Studio City International Holdings Limited (MSC) AI Stock Analysis
MSC AI stock analysis summary
AI ResearchStudio City International Holdings Limited (MSC) operates an integrated gaming, retail, and entertainment resort in Cotai, Macau. While revenue expanded to $694.6M in FY2025 alongside positive free cash flow of $148.3M, the company carries significant leverage with total debt of $1.99B. Net income remained negative at -$58.8M in FY2025, and trailing twelve-month revenue contracted 13.4% year-over-year in the quarter ended June 30, 2026.
- Market cap
- $188.1M
- Revenue (TTM)
- $684.1M
- P/E
- — fwd 18.5x
- 1Y return
- -77.3% S&P 500 16.8%
- Avg. target
- $11.00 1022.4% vs last close
Bull case
- Revenue expanded from $11.5M in FY2022 to $694.6M in FY2025, driving free cash flow to $148.3M.
- Operating margin reached 10.1% in FY2025, marking two consecutive years of positive operating profitability.
- Analysts maintain a mean price target of $11.00, reflecting substantial upside over the last close of $0.98.
Bear case
- The balance sheet is heavily leveraged with $1.99B in total debt against $118.2M in cash and a current ratio of 0.76.
- The company has posted annual net losses every year from FY2021 through FY2025, including a loss of -$58.8M in FY2025.
- Shares declined 77.3% over the trailing 12 months and sit 57.0% below the 200-day moving average.
What Studio City International does
Studio City International Holdings Limited operates an integrated resort in Cotai, Macau. Its centerpiece is the Studio City Casino, featuring 250 mass market gaming tables, approximately 947 gaming machines, and 45 VIP rolling chip tables. The property also includes over 1,600 luxury hotel rooms, various food and beverage outlets, a figure-8 Ferris wheel, and night club and karaoke venues. Additional amenities consist of a 5,000-seat live performance arena and approximately 27,000 square meters of upscale retail shopping space. Founded in 2000 and rebranded in 2012, the Hong Kong-based company operates as a subsidiary of MCO Cotai Investments Limited.
Growth and profitability
Studio City saw revenue rebound from $11.5M in FY2022 to $445.5M in FY2023, $639.1M in FY2024, and $694.6M in FY2025. Gross margin expanded to 67.1% and operating margin improved to 10.1% in FY2025. Net losses steadily narrowed from -$326.5M in FY2022 to -$58.8M in FY2025, with EPS finishing at -$0.21. For the trailing twelve months ended June 30, 2026, revenue stood at $684.1M with an operating margin of 9.1% and an EPS of -$0.27. However, the quarter ended June 30, 2026, saw quarterly revenue decline 13.4% year-over-year, while quarterly earnings grew 1325.2%.
Balance sheet and cash flow
As of June 30, 2026, Studio City held $118.2M in cash and short-term investments against $1.99B in total debt, leading to net debt of $1.87B and a debt-to-equity ratio of 4.10. The current ratio stood at 0.76. Operating cash flow improved to $210.3M in FY2025, up from $189.9M in FY2024 and -$178.8M in FY2022. Free cash flow reached $148.3M in FY2025 after capital expenditures of $62.0M. The company's share count increased 108.0% over the trailing five years.
Valuation and performance
MSC trades at a market capitalization of $188.1M and an enterprise value of $2.02B. The stock trades at a forward P/E of 18.5x, above the 14.1x median of its US-listed Consumer Cyclical peers. Its EV-to-EBITDA multiple is 10.1x compared to the peer median of 11.1x, and its price-to-sales multiple is 0.3x versus the peer median of 0.7x. Over the past year, the stock fell 77.3%, underperforming the S&P 500 benchmark return of 16.8%. Over five years, the stock dropped 88.5% while the index gained 83.0%.
What analysts expect
Analysts maintain a mean price target of $11.00 for Studio City, which represents upside of 1022.4% over the October 16, 2026, closing price of $0.98. Over the last four quarters, the company beat EPS estimates 2 times. The next earnings announcement date is scheduled for November 5, 2026.
Key risks and what to watch
- A debt-to-equity ratio of 4.10 and net debt of $1.87B place high demands on ongoing cash flow generation.
- Quarterly revenue fell 13.4% year-over-year in the period ending June 30, 2026, signaling potential top-line volatility.
- The 5-year share count change of 108.0% indicates substantial dilution to existing shareholders.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this MSC AI stock analysis
This page is an AI-written research summary of Studio City International Holdings Limited (MSC). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: MSC income statement, MSC balance sheet, MSC key metrics, MSC chart. See the MSC stock overview for the latest quote and news.
MSC AI stock analysis FAQ
Does Studio City International Holdings pay a dividend?
No, Studio City International Holdings does not currently pay a dividend.
What is Studio City's debt profile?
As of June 30, 2026, the company carried $1.99B in total debt and $118.2M in cash, resulting in net debt of $1.87B and a debt-to-equity ratio of 4.10.
How did Studio City perform in FY2025?
In FY2025, Studio City reported revenue of $694.6M, an operating margin of 10.1%, and a net loss of -$58.8M. It generated $210.3M in operating cash flow and $148.3M in free cash flow.
When is the next earnings release date for MSC?
The company's next earnings date is scheduled for November 5, 2026.