MSGE logo

Madison Square Garden Entertainment Corp

MSGE

Build a strategy around MSGE

Accountable AI Logo

Madison Square Garden Entertainment Corp AI Insights

Informational only. Not investment advice.
As of 2026-01-16

Snapshot

  • Negative equity (-65.8M) with 1.2B debt creates 7.4x debt/EBITDA leverage - balance sheet severely strained despite positive FCF.[Common Stockholders Equity]
  • FCF of 140M TTM (14.6% margin) vs industry median FCF of -22M - rare cash generator in capital-intensive sector.[Free Cash Flow TTM]
  • Operating margin 14.4% TTM is 4x industry median (3.5%) - MSG venue economics deliver pricing power.[Operating Margin TTM]

Watch Triggers

  • Total Debt: Refinancing announcement or debt maturity schedule disclosure1.2B debt with negative equity - refinancing terms will determine equity survival.
  • Interest Expense TTM: Rises above 50M or interest coverage falls below 2xCurrently 2.2x coverage - further deterioration threatens cash flow.
  • Free Cash Flow TTM: Falls below 100M or turns negative140M FCF is only buffer against debt service - loss invalidates thesis.

Bull Case

Iconic MSG venue is irreplaceable NYC asset with 43.9% gross margin and 140M FCF - operating leverage accelerates as events normalize.

Gross Margin TTMFree Cash Flow TTMOperating Margin TTM

P/S of 2.9x vs industry median 1.4x justified by 4x operating margin advantage - premium asset deserves premium multiple.

PS RatioOperating Margin TTM

Bear Case

Negative equity (-65.8M) and 7.4x debt/EBITDA create existential refinancing risk - equity could be wiped in restructuring.

Total DebtCommon Stockholders EquityEBITDA TTM

EPS declined 69% YoY despite 14% revenue growth - interest burden consuming operating gains.

EPS Growth 1Y TTMInterest Expense TTM

Bull vs Bear Balance

AI-generated sentiment analysis based on fundamental metrics and market conditions.

BearBull
35%

Leverage MSGE's top insights and create a custom strategy based on them in seconds. Our AI editor does it all — in one click.

Take Me to The Editor

Forward Thesis

Debt refinancing risk will dominate equity value over next 12-18 months as 1.2B matures.

3-12mhigh
  • Interest expense 47.5M consumes 81% of pretax income
  • Cash of only 30M vs 30M current debt due
  • Negative equity limits refinancing options
Total Debt 1.2B vs EBITDA 164M TTMInterest coverage (EBIT/Interest) = 2.2xWorking capital -283M TTM

Gross profit growth of 36% YoY signals post-pandemic venue utilization inflection.

1-3ymed
  • Revenue up 14% while gross profit up 36%
  • Gross margin expanded to 43.9% TTM
  • Fixed-cost leverage on incremental revenue
Gross Profit 1Y Growth 36.3%Revenue 1Y Growth 14.1%Operating income 138M TTM

Valuation Context

Caveats

Data Partners
Morningstar Logo

Fundamental company data provided by Morningstar, updated daily.

Accountable Finance, Inc. Disclaimer
accountable.finance is not operated by a broker or a dealer. Under no circumstances does any information posted on accountable.finance represent a recommendation to buy or sell a security. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute investment advice or recommendations. In no event shall accountable.finance be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or available on accountable.finance, or relating to the use of, or inability to use, accountable.finance or any content, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance. The information on this site is in no way guaranteed for completeness, accuracy or in any other way. Stock quotes and fundamental company data provided by Morningstar, updated daily.

Accountable Logo
© 2026 Accountable Finance, Inc. All rights reserved.