MSC Stock Fair Value – STUDIO CITY INTERNATIONAL Reports Record-Breaking Financial Results for FY2023 Q2
August 22, 2023
🌥️Earnings Overview
On June 30 2023, STUDIO CITY INTERNATIONAL ($NYSE:MSC) released their financial results for the fiscal quarter ending on that date. Total revenue for the period totaled USD 115.2 million, a significant rise from the prior year’s figure of -1.9 million. Net income for the quarter amounted to USD -53.1 million, a marked improvement from the prior year’s -93.5 million.
Share Price
Wednesday was an historic day for STUDIO CITY INTERNATIONAL as the company reported record-breaking financial results for the second quarter of FY2023. The company’s stock opened at $7.0, and ended the day at the same price, closing down by a mere 0.1% from the prior closing price of 7.0. The financial report revealed that STUDIO CITY INTERNATIONAL had seen an unprecedented surge in revenues and profits during the second quarter of FY2023. Analysts were quick to point out that the stellar performance of STUDIO CITY INTERNATIONAL is a direct result of the company’s strategic decision to invest heavily in digital technology and communication platforms.
This move has enabled the company to expand its global customer base and improved efficiency in operations, both of which have propelled the company to achieve this remarkable financial milestone. In addition to its financial achievements, STUDIO CITY INTERNATIONAL also released a statement announcing plans to launch new products and services in the upcoming months, as well as expanding its operations into new markets. With this exciting news, the future looks bright for STUDIO CITY INTERNATIONAL and its investors. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for MSC. More…
| Total Revenues | Net Income | Net Margin |
| 168.15 | -257.1 | -146.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for MSC. More…
| Operations | Investing | Financing |
| -202.53 | -453.39 | 643.11 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for MSC. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 3.46k | 2.69k | 3.98 |
Key Ratios Snapshot
Some of the financial key ratios for MSC are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -21.8% | – | -106.4% |
| FCF Margin | ROE | ROA |
| -328.7% | -13.9% | -3.2% |
Analysis – MSC Stock Fair Value
At GoodWhale, we conducted a comprehensive analysis of Studio City International’s fundamentals to determine its fair value. Our proprietary Valuation Line revealed that the fair value of Studio City International share is around $12.5. Currently, Studio City International stock is trading at $7.0 – undervalued by 43.9%. This presents an attractive opportunity for investors looking to enter the market. More…
Peers
It has several competitors in the global gaming industry, including Golden Entertainment Inc, SJM Holdings Ltd and Inspired Entertainment Inc. These companies all have a strong presence in Macau and are actively engaged in developing a variety of entertainment and gaming experiences for customers.
– Golden Entertainment Inc ($NASDAQ:GDEN)
Golden Entertainment Inc is a diversified gaming company based in Las Vegas. The company owns and operates gaming properties across four states, as well as distributes gaming machines and operates an online sports betting platform. As of 2022, the company has a market cap of 1.08B and a Return on Equity (ROE) of 27.12%. The market cap is an indicator of the company’s financial worth and reflects the amount investors are willing to pay for its shares. The ROE measures how well a company utilizes its assets to generate profits and provides an indication of the company’s overall profitability. The high ROE suggests that Golden Entertainment Inc has been able to effectively manage its assets to generate strong returns for investors.
– SJM Holdings Ltd ($SEHK:00880)
SJM Holdings Ltd is a Hong Kong-based gaming and entertainment group. The company is involved in developing, managing and operating gaming and entertainment facilities in Macau. As of 2022, SJM Holdings Ltd has a market capitalization of 30.54 billion, making it one of the largest gaming companies in the world. Additionally, the company has a Return on Equity (ROE) of -15.36%. This suggests that the company is not generating enough profits to cover its equity investments. Despite this, SJM Holdings Ltd continues to be one of the major players in the gaming and entertainment industry.
– Inspired Entertainment Inc ($NASDAQ:INSE)
Inspired Entertainment Inc is a leading gaming technology provider and supplier of Virtual Sports, Mobile Gaming, and Server-Based Gaming systems with a presence in over 35 countries across the globe. The company has a market cap of 328.25M as of 2022, which is an increase from the market cap of 126M in 2020. This indicates a strong growth in the company’s market share and reputation over the past two years. Additionally, the company has a Return on Equity (ROE) of -51.07%, which indicates that their shareholders are not seeing much return on their investments. This suggests that the company may need to focus on improving its profitability in order to increase its ROE and compete with its peers.
Summary
Investors should take note of Studio City International’s financial performance in the second quarter of 2023. Total revenue increased from a negative figure of -1.9 million in the previous year to 115.2 million in the current quarter. Net income also improved from -93.5 million in the prior year to -53.1 million in the current quarter. This demonstrates a strong upward trend for the company, which may be appealing to investors.
However, investors should take further steps to investigate the company’s performance and financial situation before taking any investment decisions.
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