Madison Square Garden Sports (MSGS) AI Stock Analysis

• Market Cap: $5.30B
• Dividend Yield: N/A
• Average Volume (3M): 199.96K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.74
• Revenue Growth: -1.16%
• EPS Growth: -133.74%
• Country: US
• Employees: 533
• Sector: Communication Services
• Sector Strength: 97
• Industry: Entertainment
• EPS (TTM): -0.37
• Shares Outstanding: 19,529,890
• 10 Day Avg. Volume: 224,244
• 30 Day Avg. Volume: 199,958
• PEG Ratio: 1.63
• Price to Book (P/B): -17.88
• Price to Sales (P/S): 4.84
• P/FCF Ratio: 57.21
• Enterprise Value/Market Cap: 1.24
• Enterprise Value/Revenue: 6.43
• Enterprise Value/Gross Profit: 24.69
• Enterprise Value/Ebitda: 1.50K
• 1Y Price Target: $253.25
• Price Target Upside: 14.48% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): -0.44
• Revenue Forecast (FY): $1.00B

• Rating: 45 Neutral
• Price Target: $209.00 ▼(-5.52% Downside)

Madison Square Garden Sports has significant financial challenges, including negative profitability and high financial leverage, which are major concerns. The technical analysis provides mixed signals, with some bullish momentum but overall neutrality. The valuation is particularly weak due to the negative P/E ratio and lack of dividend yield. These factors combined result in a low overall stock score.

Positive Factors

Strong Brand Presence

The strong brand presence and ownership of iconic teams like the New York Knicks and Rangers provide a durable competitive advantage, attracting fans and sponsors, and enhancing long-term revenue opportunities.

Diverse Revenue Streams

MSGS's diverse revenue streams, including media rights and sponsorships, provide resilience against market fluctuations, supporting long-term financial stability and growth.

Cash Flow Stability

Stable cash flow generation, evidenced by a free cash flow to net income ratio near 1, indicates effective cash management, supporting ongoing operations and strategic investments.

Negative Factors

Negative Profitability Margins

Negative profitability margins indicate challenges in cost management and revenue generation, which could hinder long-term financial health and investment capacity.

High Financial Leverage

High financial leverage increases financial risk, limiting flexibility and potentially impacting the company's ability to invest in growth opportunities.

Declining Revenue Growth

Declining revenue growth suggests difficulties in maintaining market position and sales momentum, posing risks to long-term competitiveness and profitability.

Madison Square Garden Sports Business Overview & Revenue Model

Company Description

Madison Square Garden Sports (MSGS) is a premier sports and entertainment company that operates in the professional sports sector. It is primarily known for its ownership and management of several professional sports teams, including the New York Knicks (NBA) and the New York Rangers (NHL). MSGS also operates iconic venues such as Madison Square Garden, which hosts a variety of events, including concerts, shows, and other entertainment activities. The company is committed to providing unforgettable experiences for fans and audiences, leveraging its rich history and strong brand presence in the sports and entertainment industry.

How the Company Makes Money

Madison Square Garden Sports generates revenue through multiple streams, primarily from ticket sales, media rights, sponsorships, and merchandise sales. Ticket sales from home games and events at Madison Square Garden are a significant source of income, bolstered by the high demand for events featuring its sports teams. Media rights deals with networks and streaming platforms provide substantial revenue, enabling MSGS to broadcast games and events to a wider audience. Additionally, the company earns income from corporate sponsorships and partnerships, which allow brands to connect with fans and gain visibility through MSGS's events and properties. Merchandise sales, including team apparel and memorabilia, further contribute to the company's financial performance. Furthermore, MSGS benefits from its strategic partnerships and collaborations within the sports and entertainment ecosystem, which enhance its market presence and revenue opportunities.

Madison Square Garden Sports Financial Statement Overview

Summary

Madison Square Garden Sports faces several financial challenges, including declining revenue growth, negative profitability margins, and high financial leverage. The negative equity position and reliance on debt financing pose significant risks. While cash flow generation is relatively stable, the overall financial health of the company is concerning, with potential risks to long-term sustainability.

Income Statement

Madison Square Garden Sports shows a mixed performance in its income statement. The company has experienced a decline in revenue growth with a negative growth rate in the TTM period, indicating potential challenges in maintaining sales momentum. Gross profit margins have decreased over time, reflecting potential cost pressures or pricing challenges. The net profit margin is negative, highlighting profitability issues. EBIT and EBITDA margins have also shown volatility, with recent negative figures in the TTM period, suggesting operational inefficiencies.

Balance Sheet

The balance sheet reveals significant financial leverage with a high debt-to-equity ratio, indicating a reliance on debt financing. The negative stockholders' equity is concerning and suggests financial instability. Return on equity is positive in the TTM period, but the overall trend has been inconsistent, reflecting challenges in generating returns for shareholders. The equity ratio is negative due to negative equity, further highlighting financial risk.

Cash Flow

Cash flow analysis shows a decline in free cash flow growth, indicating potential cash generation issues. The operating cash flow to net income ratio is low, suggesting limited cash conversion efficiency. However, the free cash flow to net income ratio is close to 1, indicating that the company is generating cash flow close to its net income, which is a positive aspect. Overall, the cash flow position is stable but not strong.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.03B	1.04B	1.03B	887.45M	821.35M	415.72M
Gross Profit	266.93M	280.88M	407.47M	335.06M	315.75M	128.26M
EBITDA	4.40M	7.60M	136.42M	116.38M	90.71M	-73.18M
Net Income	-23.69M	-22.44M	58.77M	47.79M	51.13M	-13.95M
Balance Sheet
Total Assets	1.52B	1.58B	1.44B	1.40B	1.40B	1.42B
Cash, Cash Equivalents and Short-Term Investments	57.28M	153.19M	94.91M	40.46M	91.02M	72.04M
Total Debt	1.17B	1.18B	1.11B	1.12B	993.29M	1.12B
Total Liabilities	1.81B	1.86B	1.71B	1.74B	1.55B	1.62B
Stockholders Equity	-294.18M	-281.44M	-266.31M	-337.23M	-147.09M	-204.31M
Cash Flow
Free Cash Flow	32.43M	87.99M	90.68M	151.29M	177.12M	-35.79M
Operating Cash Flow	32.81M	91.61M	92.13M	152.47M	178.06M	-35.33M
Investing Cash Flow	-7.61M	-6.92M	-8.90M	-17.76M	-2.93M	-466.00K
Financing Cash Flow	-26.01M	-26.41M	-28.79M	-185.27M	-156.14M	17.16M

Madison Square Garden Sports Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 221.21
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 221.21 is below the 20-day moving average (MA) of 221.69, above the 50-day MA of 218.01, and above the 200-day MA of 203.23, indicating a neutral trend. The MACD of -0.15 indicates Positive momentum. The RSI at 51.44 is Neutral, neither overbought nor oversold. The STOCH value of 50.98 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 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MSGE	64 Neutral	$2.11B	58.54	―	―	0.68%	-80.73%
TKO	63 Neutral	$36.20B	72.95	5.82%	0.85%	56.31%	―
SPHR	61 Neutral	$2.72B	―	-4.46%	―	24.54%	-119.75%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
BATRA	58 Neutral	$2.43B	―	-0.19%	―	6.62%	97.35%
MANU	47 Neutral	$2.70B	―	-18.92%	―	3.67%	71.11%
MSGS	45 Neutral	$5.30B	―	―	―	-1.16%	-133.74%

Madison Square Garden Sports Corporate Events

MSG Sports’ Earnings Call: Record Revenues Amid Challenges

Madison Square Garden Sports Corp. (MSG Sports) recently held its earnings call, revealing a mixed sentiment. The company celebrated record revenues and successful playoff runs for the Knicks, which significantly boosted ticketing and fan engagement. However, challenges such as decreased fourth-quarter revenues, reduced media rights fees, and higher operating expenses were also highlighted. Despite these hurdles, the overall outlook remains positive, driven by strong demand for their teams and strategic partnerships.

Madison Square Garden Sports Corp. Reports Mixed Fiscal 2025 Results

Madison Square Garden Sports Corp. is a prominent professional sports company known for owning the New York Knicks and New York Rangers, as well as operating development league teams and a sports performance center.