MSC
Studio City International Holdings Limited (MSC) Risks & Opportunities Analysis (2026)
No material changes this month.
Overall Score
Liquidity
Current ratio remains below 1.0 at 0.76, indicating tight short-term liquidity.
Working capital is still negative at -$43.7M, reinforcing balance-sheet pressure.
Cash ratio is relatively strong at 0.64, which partially offsets the weak current ratio.
Leverage
Net debt to EBITDA remains elevated at 6.6x, leaving limited financial flexibility.
Debt to capital is high at 80.4% and debt to equity is 4.10x, underscoring a leveraged capital structure.
Interest coverage is only 0.61x, suggesting earnings are not yet covering interest expense comfortably.
Profitability
Gross margin is healthy at 61.6%, showing the business still has pricing or mix strength.
Operating margin is modest at 10.9%, but net margin remains negative at -7.6% due to below-the-line pressure.
Return on invested capital is only 2.9%, indicating limited value creation despite positive operating returns.
Valuation
Valuation appears inexpensive on sales at 0.12x P/S and 2.86x EV/S.
Price to book is very low at 0.17x, reflecting a depressed market valuation relative to equity book value.
The low multiple is tempered by negative earnings and weak leverage metrics, which keep the discount from looking purely attractive.
Sources
- Company filings (10-K, 10-Q, investor presentations)
- Financial and market data providers
- Public news and industry information
🔒 Go Beyond This Framework
This is one of 10 institutional-grade frameworks Invetso runs on Studio City International Holdings Limited. Unlock the complete analysis — SWOT, Economic Moat, Porter’s Five Forces, Management, PESTLE and the Invetso Quality Score.
