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1. Company Snapshot

1.a. Company Description

Mister Car Wash, Inc., together with its subsidiaries, provides conveyorized car wash services in the United States.It offers express exterior and interior cleaning services.As of June 16, 2022, it operated 407 car wash locations in 21 states.


The company was formerly known as Hotshine Holdings, Inc.and changed its name to Mister Car Wash, Inc.in March 2021.


Mister Car Wash, Inc.was founded in 1969 and is headquartered in Tucson, Arizona.

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1.b. Last Insights on MCW

Mister Car Wash's recent performance was negatively impacted by ongoing retail weakness, despite strong subscription growth and encouraging marketing results. The company's Q2 2025 earnings miss and revenue growth slowdown to 4% raised concerns. Retail sales declines and softer traffic dragged on overall results and profitability. A cautious growth outlook and slower store expansion also contributed to the negative sentiment. According to a recent note, a Hold rating was maintained due to these concerns, despite validating the subscription model (Source: August 7, 2025 note).

1.c. Company Highlights

2. Mister Car Wash's Q3 2025: A Strong Performance

Mister Car Wash delivered a robust financial performance in Q3 2025, with revenue increasing 6% to $263 million, and adjusted EBITDA rising 10% to $87 million. The company's comparable store sales growth of 3.1% marked its tenth consecutive quarter of comp gains. Earnings per share (EPS) came in at $0.11, beating estimates of $0.1. The company's UWC membership base grew 6% year-over-year to approximately 2.2 million members.

Publication Date: Nov -23

📋 Highlights
  • Revenue Growth: Q3 revenue increased 6% to $263 million, driven by 3.1% comparable store sales growth (10th consecutive quarter).
  • Adjusted EBITDA: Rose 10% to $87 million, with margin expanding 130 basis points to 32.9% due to cost discipline and sales leverage.
  • Membership Expansion: UWC members grew 6% YoY to 2.2 million, with 25% in premium Titanium tier (up to 35% in select markets).
  • Strategic M&A: Acquired 5 Lubbock, Texas, stores, expanding to 9 locations, signaling consolidation potential in the industry.

Operational Highlights

The company continued to execute on its strategic imperatives, opening five new greenfield locations and acquiring five stores in Lubbock, Texas. Mister Car Wash remains on track to open around 30 new stores in 2025, with a similar number planned for 2026. The company's focus on premiumization efforts, particularly with its Titanium membership tier, has been successful, with Titanium now accounting for 25% of the membership base.

Financial Performance

Total operating expenses were $177 million in the quarter, improving 130 basis points to 67.1% as a percentage of revenue. EBITDA margin increased to 32.9%, up 130 basis points. The company's strong liquidity position, with a leverage ratio of 2.4x adjusted EBITDA, provides flexibility for future growth initiatives. Analysts estimate revenue growth of 6.9% for the next year, indicating a positive outlook for the company's prospects.

Valuation Metrics

Using the current valuation metrics, Mister Car Wash's P/E Ratio stands at 17.9, indicating a relatively high multiple. The P/S Ratio is 1.58, while the EV/EBITDA ratio is 9.24. The company's ROE is 8.76%, and ROIC is 4.62%. These metrics suggest that the market has priced in a certain level of growth and profitability, but the company's strong performance and growth prospects may justify the current valuation.

Outlook

As Jedidiah Gold mentioned, "We're happy with the revenue per member growth in Q3, fueled by Titanium mix at over 25%." The company's focus on driving revenue growth through initiatives such as price optimization and further premiumization efforts is expected to continue. With a strong pipeline of new ideas and a commitment to investing in growth initiatives, Mister Car Wash is well-positioned for long-term success.

3. NewsRoom

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Campbell & CO Investment Adviser LLC Purchases New Holdings in Mister Car Wash, Inc. $MCW

Nov -17

Source: defenseworld.net

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Mister Car Wash: Retail Funnel Is Still Weak

Nov -05

Source: seekingalpha.com

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Mister Car Wash, Inc. (MCW) Q3 2025 Earnings Call Transcript

Oct -30

Source: seekingalpha.com

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Compared to Estimates, Mister Car Wash (MCW) Q3 Earnings: A Look at Key Metrics

Oct -29

Source: zacks.com

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Mister Car Wash (MCW) Surpasses Q3 Earnings and Revenue Estimates

Oct -29

Source: zacks.com

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Mister Car Wash Announces Third Quarter 2025 Results

Oct -29

Source: globenewswire.com

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Mister Car Wash to Report Third Quarter 2025 Financial Results on October 29, 2025

Oct -15

Source: globenewswire.com

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Mister Car Wash to Report Third Quarter 2025 Financial Results on October 29, 2025

Oct -15

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (9.00%)

6. Segments

Car Wash Services

Expected Growth: 9.0%

Mister Car Wash, Inc.'s 9.0% growth is driven by increasing demand for eco-friendly services, expansion into new markets, and strategic acquisitions. Additionally, the company's focus on subscription-based models, loyalty programs, and technology integration has enhanced customer retention and average ticket size. Furthermore, the growing popularity of premium services, such as detailing and oil changes, has contributed to revenue growth.

7. Detailed Products

Car Wash Services

Mister Car Wash offers a variety of car wash services, including exterior washes, interior cleaning, and detailing packages.

Unlimited Wash Club

A subscription-based service that allows customers to wash their cars as many times as they want for a fixed monthly fee.

Detailing Services

Mister Car Wash offers a range of detailing services, including interior cleaning, exterior detailing, and protective coatings.

Oil Changes

Mister Car Wash offers oil change services using high-quality oils and filters.

Car Care Products

Mister Car Wash sells a range of car care products, including cleaning solutions, waxes, and polishes.

8. Mister Car Wash, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Mister Car Wash, Inc. has a low threat of substitutes due to the lack of alternative services that can replace car washing. While there are some DIY car wash kits available, they are not a significant threat to the company's business.

Bargaining Power Of Customers

Mister Car Wash, Inc. has a medium bargaining power of customers due to the moderate level of competition in the car wash industry. Customers have some flexibility to choose from different car wash services, but the company's brand reputation and quality of service help to mitigate this threat.

Bargaining Power Of Suppliers

Mister Car Wash, Inc. has a low bargaining power of suppliers due to the availability of multiple suppliers for the necessary equipment and materials. The company is not heavily dependent on a single supplier, reducing the risk of supplier bargaining power.

Threat Of New Entrants

Mister Car Wash, Inc. has a medium threat of new entrants due to the moderate barriers to entry in the car wash industry. While there are some regulatory and capital requirements, new entrants can still enter the market with relative ease.

Intensity Of Rivalry

Mister Car Wash, Inc. operates in a highly competitive industry with many established players. The company faces intense rivalry from other car wash services, which can lead to pricing pressures and competitive marketing strategies.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 65.86%
Debt Cost 5.47%
Equity Weight 34.14%
Equity Cost 12.26%
WACC 7.79%
Leverage 192.95%

11. Quality Control: Mister Car Wash, Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Carriage Services

A-Score: 6.0/10

Value: 5.0

Growth: 5.9

Quality: 5.4

Yield: 2.0

Momentum: 9.0

Volatility: 8.3

1-Year Total Return ->

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Regis

A-Score: 4.7/10

Value: 8.1

Growth: 5.1

Quality: 6.2

Yield: 0.0

Momentum: 6.5

Volatility: 2.3

1-Year Total Return ->

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J.Jill

A-Score: 4.2/10

Value: 8.7

Growth: 4.0

Quality: 6.3

Yield: 2.0

Momentum: 0.5

Volatility: 4.0

1-Year Total Return ->

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Stock-Card
Mister Car Wash

A-Score: 4.2/10

Value: 4.3

Growth: 7.4

Quality: 5.3

Yield: 0.0

Momentum: 3.0

Volatility: 5.3

1-Year Total Return ->

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Medifast

A-Score: 4.1/10

Value: 7.6

Growth: 2.1

Quality: 5.6

Yield: 3.0

Momentum: 1.5

Volatility: 4.7

1-Year Total Return ->

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Ark Restaurants

A-Score: 3.1/10

Value: 9.6

Growth: 2.1

Quality: 2.4

Yield: 1.0

Momentum: 0.5

Volatility: 3.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

5.23$

Current Price

5.23$

Potential

-0.00%

Expected Cash-Flows