ONESPAWORLD HOLDINGS LTD (OSW) Stock Fundamental Analysis
NASDAQ:OSW - Nasdaq - BSP736841136 - Common Stock - Currency: USD
Taking everything into account, OSW scores 6 out of 10 in our fundamental rating. OSW was compared to 71 industry peers in the Diversified Consumer Services industry. Both the profitability and the financial health of OSW get a neutral evaluation. Nothing too spectacular is happening here. OSW is not overvalued while it is showing excellent growth. This is an interesting combination. These ratings could make OSW a good candidate for growth investing.
1. Profitability
1.1 Basic Checks
OSW had positive earnings in the past year.
OSW had a positive operating cash flow in the past year.
In multiple years OSW reported negative net income over the last 5 years.
In multiple years OSW reported negative operating cash flow during the last 5 years.
1.2 Ratios
OSW has a better Return On Assets (9.76%) than 82.81% of its industry peers.
With a decent Return On Equity value of 13.14%, OSW is doing good in the industry, outperforming 68.75% of the companies in the same industry.
OSW has a Return On Invested Capital of 9.29%. This is in the better half of the industry: OSW outperforms 79.69% of its industry peers.
The Average Return On Invested Capital over the past 3 years for OSW is significantly below the industry average of 11.57%.
The last Return On Invested Capital (9.29%) for OSW is above the 3 year average (6.08%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.76% | ||
| ROE | 13.14% | ||
| ROIC | 9.29% |
ROA(3y)5.59%
ROA(5y)-6.84%
ROE(3y)9%
ROE(5y)-17.22%
ROIC(3y)6.08%
ROIC(5y)N/A
1.3 Margins
OSW has a better Profit Margin (8.14%) than 68.75% of its industry peers.
The Operating Margin of OSW (8.76%) is better than 60.94% of its industry peers.
In the last couple of years the Operating Margin of OSW has grown nicely.
OSW has a worse Gross Margin (16.70%) than 90.63% of its industry peers.
In the last couple of years the Gross Margin of OSW has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.76% | ||
| PM (TTM) | 8.14% | ||
| GM | 16.7% |
OM growth 3YN/A
OM growth 5Y104.03%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y24.7%
GM growth 5Y4.11%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), OSW is destroying value.
OSW has more shares outstanding than it did 1 year ago.
OSW has more shares outstanding than it did 5 years ago.
The debt/assets ratio for OSW has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 7.36 indicates that OSW is not in any danger for bankruptcy at the moment.
OSW has a Altman-Z score of 7.36. This is amongst the best in the industry. OSW outperforms 93.75% of its industry peers.
OSW has a debt to FCF ratio of 1.37. This is a very positive value and a sign of high solvency as it would only need 1.37 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 1.37, OSW is doing good in the industry, outperforming 79.69% of the companies in the same industry.
OSW has a Debt/Equity ratio of 0.17. This is a healthy value indicating a solid balance between debt and equity.
OSW has a Debt to Equity ratio of 0.17. This is comparable to the rest of the industry: OSW outperforms 54.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 1.37 | ||
| Altman-Z | 7.36 |
ROIC/WACC0.9
WACC10.32%
2.3 Liquidity
OSW has a Current Ratio of 2.03. This indicates that OSW is financially healthy and has no problem in meeting its short term obligations.
OSW has a Current ratio of 2.03. This is in the better half of the industry: OSW outperforms 70.31% of its industry peers.
A Quick Ratio of 1.45 indicates that OSW should not have too much problems paying its short term obligations.
OSW has a Quick ratio (1.45) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.03 | ||
| Quick Ratio | 1.45 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 37.10% over the past year.
Measured over the past years, OSW shows a quite strong growth in Earnings Per Share. The EPS has been growing by 13.07% on average per year.
Looking at the last year, OSW shows a quite strong growth in Revenue. The Revenue has grown by 12.71% in the last year.
The Revenue has been growing by 15.06% on average over the past years. This is quite good.
EPS 1Y (TTM)37.1%
EPS 3YN/A
EPS 5Y13.07%
EPS Q2Q%66.67%
Revenue 1Y (TTM)12.71%
Revenue growth 3Y83.86%
Revenue growth 5Y15.06%
Sales Q2Q%11.5%
3.2 Future
Based on estimates for the next years, OSW will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.12% on average per year.
Based on estimates for the next years, OSW will show a quite strong growth in Revenue. The Revenue will grow by 9.90% on average per year.
EPS Next Y18.94%
EPS Next 2Y16.15%
EPS Next 3Y15%
EPS Next 5Y16.12%
Revenue Next Year8.62%
Revenue Next 2Y8.59%
Revenue Next 3Y9.36%
Revenue Next 5Y9.9%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 21.93, OSW is valued on the expensive side.
62.50% of the companies in the same industry are more expensive than OSW, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of OSW to the average of the S&P500 Index (29.75), we can say OSW is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 18.44, the valuation of OSW can be described as rather expensive.
OSW's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. OSW is cheaper than 71.88% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.44. OSW is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.93 | ||
| Fwd PE | 18.44 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as OSW.
OSW's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.9 | ||
| EV/EBITDA | 19.72 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
OSW has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as OSW's earnings are expected to grow with 15.00% in the coming years.
PEG (NY)1.16
PEG (5Y)1.68
EPS Next 2Y16.15%
EPS Next 3Y15%
5. Dividend
5.1 Amount
With a yearly dividend of 0.86%, OSW is not a good candidate for dividend investing.
OSW's Dividend Yield is rather good when compared to the industry average which is at 4.60. OSW pays more dividend than 84.38% of the companies in the same industry.
With a Dividend Yield of 0.86, OSW pays less dividend than the S&P500 average, which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.86% |
5.2 History
OSW has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
OSW pays out 11.43% of its income as dividend. This is a sustainable payout ratio.
DP11.43%
EPS Next 2Y16.15%
EPS Next 3Y15%
18.64
-0.44 (-2.31%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners97.16%
Inst Owner Change0.76%
Ins Owners4.2%
Ins Owner Change-16.96%
Market Cap1.94B
Analysts84.44
Price Target22.7 (21.78%)
Short Float %1.36%
Short Ratio2.38
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.86% |
Yearly Dividend0.08
Dividend Growth(5Y)N/A
DP11.43%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.35%
Min EPS beat(2)-5.7%
Max EPS beat(2)12.41%
EPS beat(4)2
Avg EPS beat(4)4.13%
Min EPS beat(4)-5.7%
Max EPS beat(4)12.41%
EPS beat(8)5
Avg EPS beat(8)5.83%
EPS beat(12)9
Avg EPS beat(12)30.77%
EPS beat(16)13
Avg EPS beat(16)31.73%
Revenue beat(2)1
Avg Revenue beat(2)0.26%
Min Revenue beat(2)-0.03%
Max Revenue beat(2)0.54%
Revenue beat(4)3
Avg Revenue beat(4)0.53%
Min Revenue beat(4)-0.03%
Max Revenue beat(4)0.91%
Revenue beat(8)6
Avg Revenue beat(8)1.36%
Revenue beat(12)10
Avg Revenue beat(12)3.71%
Revenue beat(16)14
Avg Revenue beat(16)11.65%
PT rev (1m)0%
PT rev (3m)8.54%
EPS NQ rev (1m)-1.39%
EPS NQ rev (3m)-1.69%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.5%
Revenue NQ rev (1m)-4.41%
Revenue NQ rev (3m)-4.44%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.93 | ||
| Fwd PE | 18.44 | ||
| P/S | 2.17 | ||
| P/FCF | 26.9 | ||
| P/OCF | 24.6 | ||
| P/B | 3.5 | ||
| P/tB | 79.22 | ||
| EV/EBITDA | 19.72 |
EPS(TTM)0.85
EY4.56%
EPS(NY)1.01
Fwd EY5.42%
FCF(TTM)0.69
FCFY3.72%
OCF(TTM)0.76
OCFY4.07%
SpS8.61
BVpS5.33
TBVpS0.24
PEG (NY)1.16
PEG (5Y)1.68
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.76% | ||
| ROE | 13.14% | ||
| ROCE | 11.76% | ||
| ROIC | 9.29% | ||
| ROICexc | 10.17% | ||
| ROICexgc | 77.9% | ||
| OM | 8.76% | ||
| PM (TTM) | 8.14% | ||
| GM | 16.7% | ||
| FCFM | 8.05% |
ROA(3y)5.59%
ROA(5y)-6.84%
ROE(3y)9%
ROE(5y)-17.22%
ROIC(3y)6.08%
ROIC(5y)N/A
ROICexc(3y)6.52%
ROICexc(5y)N/A
ROICexgc(3y)63.18%
ROICexgc(5y)N/A
ROCE(3y)7.7%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y115.38%
ROICexc growth 3YN/A
ROICexc growth 5Y151.4%
OM growth 3YN/A
OM growth 5Y104.03%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y24.7%
GM growth 5Y4.11%
F-Score8
Asset Turnover1.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 1.37 | ||
| Debt/EBITDA | 0.91 | ||
| Cap/Depr | 27.78% | ||
| Cap/Sales | 0.75% | ||
| Interest Coverage | 6.9 | ||
| Cash Conversion | 76.72% | ||
| Profit Quality | 98.89% | ||
| Current Ratio | 2.03 | ||
| Quick Ratio | 1.45 | ||
| Altman-Z | 7.36 |
F-Score8
WACC10.32%
ROIC/WACC0.9
Cap/Depr(3y)24.65%
Cap/Depr(5y)19.09%
Cap/Sales(3y)0.77%
Cap/Sales(5y)1.21%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)37.1%
EPS 3YN/A
EPS 5Y13.07%
EPS Q2Q%66.67%
EPS Next Y18.94%
EPS Next 2Y16.15%
EPS Next 3Y15%
EPS Next 5Y16.12%
Revenue 1Y (TTM)12.71%
Revenue growth 3Y83.86%
Revenue growth 5Y15.06%
Sales Q2Q%11.5%
Revenue Next Year8.62%
Revenue Next 2Y8.59%
Revenue Next 3Y9.36%
Revenue Next 5Y9.9%
EBIT growth 1Y39.2%
EBIT growth 3YN/A
EBIT growth 5Y134.76%
EBIT Next Year53.46%
EBIT Next 3Y24%
EBIT Next 5Y20.9%
FCF growth 1Y24.32%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y24.33%
OCF growth 3YN/A
OCF growth 5YN/A