OneSpaWorld Holdings (OSW) AI Stock Analysis

• Market Cap: $2.08B
• Dividend Yield: 0.83%
• Average Volume (3M): 613.65K
• Price to Earnings (P/E): 28.8
• Beta (1Y): 1.12
• 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: 498,323
• 30 Day Avg. Volume: 613,649
• 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: 1.09
• Enterprise Value/Revenue: 2.41
• Enterprise Value/Gross Profit: 15.70
• Enterprise Value/Ebitda: 19.92
• 1Y Price Target: $26.50
• Price Target Upside: 29.97% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): 1.02
• Revenue Forecast (FY): $962.31M

• Rating: 68 Neutral
• Price Target: $22.50 ▲(10.35% Upside)

OneSpaWorld Holdings' overall stock score is driven by strong financial performance and a positive earnings call, highlighting record revenue growth and strategic initiatives. However, the stock's high valuation and bearish technical indicators moderate the score. Investors should consider the company's growth potential against its current market price.

Positive Factors

Revenue Growth

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

AI and Technology Enhancements

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

Strong Balance Sheet

A strong balance sheet with reduced debt and increased dividends reflects financial stability and shareholder value creation.

Negative Factors

Service Margin Decline

A decline in service margin, even if slight, can impact profitability if not addressed, potentially affecting long-term financial performance.

Decrease in Resort Revenue

A decrease in resort revenue could indicate challenges in this segment, which may affect overall revenue diversification and growth.

Free Cash Flow Decline

A decline in free cash flow growth can limit the company's ability to invest in growth opportunities and manage financial obligations effectively.

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 the provision of its health and wellness services on cruise ships and in resort locations. The company earns money by charging customers for various treatments, including massages, facials, and fitness classes. Additionally, OSW has established contracts with cruise lines and resorts, which provide a steady stream of income through service fees and revenue-sharing agreements. Key revenue streams include direct customer payments for services, sales of wellness products, and partnerships with hospitality brands that enhance the company's service offerings. The growth of the cruise industry and the increasing demand for wellness experiences contribute significantly to OSW's earnings.

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	0.00	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: Neutral
• Last Price: 20.39
• 50DMA: Negative
• 100DMA: Negative
• 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 Neutral. The current price of 20.39 is below the 20-day moving average (MA) of 21.25, below the 50-day MA of 21.13, and above the 200-day MA of 19.99, indicating a neutral trend. The MACD of -0.36 indicates Positive momentum. The RSI at 45.17 is Neutral, neither overbought nor oversold. The STOCH value of 46.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for OSW.

OneSpaWorld Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OSW	68 Neutral	$2.08B	28.75	13.53%	0.83%	7.27%	45.12%
LTH	67 Neutral	$6.15B	21.76	10.38%	―	15.77%	86.16%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
PLNT	61 Neutral	$9.32B	45.71	―	―	14.39%	31.64%
PRKS	53 Neutral	$1.93B	10.81	―	―	-3.27%	-17.93%
XPOF	47 Neutral	$321.31M	―	―	―	-3.55%	-111.90%
PTON	45 Neutral	$2.81B	―	―	―	-8.74%	74.66%

OneSpaWorld Holdings Corporate Events

OneSpaWorld Earnings Call Highlights Growth and Optimism

The recent earnings call from OneSpaWorld Holdings reflected a positive sentiment, underscored by notable achievements in revenue growth and strategic advancements. Despite minor challenges such as a slight dip in service margins and a decrease in destination resort revenue, the overall tone was optimistic, driven by strong financial performance and strategic capital allocation.

OneSpaWorld Achieves Record Q3 2025 Financial Results

OneSpaWorld Holdings Limited is a leading global provider of health and wellness services and products, primarily operating on cruise ships and in destination resorts worldwide. The company is renowned for its comprehensive suite of premium services and its strong presence in the cruise industry segment of the international leisure market.