DB:MS8

Stock Analysis Report

Madison Square Garden

Executive Summary

The Madison Square Garden Company, together with its subsidiaries, engages in live sports and entertainment businesses in the United States.


Snowflake Analysis

Mediocre balance sheet with concerning outlook.


Similar Companies

Share Price & News

How has Madison Square Garden's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MS8's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

15.3%

MS8

8.2%

DE Entertainment

9.1%

DE Market


1 Year Return

-19.0%

MS8

-8.9%

DE Entertainment

-13.1%

DE Market

Return vs Industry: MS8 underperformed the German Entertainment industry which returned -12.1% over the past year.

Return vs Market: MS8 underperformed the German Market which returned -14.2% over the past year.


Shareholder returns

MS8IndustryMarket
7 Day15.3%8.2%9.1%
30 Day5.8%0.8%-1.0%
90 Day-18.7%-26.9%-20.7%
1 Year-19.0%-19.0%-7.8%-8.9%-10.6%-13.1%
3 Year17.6%17.6%-1.0%-5.7%-10.7%-18.1%
5 Yearn/a41.6%30.9%-10.7%-22.8%

Price Volatility Vs. Market

How volatile is Madison Square Garden's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Madison Square Garden undervalued compared to its fair value and its price relative to the market?

2.18x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: MS8 (€204) is trading above our estimate of fair value (€198.01)

Significantly Below Fair Value: MS8 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: MS8 is unprofitable, so we can't compare its PE Ratio to the Entertainment industry average.

PE vs Market: MS8 is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate MS8's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: MS8 is overvalued based on its PB Ratio (2x) compared to the DE Entertainment industry average (1x).


Next Steps

Future Growth

How is Madison Square Garden forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

-28.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MS8 is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: MS8 is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: MS8 is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: MS8's revenue (12% per year) is forecast to grow faster than the German market (3.9% per year).

High Growth Revenue: MS8's revenue (12% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MS8's Return on Equity is forecast to be low in 3 years time (1.5%).


Next Steps

Past Performance

How has Madison Square Garden performed over the past 5 years?

38.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MS8 is currently unprofitable.

Growing Profit Margin: MS8 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: MS8 is unprofitable, but has reduced losses over the past 5 years at a rate of 38.9% per year.

Accelerating Growth: Unable to compare MS8's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: MS8 is unprofitable, making it difficult to compare its past year earnings growth to the Entertainment industry (-50.4%).


Return on Equity

High ROE: MS8 has a negative Return on Equity (-1.22%), as it is currently unprofitable.


Next Steps

Financial Health

How is Madison Square Garden's financial position?


Financial Position Analysis

Short Term Liabilities: MS8's short term assets ($1.4B) exceed its short term liabilities ($870.0M).

Long Term Liabilities: MS8's short term assets ($1.4B) exceed its long term liabilities ($466.7M).


Debt to Equity History and Analysis

Debt Level: MS8's debt to equity ratio (1.3%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if MS8's debt to equity ratio has reduced over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Insufficient data to determine if MS8 has enough cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if MS8 has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is Madison Square Garden's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate MS8's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate MS8's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if MS8's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if MS8's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of MS8's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.4yrs

Average management tenure


CEO

Jim Dolan (64yo)

2.42s

Tenure

US$54,116,491

Compensation

Mr. James L. Dolan, also known as Jim, has been the Chief Executive Officer of Madison Square Garden Company since March 2018 and also serves as its Executive Chairman since March 4, 2015. Mr. Dolan serves ...


CEO Compensation Analysis

Compensation vs Market: Jim's total compensation ($USD54.12M) is above average for companies of similar size in the German market ($USD3.44M).

Compensation vs Earnings: Jim's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
James Dolan
Executive Chairman & CEO2.42yrsUS$54.12m6.89% $368.0m
Andrew Lustgarten
President2.33yrsUS$8.53mno data
Victoria Mink
Executive VP & CFO1.25yrsUS$2.38m0.0011% $58.8k
Lawrence Burian
Executive VP & General Counsel4.75yrsUS$3.84m0.051% $2.7m
Philip D'Ambrosio
Senior VP & Treasurer1.5yrsUS$1.94m0.016% $836.6k
Joseph Yospe
Senior VP4.75yrsUS$1.31mno data
Sandra Kapell
Chief Administrative Officer & Executive VP4.25yrsno datano data
Ari Danes
Senior Vice President of Investor Relations & Treasuryno datano datano data
Kimberly Kerns
Executive VP & Chief Communications Officerno datano datano data
Geraldine Calpin
Executive VP & Chief Marketing Officer1.33yrsno datano data

2.4yrs

Average Tenure

51yo

Average Age

Experienced Management: MS8's management team is considered experienced (2.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
James Dolan
Executive Chairman & CEO2.42yrsUS$54.12m6.89% $368.0m
Alan Schwartz
Independent Director4.58yrsUS$179.74k0.026% $1.4m
Charles Dolan
Director4.58yrsUS$171.74k1.32% $70.3m
Thomas Dolan
Director4.58yrsUS$169.74k3.24% $173.0m
Nelson Peltz
Independent Director4.58yrsUS$169.74k0.0021% $112.7k
Vincent Tese
Independent Director4.58yrsUS$193.24k0.016% $833.9k
Richard Parsons
Independent Director4.58yrsUS$290.74k0.015% $815.7k
Matthew Blank
Independent Director0.33yrno datano data
Kristin Dolan
Director4.58yrsUS$170.24k0.032% $1.7m
Charles Dolan
Director4.58yrsUS$170.24k0.025% $1.4m

4.6yrs

Average Tenure

69yo

Average Age

Experienced Board: MS8's board of directors are considered experienced (4.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: MS8 insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

The Madison Square Garden Company's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: The Madison Square Garden Company
  • Ticker: MS8
  • Exchange: DB
  • Founded: 1879
  • Industry: Movies and Entertainment
  • Sector: Media
  • Market Cap: US$5.809b
  • Listing Market Cap: US$5.342b
  • Shares outstanding: 23.99m
  • Website: https://www.themadisonsquaregardencompany.com

Number of Employees


Location

  • The Madison Square Garden Company
  • Two Pennsylvania Plaza
  • New York
  • New York
  • 10121
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MSGNYSE (New York Stock Exchange)YesClass A Common StockUSUSDSep 2015
MS8DB (Deutsche Boerse AG)YesClass A Common StockDEEURSep 2015

Biography

The Madison Square Garden Company, together with its subsidiaries, engages in live sports and entertainment businesses in the United States. It operates in two segments, MSG Sports and MSG Entertainment. The MSG Sports segment owns and operates professional sports franchises; and promotes, produces, and/or presents an array of other live sporting events, including professional boxing, college basketball, college hockey, professional bull riding, mixed martial arts, e-sports, and college wrestling. The MSG Entertainment segment produces, presents, and hosts live entertainment events, including concerts, family shows, performing arts events, and special events; and creates, produces, and presents live productions at its venues. It also operates 29 entertainment dining and nightlife venues in New York City, Las Vegas, Los Angeles, and Chicago; Singapore; and Sydney, Australia under the TAO, Marquee, Lavo, Avenue, Beauty & Essex, and Vandal brands, as well as manages the food and beverage operations at the Dream Downtown and Dream Midtown hotels in New York City. The Madison Square Garden Company was founded in 1879 and is based in New York, New York. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/10 06:13
End of Day Share Price2020/04/09 00:00
Earnings2019/12/31
Annual Earnings2019/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.