Mister Car Wash, Inc.
Mister Car Wash, Inc. Fundamental Analysis
Mister Car Wash, Inc. (MCW) shows weak financial fundamentals with a PE ratio of 22.20, profit margin of 9.80%, and ROE of 9.49%. The company generates $1.1B in annual revenue with moderate year-over-year growth of 7.30%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 37.5/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze MCW's fundamental strength across five key dimensions:
Efficiency Score
WeakMCW struggles to generate sufficient returns from assets.
Valuation Score
ModerateMCW shows balanced valuation metrics.
Growth Score
ModerateMCW shows steady but slowing expansion.
Financial Health Score
ModerateMCW shows balanced financial health with some risks.
Profitability Score
WeakMCW struggles to sustain strong margins.
Key Financial Metrics
Is MCW Expensive or Cheap?
P/E Ratio
MCW trades at 22.20 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, MCW's PEG of 2.07 indicates potential overvaluation.
Price to Book
The market values Mister Car Wash, Inc. at 2.02 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 4.48 times EBITDA. This is generally considered low.
How Well Does MCW Make Money?
Net Profit Margin
For every $100 in sales, Mister Car Wash, Inc. keeps $9.80 as profit after all expenses.
Operating Margin
Core operations generate 20.08 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $9.49 in profit for every $100 of shareholder equity.
ROA
Mister Car Wash, Inc. generates $3.25 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Mister Car Wash, Inc. generates strong operating cash flow of $333.51M, reflecting robust business health.
Free Cash Flow
Mister Car Wash, Inc. produces free cash flow of $78.30M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.24 in free cash annually.
FCF Yield
MCW converts 3.43% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
22.20
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.07
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.02
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.17
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.86
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.32
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.09
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.07
vs 25 benchmark
How MCW Stacks Against Its Sector Peers
| Metric | MCW Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 22.20 | 24.93 | Better (Cheaper) |
| ROE | 9.49% | 1149.00% | Weak |
| Net Margin | 9.80% | 750.00% | Weak |
| Debt/Equity | 0.86 | 0.76 | Neutral |
| Current Ratio | 0.32 | 9.21 | Weak Liquidity |
| ROA | 3.25% | 1268.00% | Weak |
MCW outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Mister Car Wash, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
46.18%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
6962.86%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
228.23%
Industry Style: Cyclical, Growth, Discretionary
High Growth