NYSE:MSGN

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

MSG Networks Inc. engages in the sports production, and content development and distribution businesses in the United States.


Snowflake Analysis

Good value with questionable track record.

Share Price & News

How has MSG Networks's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

2.8%

MSGN

2.1%

US Media

1.5%

US Market


1 Year Return

-51.7%

MSGN

-8.7%

US Media

6.9%

US Market

Return vs Industry: MSGN underperformed the US Media industry which returned -9.7% over the past year.

Return vs Market: MSGN underperformed the US Market which returned 5.3% over the past year.


Shareholder returns

MSGNIndustryMarket
7 Day2.8%2.1%1.5%
30 Day-11.2%2.3%5.9%
90 Day-7.6%12.4%17.9%
1 Year-51.7%-51.7%-7.3%-8.7%9.2%6.9%
3 Year-52.7%-52.7%3.5%-0.8%36.4%27.5%
5 Year-59.2%-87.7%28.3%19.1%64.9%47.0%

Price Volatility Vs. Market

How volatile is MSG Networks's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is MSG Networks undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MSGN ($10.03) is trading below our estimate of fair value ($37.82)

Significantly Below Fair Value: MSGN is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: MSGN is good value based on its PE Ratio (4x) compared to the US Media industry average (10.7x).

PE vs Market: MSGN is good value based on its PE Ratio (4x) compared to the US market (16.1x).


Price to Earnings Growth Ratio

PEG Ratio: MSGN's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: MSGN has negative assets, so we can't compare its PB Ratio to the US Media industry average.


Next Steps

Future Growth

How is MSG Networks forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

-1.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MSGN's earnings are forecast to decline over the next 3 years (-1.8% per year).

Earnings vs Market: MSGN's earnings are forecast to decline over the next 3 years (-1.8% per year).

High Growth Earnings: MSGN's earnings are forecast to decline over the next 3 years.

Revenue vs Market: MSGN's revenue is expected to decline over the next 3 years (-1.8% per year).

High Growth Revenue: MSGN's revenue is forecast to decline over the next 3 years (-1.8% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if MSGN's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has MSG Networks performed over the past 5 years?

1.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MSGN has high quality earnings.

Growing Profit Margin: MSGN's current net profit margins (24.3%) are lower than last year (26.3%).


Past Earnings Growth Analysis

Earnings Trend: MSGN's earnings have grown by 1.8% per year over the past 5 years.

Accelerating Growth: MSGN's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: MSGN had negative earnings growth (-10.4%) over the past year, making it difficult to compare to the Media industry average (6.6%).


Return on Equity

High ROE: MSGN's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Next Steps

Financial Health

How is MSG Networks's financial position?


Financial Position Analysis

Short Term Liabilities: MSGN has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: MSGN has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: MSGN has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: MSGN's has negative shareholder equity, so we do not need to check if its debt has reduced over time.

Debt Coverage: MSGN's debt is not well covered by operating cash flow (18.7%).

Interest Coverage: MSGN's interest payments on its debt are well covered by EBIT (7.6x coverage).


Balance Sheet


Next Steps

Dividend

What is MSG Networks's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

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


Next Steps

Management

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

4.8yrs

Average management tenure


CEO

Andrea Greenberg (61yo)

4.83yrs

Tenure

US$6,302,524

Compensation

Ms. Andrea Greenberg is the President and Chief Executive Officer of MSG Networks Inc. since 2015. Ms. Greenberg has more than 30 years of experience in the sports, entertainment and television industries. ...


CEO Compensation Analysis

Compensation vs Market: Andrea's total compensation ($USD6.30M) is above average for companies of similar size in the US market ($USD2.16M).

Compensation vs Earnings: Andrea's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
James Dolan
Executive Chairman of the Board11yrsUS$8.98m8.46% $48.1m
Andrea Greenberg
President & CEO4.83yrsUS$6.30m0.25% $1.4m
Bret Richter
Executive VP4.83yrsUS$2.98m0.15% $848.7k
Dawn Darino-Gorski
Senior VP4.83yrsUS$1.10m0.056% $316.8k
Lawrence Burian
Executive VP & General Counsel10.5yrsUS$1.66mno data
Ari Danes
Senior Vice President of Investor Relations5.58yrsno datano data
Gregg Seibert
Vice Chairmanno datano datano data
Adam Levine
Executive Vice President of Business Affairsno datano datano data
Mark Cresitello
Senior VPno datano datano data

4.8yrs

Average Tenure

56.5yo

Average Age

Experienced Management: MSGN's management team is considered experienced (4.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
James Dolan
Executive Chairman of the Board11yrsUS$8.98m8.46% $48.1m
Charles Dolan
Director11yrsUS$157.10k2.03% $11.5m
Thomas Dolan
Director10.42yrsUS$155.60k4.08% $23.2m
Hank Ratner
Director4.83yrsUS$157.10k0.25% $1.4m
William Bell
Director4.83yrsUS$157.10kno data
Joseph Lhota
Independent Director3.58yrsUS$183.60kno data
John Sykes
Independent Director4.92yrsUS$242.10kno data
Brian Sweeney
Director10.42yrsUS$157.10k0.060% $339.1k
Paul Dolan
Director4.83yrsUS$157.10k0.0082% $46.7k
Joel Litvin
Independent Director4.83yrsUS$237.10kno data
Kristin Dolan
Director2.25yrsUS$155.60k0.040% $228.8k
Joseph Cohen
Director0.083yrno datano data

4.8yrs

Average Tenure

64yo

Average Age

Experienced Board: MSGN's board of directors are considered experienced (4.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: MSGN insiders have only sold shares 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

MSG Networks Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: MSG Networks Inc.
  • Ticker: MSGN
  • Exchange: NYSE
  • Founded: 1969
  • Industry: Cable and Satellite
  • Sector: Media
  • Market Cap: US$568.808m
  • Shares outstanding: 56.71m
  • Website: https://www.msgnetworks.com

Number of Employees


Location

  • MSG Networks Inc.
  • 11 Pennsylvania Plaza
  • 3rd Floor
  • New York
  • New York
  • 10001
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MSGNNYSE (New York Stock Exchange)YesClass A Common StockUSUSDJan 2010
1M4DB (Deutsche Boerse AG)YesClass A Common StockDEEURJan 2010

Biography

MSG Networks Inc. engages in the sports production, and content development and distribution businesses in the United States. The company owns and operates MSG Network and MSG+, which are regional sports and entertainment networks. It also operates MSG GO that provides live streaming and video on demand, as well as a Website and social media platforms for its brands. The company was formerly known as The Madison Square Garden Company and changed its name to MSG Networks Inc. in October 2015. MSG Networks Inc. was founded in 1969 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 Analysis2020/07/14 23:56
End of Day Share Price2020/07/14 00:00
Earnings2020/03/31
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.