OneSpaWorld Holdings (OSW) AI Stock Analysis

• Market Cap: $2.23B
• Dividend Yield: 0.79%
• Average Volume (3M): 531.60K
• Price to Earnings (P/E): 31.1
• Beta (1Y): 1.07
• Revenue Growth: 7.27%
• EPS Growth: 45.12%
• Country: US
• Employees: 5,191
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Leisure
• EPS (TTM): 0.29
• Shares Outstanding: 101,952,380
• 10 Day Avg. Volume: 639,669
• 30 Day Avg. Volume: 531,603
• PEG Ratio: -0.01
• Price to Book (P/B): 3.73
• Price to Sales (P/S): 2.31
• P/FCF Ratio: 28.73
• Enterprise Value/Market Cap: 1.01
• Enterprise Value/Revenue: 2.41
• Enterprise Value/Gross Profit: 15.70
• Enterprise Value/Ebitda: 19.92
• 1Y Price Target: $26.00
• Price Target Upside: 17.81% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: $22.00 ▼(-0.32% Downside)

OneSpaWorld Holdings has a strong financial foundation with robust earnings growth and strategic initiatives that enhance its market position. The positive sentiment from the earnings call significantly boosts the stock's outlook. However, technical indicators suggest caution due to current bearish trends, and valuation metrics indicate moderate pricing.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term financial stability.

AI and Technology Enhancements

Implementing AI can enhance operational efficiency and revenue optimization, providing a competitive edge in the wellness industry.

Strong Balance Sheet

A strong balance sheet with reduced debt enhances financial flexibility, allowing for strategic investments and resilience to economic fluctuations.

Negative Factors

Service Margin Pressure

Decreased service margins could indicate rising operational costs or pricing pressures, potentially impacting profitability if not addressed.

Slowed Revenue Growth

Slower revenue growth may signal market saturation or increased competition, challenging the company's ability to maintain its growth trajectory.

Decrease in Destination Resort Revenue

A decline in resort revenue highlights potential vulnerabilities in geographic or service diversification, impacting overall revenue stability.

OneSpaWorld Holdings Business Overview & Revenue Model

Company Description

OneSpaWorld Holdings Limited operates health and wellness centers onboard cruise ships and at destination resorts worldwide. Its health and wellness centers offer services, such as traditional body, salon, and skin care services and products; self-service fitness facilities, specialized fitness classes, and personal fitness training; pain management, detoxifying programs, and body composition analyses; weight management programs and products; and medi-spa services. The company also provides its guests access to beauty and wellness brands, including ELEMIS, Kérastase, and Dysport, with various brands offered exclusively in the cruise market. As of December 31, 2021, it offered health, wellness, fitness, beauty services, treatments, and products onboard 170 cruise ships and at 52 destination resorts. The company is based in Nassau, Bahamas.

How the Company Makes Money

OneSpaWorld generates revenue primarily through service fees charged for its spa and wellness services offered on cruise ships and at resort locations. The company’s revenue model includes direct payments from customers for individual treatments and packages, as well as revenue-sharing agreements with cruise lines and resorts. Key revenue streams include massage services, skincare treatments, fitness programs, and product sales. Additionally, strong partnerships with major cruise lines and resorts enhance its market reach and customer base, contributing significantly to its earnings. The company also benefits from the growing demand for wellness tourism, which has further bolstered its financial performance.

OneSpaWorld Holdings Financial Statement Overview

Summary

OneSpaWorld Holdings has demonstrated a solid recovery in its financial performance, with strong revenue growth and improved profitability margins. The balance sheet reflects a stable financial position with low leverage, while the cash flow statement indicates efficient cash management. However, the company must remain vigilant about past challenges and potential risks related to leverage and cash flow fluctuations.

Income Statement

OneSpaWorld Holdings has shown a strong recovery in its income statement metrics. The company has achieved a significant revenue growth rate of 1.75% in the TTM period, indicating a positive trajectory. Gross profit margin and net profit margin have improved over the years, with the TTM gross profit margin at 15.46% and net profit margin at 7.74%. EBIT and EBITDA margins are also healthy, reflecting operational efficiency. However, the company faced challenges in previous years with negative margins, which could pose a risk if not managed well.

Balance Sheet

The balance sheet of OneSpaWorld Holdings shows a stable financial position with a debt-to-equity ratio of 0.20 in the TTM period, indicating low leverage. The return on equity (ROE) is 13.09%, which is a positive sign of profitability. The equity ratio stands at 74.95%, reflecting a strong equity base. However, the company has had higher leverage in the past, which could be a potential risk if not monitored.

Cash Flow

The cash flow statement reveals a mixed performance. The free cash flow growth rate is slightly negative at -1% in the TTM period, indicating a slight decline. The operating cash flow to net income ratio is 0.93, showing a strong conversion of income to cash. The free cash flow to net income ratio is 0.88, suggesting efficient cash management. Despite the recent decline in free cash flow growth, the overall cash flow position remains stable.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	936.08M	895.02M	794.04M	546.26M	144.03M	120.92M
Gross Profit	143.75M	149.46M	127.04M	83.57M	8.45M	-18.31M
EBITDA	113.32M	111.18M	38.94M	91.89M	-32.14M	-246.62M
Net Income	73.94M	72.86M	-2.97M	53.16M	-68.52M	-287.98M
Balance Sheet
Total Assets	732.60M	746.42M	706.14M	717.43M	688.87M	702.28M
Cash, Cash Equivalents and Short-Term Investments	29.56M	57.44M	27.70M	32.06M	30.94M	43.45M
Total Debt	97.74M	112.74M	170.63M	227.13M	230.46M	229.43M
Total Liabilities	179.80M	191.93M	272.07M	351.63M	394.96M	381.45M
Stockholders Equity	552.79M	554.50M	434.07M	365.81M	293.90M	320.83M
Cash Flow
Free Cash Flow	66.78M	72.06M	57.96M	19.94M	-37.97M	-38.68M
Operating Cash Flow	80.11M	78.80M	63.38M	24.76M	-35.10M	-36.55M
Investing Cash Flow	-13.33M	-6.74M	-5.42M	-4.83M	-2.87M	-2.13M
Financing Cash Flow	-86.04M	-42.21M	-62.66M	-18.72M	27.47M	68.55M

OneSpaWorld Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 22.07
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OSW, the sentiment is Positive. The current price of 22.07 is above the 20-day moving average (MA) of 21.23, above the 50-day MA of 21.06, and above the 200-day MA of 20.29, indicating a bullish trend. The MACD of 0.27 indicates Negative momentum. The RSI at 63.26 is Neutral, neither overbought nor oversold. The STOCH value of 88.91 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for OSW.

OneSpaWorld Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LTH	71 Outperform	$6.05B	22.03	10.38%	―	15.77%	86.16%
OSW	70 Outperform	$2.23B	31.12	13.53%	0.79%	7.27%	45.12%
PLNT	70 Outperform	$8.70B	43.23	―	―	14.39%	31.64%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
XPOF	54 Neutral	$397.37M	-4.94	―	―	-3.55%	-111.90%
PRKS	53 Neutral	$1.97B	11.29	―	―	-3.27%	-17.93%
PTON	45 Neutral	$2.76B	-24.51	―	―	-8.74%	74.66%