BATRA

We rate Atlanta Braves Holdings, Inc. (BATRA) as a Hold with a composite score of 60.7/100 at a current price of $47.41. The stock presents a mixed quantitative picture — neither compelling enough to warrant new accumulation nor weak enough to justify selling for existing holders. Our factors are split, and the overall profile suggests patience is warranted.

The rating is primarily driven by strength in stability (96th percentile) and momentum (72th percentile), which together account for the majority of the composite score. Offsetting weakness in investment (33th percentile) and value (56th percentile) tempers our overall conviction. We assign a No Moat rating (21/100), High uncertainty, and Poor capital allocation.

Key items to watch: balance sheet deleveraging progress; the path to profitability. Any material change in these dynamics could warrant a reassessment of our rating. The moat trend is stable, which suggests the competitive landscape is stable for now.

Atlanta Braves Holdings, Inc. holds a top-quartile position (#0 of 50) within the Services sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 60.7/100 places it at rank #629 in our full 7,333-stock universe. At $2.9B in market capitalization, Atlanta Braves Holdings, Inc. is a mid-cap player in the Services space, which limits certain scale advantages but may allow for more agile strategic execution.

The outlook is moderately positive, with revenue expanding at 10% and favorable momentum (72th percentile) reflecting constructive market sentiment. The business shows steady execution, though the growth rate is below the levels typically associated with high-conviction growth stories. Momentum confirmation provides support for the current price level.

The margin cascade tells an important story: gross margins of 21% (-38.2pp vs sector) narrow to operating margins of -17% (-20.0pp vs sector) and net margins of -16.3%, yielding a gross-to-net conversion rate of -76%. The significant margin erosion from gross to net suggests elevated operating expenses, high interest costs, or other structural drags that warrant monitoring.

At a current price of $47.41, Atlanta Braves Holdings, Inc. is trading near fair value based on current fundamentals. Our value factor score of 56/100 reflects a composite assessment across multiple valuation metrics including price-to-earnings, price-to-book, EV/EBITDA, and price-to-sales ratios relative to both sector peers and the broader market. Valuation metrics are mixed, with no strong signal of mispricing in either direction.

The stock currently trades at a P/E of 106.5x (a 349% premium to the sector median of 23.7x), EV/EBITDA of 31.1x (at a premium), P/B of 5.3x, P/S of 3.1x. The above-sector P/E multiple suggests the market is pricing in superior growth or quality, which our analysis finds only partially justified by current fundamentals.

We assign a High uncertainty rating to Atlanta Braves Holdings, Inc.. Key risk factors include significant leverage (133% debt-to-equity), current negative profitability (net margin -16.3%), low beta of 0.48 — while defensive, this may indicate limited upside participation in bull markets. The wide range of potential outcomes widens our fair value estimate and increases the possibility of permanent capital impairment. Investors considering this name should size positions accordingly and demand a meaningful margin of safety before initiating.

Specific risk factors that inform our assessment include: significant leverage (133% debt-to-equity); current negative profitability (net margin -16.3%); low beta of 0.48 — while defensive, this may indicate limited upside participation in bull markets; elevated valuation multiple (P/E 106.5x) that leaves limited margin for error. Each of these factors independently widens the distribution of potential outcomes, and in combination they create a risk profile that demands careful position sizing. The stability factor at the 96th percentile and quality factor at the 60th percentile provide a quantitative summary of the overall risk landscape.

Key risk mitigants include: above-average stability (96th percentile) suggests predictable business dynamics. These factors partially offset the identified risks and provide downside protection in adverse scenarios. On balance, the risk-reward profile warrants caution and disciplined position management.

We rate Atlanta Braves Holdings, Inc.'s capital allocation as Poor. Key concerns include low returns on equity (4.9%), negative profitability, weak asset returns (ROA 1.7%). Exemplary capital allocators generate ROE above 20% and maintain conservative leverage — Atlanta Braves Holdings, Inc. significantly underperforms these benchmarks, raising questions about management's ability to create shareholder value.

Investors should scrutinize management's reinvestment decisions and balance sheet trajectory before committing capital. Poor capital allocation often compounds over time: overlevered balance sheets limit strategic flexibility, while low returns on capital destroy shareholder value. We would need to see sustained improvement in profitability metrics and balance sheet discipline before considering an upgrade.

In summary, Atlanta Braves Holdings, Inc. receives a Hold rating with a composite score of 60.7/100 (rank #629 of 7,333). Our quantitative framework assigns a No Moat (21/100, trend: stable), High uncertainty, and Poor capital allocation. The average factor score across quality, value, momentum, stability, and investment is 63/100.

Our analysis supports a neutral stance on Atlanta Braves Holdings, Inc.. While the quantitative profile is not weak enough to warrant selling, it lacks the multi-factor strength required for a buy recommendation. Existing holders should maintain positions and monitor for catalysts — either fundamental improvement or valuation compression — that would shift the risk-reward balance.