STUDIO CITY INTERNATIONAL HOLDINGS Ltd (NYSE: MSC)

Sector: Consumer Cyclical Industry: Resorts & Casinos CIK: 0001713334
Market Cap 581.85 Mn
P/B 1.11
P/E -9.90
P/S 0.84
ROIC (Qtr) 2.63
Div Yield % 0.00
Rev 1y % (Qtr) 4.85
Total Debt (Qtr) 2.04 Bn
Debt/Equity (Qtr) 3.89
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About

Studio City International Holdings Ltd (MSC), a business company limited by shares incorporated in the Cayman Islands, operates an integrated resort in Macau. The company's main business activities include the provision of services pursuant to a casino contract and the hospitality business. MSC's operations are primarily based in Macau, where it runs the non-gaming businesses of Studio City, which features a cinematically-themed resort, a hotel, a water park, and various dining and entertainment options. The company's gaming operations are focused...

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Investment thesis

Bull case

  • Tangible assets of 2.70B provide robust 25.28x coverage of other current liabilities 106.69M, indicating strong asset backing.
  • Cash reserves of 109.53M provide solid 17.25x coverage of other non-current liabilities 6.35M, indicating strong liquidity.
  • Cash reserves of 109.53M exceed inventory value of 8.73M by 12.55x, indicating strong liquidity and inventory management.
  • Cash reserves of 109.53M provide comfortable 7.15x coverage of tax obligations 15.32M, showing strong fiscal management.
  • Tangible assets of 2.70B provide robust 14.98x coverage of current liabilities 180.04M, showing strong asset backing.

Bear case

  • Retained earnings of (1.95B) provide limited buffer against comprehensive income items of 618000, which is -3162.09x, indicating elevated exposure to market risks.
  • Operating cash flow of 0 provides minimal 0x coverage of tax expenses of 7.61M, suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Tangible assets of 2.70B provide limited backing for working capital of (48.55M), which is -55.56x, suggesting increased operational risk in market downturns.
  • Operating cash flow of 0 barely covers operating expenses of 214.51M with a 0 ratio, suggesting thin operational efficiency margins and limited flexibility.
  • Cash position of 109.53M provides only 0.87x coverage of interest expenses of 126.27M, indicating potential refinancing risks in a rising rate environment.

Related Party Breakdown of Revenue (2024)

Related Party Breakdown of Revenue (2024)

Peer comparison

Companies in the Resorts & Casinos
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 LVS Las Vegas Sands Corp 39.82 Bn 24.48 3.06 15.78 Bn
2 WYNN Wynn Resorts Ltd 20.12 Bn 2,860.00 4.09 12.20 Bn
3 MGM MGM Resorts International 9.16 Bn 44.51 0.52 31.26 Bn
4 BYD Boyd Gaming Corp 8.33 Bn -92.47 2.92 2.46 Bn
5 MTN Vail Resorts Inc 4.91 Bn 196.79 4.35 3.38 Bn
6 HGV Hilton Grand Vacations Inc. 4.44 Bn 83.82 0.89 7.28 Bn
7 CZR Caesars Entertainment, Inc. 3.93 Bn -7.83 0.34 24.88 Bn
8 RRR Red Rock Resorts, Inc. 3.66 Bn 20.78 2.12 3.41 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.91 1.18
EV to Cash from Ops. EV/CFO 13.43 39.36
EV to Debt EV to Debt 1.25 32.02
EV to EBIT EV/EBIT 33.95 44.55
EV to EBITDA EV/EBITDA 10.48 19.91
EV to Free Cash Flow [EV/FCF] EV/FCF 22.62 -82.04
EV to Market Cap EV to Market Cap 4.38 4.40
EV to Revenue EV/Rev 3.67 4.33
Price to Book Value [P/B] P/B 1.11 3.49
Price to Earnings [P/E] P/E -9.90 199.09
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 2.40
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 38.73
Dividend per Basic Share Div per Share (Qtr) 0.00 1.07
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 21.58
Interest Coverage Int. cover (Qtr) 0.59 -1.90
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 0.00 7.02
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -14.27 3.69
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 6.21
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 80.27 -15.96
EBITDA Growth (1y) % EBITDA Growth (1y) % 0.00 -13.29
EBIT Growth (1y) % EBIT 1y % (Qtr) 69.85 -1.32
EBT Growth (1y) % EBT 1y % (Qtr) 42.76 -10.90
EPS Growth (1y) % EPS 1y % (Qtr) 39.68 9.03
FCF Growth (1y) % FCF 1y % (Qtr) 0.00 81.04
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 12.32 4.33
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.25 0.49
Cash Payout Ratio Cash Payout Ratio 0.00 0.11
Cash Ratio Cash Ratio (Qtr) 0.61 0.59
Current Ratio Curr Ratio (Qtr) 0.73 0.90
Debt to Equity Ratio Debt/Equity (Qtr) 3.89 4.57
Interest Cover Ratio Int Coverage (Qtr) 0.59 -1.90
Times Interest Earned Times Interest Earned (Qtr) 0.59 -1.90
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % 0.00 18.45
EBIT Margin % EBIT Margin % (Qtr) 10.81 11.71
EBT Margin % EBT Margin % (Qtr) -7.37 4.06
Gross Margin % Gross Margin % (Qtr) 67.40 47.91
Net Profit Margin % Net Margin % (Qtr) -8.50 2.46