One-glance verdict
Overvalued
$-0.56 our estimate vs market $0.88
Wall Street consensus: $2.05 (-464.8% lower than our fair-value estimate)
256% below our estimate, beyond the bull case
Fundamentals snapshot
Waldencast plc
WALD · NCM · Consumer Defensive · Household & Personal Products
Current price
$0.88
52-week range
$0.71 - $3.22
Market cap
$111.87M
Balance sheet
Distressed
-2.59x Concerning
Net debt $141.49M. Interest coverage shows how many times profit covers the interest bill.
What stands out
1 Reward
2 Risks
1 rewards · 2 risks
- Reward Free cash flow was positive in 1/10 years.
- Risk Operating margin compressed from -1.1% to -156.9% over 3 years.
- Risk Return on equity was -62.7% last year — the company lost money on shareholders' equity.
What this company does
Waldencast plc
Waldencast plc sells beauty and skincare products, like anti-aging creams and makeup, primarily in North America and Europe. The money they make comes from selling these products through doctors, shops, and directly to people online. This matters because it shows how well their brands are doing and if people are buying their items.
How the company got here
Waldencast plc was founded in 2021 by executives with experience in the beauty and consumer goods industries. Their goal was to create a company that would acquire and grow multiple beauty and wellness brands. The company was initially structured as a special purpose acquisition company (SPAC), which is a type of company created specifically to raise money through an initial public offering (IPO) to acquire an existing company. In 2022, Waldencast completed a significant business combination, bringing together two key brands, Obagi Medical and Milk Makeup, under the Waldencast plc umbrella. This move effectively created the company as it operates today, aiming to leverage the strengths of both brands within a larger platform. The company's legal domicile is in Jersey, with its main operations centered in the United States.
What it actually does
Waldencast plc operates as a platform for beauty and wellness brands. Think of it like a parent company that owns several different businesses, each with its own products. The company's main focus is on prestige beauty products, which are generally higher-end and marketed with a focus on quality and brand image. Waldencast aims to grow these brands by improving their marketing, expanding where they are sold, and finding efficiencies in how they operate. The company's strategy is to own a select group of brands that have unique identities and then enhance their performance through shared resources and expertise.
Obagi Medical
Obagi Medical is one of Waldencast's core businesses, focusing on clinically-backed skincare products. These products are designed to address signs of aging, such as fine lines and wrinkles, as well as issues like dark spots and uneven skin tone. The brand has a strong foundation in physician-dispensed skincare, meaning it's often recommended by doctors and dermatologists. Obagi's products are sold through various channels, including distributors, retailers, and directly to consumers online. This segment is a significant contributor to Waldencast's overall revenue.
Milk Makeup
Milk Makeup is the other primary business within Waldencast, offering a range of cosmetics and beauty products. This brand is known for its 'clean' and 'prestige' positioning, meaning its products are formulated with a focus on quality ingredients and are marketed to a discerning customer. Milk Makeup's offerings include items like foundation, concealer, blush, and lip products. The brand has a strong presence online through its e-commerce platform and is also available through major beauty retailers. It appeals particularly to a younger demographic, with an emphasis on self-expression and inclusivity.
What management is betting on now
Waldencast's management is focused on two main goals: accelerating the growth of its existing brands, Obagi Medical and Milk Makeup, and building a stronger operational platform to support future brand acquisitions. They are investing in expanding the reach of Milk Makeup through new product launches and broader retail availability, both online and in physical stores. For Obagi Medical, the strategy includes strengthening its clinical positioning and expanding internationally. The company is also exploring ways to enhance its balance sheet and sharpen its strategic focus, which may involve strategic reviews of its business.
Price history
How the share price has moved
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Is it cheap or expensive?
Fair value $-0.56 vs current price $0.88
Wall Street consensus is the average analyst price target: $2.05 (-464.8% lower than our fair-value estimate).
Our most-likely fair value is $-0.56 a share — about 163.9% below today's price of $0.88, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Distressed
Net debt $141.5M. Interest coverage -2.6x.
Net debt
$141.49M
Interest coverage
-2.59x
Waldencast plc's profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Distressed
Worse cushion
Baseline
Better cushion
WALD
BASELINE
Waldencast plc
Total debt $149.30M Interest coverage -2.59x This is the baseline the peer rows are being compared against.
Total debt $367.04M Interest coverage -1.08x Neither company has much profit cushion over interest right now.
Total debt $288.10M Interest coverage 6.52x This peer still has a real interest-payment cushion, while WALD does not.
Total debt $559.24M Interest coverage 7.01x This peer still has a real interest-payment cushion, while WALD does not.
Total debt $3.30B Interest coverage 1.53x This peer still has a real interest-payment cushion, while WALD does not.
Total debt $164.91M Interest coverage 37.30x This peer still has a real interest-payment cushion, while WALD does not.
What you should know
The case for and against WALD
1 Reward
2 Risks
Rewards
-
Free cash flow was positive in 1/10 years.
Risks
-
Operating margin compressed from -1.1% to -156.9% over 3 years.
-
Return on equity was -62.7% last year — the company lost money on shareholders' equity.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
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Forward P/E
-1.10x
P/B
0.27x
P/S
0.47x
EV/EBITDA
-9.27x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
65.8%
Operating margin
-156.9%
Net margin
-70.2%
ROE
-62.7%
ROA
-7.5%
Health
Liquidity and balance-sheet strength
Debt / equity
0.38x
Current ratio
4.80x
Quick ratio
0.13x
Total debt
$149.30M
Total cash
$7.82M
Growth
How the business has been compounding
Revenue TTM
$237.32M
Revenue 5Y CAGR
24.1%
EPS TTM
-1.25
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$-12.82M
Free CF TTM
$-16.48M
FCF margin
-6.9%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
—
Last ex-div date
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