NYSE:MSG

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

Fundamentals

Mediocre balance sheet and overvalued.


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: MSG has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.5%

MSG

2.2%

US Entertainment

0.7%

US Market


1 Year Return

8.0%

MSG

19.9%

US Entertainment

13.7%

US Market

Return vs Industry: MSG underperformed the US Entertainment industry which returned 19.9% over the past year.

Return vs Market: MSG underperformed the US Market which returned 13.7% over the past year.


Shareholder returns

MSGIndustryMarket
7 Day0.5%2.2%0.7%
30 Day2.1%6.8%4.7%
90 Day1.3%3.0%6.1%
1 Year8.0%8.0%20.8%19.9%16.2%13.7%
3 Year56.1%56.1%62.3%57.0%48.8%39.2%
5 Yearn/a101.9%88.8%62.5%44.5%

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

Valuation

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

2.56x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: MSG ($270.88) is trading above our estimate of fair value ($198.12)

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


Price To Earnings Ratio

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

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: MSG is good value based on its PB Ratio (2.6x) compared to the US Entertainment industry average (2.9x).


Next Steps

Future Growth

How is Madison Square Garden forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

105.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: MSG's revenue (11% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: MSG's revenue (11% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MSG's Return on Equity is forecast to be low in 3 years time (1.3%).


Next Steps

Past Performance

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

46.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MSG has high quality earnings.

Growing Profit Margin: MSG's current net profit margins (-2.2%) are lower than last year (7.9%).


Past Earnings Growth Analysis

Earnings Trend: MSG is unprofitable, but has reduced losses over the past 5 years at a rate of 46.6% per year.

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

Earnings vs Industry: MSG is unprofitable, making it difficult to compare its past year earnings growth to the Entertainment industry (12%).


Return on Equity

High ROE: MSG has a negative Return on Equity (-1.9%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Madison Square Garden's financial position?


Financial Position Analysis

Short Term Liabilities: MSG's short term assets ($1.3B) exceeds its short term liabilities ($860.2M)

Long Term Liabilities: MSG's short term assets ($1.3B) exceeds its long term liabilities (489.0M)


Debt to Equity History and Analysis

Debt Level: MSG's debt to equity ratio (2%) is considered satisfactory.

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


Balance Sheet

Inventory Level: MSG has a high level of physical assets or inventory.

Debt Coverage by Assets: MSG's debt is covered by short term assets (assets are 25.6x debt).


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 MSG has enough cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if MSG 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

companyn/amarketbottom25%1.4%markettop25%3.6%industryaverage1.2%forecastin3Years0%

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate MSG'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 MSG's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if MSG'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 MSG's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Madison Square Garden's salary, the management and board of directors tenure and is there insider trading?

1.9yrs

Average management tenure


CEO

Jim Dolan (64yo)

2yrs

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 ($USD54.12M) is above average for companies of similar size in the US market ($USD6.73M).

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


Management Age and Tenure

1.9yrs

Average Tenure

51yo

Average Age

Experienced Management: MSG's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Age and Tenure

4.2yrs

Average Tenure

68yo

Average Age

Experienced Board: MSG's board of directors are considered experienced (4.2 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$5,053,27226 Dec 18
Silver Lake
EntityCompany
Shares19,400
Max PriceUS$260.88
BuyUS$4,596,86410 Dec 18
Silver Lake
EntityCompany
Shares17,056
Max PriceUS$269.69

Ownership Breakdown

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


Management Team

  • Jim Dolan (64yo)

    Executive Chairman & CEO

    • Tenure: 2yrs
    • Compensation: US$54.12m
  • Lawrence Burian (49yo)

    Executive VP & General Counsel

    • Tenure: 4.3yrs
    • Compensation: US$3.84m
  • Joseph Yospe (61yo)

    Senior VP

    • Tenure: 4.3yrs
    • Compensation: US$1.31m
  • Andy Lustgarten (41yo)

    President

    • Tenure: 1.9yrs
    • Compensation: US$8.53m
  • Sandra Kapell

    Chief Administrative Officer & Executive VP

    • Tenure: 3.8yrs
  • Ari Danes

    Senior Vice President

    • Tenure: 0yrs
  • Victoria Mink (50yo)

    Executive VP & CFO

    • Tenure: 0.8yrs
    • Compensation: US$2.38m
  • Geraldine Calpin

    Executive VP & Chief Marketing Officer

    • Tenure: 0.9yrs
  • Richard Constable

    Chief Strategist

    • Tenure: 1.3yrs
  • Philip D’Ambrosio (52yo)

    Senior VP & Treasurer

    • Tenure: 1.1yrs
    • Compensation: US$1.94m

Board Members

  • Scott Sperling (61yo)

    Independent Director

    • Tenure: 4.2yrs
    • Compensation: US$179.74k
  • Alan Schwartz (69yo)

    Independent Director

    • Tenure: 4.2yrs
    • Compensation: US$179.74k
  • Chuck Dolan (93yo)

    Director

    • Tenure: 4.2yrs
    • Compensation: US$171.74k
  • Jim Dolan (64yo)

    Executive Chairman & CEO

    • Tenure: 2yrs
    • Compensation: US$54.12m
  • Thomas Dolan (67yo)

    Director

    • Tenure: 4.2yrs
    • Compensation: US$169.74k
  • Nelson Peltz (76yo)

    Independent Director

    • Tenure: 4.2yrs
    • Compensation: US$169.74k
  • Vincent Tese (76yo)

    Independent Director

    • Tenure: 4.2yrs
    • Compensation: US$193.24k
  • Dick Parsons (71yo)

    Independent Director

    • Tenure: 4.2yrs
    • Compensation: US$290.74k
  • Kristin Dolan (53yo)

    Director

    • Tenure: 4.2yrs
    • Compensation: US$170.24k
  • Charles Dolan (32yo)

    Director

    • Tenure: 4.2yrs
    • Compensation: US$170.24k

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: MSG
  • Exchange: NYSE
  • Founded: 1879
  • Industry: Movies and Entertainment
  • Sector: Media
  • Market Cap: US$6.469b
  • Shares outstanding: 23.88m
  • 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. T ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/18 00:57
End of Day Share Price2019/11/15 00:00
Earnings2019/09/30
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.