Madison Square Garden Stock Beneish M Score

MSGE Stock  USD 36.22  0.57  1.60%   
This module uses fundamental data of Madison Square to approximate the value of its Beneish M Score. Madison Square M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Check out Madison Square Piotroski F Score and Madison Square Altman Z Score analysis.
  
At present, Madison Square's Long Term Debt Total is projected to increase significantly based on the last few years of reporting. The current year's Short and Long Term Debt is expected to grow to about 20.1 M, whereas Long Term Debt is forecasted to decline to about 586.4 M. At present, Madison Square's Operating Cash Flow Per Share is projected to slightly decrease based on the last few years of reporting. The current year's Capex To Depreciation is expected to grow to 0.70, whereas PTB Ratio is forecasted to decline to (74.13).
At this time, it appears that Madison Square Garden is a possible manipulator. The earnings manipulation may begin if Madison Square's top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by Madison Square executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of Madison Square's earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-1.67
Beneish M Score - Possible Manipulator
Elasticity of Receivables

2.17

Focus
Asset Quality

1.29

Focus
Expense Coverage

1.22

Focus
Gross Margin Strengs

0.66

Focus
Accruals Factor

1.22

Focus
Depreciation Resistance

0.86

Focus
Net Sales Growth

0.61

Focus
Financial Leverage Condition

0.87

Focus

Madison Square Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if Madison Square's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Net Receivables136.4 M102.6 M
Significantly Up
Slightly volatile
Total Revenue588 M959.3 M
Way Down
Very volatile
Total Assets1.9 B1.6 B
Fairly Up
Slightly volatile
Total Current Assets208.1 M219.1 M
Notably Down
Slightly volatile
Non Current Assets Total1.3 B1.3 B
Notably Down
Slightly volatile
Property Plant Equipment687.1 M723.2 M
Notably Down
Very volatile
Depreciation And Amortization60.5 M53.9 M
Moderately Up
Slightly volatile
Selling General Administrative165.9 M221.2 M
Way Down
Very volatile
Total Current Liabilities548.2 M505.8 M
Significantly Up
Slightly volatile
Non Current Liabilities Total709.2 M1.1 B
Way Down
Slightly volatile
Short Term Debt45.4 M71.7 M
Way Down
Slightly volatile
Long Term Debt586.4 M599.2 M
Fairly Down
Slightly volatile
Long Term InvestmentsM6.3 M
Notably Down
Slightly volatile

Madison Square Garden Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between Madison Square's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Madison Square in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Madison Square's degree of accounting gimmicks and manipulations.

About Madison Square Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Depreciation And Amortization

60.51 Million

At present, Madison Square's Depreciation And Amortization is projected to decrease significantly based on the last few years of reporting.

Madison Square Earnings Manipulation Drivers

Although earnings manipulation is typically not the result of intentional misconduct by the c-level executives, it is still a widespread practice by the senior management of public companies such as Madison Square. It is usually done by a series of misrepresentations of various accounting rules and operating activities across multiple financial cycles. The best way to spot the manipulation is to examine the historical financial statement to find inconsistencies in earning reports to find trends in assets or liabilities that are not sustainable in the future.
201920202021202220232024 (projected)
Net Receivables80.2M170.3M204.9M144.6M102.6M136.4M
Total Revenue584.6M81.8M653.5M851.5M959.3M588.0M
Total Assets3.7B1.7B1.5B1.4B1.6B1.9B
Total Current Assets1.4B544.8M341.5M295.3M219.1M208.1M
Net Debt(645.4M)418.1M898.7M818.6M1.0B1.1B
Short Term Debt58.8M47.4M47.8M52.8M71.7M45.4M
Long Term Debt28.1M655.1M1.7B630.2M599.2M586.4M
Operating Income225.3M(237.3M)(65.0M)105.0M111.9M117.5M
Investments(210.3M)(84.4M)(48.5M)30.3M(62.4M)(65.5M)

Madison Square ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Madison Square's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Madison Square's managers, analysts, and investors.
Environmental
Governance
Social

About Madison Square Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Madison Square Garden's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Madison Square using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Madison Square Garden based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.

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When determining whether Madison Square Garden is a strong investment it is important to analyze Madison Square's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Madison Square's future performance. For an informed investment choice regarding Madison Stock, refer to the following important reports:
Check out Madison Square Piotroski F Score and Madison Square Altman Z Score analysis.
You can also try the Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Is Movies & Entertainment space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Madison Square. If investors know Madison will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Madison Square listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.86)
Earnings Share
3.57
Revenue Per Share
20.029
Quarterly Revenue Growth
(0.03)
Return On Assets
0.0547
The market value of Madison Square Garden is measured differently than its book value, which is the value of Madison that is recorded on the company's balance sheet. Investors also form their own opinion of Madison Square's value that differs from its market value or its book value, called intrinsic value, which is Madison Square's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Madison Square's market value can be influenced by many factors that don't directly affect Madison Square's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Madison Square's value and its price as these two are different measures arrived at by different means. Investors typically determine if Madison Square is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Madison Square's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.