| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 333.23 | 10862 |
| Intrinsic value (DCF) | 1.72 | -43 |
| Graham-Dodd Method | 2.23 | -27 |
| Graham Formula | n/a |
Studio City International Holdings Limited (NYSE: MSC) is a premier gaming, retail, and entertainment resort operator located in Cotai, Macau—a global hub for luxury tourism and gambling. The company’s flagship property, Studio City Casino, features 250 mass-market gaming tables, 947 gaming machines, and 45 VIP rolling chip tables, catering to high-end and mass-market gamblers alike. Beyond gaming, Studio City offers a world-class integrated resort experience, including 1,600 luxury hotel rooms, diverse dining options, a figure-8 Ferris wheel, a 5,000-seat live performance arena, and 27,000 square meters of retail space. As a subsidiary of MCO Cotai Investments Limited, Studio City leverages its strategic location in Macau—the only region in China where casino gambling is legal—to attract international and domestic tourists. The company operates in the highly competitive Gambling, Resorts & Casinos sector, benefiting from Macau’s post-pandemic recovery and growing demand for integrated leisure destinations.
Studio City International Holdings presents a high-risk, high-reward investment opportunity tied to Macau’s gaming and tourism recovery. The company’s diversified non-gaming amenities provide resilience against regulatory risks in the gambling sector, while its negative net income (-$96.7M in latest reporting) reflects ongoing post-pandemic operational challenges. Positive operating cash flow ($189.9M) suggests underlying business strength, but high total debt ($2.18B) raises leverage concerns. The stock’s negative beta (-0.175) indicates low correlation with broader markets, potentially offering portfolio diversification. Investors should monitor Macau’s regulatory environment, Chinese tourism trends, and VIP gaming demand. No dividends are currently paid, making this suitable for growth-oriented investors betting on Macau’s long-term recovery.
Studio City International competes in Macau’s oligopolistic casino market, where six concessionaires dominate. Its competitive advantage lies in its Hollywood-themed integrated resort model, which blends gaming with premium entertainment—a differentiator in a market traditionally focused on gambling. The figure-8 Ferris wheel and performance arena attract non-gaming revenue (critical under Macau’s regulatory push for diversification), while its mid-tier positioning between mass-market and VIP segments allows flexibility in customer targeting. However, it lacks the scale of market leaders like Sands China (1927.HK) or Galaxy Entertainment (0027.HK), which have larger property portfolios and stronger loyalty programs. Studio City’s 2024 capacity (250 tables) is modest versus competitors, limiting gaming revenue upside. Its partnership with Melco Resorts (parent company) provides operational synergies but also creates dependency. The company’s 2024 EV/EBITDA multiples and occupancy rates will be key to assessing relative valuation as Macau’s tourism recovers to pre-pandemic levels.