OneSpaWorld Holdings (OSW) AI Stock Analysis

• Market Cap: $1.89B
• Dividend Yield: 0.65%
• Average Volume (3M): 1.23M
• Price to Earnings (P/E): 29.0
• Beta (1Y): 1.09
• Revenue Growth: 9.80%
• EPS Growth: 89.42%
• Country: US
• Employees: 5,191
• Sector: Consumer Cyclical
• Sector Strength: 59
• Industry: Leisure
• EPS (TTM): 0.63
• Shares Outstanding: 102,697,235
• 10 Day Avg. Volume: 782,068
• 30 Day Avg. Volume: 1,232,478
• PEG Ratio: 0.32
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.14
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 16.20
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $21.50
• Price Target Upside: 16.91% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

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

Demand

Spend continues to increase on strong demand with no significant increase in discounting.

Earnings

OneSpaWorld's first quarter was at the high end of top- and bottom-line guidance while modestly beating consensus.

Expansion

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

Negative Factors

Costs

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

Macroeconomic Environment

FY25 guide was noisy with plenty of conservatism given an uncertain global macro backdrop.

Revenue Growth

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.

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 makes money through its extensive network of health and wellness centers located primarily on cruise ships and at destination resorts. The company generates revenue by providing various spa and beauty services to passengers and guests. Key revenue streams include direct sales from spa treatments, fitness classes, and beauty services; retail sales of beauty and wellness products; and partnerships with cruise lines and resort operators. These partnerships are significant, as they often involve revenue-sharing agreements where OneSpaWorld benefits from exclusive operating rights in exchange for sharing a portion of their earnings with their partners. Additionally, the company leverages its brand and expertise to attract a steady flow of clients, capitalizing on the growing trend of wellness tourism.

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

OneSpaWorld Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 18.39
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• 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 18.39 is above the 20-day moving average (MA) of 16.83, above the 50-day MA of 17.37, and above the 200-day MA of 17.85, indicating a bullish trend. The MACD of 0.08 indicates Negative momentum. The RSI at 59.38 is Neutral, neither overbought nor oversold. The STOCH value of 69.72 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	$1.89B	28.97	12.80%	0.65%	9.80%	89.42%
LTH	70 Outperform	$6.77B	43.64	6.42%	―	18.24%	99.18%
PRKS	64 Neutral	$2.53B	11.87	-52.57%	―	-0.07%	6.29%
PLNT	61 Neutral	$8.36B	49.39	-79.88%	―	10.30%	23.45%
Sector *	61 Neutral	$6.65B	11.71	3.09%	3.98%	2.65%	-20.82%
PTON	48 Neutral	$2.66B	―	58.47%	―	-3.99%	68.27%
XPOF	40 Underperform	$417.61M	―	22.27%	―	0.34%	-309.65%

OneSpaWorld Holdings Corporate Events

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.