Recent News
March 18, 2026 — MSG Entertainment and Sphere Entertainment named Allen Lo Executive Vice President, Chief Legal Officer, expanding corporate legal leadership. March 29, 2026 — Garden Of Dreams Foundation announced an exclusive charity auction and a star-studded presenter lineup ahead of the Garden Of Laughs benefit at Radio City Music Hall.
Technical Analysis
Directional Indicators (ADX / DI+ / DI-): ADX at 31.66 signals a strong underlying trend. DI+ at 30.77 with an increasing trend establishes a bullish directional bias; DI- at 13.29 shows a dip-and-reversal pattern that, by itself, carries bearish implications, but DI+ dominance supports a near-term bullish price bias tied to valuation upside.
MACD: MACD reads 1.72, the signal line 1.36, and the MACD trend increases; the MACD sits above its signal line, which constitutes a bullish momentum signal that aligns with the immediate upward price bias.
MRO (Momentum/Regression Oscillator): MRO of 34.93 registers positive and materially above zero, indicating price sits above WMDST’s target and therefore carries a tendency toward mean reversion; this creates a countervailing pressure that could limit near-term gains despite bullish momentum.
RSI and Price Strength: RSI at 59.56 and rising shows constructive, non-overbought momentum. Price at $66.95 trades above the 12- and 26-day EMAs and above the 20-, 50- and 200-day averages, reinforcing trend continuation toward analyst target medians while keeping short-term pullback risk intact.
Bands, Ichimoku, Support: Price sits marginally above the 1x Bollinger upper band and above the Tenkan-Sen (64.62), with the SuperTrend lower at $63.57 acting as a nearby technical support. Elevated same-day volume versus 10/50/200-day averages supports conviction behind recent moves.
Fundamental Analysis
Profitability: EBIT equals $163.96M and EBIT margin registers 35.65%, which stands above the industry peer mean (22.17%), median (24.91%), and even the peer high (32.69%). Operating margin at 35.861% and gross margin at 53.764% reinforce a high-margin operating profile that supports the current valuation.
Revenue and Earnings Trends: Total revenue reached $459.94M with YoY revenue growth of 1.91% and an asset-turnover ratio of 0.2626. EPS came in at $1.97 versus an estimate of $2.51, a $0.54 miss representing a -21.51% earnings surprise; treat the EPS miss as an earnings-period outcome rather than an operational deterioration given strong operating margins and positive YoY earnings growth of 4.995%.
Cash Flow & Valuation Signals: Free cash flow totals $156.06M with a free-cash-flow yield of 6.14%, above the industry peer mean of 0.57%, supporting WMDST’s under-valued determination. Enterprise value metrics (EVR ~7.79; enterprise multiple ~20.13) and a market capitalization of $2.543B align with a valuation profile that emphasizes strong cash generation versus book equity.
Leverage & Balance Sheet: Total debt stands at $1.195B with debt-to-assets at 65.57% and net debt of $427.98M; interest coverage near 15.73 provides ample buffer for servicing costs. Book value per share remains minimal at $0.76, producing a P/B of 70.64 which exceeds the industry peer mean of 13.64 and signals accounting book equity compression rather than operating distress.
Returns: Return on assets equals 5.29% and return on equity equals 2.57%, both positive but modest relative to the company’s high margins; return on invested capital at 15.84% indicates efficient capital use. WMDST values the stock as under-valued based on cash flow yield and enterprise multiples in the context of strong margins and positive ROIC.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-12-31 |
| REPORT DATE: | 2026-02-03 |
| NEXT REPORT DATE: | 2026-05-05 |
| CASH FLOW | Begin Period Cash Flow | $ 30.5 M |
| Operating Cash Flow | $ 164.4 M | |
| Capital Expenditures | $ -8.33 M | |
| Change In Working Capital | $ 16.6 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ 127.1 M | |
| End Period Cash Flow | $ 157.6 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 459.9 M | |
| Forward Revenue | $ 37.7 M | |
| COSTS | ||
| Cost Of Revenue | $ 212.7 M | |
| Depreciation | $ 14.0 M | |
| Depreciation and Amortization | $ 14.0 M | |
| Research and Development | — | |
| Total Operating Expenses | $ 295.0 M | |
| PROFITABILITY | ||
| Gross Profit | $ 247.3 M | |
| EBITDA | $ 177.9 M | |
| EBIT | $ 164.0 M | |
| Operating Income | $ 164.9 M | |
| Interest Income | $ 813.0 K | |
| Interest Expense | $ 10.4 M | |
| Net Interest Income | $ -9.61 M | |
| Income Before Tax | $ 153.5 M | |
| Tax Provision | $ 60.8 M | |
| Tax Rate | 40.0 % | |
| Net Income | $ 92.7 M | |
| Net Income From Continuing Operations | $ 92.7 M | |
| EARNINGS | ||
| EPS Estimate | $ 2.51 | |
| EPS Actual | $ 1.97 | |
| EPS Difference | $ -0.54 | |
| EPS Surprise | -21.514 % | |
| Forward EPS | $ 0.64 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 1.8 B | |
| Intangible Assets | $ 132.8 M | |
| Net Tangible Assets | $ -96.83 M | |
| Total Current Assets | $ 420.1 M | |
| Cash and Short-Term Investments | $ 157.1 M | |
| Cash | $ 157.1 M | |
| Net Receivables | $ 120.9 M | |
| Inventory | $ 3.8 M | |
| Long-Term Investments | $ 2.8 M | |
| LIABILITIES | ||
| Accounts Payable | $ 27.6 M | |
| Short-Term Debt | $ 30.5 M | |
| Total Current Liabilities | $ 618.5 M | |
| Net Debt | $ 428.0 M | |
| Total Debt | $ 1.2 B | |
| Total Liabilities | $ 1.8 B | |
| EQUITY | ||
| Total Equity | $ 36.0 M | |
| Retained Earnings | $ 224.1 M | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 0.76 | |
| Shares Outstanding | 47.274 M | |
| Revenue Per-Share | $ 9.73 | |
| VALUATION | Market Capitalization | $ 2.5 B |
| Enterprise Value | $ 3.6 B | |
| Enterprise Multiple | 20.132 | |
| Enterprise Multiple QoQ | -109.586 % | |
| Enterprise Multiple YoY | 79.181 % | |
| Enterprise Multiple IPRWA | high: 127.537 mean: 61.327 median: 54.791 MSGE: 20.132 low: -21.888 |
|
| EV/R | 7.789 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 50.631 | |
| Asset To Liability | 1.02 | |
| Debt To Capital | 0.971 | |
| Debt To Assets | 0.656 | |
| Debt To Assets QoQ | -9.369 % | |
| Debt To Assets YoY | 4171.336 % | |
| Debt To Assets IPRWA | high: 1.015 MSGE: 0.656 median: 0.26 mean: 0.237 low: 0.001 |
|
| Debt To Equity | 33.196 | |
| Debt To Equity QoQ | -279.739 % | |
| Debt To Equity YoY | 1306.564 % | |
| Debt To Equity IPRWA | MSGE: 33.196 high: 6.397 mean: 0.628 median: 0.543 low: -0.569 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 70.638 | |
| Price To Book QoQ | -328.787 % | |
| Price To Book YoY | -58.168 % | |
| Price To Book IPRWA | MSGE: 70.638 high: 21.787 median: 15.962 mean: 13.635 low: -1.972 |
|
| Price To Earnings (P/E) | 27.316 | |
| Price To Earnings QoQ | -118.416 % | |
| Price To Earnings YoY | 16.856 % | |
| Price To Earnings IPRWA | high: 190.063 median: 179.68 mean: 134.93 MSGE: 27.316 low: -245.884 |
|
| PE/G Ratio | -0.035 | |
| Price To Sales (P/S) | 5.531 | |
| Price To Sales QoQ | -56.912 % | |
| Price To Sales YoY | 29.205 % | |
| Price To Sales IPRWA | high: 35.254 median: 35.254 mean: 27.483 MSGE: 5.531 low: 0.642 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 75.712 | |
| Forward PE/G | -0.097 | |
| Forward P/S | 67.401 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | -3.451 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.263 | |
| Asset Turnover Ratio QoQ | 177.892 % | |
| Asset Turnover Ratio YoY | 3.082 % | |
| Asset Turnover Ratio IPRWA | high: 0.671 MSGE: 0.263 mean: 0.222 median: 0.218 low: 0.049 |
|
| Receivables Turnover | 4.553 | |
| Receivables Turnover Ratio QoQ | 112.82 % | |
| Receivables Turnover Ratio YoY | 5.57 % | |
| Receivables Turnover Ratio IPRWA | high: 15.907 median: 6.478 mean: 5.937 MSGE: 4.553 low: 1.249 |
|
| Inventory Turnover | 50.723 | |
| Inventory Turnover Ratio QoQ | 107.188 % | |
| Inventory Turnover Ratio YoY | -8.398 % | |
| Inventory Turnover Ratio IPRWA | high: 97.531 median: 97.531 mean: 55.504 MSGE: 50.723 low: 6.173 |
|
| Days Sales Outstanding (DSO) | 20.043 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 5.129 | |
| Cash Conversion Cycle Days QoQ | -85.175 % | |
| Cash Conversion Cycle Days YoY | 156.091 % | |
| Cash Conversion Cycle Days IPRWA | high: 52.471 MSGE: 5.129 median: -14.214 mean: -15.784 low: -82.149 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | -2.319 | |
| CapEx To Revenue | -0.018 | |
| CapEx To Depreciation | -0.596 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 590.6 M | |
| Net Invested Capital | $ 621.1 M | |
| Invested Capital | $ 621.1 M | |
| Net Tangible Assets | $ -96.83 M | |
| Net Working Capital | $ -198.34 M | |
| LIQUIDITY | ||
| Cash Ratio | 0.254 | |
| Current Ratio | 0.679 | |
| Current Ratio QoQ | 40.804 % | |
| Current Ratio YoY | 26.299 % | |
| Current Ratio IPRWA | high: 3.462 mean: 1.346 median: 1.186 MSGE: 0.679 low: 0.322 |
|
| Quick Ratio | 0.673 | |
| Quick Ratio QoQ | 42.018 % | |
| Quick Ratio YoY | 26.586 % | |
| Quick Ratio IPRWA | high: 2.656 mean: 1.605 median: 1.23 MSGE: 0.673 low: 0.299 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 6.719 | |
| Cost Of Debt | 0.519 % | |
| Interest Coverage Ratio | 15.73 | |
| Interest Coverage Ratio QoQ | -690.22 % | |
| Interest Coverage Ratio YoY | 47.327 % | |
| Interest Coverage Ratio IPRWA | high: 53.302 MSGE: 15.73 mean: 14.625 median: 12.808 low: -11.957 |
|
| Operating Cash Flow Ratio | 0.131 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 18.651 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 8.546 % | |
| Revenue Growth | 190.619 % | |
| Revenue Growth QoQ | 7023.281 % | |
| Revenue Growth YoY | -1.596 % | |
| Revenue Growth IPRWA | MSGE: 190.619 % high: 15.22 % median: 4.695 % mean: 4.461 % low: -7.315 % |
|
| Earnings Growth | -779.31 % | |
| Earnings Growth QoQ | 1486.446 % | |
| Earnings Growth YoY | 59.043 % | |
| Earnings Growth IPRWA | high: 231.25 % median: -5.085 % mean: -12.071 % low: -300.0 % MSGE: -779.31 % |
|
| MARGINS | ||
| Gross Margin | 53.764 % | |
| Gross Margin QoQ | 52.237 % | |
| Gross Margin YoY | 4.137 % | |
| Gross Margin IPRWA | high: 87.583 % MSGE: 53.764 % median: 45.874 % mean: 42.299 % low: 7.235 % |
|
| EBIT Margin | 35.647 % | |
| EBIT Margin QoQ | -291.95 % | |
| EBIT Margin YoY | 4.995 % | |
| EBIT Margin IPRWA | MSGE: 35.647 % high: 32.693 % median: 24.912 % mean: 22.169 % low: -15.289 % |
|
| Return On Sales (ROS) | 35.861 % | |
| Return On Sales QoQ | -484.321 % | |
| Return On Sales YoY | 5.626 % | |
| Return On Sales IPRWA | MSGE: 35.861 % high: 30.945 % median: 24.535 % mean: 20.554 % low: -9.632 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 156.1 M | |
| Free Cash Flow Yield | 6.135 % | |
| Free Cash Flow Yield QoQ | 799.56 % | |
| Free Cash Flow Yield YoY | 3.3 % | |
| Free Cash Flow Yield IPRWA | MSGE: 6.135 % high: 4.96 % mean: 0.567 % median: 0.441 % low: -20.509 % |
|
| Free Cash Growth | 1026.359 % | |
| Free Cash Growth QoQ | -809.885 % | |
| Free Cash Growth YoY | -349.503 % | |
| Free Cash Growth IPRWA | MSGE: 1026.359 % high: 143.75 % mean: -21.813 % median: -29.625 % low: -153.391 % |
|
| Free Cash To Net Income | 1.683 | |
| Cash Flow Margin | 17.646 % | |
| Cash Flow To Earnings | 0.875 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.03 | |
| Return On Assets (ROA) | 5.293 % | |
| Return On Assets QoQ | -509.358 % | |
| Return On Assets YoY | 11.549 % | |
| Return On Assets IPRWA | MSGE: 5.293 % high: 4.376 % median: 4.376 % mean: 3.463 % low: -1.589 % |
|
| Return On Capital Employed (ROCE) | 13.607 % | |
| Return On Equity (ROE) | 2.574 | |
| Return On Equity QoQ | 682.282 % | |
| Return On Equity YoY | -64.965 % | |
| Return On Equity IPRWA | MSGE: 2.574 high: 0.244 mean: 0.092 median: 0.091 low: -0.022 |
|
| DuPont ROE | -622.555 % | |
| Return On Invested Capital (ROIC) | 15.84 % | |
| Return On Invested Capital QoQ | -472.706 % | |
| Return On Invested Capital YoY | -105.778 % | |
| Return On Invested Capital IPRWA | MSGE: 15.84 % high: 8.298 % median: 6.386 % mean: 5.66 % low: -2.08 % |
|