Motorsport Games Inc. (MSGM) stock analysis
Close on Nov 11, 2026Market cap $19.96MP/E 10.1Yield –
StockData Score
Prices as of Nov 11, 2026How the score works
Mixed14 of 30 checks passed
Motorsport Games passes 14 of the 30 checks behind our score; 8 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.
- Valuation
- 3/6
- Growth
- 2/6
- Past performance
- 4/6
- Financial health
- 5/6
- Dividend
- 0/6
What stands out
Margin of safety over 20%
The price is 53.7% below fair value, more than the 20% cushion we look for.
Trading below fair value
The share price of $4.35 is below our fair value estimate of $9.40.
Return on capital over 10%
Return on invested capital was 203%, above the 10% that usually covers the cost of capital.
No debt
Motorsport Games has no borrowings on its latest balance sheet.
What to watch
Return on equity under 15%
Return on equity was 53.9% over the last twelve months and averaged -331% over five years; we look for 15% on both.
Revenue growing under 10% a year
Revenue grew 3.0% a year over the last three fiscal years, short of the 10% we look for.
EPS growing under 10% a year
Diluted EPS grew -64.0% a year over the last three fiscal years.
Elevated bankruptcy risk
The Altman Z-score is -6.01; above 3 is the safe zone and below 1.8 the distress zone.
Valuation3/6
P/E above its 5-year median
Motorsport Games's P/E of 10.1 is above its own 5-year median of 5.5.
P/E below the industry
Motorsport Games's P/E of 10.1 is below the Computer Programming, Data Processing, and Other Computer Related Services median of 27.6.
EV/EBITDA above its 5-year median
Motorsport Games's EV/EBITDA of 4.8 is above its 5-year median of 4.2.
P/B above the industry
Motorsport Games's price-to-book of 5.14 is above the Computer Programming, Data Processing, and Other Computer Related Services median of 3.32.
Trading below fair value
The share price of $4.35 is below our fair value estimate of $9.40.
Margin of safety over 20%
The price is 53.7% below fair value, more than the 20% cushion we look for.
Growth2/6
Revenue growing under 10% a year
Revenue grew 3.0% a year over the last three fiscal years, short of the 10% we look for.
EPS growing under 10% a year
Diluted EPS grew -64.0% a year over the last three fiscal years.
Earnings acceleration
Needs positive net income now, a year ago and five years ago.
Growing faster than the industry
Revenue grew 78.6% over the last twelve months; the Computer Programming, Data Processing, and Other Computer Related Services median is 9.6%.
Company guidance
No outlook found in earnings releases from the last twelve months.
Gross margin improving
Gross margin was 83.9% over the last twelve months, against 66.7% a year earlier.
Past performance4/6
Return on equity under 15%
Return on equity was 53.9% over the last twelve months and averaged -331% over five years; we look for 15% on both.
Return on capital over 10%
Return on invested capital was 203%, above the 10% that usually covers the cost of capital.
Return on equity above the industry
Motorsport Games's return on equity of 53.9% is above the Computer Programming, Data Processing, and Other Computer Related Services median of -1.2%.
Earnings over 5 years
Needs positive net income five years ago and in the latest year.
Net margin above its 5-year average
Net margin was 16.2% over the last twelve months, against a 5-year average of -149%.
Net margin above the industry
Motorsport Games's net margin of 16.2% is above the Computer Programming, Data Processing, and Other Computer Related Services median of -4.8%.
Financial health5/6
No debt
Motorsport Games has no borrowings on its latest balance sheet.
Debt not rising
With no debt today, leverage cannot have risen.
Debt covered by cash flow
There is no debt to cover.
Interest well covered
Operating income covers interest expense 152.4 times.
Short-term assets cover short-term debts
Current assets are 1.85 times current liabilities.
Elevated bankruptcy risk
The Altman Z-score is -6.01; above 3 is the safe zone and below 1.8 the distress zone.
Dividend0/6
No dividend
Motorsport Games has not paid a dividend in the last twelve months.
Yield against Treasuries
No dividend.
Yield against the market
No dividend.
Dividend stability
No dividend.
Earnings cover
No dividend.
Cash-flow cover
No dividend.
Fair value
How we estimate itOur estimate per share
$9.40
The share price is 54% below this estimate.
| Method | Multiple used | Own 5Y median | Industry median | Value per share | Weight |
|---|---|---|---|---|---|
| P/E | 18.7× | 5.5× | 27.6× | $8.04 | 53% |
| EV/EBITDA | 12.9× | 4.2× | 18.8× | $10.97 | 47% |
| Fair value | $9.40 | 100% | |||
Valuation over time
Using the earnings and balance sheet published at each date, not today's.
- P/E at month end
- Own 5-year median 5.5
- Computer Programming, Data Processing, and Other Computer Related Services median 27.6
An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.
Market risk
From the past year of daily prices.
Liquidity
High risk
- Average value traded per day
- $364.03K
- Value traded per 1% price move
- $96.12K
Downside
Medium risk
- Typical loss in a bad month
- 22.3%
- Volatility (annualized)
- 100%
- Sharpe ratio, 1 year
- 0.22
- Beta to the S&P 500 (5Y)
- 1.12
Typical bad-month loss, week by week
Margins
Share of revenue, fiscal years 2019 to 2025
Gross margin
Operating margin
Net margin
Growth rates
Compound annual growth to fiscal 2025
| Per year | 1 year | 3 years | 5 years | 10 years | Five-year pace |
|---|---|---|---|---|---|
| Revenue | +30.0% | +3.0% | -9.9% | – | |
| Gross profit | +68.5% | +19.7% | -5.9% | – | |
| Operating income | – | – | +390.3% | – | |
| EPS, diluted | – | -64.0% | – | – | |
| Free cash flow | – | – | +0.7% | – |
Returns and balance sheet
7 fiscal years. Hover a measure to see how it is calculated.
| Measure | FY2019 | FY2020 | FY2025 | Trend |
|---|---|---|---|---|
| Return on equity | – | – | 190.5% | |
| Return on assets | – | -11.6% | 76.0% | |
| Current ratio | 0.78 | 0.70 | 2.25 | |
| Interest coverage | – | 0.0× | 172.9× | |
| Capex to revenue | 0.9% | 0.7% | 0.1% | |
| Diluted shares | – | – | 5M |
Where the cash went
Fiscal 2021 to 2025, five years combined
Motorsport Games generated $61.03M from operations and spent $1.12M on capital expenditure, dividends and share buybacks. 100% of that went back into the business.
DuPont analysis
Return on equity split into margin, efficiency and leverage
| Fiscal year | Net margin | Asset turnover | Equity multiplier | Return on equity |
|---|---|---|---|---|
| FY2025 | 61.3% | 1.24× | 2.51× | 190.5% |
| FY2024 | -31.7% | 1.08× | 10.46× | -359.2% |
| FY2023 | -207.3% | 0.48× | 11.15× | -1114.6% |
| FY2022 | -348.6% | 0.30× | 1.82× | -188.2% |
| FY2021 | -220.0% | 0.44× | 1.91× | -185.8% |
Piotroski F-Score
Nine tests of profitability, balance sheet and efficiency, fiscal 2025 against fiscal 2024
- ProfitableNet income above zero$6.93M
- Cash generatingOperating cash flow above zero$4.07M
- Return on assets improvedROA up on the prior year-28.2% → 110.5%
- Earnings backed by cashOperating cash flow above net income$4.07M vs $6.93M
- Less leverageLong-term debt to assets fell– → –
- Better liquidityCurrent ratio rose0.56 → 2.25
- No dilutionShare count did not rise3M → 5M
- Gross margin improvedGross margin up on the prior year62.87% → 81.47%
- More efficientAsset turnover rose0.89 → 1.80
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