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 70 industry peers in the Diversified Consumer Services industry. OSW is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. OSW is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year OSW was profitable.
In the past year OSW had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: OSW reported negative net income in multiple years.
In multiple years OSW reported negative operating cash flow during the last 5 years.
1.2 Ratios
The Return On Assets of OSW (9.45%) is better than 81.43% of its industry peers.
The Return On Equity of OSW (12.62%) is better than 72.86% of its industry peers.
OSW has a better Return On Invested Capital (9.76%) than 82.86% of its industry peers.
The Average Return On Invested Capital over the past 3 years for OSW is below the industry average of 10.94%.
The last Return On Invested Capital (9.76%) for OSW is above the 3 year average (6.08%), which is a sign of increasing profitability.
| 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's Profit Margin of 7.41% is fine compared to the rest of the industry. OSW outperforms 67.14% of its industry peers.
OSW has a Operating Margin of 8.67%. This is in the better half of the industry: OSW outperforms 64.29% of its industry peers.
In the last couple of years the Operating Margin of OSW has grown nicely.
The Gross Margin of OSW (16.82%) is worse than 85.71% 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.
OSW has more shares outstanding than it did 1 year ago.
The number of shares outstanding for OSW has been increased compared to 5 years ago.
Compared to 1 year ago, OSW has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 7.88 indicates that OSW is not in any danger for bankruptcy at the moment.
OSW has a Altman-Z score of 7.88. This is amongst the best in the industry. OSW outperforms 91.43% of its industry peers.
The Debt to FCF ratio of OSW is 1.46, which is an excellent value as it means it would take OSW, only 1.46 years of fcf income to pay off all of its debts.
OSW's Debt to FCF ratio of 1.46 is amongst the best of the industry. OSW outperforms 84.29% of its industry peers.
A Debt/Equity ratio of 0.17 indicates that OSW is not too dependend on debt financing.
OSW has a Debt to Equity ratio of 0.17. This is comparable to the rest of the industry: OSW outperforms 54.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 1.46 | ||
| Altman-Z | 7.88 |
ROIC/WACC1.1
WACC8.9%
2.3 Liquidity
OSW has a Current Ratio of 1.73. This is a normal value and indicates that OSW is financially healthy and should not expect problems in meeting its short term obligations.
OSW has a better Current ratio (1.73) than 70.00% of its industry peers.
A Quick Ratio of 1.06 indicates that OSW should not have too much problems paying its short term obligations.
OSW has a Quick ratio of 1.06. This is comparable to the rest of the industry: OSW outperforms 45.71% of its industry peers.
| 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.
The Revenue has grown by 9.79% in the past year. This is quite good.
Measured over the past years, OSW shows a quite strong growth in Revenue. The Revenue has been growing by 15.06% on average per year.
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
Based on estimates for the next years, OSW will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.37% on average per year.
The Revenue is expected to grow by 9.75% on average over the next years. This is quite good.
EPS Next Y17.96%
EPS Next 2Y15.68%
EPS Next 3Y14.06%
EPS Next 5Y15.37%
Revenue Next Year6.86%
Revenue Next 2Y7.92%
Revenue Next 3Y8.61%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
OSW is valuated rather expensively with a Price/Earnings ratio of 22.07.
OSW's Price/Earnings ratio is a bit cheaper when compared to the industry. OSW is cheaper than 67.14% of the companies in the same industry.
OSW's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.34.
A Price/Forward Earnings ratio of 17.07 indicates a rather expensive valuation of OSW.
70.00% of the companies in the same industry are more expensive than OSW, based on the Price/Forward Earnings ratio.
OSW's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.19.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.07 | ||
| Fwd PE | 17.07 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as OSW.
64.29% of the companies in the same industry are more expensive than OSW, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.89 | ||
| EV/EBITDA | 20.18 |
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 14.06% in the coming years.
PEG (NY)1.23
PEG (5Y)1.69
EPS Next 2Y15.68%
EPS Next 3Y14.06%
5. Dividend
5.1 Amount
With a yearly dividend of 0.83%, OSW is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.32, OSW pays a better dividend. On top of this OSW pays more dividend than 85.71% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, OSW's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.83% |
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 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 2Y15.68%
EPS Next 3Y14.06%
19.42
+0.25 (+1.3%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners103.35%
Inst Owner Change9.4%
Ins Owners3.85%
Ins Owner Change-3.46%
Market Cap1.99B
Analysts84.44
Price Target22.44 (15.55%)
Short Float %3.3%
Short Ratio4.19
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.83% |
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)2.67%
EPS NQ rev (3m)2.26%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.82%
Revenue NQ rev (1m)0.23%
Revenue NQ rev (3m)-1.04%
Revenue NY rev (1m)0.16%
Revenue NY rev (3m)-0.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.07 | ||
| Fwd PE | 17.07 | ||
| P/S | 2.21 | ||
| P/FCF | 29.89 | ||
| P/OCF | 26.97 | ||
| P/B | 3.76 | ||
| P/tB | 427.53 | ||
| EV/EBITDA | 20.18 |
EPS(TTM)0.88
EY4.53%
EPS(NY)1.14
Fwd EY5.86%
FCF(TTM)0.65
FCFY3.35%
OCF(TTM)0.72
OCFY3.71%
SpS8.8
BVpS5.17
TBVpS0.05
PEG (NY)1.23
PEG (5Y)1.69
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 | 7.88 |
F-Score8
WACC8.9%
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 2Y15.68%
EPS Next 3Y14.06%
EPS Next 5Y15.37%
Revenue 1Y (TTM)9.79%
Revenue growth 3Y83.86%
Revenue growth 5Y15.06%
Sales Q2Q%3.98%
Revenue Next Year6.86%
Revenue Next 2Y7.92%
Revenue Next 3Y8.61%
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