OneSpaWorld Holdings (OSW) AI Stock Analysis

• Market Cap: $2.18B
• Dividend Yield: 0.75%
• Average Volume (3M): 674.44K
• Price to Earnings (P/E): 31.3
• Beta (1Y): 1.05
• Revenue Growth: 8.51%
• EPS Growth: 31.24%
• Country: US
• Employees: 5,191
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Leisure
• EPS (TTM): 0.25
• Shares Outstanding: 102,697,235
• 10 Day Avg. Volume: 594,541
• 30 Day Avg. Volume: 674,436
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.00
• Enterprise Value/Revenue: 2.38
• Enterprise Value/Gross Profit: 15.38
• Enterprise Value/Ebitda: 20.47
• 1Y Price Target: $26.00
• Price Target Upside: 22.47% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 70 Outperform
• Price Target: $23.00 ▲(8.34% Upside)

OneSpaWorld Holdings' overall stock score is driven by strong financial performance and a positive earnings call, indicating robust growth and strategic expansion. However, the stock's valuation and mixed technical indicators suggest caution. The company's ability to manage past challenges and leverage will be crucial for sustaining its positive trajectory.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for OSW's services, reflecting successful expansion and positioning in the wellness tourism industry.

Expansion in Ship Partnerships

Expanding partnerships with cruise lines enhances OSW's market presence and revenue potential, leveraging its core strength in cruise-based wellness services.

Strong Balance Sheet

A strong balance sheet with significant liquidity provides OSW with financial flexibility to invest in growth opportunities and withstand economic fluctuations.

Negative Factors

Decline in Land-Based Spa Business

The decline in land-based spa revenue highlights vulnerability in this segment, potentially impacting diversification and overall revenue stability.

Free Cash Flow Decline

A decline in free cash flow growth could constrain OSW's ability to fund new initiatives and manage debt, affecting long-term financial health.

Past Challenges with Negative Margins

Historical negative margins indicate potential operational risks; sustained profitability is crucial to avoid reverting to past financial difficulties.

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 shows a strong financial recovery trajectory post-2020, with notable improvements in revenue growth and operational profitability. The balance sheet indicates a stable equity position with improved leverage management, while cash flow statements reveal robust free cash flow generation. Potential risks include fluctuations in profitability margins and financing cash flow volatility, which need to be monitored.

Income Statement

OneSpaWorld Holdings has demonstrated robust revenue growth, with a 65% increase from 2020 to 2022, and further growth in 2023 and 2024. The company's gross profit margin improved significantly post-2020, reaching 14.9% in TTM 2025. The EBIT and EBITDA margins have also seen improvement, demonstrating enhanced operational efficiency. However, net profit margin volatility, as seen with a negative margin in 2023, suggests some instability in profitability.

Balance Sheet

The company's balance sheet shows a healthy equity ratio, improving from 42% in 2020 to 75% in TTM 2025, indicating strong shareholder equity support. The debt-to-equity ratio has decreased over time, reflecting better leverage management. However, fluctuations in total assets and liabilities, along with a decrease in stockholders' equity from 2024 to TTM 2025, present potential risks.

Cash Flow

OneSpaWorld exhibits strong cash flow management with consistent free cash flow generation. The operating cash flow to net income ratio is healthy, and significant improvement in free cash flow is observed from 2020 to TTM 2025. However, financing cash flow volatility indicates potential challenges in capital structure adjustments.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	919.26M	895.02M	794.04M	546.26M	144.03M	120.92M
Gross Profit	142.10M	132.89M	90.23M	83.57M	8.45M	-32.45M
EBITDA	106.77M	107.41M	42.42M	37.49M	-32.14M	-246.62M
Net Income	71.15M	72.86M	-2.97M	53.16M	-68.52M	-287.98M
Balance Sheet
Total Assets	731.82M	746.42M	706.14M	717.43M	688.87M	702.28M
Cash, Cash Equivalents and Short-Term Investments	35.03M	57.44M	27.70M	32.06M	30.94M	41.55M
Total Debt	109.38M	112.74M	170.63M	227.13M	230.46M	229.43M
Total Liabilities	183.49M	191.93M	272.07M	351.63M	394.96M	276.75M
Stockholders Equity	548.33M	554.50M	434.07M	365.81M	293.90M	320.83M
Cash Flow
Free Cash Flow	66.71M	72.06M	57.96M	19.94M	-37.97M	-38.68M
Operating Cash Flow	75.56M	78.80M	63.38M	24.76M	-35.10M	-36.55M
Investing Cash Flow	-8.85M	-6.74M	-5.42M	-4.83M	-2.87M	-2.13M
Financing Cash Flow	-94.45M	-42.21M	-62.66M	-18.72M	27.47M	68.55M

OneSpaWorld Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 21.23
• 50DMA: Negative
• 100DMA: Negative
• 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 21.23 is above the 20-day moving average (MA) of 20.78, below the 50-day MA of 21.57, and above the 200-day MA of 19.94, indicating a neutral trend. The MACD of -0.20 indicates Negative momentum. The RSI at 53.34 is Neutral, neither overbought nor oversold. The STOCH value of 83.16 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
OSW	―	$2.18B	31.30	13.16%	0.75%	8.51%	31.24%
LTH	―	$5.70B	25.36	8.66%	―	17.25%	93.88%
Sector *	―	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
PRKS	―	$2.73B	13.91	―	―	-1.43%	-2.50%
PLNT	―	$8.29B	42.99	―	―	12.47%	22.74%
PTON	―	$3.19B	―	―	―	-7.76%	79.66%
XPOF	―	$339.82M	―	―	―	-3.02%	-517.53%

OneSpaWorld Holdings Corporate Events

OneSpaWorld Reports Strong Q2 2025 Earnings

OneSpaWorld Holdings Limited, headquartered in Nassau, Bahamas, is a leading global provider of health and wellness services and products, primarily operating on cruise ships and in destination resorts worldwide.

OneSpaWorld’s Earnings Call: Record Growth and Future Plans

OneSpaWorld Holdings recently reported a robust earnings call, showcasing strong financial results with record-breaking revenues, income, and adjusted EBITDA. The company highlighted its successful expansion of service offerings and partnerships, alongside promising AI-driven initiatives. Despite these achievements, challenges persist in the land-based spa segment and the early performance of new cruise brands.