(SPHR) Sphere Entertainment Co. - Overview
Sector: Communication Services | Industry: Entertainment | Exchange: NYSE (USA) | Market Cap: 4.630m USD | Total Return: 253.6% in 12m
Avg Turnover: 87.1M
Qual. Beats: 0
Rev. Trend: 86.6%
Qual. Beats: 0
Warnings
Altman Z'' 0.34 < 1.0 - financial distress zone
Below Avwap Earnings
Tailwinds
Rs Leader, Idiosyncratic Leader
Sphere Entertainment Co. (SPHR) is a New York-based media and live entertainment firm operating through two primary business units: Sphere and MSG Networks. The Sphere segment focuses on immersive, technology-driven live events utilizing a specialized multi-sensory venue, while MSG Networks manages regional sports broadcasting and direct-to-consumer streaming services. Formerly known as Madison Square Garden Entertainment Corp., the company rebranded in April 2023 to align with its focus on next-generation venue technology.
The company’s business model relies on high-margin media rights and the premiumization of live experiences to offset the significant capital expenditures required for large-scale venue construction. In the regional sports network (RSN) sector, companies are increasingly shifting toward hybrid distribution models to mitigate the decline in traditional cable subscriptions. Investors can review additional valuation metrics on ValueRay to better understand the companys capital structure.
- High Vegas residency occupancy rates drive core Sphere segment revenue growth
- Exosphere advertising sales and brand partnerships scale high-margin digital media income
- MSG Networks cord-cutting acceleration pressures long-term regional sports affiliate revenue
- Global franchise expansion and licensing agreements provide capital-light growth opportunities
- High interest rates increase debt servicing costs for capital-intensive venue development
| Net Income: 119.8m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.08 > 0.02 and ΔFCF/TA 9.19 > 1.0 |
| NWC/Revenue: 12.14% < 20% (prev -59.26%; Δ 71.39% < -1%) |
| CFO/TA 0.09 > 3% & CFO 373.2m > Net Income 119.8m |
| Net Debt (436.2m) to EBITDA (551.1m): 0.79 < 3 |
| Current Ratio: 1.22 > 1.5 & < 3 |
| Outstanding Shares: last quarter (35.9m) vs 12m ago -0.64% < -2% |
| Gross Margin: 48.29% > 18% (prev 0.44%; Δ 4.78k% > 0.5%) |
| Asset Turnover: 30.58% > 50% (prev 24.51%; Δ 6.07% > 0%) |
| Interest Coverage Ratio: 4.10 > 6 (EBITDA TTM 551.1m / Interest Expense TTM 52.4m) |
| A: 0.04 (Total Current Assets 903.6m - Total Current Liabilities 742.7m) / Total Assets 4.22b |
| B: -0.04 (Retained Earnings -182.0m / Total Assets 4.22b) |
| C: 0.05 (EBIT TTM 214.5m / Avg Total Assets 4.34b) |
| D: -0.09 (Book Value of Equity -182.8m / Total Liabilities 1.97b) |
| Altman-Z'' = 0.34 = B |
| DSRI: 0.86 (Receivables 201.8m/192.2m, Revenue 1.33b/1.09b) |
| GMI: 0.91 (GM 48.29% / 43.97%) |
| AQI: 0.97 (AQ_t 0.14 / AQ_t-1 0.15) |
| SGI: 1.22 (Revenue 1.33b / 1.09b) |
| TATA: -0.06 (NI 119.8m - CFO 373.2m) / TA 4.22b) |
| Beneish M = -3.14 (Cap -4..+1) = AA |
As of May 29, 2026, the stock is trading at USD 133.75 with a total of 432,594 shares traded.
Over the past week, the price has changed by -0.48%,
over one month by +0.56%,
over three months by +12.39% and
over the past year by +253.56%.
Sphere Entertainment Co. has received a consensus analysts rating of 3.80. Therefore, it is recommended to hold SPHR.
- StrongBuy: 4
- Buy: 2
- Hold: 3
- Sell: 0
- StrongSell: 1
| Analysts Target Price | 161 | 20.4% |
P/E Trailing = 43.4128
P/E Forward = 28.4091
P/S = 3.4923
P/B = 2.0599
Revenue TTM = 1.33b USD
EBIT TTM = 214.5m USD
EBITDA TTM = 551.1m USD
Long Term Debt = 752.7m USD (from longTermDebt, last quarter)
Short Term Debt = 74.2m USD (from shortTermDebt, last quarter)
Debt = 1.07b USD (from shortLongTermDebtTotal, last quarter) + Leases 128.0m
Net Debt = 436.2m USD (calculated: Debt 1.07b - CCE 630.2m)
Enterprise Value = 5.07b USD (4.63b + Debt 1.07b - CCE 630.2m)
Interest Coverage Ratio = 4.10 (Ebit TTM 214.5m / Interest Expense TTM 52.4m)
EV/FCF = 15.19x (Enterprise Value 5.07b / FCF TTM 333.5m)
FCF Yield = 6.58% (FCF TTM 333.5m / Enterprise Value 5.07b)
FCF Margin = 25.15% (FCF TTM 333.5m / Revenue TTM 1.33b)
Net Margin = 9.04% (Net Income TTM 119.8m / Revenue TTM 1.33b)
Gross Margin = 48.29% ((Revenue TTM 1.33b - Cost of Revenue TTM 685.7m) / Revenue TTM)
Gross Margin QoQ = 34.26% (prev 58.57%)
Tobins Q-Ratio = 1.20 (Enterprise Value 5.07b / Total Assets 4.22b)
Interest Expense / Debt = 4.91% (Interest Expense 52.4m / Debt 1.07b)
Taxrate = 21.0% (US default 21%)
NOPAT = 169.5m (EBIT 214.5m * (1 - 21.00%))
Current Ratio = 1.22 (Total Current Assets 903.6m / Total Current Liabilities 742.7m)
Debt / Equity = 0.47 (Debt 1.07b / totalStockholderEquity, last quarter 2.25b)
Debt / EBITDA = 0.79 (Net Debt 436.2m / EBITDA 551.1m)
Debt / FCF = 1.31 (Net Debt 436.2m / FCF TTM 333.5m)
Total Stockholder Equity = 2.24b (last 4 quarters mean from totalStockholderEquity)
RoA = 2.76% (Net Income 119.8m / Total Assets 4.22b)
RoE = 4.95% (Net Income TTM 119.8m / Total Stockholder Equity 2.42b)
RoCE = 6.76% (EBIT 214.5m / Capital Employed (Equity 2.42b + L.T.Debt 752.7m))
RoIC = 4.77% (NOPAT 169.5m / Invested Capital 3.55b)
WACC = 10.85% (E(4.63b)/V(5.70b) * Re(12.46%) + D(1.07b)/V(5.70b) * Rd(4.91%) * (1-Tc(0.21)))
Discount Rate = 12.46% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 77.78 | Cagr: 0.71%
[DCF] Terminal Value 67.19% ; FCFF base≈333.5m ; Y1≈334.9m ; Y5≈354.7m
[DCF] Fair Price = 118.7 (EV 3.87b - Net Debt 436.2m = Equity 3.43b / Shares 28.9m; r=10.85% [WACC]; 5y FCF grow 0.0% → 2.50% )
EPS Correlation: N/A | EPS CAGR: N/A | SUE: 0.24 | # QB: 0
Revenue Correlation: 86.60 | Revenue CAGR: 33.77% | SUE: 0.78 | # QB: 0
EPS current Quarter (2026-06-30): EPS=-1.20 | Chg30d=-38.95% | Revisions=-20% | Analysts=2
EPS next Quarter (2026-09-30): EPS=-1.07 | Chg30d=+6.96% | Revisions=+20% | Analysts=2
EPS current Year (2026-12-31): EPS=-1.68 | Chg30d=+20.00% | Revisions=+20% | GrowthEPS=-161.4% | GrowthRev=+12.0%
EPS next Year (2027-12-31): EPS=-1.23 | Chg30d=+35.53% | Revisions=+20% | GrowthEPS=+27.1% | GrowthRev=+1.8%
[Analyst] Revisions Ratio: -20%