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

FairStock Score: 56/100 — STEADY

Key Financials

Strengths

• Generates $158 million in annual free cash flow (32.7% yield on market cap)

Concerns

• High leverage at 3.56x debt-to-equity increases financial risk and interest expense burden
• Weak Piotroski F-Score of 3/9 suggests deteriorating financial quality across multiple dimensions
• Altman Z-Score of -0.8 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

Studio City International Holdings Limited American depositary shares each representing four Class A ordinary shares is a micro-cap consumer cyclical company valued at $481 million. Revenue stands at $695 million. From a quality standpoint, Studio shows weak Piotroski F-Score of 3/9 signaling deteriorating fundamentals and distressed Altman Z-Score of -0.8 warrants caution. On valuation, the stock is strong 32.7% free cash flow yield. Growth dynamics show revenue growing at 4.8% and profit growth of 26.2%. Our composite FairStock Score of 56/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $158 million in annual free cash flow (32.7% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Elevated leverage at 3.6x D/E means rising interest rates or revenue weakness could strain debt covenants and force asset sales at distressed prices. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer