Mister Car Wash (MCW) AI Stock Analysis

• Market Cap: $1.88B
• Dividend Yield: N/A
• Average Volume (3M): 1.88M
• Price to Earnings (P/E): 21.8
• Beta (1Y): 1.15
• Revenue Growth: 7.21%
• EPS Growth: 20.31%
• Country: US
• Employees: 6,640
• Sector: Consumer Cyclical
• Sector Strength: 80
• Industry: Personal Products & Services
• EPS (TTM): 0.11
• Shares Outstanding: 327,275,240
• 10 Day Avg. Volume: 1,572,244
• 30 Day Avg. Volume: 1,882,438
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 2.00
• Enterprise Value/Revenue: 3.66
• Enterprise Value/Gross Profit: 5.53
• Enterprise Value/Ebitda: 14.97
• 1Y Price Target: $7.90
• Price Target Upside: 37.15% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15

• Rating: 63 Neutral
• Price Target: $6.00 ▲(4.17% Upside)

Mister Car Wash's overall score is driven by strong financial performance and positive earnings call highlights, despite technical weaknesses and valuation concerns. The company's ability to grow revenue and manage operational efficiency is a positive, but challenges in profitability and cash flow management need addressing. Technical indicators suggest bearish momentum, while valuation metrics are moderate.

Positive Factors

Industry Positioning

Mister Car Wash is well positioned to take advantage of attractive assets coming to market due to shifting competitive dynamics.

Membership Growth

The company’s membership base remained strong, as sales were up nearly 10% during the quarter.

Operational Excellence

MCW is viewed as an exceptionally strong operator in the U.S. car wash space, demonstrated by superior KPIs relative to competitors.

Negative Factors

Competitive Pressure

MCW hasn't entered any new states since its 2021 IPO, opting to densify its existing territory, while competitors have been expanding and fortifying their networks.

Cost Pressures

Higher rent and utility/equipment/facility costs drove other store OpEx de-leverage in Q1.

Retail Sales Challenges

Mister Car Wash reported softer-than-expected results as retail (nonmember) sales fell by nearly 11%.

Mister Car Wash Business Overview & Revenue Model

Company Description

Mister Car Wash, Inc., together with its subsidiaries, provides conveyorized car wash services in the United States. It offers express exterior and interior cleaning services. As of June 16, 2022, it operated 407 car wash locations in 21 states. The company was formerly known as Hotshine Holdings, Inc. and changed its name to Mister Car Wash, Inc. in March 2021. Mister Car Wash, Inc. was founded in 1969 and is headquartered in Tucson, Arizona.

How the Company Makes Money

Mister Car Wash primarily makes money through its car wash service offerings, which include single wash purchases and subscription-based models. The subscription model, known as the Unlimited Wash Club, provides customers with unlimited car washes for a monthly fee, contributing significantly to steady recurring revenue. Additionally, the company generates income from the sale of car care products and additional detailing services at their locations. Key revenue streams are further bolstered by strategic partnerships and collaborations that enhance their service offerings and customer reach.

Mister Car Wash Financial Statement Overview

Summary

Mister Car Wash demonstrates strong revenue growth and operational efficiency, with some challenges in net profitability and cash flow management. The balance sheet shows a balanced financial structure, though high liabilities require careful monitoring. The ability to generate operating cash flow is a strong point, but addressing negative free cash flow will be crucial for long-term sustainability.

Income Statement

Mister Car Wash has shown strong revenue growth with a consistent upward trajectory from 2020 to TTM 2025. The gross profit margin is robust, indicating efficient cost management relative to revenue. However, the net profit margin is modest, suggesting room for improvement in controlling costs and enhancing profitability. EBIT and EBITDA margins are healthy, supporting operational efficiency, although EBITDA margin has shown some volatility.

Balance Sheet

The company's balance sheet reflects a stable equity position with a reasonable debt-to-equity ratio, despite a high level of total debt. Return on equity has been strong, indicating effective use of equity to generate profits. The equity ratio suggests a balanced approach to financing with both debt and equity. However, the high level of liabilities relative to total assets poses a potential risk if not managed carefully.

Cash Flow

Cash flow analysis shows a mixed picture, with operating cash flow consistently positive and growing, highlighting strong cash generation capability. However, free cash flow has been negative in recent years due to high capital expenditures, which may impact liquidity if not offset by revenue growth. The operating cash flow to net income ratio is favorable, indicating good cash conversion from profits, but the free cash flow to net income ratio needs improvement.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.03B	994.73M	927.07M	876.51M	758.36M	574.94M
Gross Profit	679.61M	704.02M	563.35M	608.04M	493.19M	380.97M
EBITDA	250.84M	178.93M	248.14M	187.72M	42.84M	220.75M
Net Income	87.11M	70.24M	80.13M	112.90M	-22.05M	60.40M
Balance Sheet
Total Assets	3.11B	3.10B	2.88B	2.69B	2.45B	1.95B
Cash, Cash Equivalents and Short-Term Investments	26.41M	67.46M	19.05M	65.15M	19.74M	114.65M
Total Debt	939.51M	1.87B	1.77B	1.71B	1.67B	1.80B
Total Liabilities	2.04B	2.10B	1.97B	1.89B	1.79B	1.93B
Stockholders Equity	1.07B	998.35M	915.03M	801.13M	657.15M	16.65M
Cash Flow
Free Cash Flow	-4.78M	-81.46M	-123.47M	37.59M	47.59M	43.10M
Operating Cash Flow	217.29M	248.62M	204.65M	229.20M	173.35M	101.85M
Investing Cash Flow	-110.17M	-199.85M	-259.37M	-190.13M	-543.83M	-13.35M
Financing Cash Flow	-71.58M	-275.00K	8.61M	6.29M	272.46M	22.68M

Mister Car Wash Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5.76
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MCW, the sentiment is Negative. The current price of 5.76 is below the 20-day moving average (MA) of 5.80, below the 50-day MA of 6.14, and below the 200-day MA of 7.19, indicating a bearish trend. The MACD of -0.11 indicates Negative momentum. The RSI at 43.01 is Neutral, neither overbought nor oversold. The STOCH value of 28.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MCW.

Mister Car Wash Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SCI	78 Outperform	$11.16B	21.69	34.52%	1.55%	2.65%	7.42%
FTDR	75 Outperform	$4.43B	17.97	109.83%	―	8.56%	31.87%
BFAM	74 Outperform	$6.76B	39.10	13.19%	―	9.25%	74.86%
HRB	67 Neutral	$6.74B	11.81	673.21%	2.95%	4.17%	5.56%
CSV	64 Neutral	$703.76M	13.38	24.38%	1.01%	3.55%	73.06%
MCW	63 Neutral	$1.88B	21.77	8.62%	―	7.21%	20.31%
Sector *	61 Neutral	$17.75B	12.56	-5.49%	3.02%	1.43%	-14.12%

Mister Car Wash Corporate Events

Mister Car Wash Holds Annual Stockholders Meeting

On May 22, 2025, Mister Car Wash, Inc. held its Annual Meeting of Stockholders, where approximately 96% of outstanding shares were represented. During the meeting, three Class I directors were elected to serve until 2028, Deloitte & Touche LLP’s appointment as the independent accounting firm for 2025 was ratified, and the compensation for the company’s executive officers was approved.