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Mister Car Wash (MCW)
NASDAQ:MCW
US Market

Mister Car Wash (MCW) AI Stock Analysis

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MC

Mister Car Wash

(NASDAQ:MCW)

Rating:66Neutral
Price Target:
$7.00
▲(14.38%Upside)
Mister Car Wash's strong financial performance and promising earnings call outlook are significant positives, though technical analysis suggests bearish market conditions. The company's high P/E ratio raises valuation concerns, and negative free cash flow needs attention. Despite these challenges, strategic expansion and improved guidance reflect potential for future growth.
Positive Factors
Earnings
Mister Car Wash's strong fourth-quarter performance exceeded expectations in both sales and earnings.
Financial Performance
The company's revenues have expanded by 9.1%, reaching the upper end of guidance and slightly outpacing consensus.
Strategic Positioning
Mister Car Wash is well positioned to take advantage of attractive assets coming to market due to shifting competitive dynamics.
Negative Factors
Consumer Demand
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.
Operational Costs
Higher rent and utility/equipment/facility costs drove other store OpEx de-leverage.
Stock Performance
The shares have declined 8% over the past year.

Mister Car Wash (MCW) vs. SPDR S&P 500 ETF (SPY)

Mister Car Wash Business Overview & Revenue Model

Company DescriptionMister Car Wash (MCW) is a leading national car wash company in the United States, recognized for providing high-quality car wash and detailing services. With numerous locations across the country, Mister Car Wash offers a range of services including exterior washes, interior cleaning, and express detail services. The company is dedicated to delivering convenience and exceptional customer service through its network of automated car wash facilities.
How the Company Makes MoneyMister 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 Earnings Call Summary

Earnings Call Date:Apr 30, 2025
(Q1-2025)
|
% Change Since: -10.79%|
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 Financial Statement Overview

Summary
Mister Car Wash shows strong revenue growth and operational efficiency, but faces challenges in net profitability and cash flow management. The balance sheet is stable, though high liabilities pose a risk. Strong operating cash flow is a key strength, while negative free cash flow needs attention.
Income Statement
78
Positive
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
70
Positive
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
65
Positive
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
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
1.02B994.73M927.07M876.51M758.36M574.94M
Gross Profit
748.90M704.02M563.35M608.04M493.19M380.97M
EBIT
192.80M178.93M178.15M187.72M-27.70M105.21M
EBITDA
251.04M178.93M248.14M187.72M42.84M220.75M
Net Income Common Stockholders
80.60M70.24M80.13M112.90M-22.05M60.40M
Balance SheetCash, Cash Equivalents and Short-Term Investments
39.13M67.46M19.05M65.15M19.74M114.65M
Total Assets
3.09B3.10B2.88B2.69B2.45B1.95B
Total Debt
948.76M1.87B1.77B1.71B1.67B1.80B
Net Debt
909.63M1.80B1.75B1.65B1.65B1.68B
Total Liabilities
2.06B2.10B1.97B1.89B1.79B1.93B
Stockholders Equity
1.03B998.35M915.03M801.13M657.15M16.65M
Cash FlowFree Cash Flow
-25.14M-81.46M-123.47M37.59M47.59M43.10M
Operating Cash Flow
278.18M248.62M204.65M229.20M173.35M101.85M
Investing Cash Flow
-177.87M-199.85M-259.37M-190.13M-543.83M-13.35M
Financing Cash Flow
-71.84M-275.00K8.61M6.29M272.46M22.68M

Mister Car Wash Technical Analysis

Technical Analysis Sentiment
Negative
Last Price6.12
Price Trends
50DMA
7.06
Negative
100DMA
7.47
Negative
200DMA
7.29
Negative
Market Momentum
MACD
-0.31
Positive
RSI
29.06
Positive
STOCH
7.73
Positive
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 6.12 is below the 20-day moving average (MA) of 6.64, below the 50-day MA of 7.06, and below the 200-day MA of 7.29, indicating a bearish trend. The MACD of -0.31 indicates Positive momentum. The RSI at 29.06 is Positive, neither overbought nor oversold. The STOCH value of 7.73 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$4.24B18.69132.22%5.53%36.30%
SCSCI
76
Outperform
$11.15B21.5732.71%1.63%2.40%4.07%
CSCSV
75
Outperform
$697.08M14.8622.96%1.01%5.02%45.34%
73
Outperform
$7.00B44.2312.63%9.71%94.22%
MCMCW
66
Neutral
$1.99B25.058.21%8.18%3.39%
62
Neutral
$6.76B11.072.80%6.34%2.68%-24.87%
HRHRB
49
Neutral
$7.38B13.50657.13%2.72%3.71%-8.07%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
MCW
Mister Car Wash
6.14
-1.08
-14.96%
CSV
Carriage Services
43.77
16.82
62.41%
HRB
H&R Block
54.88
3.06
5.91%
SCI
Service International
78.57
6.41
8.88%
BFAM
Bright Horizons
122.33
20.03
19.58%
FTDR
frontdoor
58.55
23.05
64.93%

Mister Car Wash Corporate Events

Executive/Board ChangesShareholder Meetings
Mister Car Wash Holds Annual Stockholders Meeting
Neutral
May 23, 2025

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.

The most recent analyst rating on (MCW) stock is a Buy with a $9.50 price target. To see the full list of analyst forecasts on Mister Car Wash stock, see the MCW Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.