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Mister Car Wash (MCW)
NASDAQ:MCW
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Mister Car Wash
(NASDAQ:MCW)
67Neutral
Positive Factors
Financial Performance
Mister Car Wash reported another strong quarter, continuing much of the momentum seen in the second half of 2024.
Industry Position
Mister Car Wash is well positioned to take advantage of attractive assets coming to market due to shifting competitive dynamics.
Revenue Growth
Management's decision to raise prices at the base membership level is expected to contribute 2-3 percentage points to annualized revenue growth.
Negative Factors
Operational Costs
Higher rent and utility/equipment/facility costs drove other store OpEx de-leverage in Q1.
Retail Traffic
The company’s biggest exposure is around retail traffic, where the low-double-digit deceleration from first-quarter trends should leave more than enough wiggle room in the event of a more significant decline in consumer spend.
Share Performance
The shares have declined 8% over the past year.
Mister Car Wash (MCW) vs. S&P 500 (SPY)
Market Cap
$2.45B
Dividend YieldN/A
Average Volume (3M)1.84M
Price to Earnings (P/E)30.8
Beta (1Y)1.28
Revenue Growth8.18%
EPS Growth3.39%
CountryUS
Employees6,640
SectorConsumer Cyclical
Sector Strength57
IndustryPersonal Products & Services
Share Statistics
EPS (TTM)0.11
Shares Outstanding324,826,930
10 Day Avg. Volume1,904,740
30 Day Avg. Volume1,840,992
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.79
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit6.22
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$9.55Price Target Upside26.83% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering13
Mister Car Wash Business Overview & Revenue Model
Company DescriptionMister 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 MoneyMister Car Wash generates revenue primarily through its network of car wash locations, offering a range of services such as express exterior washes, full-service interior cleaning, and additional detailing options. The company employs a membership model, where customers can subscribe to unlimited wash packages for a monthly fee, which provides a steady stream of recurring revenue. Additionally, Mister Car Wash earns income from one-time wash services and the sale of ancillary products like car care items and air fresheners. Strategic partnerships and real estate ownership of certain locations also play a role in its financial performance, contributing to operational efficiency and cost management.
Mister Car Wash Financial Statement Overview
Summary
Mister Car Wash demonstrates strong revenue growth and operational efficiency, though faces challenges in net profitability and cash flow management. The balance sheet shows a balanced financial structure, but high liabilities require careful monitoring. The ability to generate operating cash flow is a strong point, but addressing negative free cash flow is 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.70
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 | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 994.73M | 927.07M | 876.51M | 758.36M | 574.94M | Gross Profit |
| 704.02M | 563.35M | 608.04M | 493.19M | 380.97M | EBIT |
| 178.93M | 178.15M | 187.72M | -27.70M | 105.21M | EBITDA |
| 178.93M | 248.14M | 187.72M | 42.84M | 220.75M | Net Income Common Stockholders |
| 70.24M | 80.13M | 112.90M | -22.05M | 60.40M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 67.46M | 19.05M | 65.15M | 19.74M | 114.65M | Total Assets |
| 3.10B | 2.88B | 2.69B | 2.45B | 1.95B | Total Debt |
| 1.87B | 1.77B | 1.71B | 1.67B | 1.80B | Net Debt |
| 1.80B | 1.75B | 1.65B | 1.65B | 1.68B | Total Liabilities |
| 2.10B | 1.97B | 1.89B | 1.79B | 1.93B | Stockholders Equity |
| 998.35M | 915.03M | 801.13M | 657.15M | 16.65M |
| Cash Flow | Free Cash Flow | |||
| -81.46M | -123.47M | 37.59M | 47.59M | 43.10M | Operating Cash Flow |
| 248.62M | 204.65M | 229.20M | 173.35M | 101.85M | Investing Cash Flow |
| -199.85M | -259.37M | -190.13M | -543.83M | -13.35M | Financing Cash Flow |
| -275.00K | 8.61M | 6.29M | 272.46M | 22.68M |
Mister Car Wash Technical Analysis
Positive
7.53
Price Trends
7.65
Negative
7.56
Negative
7.28
Positive
Market Momentum
-0.05
Negative
53.80
Neutral
81.03
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MCW, the sentiment is Positive. The current price of 7.53 is above the 20-day moving average (MA) of 7.18, below the 50-day MA of 7.65, and above the 200-day MA of 7.28, indicating a neutral trend. The MACD of -0.05 indicates Negative momentum. The RSI at 53.80 is Neutral, neither overbought nor oversold. The STOCH value of 81.03 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MCW.
Mister Car Wash Risk Analysis
Mister Car Wash disclosed 28 risk factors in its most recent earnings report. Mister Car Wash reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Mister Car Wash Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $3.79B | 16.99 | 132.22% | ― | 5.53% | 36.30% | |
75 Outperform | $6.96B | 43.80 | 12.63% | ― | 9.71% | 94.22% | |
73 Outperform | $10.90B | 21.09 | 32.71% | 1.62% | 2.40% | 4.07% | |
69 Neutral | $634.31M | 13.31 | 22.96% | 1.13% | 5.02% | 45.34% | |
68 Neutral | $8.36B | 17.20 | 657.13% | 2.35% | 3.77% | -2.16% | |
67 Neutral | $2.45B | 30.82 | 8.21% | ― | 8.18% | 3.39% | |
61 Neutral | $6.58B | 11.77 | 3.05% | 3.99% | 2.61% | -21.52% |
* Consumer Cyclical Sector Average
Performance Comparison
MCW
Mister Car Wash
7.53
-0.22
-2.84%
CSV
Carriage Services
40.42
15.17
60.08%
HRB
H&R Block
61.20
13.14
27.34%
SCI
Service International
76.82
9.89
14.78%
BFAM
Bright Horizons
121.31
7.03
6.15%
FTDR
frontdoor
53.44
17.50
48.69%
Mister Car Wash Earnings Call Summary
Earnings Call Date:Apr 30, 2025
(Q1-2025)
| % Change Since: 9.77%|
Next Earnings Date:Aug 07, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong financial performance with record revenues and membership growth, alongside challenges such as moderating sales trends and potential macroeconomic impacts. The company has a positive outlook with strategic expansion plans, but remains cautious due to external economic factors.Q1-2025 Updates
Positive Updates
Record Revenues and Adjusted EBITDA
Mister Car Wash delivered record revenues and adjusted EBITDA, which increased by 9% and 14% respectively in Q1 2025.
Strong Comp Store Sales Growth
Comp store sales grew 6% in Q1, marking eight consecutive quarters of overall comp growth and the first back-to-back quarters of positive retail comps in three years.
UWC Membership Growth
UWC membership increased by 5% year-over-year in Q1 to over 2.2 million members, with the Titanium membership tier accounting for 23% of the membership mix.
Successful Expansion and New Store Openings
Four new greenfield stores were opened in Q1, with plans to add 30 to 35 new stores in 2025.
Debt Reduction
The company voluntarily paid down approximately $62 million of debt during the quarter.
Negative Updates
Moderation in Comp Store Trends
Comp store trends moderated through April, largely due to a stronger lap and the timing of Easter.
Potential Impact of Tariffs
While direct tariff exposure is limited, there is uncertainty regarding the potential downstream impact on consumer behavior.
Retail Sales Volatility
Retail sales are expected to face pressure, with potential negative high single digits in the guidance due to a challenging macro environment.
Company Guidance
In the first quarter of 2025, Mister Car Wash reported strong financial performance, exceeding expectations with a 6% growth in comparable store sales, record revenues up 9%, and an adjusted EBITDA increase of 14%. The company successfully grew its Unlimited Wash Club (UWC) membership by 5% year-over-year, reaching over 2.2 million members, while also implementing a $3 price increase in most markets for its base UWC program. Mister Car Wash opened four new stores in the quarter, with plans to add 30 to 35 more throughout the year, and aims to continue expanding through both organic growth and strategic M&A. Despite potential tariff-related uncertainties, their cost structure remains well-managed, allowing them to maintain a healthy adjusted EBITDA margin of 32.7%. The company paid down $62 million in debt, anticipating a net leverage ratio improvement to under 2.5 times adjusted EBITDA by year-end. Looking forward, Mister Car Wash raised the low end of its full-year guidance for revenue, comparable store sales, and adjusted EBITDA, reflecting its confidence in navigating a competitive landscape and uncertain macroeconomic environment.Mister Car Wash Corporate Events
Executive/Board Changes
Mister Car Wash Announces General Counsel Transition Plan
Neutral
Jan 29, 2025
Mister Car Wash, Inc. announced an employment transition for Markus Hartmann, who ceased to serve as General Counsel on January 6, 2025. The Transition and Severance Agreement ensures Hartmann’s employment and transition services until February 6, 2025, with compensation and benefits outlined, including a severance payment starting February 7, 2025, and healthcare coverage options.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.