MSGEMadison Square Garden Entertainment Corp.
Is the business good?
The checks split: earnings fully cash-backed (4.0×), but margins compressing.
Operating profit is fully backed by cash. Conversion is improving vs a year ago.
Operating profit is falling even as sales grow, costs are outrunning the top line.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is MSGE?
Madison Square Garden Entertainment Corp. earns 35% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 26 points above what the capital costs: growth creates value
- Cash conversion
- 4.01×
Cash conversion · 1.65× a year ago · operating cash flow covers the operating profit after tax
| Year | Operating margin |
|---|---|
| FY2021 | −290% |
| FY2022 | −0.86% |
| FY2023 | 12% |
| FY2024 | 12% |
| FY2025 | 13% |
| FY2026 | 13% |
Details›
- Net income, trailing twelve months
- $66M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 35%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.