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 73 industry peers in the Diversified Consumer Services industry. While OSW has a great health rating, its profitability is only average at the moment. OSW is not overvalued while it is showing excellent growth. This is an interesting combination. With these ratings, OSW could be worth investigating further 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.
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
With an excellent Return On Assets value of 9.76%, OSW belongs to the best of the industry, outperforming 83.56% of the companies in the same industry.
OSW has a Return On Equity of 13.14%. This is in the better half of the industry: OSW outperforms 75.34% of its industry peers.
With an excellent Return On Invested Capital value of 9.29%, OSW belongs to the best of the industry, outperforming 82.19% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for OSW is significantly below the industry average of 11.99%.
The 3 year average ROIC (6.08%) for OSW is below the current ROIC(9.29%), indicating increased profibility in the last year.
| 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 72.60% of its industry peers.
Looking at the Operating Margin, with a value of 8.76%, OSW is in the better half of the industry, outperforming 67.12% of the companies in the same industry.
OSW's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 16.70%, OSW is not doing good in the industry: 82.19% of the companies in the same industry are doing better.
OSW's Gross Margin has improved in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so OSW is still creating some value.
Compared to 1 year ago, OSW has more shares outstanding
Compared to 5 years ago, OSW has more shares outstanding
The debt/assets ratio for OSW has been reduced compared to a year ago.
2.2 Solvency
OSW has an Altman-Z score of 7.04. This indicates that OSW is financially healthy and has little risk of bankruptcy at the moment.
OSW has a Altman-Z score of 7.04. This is amongst the best in the industry. OSW outperforms 90.41% 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.
OSW has a better Debt to FCF ratio (1.37) than 84.93% 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 (0.17) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 1.37 | ||
| Altman-Z | 7.04 |
ROIC/WACC1
WACC9.27%
2.3 Liquidity
A Current Ratio of 2.03 indicates that OSW has no problem at all paying its short term obligations.
OSW has a Current ratio of 2.03. This is in the better half of the industry: OSW outperforms 73.97% of its industry peers.
A Quick Ratio of 1.45 indicates that OSW should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.45, OSW is doing good in the industry, outperforming 60.27% of the companies in the same industry.
| 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 29.41% 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.
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 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 9.73% on average per year.
EPS Next Y15.04%
EPS Next 2Y13.67%
EPS Next 3Y12.81%
EPS Next 5Y16.12%
Revenue Next Year7.03%
Revenue Next 2Y7.72%
Revenue Next 3Y8.33%
Revenue Next 5Y9.73%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
With a Price/Earnings ratio of 20.77, OSW is valued on the expensive side.
OSW's Price/Earnings ratio is a bit cheaper when compared to the industry. OSW is cheaper than 69.86% of the companies in the same industry.
OSW's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.10.
The Price/Forward Earnings ratio is 16.64, which indicates a correct valuation of OSW.
69.86% of the companies in the same industry are more expensive than OSW, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.74, OSW is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.77 | ||
| Fwd PE | 16.64 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as OSW.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of OSW indicates a somewhat cheap valuation: OSW is cheaper than 68.49% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.05 | ||
| EV/EBITDA | 18.73 |
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.
A more expensive valuation may be justified as OSW's earnings are expected to grow with 12.81% in the coming years.
PEG (NY)1.38
PEG (5Y)1.59
EPS Next 2Y13.67%
EPS Next 3Y12.81%
5. Dividend
5.1 Amount
With a yearly dividend of 0.87%, OSW is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.74, OSW pays a better dividend. On top of this OSW pays more dividend than 84.93% of the companies listed in the same industry.
With a Dividend Yield of 0.87, OSW pays less dividend than the S&P500 average, which is at 2.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.87% |
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 Years0
5.3 Sustainability
11.43% of the earnings are spent on dividend by OSW. This is a low number and sustainable payout ratio.
DP11.43%
EPS Next 2Y13.67%
EPS Next 3Y12.81%
18.28
-0.05 (-0.27%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners97.16%
Inst Owner Change2.45%
Ins Owners4.2%
Ins Owner Change-14.66%
Market Cap1.88B
Analysts84.44
Price Target23.21 (26.97%)
Short Float %3.8%
Short Ratio2.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.87% |
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)-4.21%
PT rev (3m)2.25%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.48%
EPS NY rev (1m)-2.22%
EPS NY rev (3m)-3.28%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.41%
Revenue NY rev (1m)-0.55%
Revenue NY rev (3m)-1.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.77 | ||
| Fwd PE | 16.64 | ||
| P/S | 2.1 | ||
| P/FCF | 26.05 | ||
| P/OCF | 23.82 | ||
| P/B | 3.39 | ||
| P/tB | 76.74 | ||
| EV/EBITDA | 18.73 |
EPS(TTM)0.88
EY4.81%
EPS(NY)1.1
Fwd EY6.01%
FCF(TTM)0.7
FCFY3.84%
OCF(TTM)0.77
OCFY4.2%
SpS8.71
BVpS5.4
TBVpS0.24
PEG (NY)1.38
PEG (5Y)1.59
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 | 7.04 |
F-Score8
WACC9.27%
ROIC/WACC1
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 Y15.04%
EPS Next 2Y13.67%
EPS Next 3Y12.81%
EPS Next 5Y16.12%
Revenue 1Y (TTM)9.79%
Revenue growth 3Y83.86%
Revenue growth 5Y15.06%
Sales Q2Q%3.98%
Revenue Next Year7.03%
Revenue Next 2Y7.72%
Revenue Next 3Y8.33%
Revenue Next 5Y9.73%
EBIT growth 1Y39.2%
EBIT growth 3YN/A
EBIT growth 5Y134.76%
EBIT Next Year50.73%
EBIT Next 3Y23.1%
EBIT Next 5Y18.39%
FCF growth 1Y24.32%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y24.33%
OCF growth 3YN/A
OCF growth 5YN/A