Studio City International Holdings Limited American depositary shares each representing four Class A ordinary shares (MSC)

FairStock Score: 56/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

At the 2026-10-13 close of $0.95, Studio City has a market cap of about $481.5M, and FairStock's P/B calculation is 0.38, a classic statistical cheapness signal. But Graham taught me to ask whether the assets earn. In the latest reported quarter, fiscal Q2 2026, revenue was $164.6M and net income was -$15.6M, a -9.48% margin. FairStock's ROE is -10.17% and ROCE is only 1.70%, so the asset base is not producing attractive returns. The balance sheet is the bigger issue: debt-to-equity is 3.75, Altman Z-Score is -0.83, and Piotroski F-Score is 3/9. Those are not the marks of a fortress. The Macau casino contract and mass/premium mass gaming exposure may offer a limited moat through licensing and location, but competition and regulation are intense. Valuation is mixed: FairStock's EV/EBITDA is 8.32 and P/B is 0.38, which could be appealing if EBITDA stabilises, yet FairStock's P/E is negative at -3.52 because there are no profits. Beta of 0.13 is unusually low, but that does not erase operating and leverage risk. FairStock scores it 56/100, and there is no Lynch category because only zero years of filed results are available, needing three. This looks less like a high-quality compounder and more like a speculative asset play. I would want evidence of positive free cash flow, falling debt, and sustained mass-market recovery before treating the discount as a margin of safety.

In plain English: Studio City runs a casino, hotel, dining and entertainment business in Macau. The business looks weak now: it is losing money and carries a lot of debt. The shares trade for less than the value of what the company owns on its books, which can look cheap, but that low price reflects real losses and risk.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer