One-glance verdict
Undervalued
$18.44 our estimate vs market $0.66
96% below our estimate, below the bear case
Fundamentals snapshot
XWELL, Inc.
XWEL · NCM · Healthcare · Diagnostics & Research
Current price
$0.66
52-week range
$0.26 - $2.20
Market cap
$7.04M
Balance sheet
Healthy
-69.82x Concerning
Net cash $4.49M. Interest coverage shows how many times profit covers the interest bill.
What stands out
1 Reward
1 Risk
1 rewards · 1 risks
- Reward Free cash flow was positive in 1/10 years.
- Risk Return on equity was -361.4% last year — the company lost money on shareholders' equity.
What this company does
XWELL, Inc.
XWELL, Inc. provides health and wellness services primarily to travelers, offering things like spa treatments and COVID-19 testing. Their money mostly comes from these services provided at airports, which is important because it directly links their business success to the travel industry's recovery and traveler demand.
How the company got here
XWELL, Inc. was founded in 2006 and was formerly known as XpresSpa Group, Inc.. The company initially focused on providing spa services to travelers in airports under the XpresSpa brand. As the travel industry evolved, particularly with the onset of the COVID-19 pandemic, XWELL expanded its offerings to include health testing services through its XpresTest segment. This strategic shift aimed to leverage its airport presence for health and wellness solutions beyond traditional spa treatments. In October 2022, the company rebranded to XWELL, Inc. to reflect its broader focus on health and wellness services. More recently, XWELL has been repositioning itself to focus on national security and biosecurity solutions, which has led to agreements to divest its XpresSpa and XpresTest businesses.
What it actually does
XWELL, Inc. is a health and wellness company that provides a range of services primarily to travelers. It operates through different brands that offer everything from spa treatments and beauty services to health testing and biosurveillance. The company aims to offer restorative and health-focused services in convenient locations, often within airports, but also in off-airport settings. XWELL's business model has evolved to include transactional service fees, retail product sales, and government-contracted services.
XpresSpa
The XpresSpa segment is XWELL's original business and focuses on providing spa and wellness services to travelers, primarily in airport locations. This includes a variety of services such as massages, nail care, and skin care treatments, as well as the sale of spa and travel-related products. The goal is to offer travelers a way to relax and rejuvenate during their journeys, whether they have a short layover or a longer wait. XpresSpa operates numerous locations in major airports across the United States and internationally.
XpresTest
The XpresTest segment, which operates under the XpresCheck brand, was established to provide health testing services, notably during the COVID-19 pandemic. It offers diagnostic testing, including COVID-19 tests, to travelers, airport employees, and other personnel. Beyond direct testing, XpresTest is involved in public health initiatives, such as aircraft wastewater and passenger nasal sampling for the CDC's bio-surveillance program, which helps in monitoring for various pathogens and new variants. This segment leverages airport infrastructure to provide essential health screening and monitoring services.
Naples Wax Center
The Naples Wax Center segment offers a range of skincare and cosmetic services, with a specialization in face and body waxing for both men and women. This business operates from dedicated centers, primarily located off-airport, providing a more traditional salon experience. The services include various types of waxing, as well as facial treatments and the sale of skincare products. This segment allows XWELL to serve a customer base beyond just travelers and expand its retail footprint.
What management is betting on now
XWELL's management is currently focused on a strategic pivot towards the national security and biosecurity sectors. This involves divesting its consumer-facing wellness businesses, XpresSpa and XpresTest, to concentrate resources on these new growth areas. The company believes this repositioning will maximize stockholder value and strengthen its ability to invest in future initiatives within the national security space. This strategic shift represents a significant change from its historical focus on travel-related wellness services.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$-3.83M
FY2024 Q4
$-4.19M
FY2025 Q1
$-4.60M
FY2025 Q2
$-3.27M
FY2025 Q3
$-3.05M
FY2025 Q4
$-748.00K
FY2026 Q1
$-4.99M
FY2026 Q2
$-4.68M
Revenue
$7.14M
Net income
$-2.24M
Diluted EPS
-0.26
Operating cash flow
$-4.51M
Free cash flow
$-4.68M
Fetching…
Sources
Revenue
$6.64M
Net income
$-11.20M
Diluted EPS
-1.51
Operating cash flow
$-4.60M
Free cash flow
$-4.99M
Fetching…
Sources
Revenue
$7.15M
Net income
$-9.28M
Diluted EPS
-3.26
Operating cash flow
$-42.00K
Free cash flow
$-748.00K
Fetching…
Sources
Revenue
$7.34M
Net income
$-724.00K
Diluted EPS
-0.26
Operating cash flow
$-2.11M
Free cash flow
$-3.05M
Fetching…
Sources
Revenue
$7.69M
Net income
$-2.27M
Diluted EPS
-0.56
Operating cash flow
$-2.39M
Free cash flow
$-3.27M
Fetching…
Sources
Revenue
$7.02M
Net income
$-4.72M
Diluted EPS
-1.00
Operating cash flow
$-4.18M
Free cash flow
$-4.60M
Fetching…
Sources
Revenue
$7.47M
Net income
$-7.59M
Diluted EPS
-1.59
Operating cash flow
$-3.46M
Free cash flow
$-4.19M
Fetching…
Sources
Revenue
$8.42M
Net income
$-4.75M
Diluted EPS
-0.99
Operating cash flow
$-3.42M
Free cash flow
$-3.83M
Fetching…
Sources
Is it cheap or expensive?
Fair value $18.44 vs current price $0.66
Our most-likely fair value is $18.44 a share — about 2,683.5% above today's price of $0.66, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net cash $4.5M - more cash than debt. Interest coverage -69.8x.
Net debt
$-4.49M
Interest coverage
-69.82x
XWELL, Inc.'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.
Healthy
Worse cushion
Baseline
Better cushion
XWEL
BASELINE
XWELL, Inc.
Total debt $7.29M Interest coverage -69.82x This is the baseline the peer rows are being compared against.
Total debt $301.43M Interest coverage 1.19x This peer still has a real interest-payment cushion, while XWEL does not.
Total debt $79.27M Interest coverage 15.44x This peer still has a real interest-payment cushion, while XWEL does not.
Total debt $426.31M Interest coverage 0.73x This peer still has a real interest-payment cushion, while XWEL does not.
What you should know
The case for and against XWEL
1 Reward
1 Risk
Rewards
-
Free cash flow was positive in 1/10 years.
Risks
-
Return on equity was -361.4% 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
-0.25x
P/B
-3.03x
P/S
0.25x
EV/EBITDA
-1.18x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
34.3%
Operating margin
-26.1%
Net margin
-82.9%
ROE
-361.4%
ROA
-31.4%
Health
Liquidity and balance-sheet strength
Debt / equity
0.88x
Current ratio
2.27x
Quick ratio
2.04x
Total debt
$7.29M
Total cash
$11.78M
Growth
How the business has been compounding
Revenue TTM
$28.28M
Revenue 5Y CAGR
-20.7%
EPS TTM
-5.24
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$-11.27M
Free CF TTM
$-11.68M
FCF margin
-41.3%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
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