Sphere Entertainment Co. (MSGE) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Sphere Entertainment Co.

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TripAdvisor, Inc.

Planet Fitness, Inc.

AMC Entertainment Holdings, Inc.

United Parks & Resorts, Inc.

Endeavor Group Holdings, Inc.

Six Flags Entertainment Corp.

Mobile Global Esports, Inc.

Why is Sphere Entertainment Co. ?

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 0.05%

Low ability to service debt as the company has a high Debt to EBITDA ratio of -1.00 times

The company has declared Negative results for the last 8 consecutive quarters

NET SALES(HY) At USD 282.68 MM has Grown at -52.47%
INTEREST(Q) At USD 25.86 MM has Grown at inf%
CASH AND EQV(HY) Lowest at USD 368.93 MM

Risky - Negative Operating Profits

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of 135.91%, its profits have fallen by -44.8%

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Sphere Entertainment Co. should be less than 10%
Overall Portfolio exposure to Media & Entertainment should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Media & Entertainment)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Sphere Entertainment Co. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Sphere Entertainment Co.

256.26%

2.59

55.50%

S&P 500

13.68%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

37.71%

EBIT Growth (5y)

12.09%

EBIT to Interest (avg)

-7.67

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

0.41

Sales to Capital Employed (avg)

82.51

Tax Ratio

22.96%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

0.05%

ROE (avg)

0.10%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

1.76

EV to EBIT

-45.74

EV to EBITDA

15.36

EV to Capital Employed

1.67

EV to Sales

3.49

PEG Ratio

Dividend Yield

ROCE (Latest)

-3.64%

ROE (Latest)

-1.13%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

Bullish

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

22What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 237 MM

NET PROFIT(Q)

At USD 115.16 MM has Grown at 345.91%

NET SALES(HY)

At USD 656.79 MM has Grown at 29.17%

RAW MATERIAL COST(Y)

Fallen by -188.61% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 19.71 %

OPERATING PROFIT(Q)

Highest at USD 176.26 MM

PRE-TAX PROFIT(Q)

Highest at USD 72.86 MM

-2What is not working for the Company

CASH AND EQV(HY)

Lowest at USD 919.52 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 70.32 times

Here's what is working for Sphere Entertainment Co.

Pre-Tax Profit

At USD 72.86 MM has Grown at 229.31%

over average net sales of the previous four periods of USD -56.35 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (USD MM)

Net Profit

At USD 115.16 MM has Grown at 345.91%

over average net sales of the previous four periods of USD -46.83 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (USD MM)

Operating Cash Flow

Highest at USD 237 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Net Sales

At USD 656.79 MM has Grown at 29.17%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Operating Profit

Highest at USD 176.26 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (USD MM)

Pre-Tax Profit

Highest at USD 72.86 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Debt-Equity Ratio

Lowest at 19.71 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by -188.61% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at USD 96.92 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for Sphere Entertainment Co.

Cash and Eqv

Lowest at USD 919.52 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Inventory Turnover Ratio

Lowest at 70.32 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio