Overall EWCZ gets a fundamental rating of 5 out of 10. We evaluated EWCZ against 76 industry peers in the Diversified Consumer Services industry. EWCZ has an average financial health and profitability rating. EWCZ is cheap, but on the other hand it scores bad on growth. This makes EWCZ very considerable for value investing!

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

EWCZ had positive earnings in the past year.
EWCZ had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: EWCZ reported negative net income in multiple years.
EWCZ had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

The Return On Assets of EWCZ (1.56%) is comparable to the rest of the industry.
The Return On Equity of EWCZ (14.39%) is better than 69.74% of its industry peers.
EWCZ has a Return On Invested Capital of 5.71%. This is in the better half of the industry: EWCZ outperforms 65.79% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for EWCZ is significantly below the industry average of 10.15%.
The 3 year average ROIC (4.95%) for EWCZ is below the current ROIC(5.71%), indicating increased profibility in the last year.

		Industry Rank	Sector Rank
ROA	1.56%
ROE	14.39%
ROIC	5.71%

ROA(3y)1.23%

ROA(5y)-0.08%

ROE(3y)12.06%

ROE(5y)5.51%

ROIC(3y)4.95%

ROIC(5y)N/A

1.3 Margins

EWCZ's Profit Margin of 5.32% is fine compared to the rest of the industry. EWCZ outperforms 61.84% of its industry peers.
EWCZ has a Operating Margin of 24.38%. This is amongst the best in the industry. EWCZ outperforms 93.42% of its industry peers.
EWCZ's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 74.11%, EWCZ belongs to the best of the industry, outperforming 89.47% of the companies in the same industry.
In the last couple of years the Gross Margin of EWCZ has remained more or less at the same level.

		Industry Rank	Sector Rank
OM	24.38%
PM (TTM)	5.32%
GM	74.11%

OM growth 3Y16.57%

OM growth 5Y19.69%

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y-0.08%

GM growth 5Y0.03%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

EWCZ has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
EWCZ has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, EWCZ has less shares outstanding
The debt/assets ratio for EWCZ is higher compared to a year ago.

2.2 Solvency

Based on the Altman-Z score of 0.68, we must say that EWCZ is in the distress zone and has some risk of bankruptcy.
EWCZ has a Altman-Z score (0.68) which is in line with its industry peers.
The Debt to FCF ratio of EWCZ is 6.38, which is on the high side as it means it would take EWCZ, 6.38 years of fcf income to pay off all of its debts.
EWCZ has a Debt to FCF ratio of 6.38. This is in the better half of the industry: EWCZ outperforms 71.05% of its industry peers.
EWCZ has a Debt/Equity ratio of 4.79. This is a high value indicating a heavy dependency on external financing.
EWCZ has a Debt to Equity ratio of 4.79. This is amonst the worse of the industry: EWCZ underperforms 81.58% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	4.79
Debt/FCF	6.38
Altman-Z	0.68

ROIC/WACC0.77

WACC7.39%

2.3 Liquidity

EWCZ has a Current Ratio of 3.67. This indicates that EWCZ is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 3.67, EWCZ belongs to the best of the industry, outperforming 90.79% of the companies in the same industry.
A Quick Ratio of 3.14 indicates that EWCZ has no problem at all paying its short term obligations.
EWCZ has a Quick ratio of 3.14. This is amongst the best in the industry. EWCZ outperforms 86.84% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	3.67
Quick Ratio	3.14

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

EWCZ shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 89.58%, which is quite impressive.
Looking at the last year, EWCZ shows a very negative growth in Revenue. The Revenue has decreased by -23.28% in the last year.
EWCZ shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.06% yearly.

EPS 1Y (TTM)89.58%

EPS 3YN/A

EPS 5YN/A

EPS Q2Q%108.33%

Revenue 1Y (TTM)-23.28%

Revenue growth 3Y6.67%

Revenue growth 5Y7.06%

Sales Q2Q%-2.25%

3.2 Future

EWCZ is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.27% yearly.
EWCZ is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.49% yearly.

EPS Next Y35.36%

EPS Next 2Y7.1%

EPS Next 3Y10.27%

EPS Next 5YN/A

Revenue Next Year-5.24%

Revenue Next 2Y-1.96%

Revenue Next 3Y-0.48%

Revenue Next 5Y1.49%

3.3 Evolution

The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 4.38, which indicates a rather cheap valuation of EWCZ.
EWCZ's Price/Earnings ratio is rather cheap when compared to the industry. EWCZ is cheaper than 94.74% of the companies in the same industry.
EWCZ is valuated cheaply when we compare the Price/Earnings ratio to 28.87, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 6.56, the valuation of EWCZ can be described as very cheap.
Based on the Price/Forward Earnings ratio, EWCZ is valued cheaper than 98.68% of the companies in the same industry.
EWCZ is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.96, which is the current average of the S&P500 Index.

		Industry Rank	Sector Rank
PE	4.38
Fwd PE	6.56

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, EWCZ is valued a bit cheaper than the industry average as 76.32% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of EWCZ indicates a rather cheap valuation: EWCZ is cheaper than 100.00% of the companies listed in the same industry.

		Industry Rank	Sector Rank
P/FCF	3.65
EV/EBITDA	7.25

4.3 Compensation for Growth

The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
EWCZ has a very decent profitability rating, which may justify a higher PE ratio.