XWELL, Inc. (NASDAQ: XWEL)

Sector: Healthcare Industry: Diagnostics & Research CIK: 0001410428
Market Cap 2.32 Mn
P/B -0.37
P/E -0.13
P/S 0.08
ROIC (Qtr) -356.83
Div Yield % 0.00
Rev 1y % (Qtr) -12.79
Total Debt (Qtr) 9.56 Mn
Debt/Equity (Qtr) -1.51

About

XWELL, Inc., also known by its stock symbol XWEL, is a company that operates within the global wellness industry. Its focus is on providing restorative, regenerative, and reinvigorating products and services to travelers. The company is structured around four reportable operating segments: XpresSpa, XpresTest, Naples Wax Center, and Treat. XWELL's main business activities revolve around these four segments. XpresSpa is a global airport retailer that offers premium spa services such as massage, nail and skin care, as well as spa and travel products....

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Price action

Investment thesis

Bull case

  • Healthy cash reserves of 4.24M provide 2.04x coverage of short-term debt 2.07M, demonstrating strong liquidity position and minimal refinancing risk.
  • Tangible assets of 19.56M provide exceptional 17.35x coverage of deferred revenue 1.13M, showing strong service capability backing.
  • Operating cash flow of (12.13M) fully covers other non-current liabilities (324000) by 37.45x, showing strong long-term stability.
  • Robust tangible asset base of 19.56M provides 25.80x coverage of working capital 758000, indicating strong operational backing.
  • Retained earnings of (480.42M) represent substantial 75.86x of equity (6.33M), indicating strong internal capital generation.

Bear case

  • Operating cash flow of (12.13M) barely covers its investment activities of 8.51M, with a coverage ratio of -1.43, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of (12.13M) provides insufficient coverage of deferred revenue obligations of 1.13M, which is -10.77x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of (12.13M) shows concerning coverage of stock compensation expenses of 994000, with a -12.21 ratio indicating potential earnings quality issues.
  • High receivables of 1.48M relative to inventory of 516000 (2.87 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.
  • Operating cash flow of (12.13M) provides minimal -142.76x coverage of tax expenses of 85000, suggesting potential tax planning inefficiencies or unsustainable tax positions.

Segments Breakdown of Revenue (2024)

Product and Service Breakdown of Revenue (2024)

Peer comparison

Companies in the Diagnostics & Research
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 TMO Thermo Fisher Scientific Inc. 234.48 Bn 35.69 5.36 35.68 Bn
2 DHR Danaher Corp /De/ 171.11 Bn 48.85 7.05 16.86 Bn
3 IDXX Idexx Laboratories Inc /De 57.62 Bn 56.08 13.83 1.09 Bn
4 IQV Iqvia Holdings Inc. 42.37 Bn 33.03 2.66 15.19 Bn
5 A Agilent Technologies, Inc. 42.16 Bn 32.36 6.07 3.35 Bn
6 NTRA Natera, Inc. 31.64 Bn -102.32 14.95 0.18 Bn
7 MTD Mettler Toledo International Inc/ 30.89 Bn 36.96 7.84 2.21 Bn
8 WAT Waters Corp /De/ 23.59 Bn 36.37 7.60 1.49 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.31 2.82
EV to Cash from Ops. EV/CFO -0.56 19.55
EV to Debt EV to Debt 0.71 54.87
EV to EBIT EV/EBIT -0.45 18.82
EV to EBITDA EV/EBITDA -0.55 4.36
EV to Free Cash Flow [EV/FCF] EV/FCF -0.45 17.63
EV to Market Cap EV to Market Cap 2.92 1.58
EV to Revenue EV/Rev 0.23 5.06
Price to Book Value [P/B] P/B -0.37 1.35
Price to Earnings [P/E] P/E -0.13 18.88
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) -8.33 -2.00
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 2.86
Dividend per Basic Share Div per Share (Qtr) 0.00 0.19
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 1.94
Interest Coverage Int. cover (Qtr) 0.00 -128.90
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -126.29 -35.01
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -17.16 23.84
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.25
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -7.58 9.72
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -3.83 -444.66
EBIT Growth (1y) % EBIT 1y % (Qtr) -7.24 8.29
EBT Growth (1y) % EBT 1y % (Qtr) -7.24 -6.03
EPS Growth (1y) % EPS 1y % (Qtr) -3.69 15.59
FCF Growth (1y) % FCF 1y % (Qtr) -25.37 56.57
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -34.24 185.75
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 1.36 0.57
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.01
Cash Ratio Cash Ratio (Qtr) 0.42 1.23
Current Ratio Curr Ratio (Qtr) 1.08 2.70
Debt to Equity Ratio Debt/Equity (Qtr) -1.51 -0.84
Interest Cover Ratio Int Coverage (Qtr) 0.00 -128.90
Times Interest Earned Times Interest Earned (Qtr) 0.00 -128.90
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -45.00 -97.22
EBIT Margin % EBIT Margin % (Qtr) -51.56 -115.64
EBT Margin % EBT Margin % (Qtr) -51.56 -114.24
Gross Margin % Gross Margin % (Qtr) 19.30 44.76
Net Profit Margin % Net Margin % (Qtr) -58.90 -113.12