Discounted Cash Flow Calculation for NasdaqCM:OSW using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for
is arrived at by discounting future cash flows to their present value using the 2 stage method.
We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
NasdaqCM:OSW DCF 1st Stage: Next 10 year cash flow forecast
Amount off the current price
is available for.
Share price is
vs Future cash flow value of
Current Discount Checks
to be considered undervalued it must be available for at least 20% below the
current price. Less than 40% is even better.
OneSpaWorld Holdings's share price is below the future cash flow value, and at a moderate discount (> 20%).
OneSpaWorld Holdings's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.
The amount the stock market is willing to pay for
is considered below, and whether this is a fair price.
Price based on past earnings
OneSpaWorld Holdings's earnings available for a low price, and how does
this compare to other companies in the same industry?
OneSpaWorld Holdings's earnings are expected to grow significantly at over 20% yearly.
OneSpaWorld Holdings's revenue is expected to grow by 11.8% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can
be gauged below. We look back 3 years and see if they were any good at
predicting what actually occurred. We also show the highest and lowest estimates
looking forward to see if there is a wide range.
OneSpaWorld Holdings's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent
earnings report. Some checks require at least 3 or 5 years worth of data.
has a total score of
0/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
A company's financial position is much like your own financial position,
it includes everything you own
The boxes below represent the relative size of what makes up
OneSpaWorld Holdings's finances.
The net worth of a company is the difference between its assets and liabilities.
OneSpaWorld Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
OneSpaWorld Holdings's long term commitments exceed its cash and other short term assets.
This treemap shows a more detailed breakdown of
OneSpaWorld Holdings's finances. If any of them are yellow this
indicates they may be out of proportion and red means they relate to one of the
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
Low level of unsold assets.
Debt is not covered by short term assets, assets are 0.4x debt.
Nearly all companies have debt. Debt in itself isn’t
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.
The graphic below shows equity (available funds) and debt, we ideally want to
see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and
whether the level has increased over the past 5 years.
Management is one of the most important areas of a company. We look at
unreasonable CEO compensation, how long the team and board of directors have
been around for and insider trading.
Mr. Glenn J. Fusfield serves as Chief Executive Officer and President at OneSpaWorld Holdings Limited and serves as its Director since March 18, 2019. He served as the President and Chief Executive Officer at One Spa World, LLC. Mr. Fusfield was the President and Chief Operating Officer of Steiner Transocean Limited, a subsidiary of Steiner Leisure Ltd., from January 1, 2012. Mr. Fusfield served as the Chief Operating Officer and Executive Vice President of Maritime at Steiner Leisure Ltd., since April 2007 until December 2011. Mr. Fusfield served as the Chief Operating Officer Steiner Leisure Ltd., from January 2001 to April 2007. Mr. Fusfield joined Steiner Leisure Ltd., in November 2000 as its Senior Vice President, Group Operations. Prior to joining Steiner Leisure Ltd., Mr. Fusfield was with Carnival Cruise Lines for 12 years, serving as Director, Hotel Operations for Carnival from January 1995 to December 1998, and Vice President, Hotel Operations from January 1999 to October 2000. Mr. Fusfield earned a B.A. from the University of Denver School of Hotel Management.
Insufficient data for Glenn to compare compensation growth.
Insufficient data for Glenn to establish whether their remuneration is reasonable compared to companies of similar size in United States of America.
Vice Chairman & Director
COO & CFO
Vice President of Sales & Revenue
Senior Vice President of Operations
SVP of Finance & Business Intelligence
Senior Vice President of Resort Operations – Asia
Manager Director of Academy
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The average tenure for the OneSpaWorld Holdings board of directors is less than 3 years, this suggests a new board.
Board of Directors
Vice Chairman & Director
Who owns this company?
Recent Insider Trading
No 3 month individual insider trading information.
These 4 Measures Indicate That OneSpaWorld Holdings (NASDAQ:OSW) Is Using Debt Extensively
Check out our latest analysis for OneSpaWorld Holdings What Is OneSpaWorld Holdings's Net Debt? … Either way, since OneSpaWorld Holdings does have more debt than cash, it's worth keeping an eye on its balance sheet. … Happily for any shareholders, OneSpaWorld Holdings actually produced more free cash flow than EBIT over the last three years.
Could OneSpaWorld Holdings Limited's (NASDAQ:OSW) Investor Composition Influence The Stock Price?
Every investor in OneSpaWorld Holdings Limited (NASDAQ:OSW) should be aware of the most powerful shareholder groups. … Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. … It has a market capitalization of US$837m, which means it would generally expect to see some institutions on the share registry.
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; 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 at sea. As of May 8, 2019, it offered health, fitness, beauty and wellness services, treatments, and products onboard 164 cruise ships and at 70 destination resorts. The company is headquartered in Nassau, Bahamas.
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