OneSpaWorld Holdings (OSW) AI Stock Analysis

• Market Cap: $1.98B
• Dividend Yield: 0.86%
• Average Volume (3M): 505.89K
• Price to Earnings (P/E): 30.3
• Beta (1Y): 1.10
• Revenue Growth: 9.80%
• EPS Growth: 89.42%
• Country: US
• Employees: 5,191
• Sector: Consumer Cyclical
• Sector Strength: 58
• Industry: Leisure
• EPS (TTM): 0.22
• Shares Outstanding: 102,697,235
• 10 Day Avg. Volume: 539,046
• 30 Day Avg. Volume: 505,888
• PEG Ratio: 0.06
• Price to Book (P/B): 1.61
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -105.47
• Enterprise Value/Market Cap: 0.53
• Enterprise Value/Revenue: 0.30
• Enterprise Value/Gross Profit: 7.87
• Enterprise Value/Ebitda: 2.74
• 1Y Price Target: $22.50
• Price Target Upside: 16.82% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 74 Outperform
• Price Target: ―

OneSpaWorld Holdings shows strong financial performance with significant revenue growth and improved profitability, supported by a debt-free balance sheet and robust cash flow. The recent earnings call reinforced positive growth prospects with strategic expansions and shareholder returns. However, the stock's valuation suggests it may be slightly overvalued, and technical indicators show a mixed trend. Overall, the stock presents a solid investment potential with some caution advised regarding its valuation and technical signals.

Positive Factors

Financial Performance

Demand trends remain consistent and strong, supporting the belief that revenue and EBITDA guidance for 2025 is somewhat conservative.

Market Position

Significant barriers to entry solidify OneSpaWorld’s dominance in maritime spa, with good visibility to long-term annual revenue growth in the high-single-digit range yielding similar to better profit growth and strong free cash flow generation.

Revenue Growth

About half of the year-over-year 4% increase in revenue stemmed from fleet expansion and the remainder from higher guest spend.

Negative Factors

Cost Management

Adjusted EBITDA upside was curtailed by $1.1 million of cash severance in the quarter related to the departure of the chief commercial officer.

Growth Deceleration

An anticipated $4.3 million combined headwind from more dry dock days and lapping leap day is expected to cause a sequential deceleration to 4% revenue growth.

Operational Challenges

OSW has limited visibility into future demand since much of its revenue depends on real-time onboard spending, and pre-bookings have a shorter window than cruise ticket bookings.

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 Holdings generates revenue through service agreements with cruise lines and destination resorts, where it operates spa and wellness facilities. The company earns money by providing a variety of services such as massages, beauty treatments, fitness classes, and wellness therapies to guests. Revenue is further bolstered by the sale of beauty and wellness products within its facilities. Strategic partnerships with major cruise lines and resorts enhance its market reach and contribute significantly to its earnings. Additionally, the company benefits from a diversified service portfolio and a strong presence in the growing wellness tourism sector.

OneSpaWorld Holdings Financial Statement Overview

Summary

OneSpaWorld Holdings has shown significant financial improvements, marked by revenue growth of 12.72% and a positive net profit margin of 8.14% in 2024. The company also demonstrated operational efficiency with improved EBIT and EBITDA margins. The balance sheet strength is evident with no debt and a high equity ratio of 74.28%, while cash flow is robust with a 24.31% growth in free cash flow.

Income Statement

OneSpaWorld Holdings has shown significant revenue growth with an impressive revenue growth rate of 12.72% from 2023 to 2024. The gross profit margin improved to 14.80%, and the net profit margin turned positive at 8.14% in 2024, indicating improved profitability. EBIT and EBITDA margins also strengthened, demonstrating enhanced operational efficiency. However, prior years showed periods of losses, which should be considered when evaluating long-term performance.

Balance Sheet

The company's balance sheet shows strong equity with an equity ratio of 74.28%. The absence of total debt in 2024 is a significant positive shift from previous years and reduces leverage risk. Return on Equity (ROE) increased to 13.14%, reflecting efficient use of equity to generate profits. However, the stability of equity growth and the ability to maintain low debt levels should be monitored.

Cash Flow

OneSpaWorld Holdings has demonstrated strong cash flow improvements with a free cash flow growth rate of 24.31% from 2023 to 2024. The operating cash flow to net income ratio is strong at 1.08, indicating robust cash generation relative to net income. The positive free cash flow to net income ratio of 0.99 further supports the company's liquidity position. Continued positive cash flow trends would enhance financial flexibility.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
903.42M	895.02M	794.04M	546.26M	144.03M	120.92M
	Gross Profit
134.46M	132.89M	90.23M	83.57M	8.45M	-18.31M
	EBIT
77.92M	78.06M	54.17M	15.14M	-52.06M	-265.00M
	EBITDA
102.48M	107.41M	42.42M	37.49M	-32.14M	-246.62M
	Net Income Common Stockholders
66.97M	72.86M	-2.97M	53.16M	-68.52M	-280.49M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
22.61M	57.44M	27.70M	32.06M	30.94M	41.55M
	Total Assets
708.72M	746.42M	706.14M	717.43M	688.87M	702.28M
	Total Debt
0.00	112.74M	170.63M	227.13M	230.46M	229.43M
	Net Debt
88.37M	55.30M	142.92M	195.06M	199.52M	187.88M
	Total Liabilities
178.15M	191.93M	272.07M	351.63M	394.96M	276.75M
	Stockholders Equity
530.56M	554.50M	434.07M	365.81M	293.90M	425.53M
Cash Flow		Free Cash Flow
66.72M	72.06M	57.96M	19.94M	-37.97M	-38.68M
	Operating Cash Flow
73.95M	78.80M	63.38M	24.76M	-35.10M	-36.55M
	Investing Cash Flow
-7.23M	-6.74M	-5.42M	-4.83M	-2.87M	-2.13M
	Financing Cash Flow
-109.52M	-42.21M	-62.66M	-18.72M	27.47M	68.55M

OneSpaWorld Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 19.26
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 19.26 is above the 20-day moving average (MA) of 19.10, above the 50-day MA of 18.14, and above the 200-day MA of 18.32, indicating a bullish trend. The MACD of 0.25 indicates Positive momentum. The RSI at 54.06 is Neutral, neither overbought nor oversold. The STOCH value of 35.44 is Neutral, 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
OSW	74 Outperform	$1.98B	30.34	12.80%	0.86%	9.80%	89.42%
LTH	73 Outperform	$5.96B	28.36	8.24%	―	18.58%	169.49%
PLNT	64 Neutral	$8.84B	49.79	-79.88%	―	10.32%	20.44%
Sector *	62 Neutral	$6.88B	11.07	2.77%	4.28%	2.67%	-24.94%
PRKS	62 Neutral	$2.29B	11.12	-52.57%	―	-0.92%	0.80%
PTON	55 Neutral	$2.76B	―	58.47%	―	-6.35%	79.04%
XPOF	51 Neutral	$403.16M	―	22.27%	―	-3.17%	-194.72%

OneSpaWorld Holdings Corporate Events

OneSpaWorld Holdings Approves Proposals at Annual Meeting

On June 9, 2025, OneSpaWorld Holdings Limited conducted its 2025 Annual Meeting of Shareholders, where approximately 95% of the company’s common shares were voted. All director nominees were elected, and all proposals, including executive compensation and the appointment of Ernst & Young LLP as the independent accounting firm, were approved as recommended by the Board of Directors.

The most recent analyst rating on (OSW) stock is a Buy with a $20.00 price target. To see the full list of analyst forecasts on OneSpaWorld Holdings stock, see the OSW Stock Forecast page.

OneSpaWorld Announces CCO Susan Bonner’s Departure

On March 17, 2025, OneSpaWorld Holdings Limited announced the immediate departure of Susan Bonner from her role as Chief Commercial Officer. In light of her departure, the company agreed to provide her with enhanced severance benefits, including twenty-four months of continued base salary payments, contingent upon her compliance with her restrictive covenant obligations.

OneSpaWorld Holdings Announces Leadership Changes in 2025

On March 17, 2025, OneSpaWorld Holdings announced leadership changes with Stephen B. Lazarus appointed as President while retaining his roles as Chief Financial Officer and Chief Operating Officer until a new CFO is appointed. Leonard Fluxman will continue as CEO and Executive Chairman, and Susan Bonner will step down as Chief Commercial Officer. These transitions highlight the company’s focus on leadership development and its commitment to maintaining its strong market position and growth trajectory in the health and wellness industry.