency
Low operational efficiency suggests room for improvement in cost management and profitability, which is crucial for sustaining long-term growth.
Madison Square Garden Sports (MSGS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.18B
Dividend YieldN/A
Average Volume (3M)237.34K
Price to Earnings (P/E)1028.9
Beta (1Y)0.73
Revenue Growth1.18%
EPS Growth-138.15%
CountryUS
Employees533
SectorCommunication Services
Sector Strength97
IndustryEntertainment
Share Statistics
EPS (TTM)-0.07
Shares Outstanding19,488,096
10 Day Avg. Volume246,241
30 Day Avg. Volume237,340
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.17
Enterprise Value/Revenue5.71
Enterprise Value/Gross Profit17.20
Enterprise Value/Ebitda74.10
Forecast
1Y Price Target
$240.75Price Target Upside10.82% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
Madison Square Garden Sports Business Overview & Revenue Model
Company DescriptionMadison Square Garden Sports Corp. (MSGS) is a leading professional sports company, engaged in the ownership and management of sports teams and franchises. The company is primarily focused on the operation of iconic sports teams such as the New York Knicks of the National Basketball Association (NBA) and the New York Rangers of the National Hockey League (NHL). MSGS is dedicated to delivering world-class sports entertainment and experiences to fans through its well-established teams and the utilization of its notable sports venues.
How the Company Makes MoneyMadison 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 Earnings Call Summary
Earnings Call Date:Aug 12, 2025
(Q4-2025)
| % Change Since: |
Next Earnings Date:Oct 31, 2025
Earnings Call Sentiment Neutral
MSG Sports reported significant achievements, including record revenues and successful playoff runs for the Knicks, which boosted ticketing and fan engagement. However, the company faced challenges with decreased fourth-quarter revenues, reduced media rights fees, and higher operating expenses. Despite these challenges, the strong demand for their teams and strategic partnerships indicate a positive outlook.Q4-2025 Updates
Positive Updates
Record Revenue and Adjusted Operating Income
MSG Sports reported fiscal 2025 full-year results with revenues exceeding $1 billion and adjusted operating income of $38 million, driven by strong demand for the Knicks and Rangers.
Knicks' Successful Playoff Run
The Knicks reached the Eastern Conference finals, generating the highest per game gate revenues in team history, and leading to increased ticketing revenue and fan engagement.
Strong Season Ticket Renewal Rate
The combined season ticket renewal rate for the Knicks and Rangers is approximately 90% for the 2025-2026 season, indicating strong fan loyalty.
Growth in Marketing Partnerships
MSG Sports welcomed new marketing partners, including Abu Dhabi's Department of Culture and Tourism, Lenovo, and Motorola, and renewed multiyear deals with Verizon, Pepsi, and Benjamin Moore.
Record Suite Revenues
Fiscal 2025 saw record suite revenues, benefiting from renovated event and Lexus-level suites, with further renovations expected to drive incremental revenue in fiscal 2026.
Negative Updates
Decrease in Fourth Quarter Revenues
Fourth-quarter revenues were $204 million, a decrease from $227.3 million in the prior-year period, attributed to one fewer Knicks and Rangers regular-season home game and six fewer playoff home games.
Reduction in Local Media Rights Fees
Amended local media rights agreements resulted in 28% and 18% reductions in annual rights fees for the Knicks and Rangers, respectively.
Decline in Merchandise Revenues
Overall merchandise revenues, including online sales, did not reach last year's levels due to the absence of new jersey launches for the Rangers.
Higher Operating Expenses
Adjusted operating income decreased due to higher direct operating expenses, including team personnel compensation and luxury tax, leading to an adjusted operating loss of $16.8 million in the fourth quarter.
Company Guidance
During the Madison Square Garden Sports Corp. Fiscal 2025 Fourth Quarter and Year-End Earnings Conference Call, the company reported revenues exceeding $1 billion and an adjusted operating income of $38.2 million for the full fiscal year. Key metrics highlighted included a 90% season ticket renewal rate for the Knicks and Rangers, record per game gate revenues for the Knicks during their Eastern Conference finals run, and a decrease in merchandise revenues due to fewer new product launches compared to the previous year. The company's local media rights agreements were amended, resulting in reductions of 28% and 18% in annual rights fees for the Knicks and Rangers, respectively. The call also noted a strong liquidity position with approximately $145 million in cash and a $291 million debt balance, comprising $267 million under the Knicks' senior secured revolving credit facility and $24 million advanced from the NHL. The company expressed confidence in driving long-term value for shareholders, leveraging strong demand and strategic partnerships, including new deals with Lenovo, Motorola, and Abu Dhabi's Department of Culture and Tourism.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.75
Positive
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.40
Negative
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.80
Positive
| 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
Positive
217.25
Price Trends
203.02
Positive
199.56
Positive
203.34
Positive
Market Momentum
4.57
Negative
65.36
Neutral
58.43
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MSGS, the sentiment is Positive. The current price of 217.25 is above the 20-day moving average (MA) of 205.81, above the 50-day MA of 203.02, and above the 200-day MA of 203.34, indicating a bullish trend. The MACD of 4.57 indicates Negative momentum. The RSI at 65.36 is Neutral, neither overbought nor oversold. The STOCH value of 58.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MSGS.
Madison Square Garden Sports Risk Analysis
Madison Square Garden Sports disclosed 32 risk factors in its most recent earnings report. Madison Square Garden Sports reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Madison Square Garden Sports Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | 37.59B | 70.40 | 255.34% | ― | -0.39% | 108.72% | |
65 Neutral | 2.13B | -38.70 | -6.97% | ― | 25.25% | -106.76% | |
52 Neutral | $5.18B | 1,028.86 | -20.85% | ― | 1.18% | -138.15% | |
50 Neutral | 2.14B | 59.72 | -281.44% | ― | -1.72% | -75.17% | |
48 Neutral | 2.62B | -61.00 | ― | ― | 3.67% | 71.11% | |
45 Neutral | 2.58B | -135.55 | -52.74% | ― | 6.51% | 65.80% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% |
* Communication Services Sector Average
Performance Comparison
MSGS
Madison Square Garden Sports
217.25
11.04
5.35%
TKO
TKO Group Holdings
195.79
75.74
63.09%
MANU
Manchester United
15.22
-0.98
-6.05%
SPHR
Sphere Entertainment
59.13
17.19
40.99%
MSGE
Madison Square Garden Entertainment Corp.
45.16
3.89
9.43%
BATRA
Atlanta Braves Holdings Inc Class A
45.41
2.95
6.95%
Madison Square Garden Sports Corporate Events
Private Placements and FinancingBusiness Operations and Strategy
Madison Square Garden Sports Amends Media Rights Agreements
Neutral
Jun 27, 2025
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.
Shareholder MeetingsBusiness Operations and Strategy
Madison Square Garden Sports Redomesticates to Nevada
Neutral
Jun 11, 2025
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.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.