MSG Networks Stock Analysis, Valuation (NYSE:MSGN)

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$22.55 $0.3 (1.31%) MSGN stock closing price Apr 20, 2018 (Closing)
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MSG Networks
Updated on : Apr 20, 2018
previous close
MSGN 22.6 (0%)
S&P 500 2670.1 (0%)
Closing Price On: Apr 20, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Movie-TV Production-Distribution
Sector :
Consumer Discretionary
5 Quarter Revenue
Revenue Growth
2018-Q2
$million
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
-12.4%
Operating Profit
Operating Margin:
45.4%
Sector Average:
10.4%
5 Quarter Net Profit
Net Margins
2018-Q2
%
LTM Margin
Compared to the industry
Cash Flow
Operating cash flow:
$49.6M
Net Income:
$155.6M
PROS      CONS
Operating Margins
Net Margins
ROIC
FCF Margin
PE Valuation
Long Term Growth
Cash Flow
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
MSGN PS :
2.5
Industry PS :
1.6
Sector:   Consumer Discretionary.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
71%
Free Cash Flow Margin:
27.1%
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MSG Networks Stock Analysis

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Investors can watch the Amigobulls MSG Networks stock analysis video here. This video puts forward our latest analysis highlighting the pros and cons for MSGN stock.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

MSG Networks Inc Stock Rating 4.1/5

Amigobulls MSGN stock analysis relies on business fundamentals such as MSG Networks revenue growth, profits and return on equity measures from the latest quarter 2018 Q2 earnings. We compare MSG Networks valuation with its sector peers to gauge relative attractiveness of MSGN stock. MSG Networks stock rating encapsulates our opinion about the company based on the fundamentals.

Should you buy MSGN stock?

  • MSG Networks had a healthy average operating margin of 45.4% over the last 4 quarters.
  • LTM Net margins were good at 41% for MSG Networks.
  • The price to earnings multiple of 9.8 is attractive when compared with the industry average PE ratio of 21.5.
  • MSG Networks generates a high return on invested capital of 71%.
  • The company has a healthy free cash flow margin of 27.1%.

Should you sell MSGN stock?

  • The company saw an average annual sales decline of -12.4% in sales over the last 5 years.
  • Cash flow from operations is 0.3 times net income which is a negative signal.
  • The company is trading at a price to sales multiple of 2.5, which is higher in comparison to the Movie-TV Production-Distribution industry average of 1.6, making MSGN stock expensive.

Comments on this video and MSG Networks stock

Amigobulls MSG Networks stock analysis helps investors in understanding how the company's fundamentals have performed in the last few quarters. Company's fundamentals remain one of the key driver of MSGN stock and helps investors in making good buy and sell decision.

While doing a study of the company financials, MSG Networks revenue growth and profit or net income are two main metrics which help in identifying whether MSGN stock is overvalued or undervalued. Investors could make use of MSGN technical analysis to check whether the fundamental story is reflected in the market sentiment.