ONESPAWORLD HOLDINGS LTD (OSW) Stock Fundamental Analysis
NASDAQ:OSW - Nasdaq - BSP736841136 - Common Stock - Currency: USD
Overall OSW gets a fundamental rating of 6 out of 10. We evaluated OSW against 71 industry peers in the Diversified Consumer Services industry. OSW has an excellent financial health rating, but there are some minor concerns on its profitability. OSW has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
OSW had positive earnings in the past year.
In the past year OSW had a positive cash flow from operations.
In multiple years OSW reported negative net income over the last 5 years.
The reported operating cash flow has been mixed in the past 5 years: OSW reported negative operating cash flow in multiple years.
1.2 Ratios
The Return On Assets of OSW (9.45%) is better than 80.28% of its industry peers.
Looking at the Return On Equity, with a value of 12.62%, OSW is in the better half of the industry, outperforming 73.24% of the companies in the same industry.
With an excellent Return On Invested Capital value of 9.76%, OSW belongs to the best of the industry, outperforming 83.10% of the companies in the same industry.
OSW had an Average Return On Invested Capital over the past 3 years of 6.08%. This is below the industry average of 10.64%.
The 3 year average ROIC (6.08%) for OSW is below the current ROIC(9.76%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.45% | ||
| ROE | 12.62% | ||
| ROIC | 9.76% |
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 (7.41%) than 66.20% of its industry peers.
OSW has a Operating Margin of 8.67%. This is in the better half of the industry: OSW outperforms 64.79% of its industry peers.
In the last couple of years the Operating Margin of OSW has grown nicely.
OSW's Gross Margin of 16.82% is on the low side compared to the rest of the industry. OSW is outperformed by 85.92% of its industry peers.
In the last couple of years the Gross Margin of OSW has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.67% | ||
| PM (TTM) | 7.41% | ||
| GM | 16.82% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so OSW is still creating some value.
The number of shares outstanding for OSW has been increased compared to 1 year ago.
The number of shares outstanding for OSW has been increased compared to 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 8.67 indicates that OSW is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 8.67, OSW belongs to the best of the industry, outperforming 88.73% of the companies in the same industry.
OSW has a debt to FCF ratio of 1.46. This is a very positive value and a sign of high solvency as it would only need 1.46 years to pay back of all of its debts.
The Debt to FCF ratio of OSW (1.46) is better than 84.51% of its industry peers.
OSW has a Debt/Equity ratio of 0.17. This is a healthy value indicating a solid balance between debt and equity.
OSW's Debt to Equity ratio of 0.17 is in line compared to the rest of the industry. OSW outperforms 53.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 1.46 | ||
| Altman-Z | 8.67 |
ROIC/WACC1.1
WACC8.88%
2.3 Liquidity
A Current Ratio of 1.73 indicates that OSW should not have too much problems paying its short term obligations.
The Current ratio of OSW (1.73) is better than 70.42% of its industry peers.
OSW has a Quick Ratio of 1.06. This is a normal value and indicates that OSW is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.06, OSW perfoms like the industry average, outperforming 45.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.73 | ||
| Quick Ratio | 1.06 |
3. Growth
3.1 Past
OSW shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 29.41%, which is quite impressive.
The Earnings Per Share has been growing by 13.07% on average over the past years. This is quite good.
Looking at the last year, OSW shows a quite strong growth in Revenue. The Revenue has grown by 9.79% 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)29.41%
EPS 3YN/A
EPS 5Y13.07%
EPS Q2Q%15.79%
Revenue 1Y (TTM)9.79%
Revenue growth 3Y83.86%
Revenue growth 5Y15.06%
Sales Q2Q%3.98%
3.2 Future
OSW is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.37% yearly.
Based on estimates for the next years, OSW will show a quite strong growth in Revenue. The Revenue will grow by 9.75% on average per year.
EPS Next Y17.96%
EPS Next 2Y14.78%
EPS Next 3Y13.11%
EPS Next 5Y15.37%
Revenue Next Year6.87%
Revenue Next 2Y7.51%
Revenue Next 3Y8.14%
Revenue Next 5Y9.75%
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 stable.
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
The Price/Earnings ratio is 24.26, which indicates a rather expensive current valuation of OSW.
Based on the Price/Earnings ratio, OSW is valued a bit cheaper than the industry average as 61.97% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of OSW to the average of the S&P500 Index (27.30), we can say OSW is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 19.07, the valuation of OSW can be described as rather expensive.
Based on the Price/Forward Earnings ratio, OSW is valued a bit cheaper than 63.38% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.76. OSW is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.26 | ||
| Fwd PE | 19.07 |
4.2 Price Multiples
OSW's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of OSW indicates a somewhat cheap valuation: OSW is cheaper than 63.38% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.86 | ||
| EV/EBITDA | 22.46 |
4.3 Compensation for Growth
OSW's 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.
OSW's earnings are expected to grow with 13.11% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.35
PEG (5Y)1.86
EPS Next 2Y14.78%
EPS Next 3Y13.11%
5. Dividend
5.1 Amount
OSW has a yearly dividend return of 0.75%, which is pretty low.
OSW's Dividend Yield is rather good when compared to the industry average which is at 3.98. OSW pays more dividend than 83.10% of the companies in the same industry.
With a Dividend Yield of 0.75, OSW pays less dividend than the S&P500 average, which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.75% |
5.2 History
OSW has paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
18.69% of the earnings are spent on dividend by OSW. This is a low number and sustainable payout ratio.
DP18.69%
EPS Next 2Y14.78%
EPS Next 3Y13.11%
21.35
-0.35 (-1.61%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners103.35%
Inst Owner Change0%
Ins Owners3.85%
Ins Owner Change-3.46%
Market Cap2.19B
Analysts85
Price Target22.44 (5.11%)
Short Float %2.98%
Short Ratio4.67
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.75% |
Yearly Dividend0.08
Dividend Growth(5Y)N/A
DP18.69%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.19%
Min EPS beat(2)-5.7%
Max EPS beat(2)3.33%
EPS beat(4)2
Avg EPS beat(4)2.46%
Min EPS beat(4)-5.7%
Max EPS beat(4)12.41%
EPS beat(8)5
Avg EPS beat(8)3.6%
EPS beat(12)9
Avg EPS beat(12)28.91%
EPS beat(16)13
Avg EPS beat(16)30.86%
Revenue beat(2)1
Avg Revenue beat(2)-0.1%
Min Revenue beat(2)-0.75%
Max Revenue beat(2)0.54%
Revenue beat(4)2
Avg Revenue beat(4)0.17%
Min Revenue beat(4)-0.75%
Max Revenue beat(4)0.91%
Revenue beat(8)5
Avg Revenue beat(8)0.71%
Revenue beat(12)9
Avg Revenue beat(12)3.44%
Revenue beat(16)13
Avg Revenue beat(16)8.77%
PT rev (1m)2.33%
PT rev (3m)-7.37%
EPS NQ rev (1m)-3.02%
EPS NQ rev (3m)0.65%
EPS NY rev (1m)0%
EPS NY rev (3m)0.26%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)-1.14%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-0.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.26 | ||
| Fwd PE | 19.07 | ||
| P/S | 2.43 | ||
| P/FCF | 32.86 | ||
| P/OCF | 29.65 | ||
| P/B | 4.13 | ||
| P/tB | 470.02 | ||
| EV/EBITDA | 22.46 |
EPS(TTM)0.88
EY4.12%
EPS(NY)1.12
Fwd EY5.25%
FCF(TTM)0.65
FCFY3.04%
OCF(TTM)0.72
OCFY3.37%
SpS8.8
BVpS5.17
TBVpS0.05
PEG (NY)1.35
PEG (5Y)1.86
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.45% | ||
| ROE | 12.62% | ||
| ROCE | 12.35% | ||
| ROIC | 9.76% | ||
| ROICexc | 10.12% | ||
| ROICexgc | 72.31% | ||
| OM | 8.67% | ||
| PM (TTM) | 7.41% | ||
| GM | 16.82% | ||
| FCFM | 7.38% |
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 Turnover1.27
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 1.46 | ||
| Debt/EBITDA | 0.9 | ||
| Cap/Depr | 29.84% | ||
| Cap/Sales | 0.8% | ||
| Interest Coverage | 8.51 | ||
| Cash Conversion | 72.12% | ||
| Profit Quality | 99.62% | ||
| Current Ratio | 1.73 | ||
| Quick Ratio | 1.06 | ||
| Altman-Z | 8.67 |
F-Score8
WACC8.88%
ROIC/WACC1.1
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)29.41%
EPS 3YN/A
EPS 5Y13.07%
EPS Q2Q%15.79%
EPS Next Y17.96%
EPS Next 2Y14.78%
EPS Next 3Y13.11%
EPS Next 5Y15.37%
Revenue 1Y (TTM)9.79%
Revenue growth 3Y83.86%
Revenue growth 5Y15.06%
Sales Q2Q%3.98%
Revenue Next Year6.87%
Revenue Next 2Y7.51%
Revenue Next 3Y8.14%
Revenue Next 5Y9.75%
EBIT growth 1Y26.03%
EBIT growth 3YN/A
EBIT growth 5Y134.76%
EBIT Next Year48.51%
EBIT Next 3Y22.56%
EBIT Next 5Y18.67%
FCF growth 1Y199.45%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y168.82%
OCF growth 3YN/A
OCF growth 5YN/A