MSC

Studio City International Holdings Limited (MSC) Risks & Opportunities Analysis (2026)

Invetso Score: 4.9/10 — Balanced · Last Updated: 2026-09-01

Monthly Update

No material changes this month.

Overall Score

Score: 4.9 (Moderate)

Liquidity

Score:

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

Score:

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

Score:

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

Score:

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

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