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EUROPEAN WAX CENTER INC-A (EWCZ) Stock Fundamental Analysis

NASDAQ:EWCZ - Nasdaq - US29882P1066 - Common Stock - Currency: USD

4.9  0 (0%)

After market: 4.65 -0.25 (-5.1%)

Fundamental Rating

5

EWCZ gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 72 industry peers in the Diversified Consumer Services industry. EWCZ scores excellent on profitability, but there are some minor concerns on its financial health. EWCZ scores decently on growth, while it is valued quite cheap. This could make an interesting combination. These ratings could make EWCZ a good candidate for value investing.


Dividend Valuation Growth Profitability Health

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7

1. Profitability

1.1 Basic Checks

In the past year EWCZ was profitable.
In the past year EWCZ had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: EWCZ reported negative net income in multiple years.
Each year in the past 5 years EWCZ had a positive operating cash flow.
EWCZ Yearly Net Income VS EBIT VS OCF VS FCFEWCZ Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2019 2020 2021 2022 2023 2024 0 20M -20M 40M

1.2 Ratios

EWCZ's Return On Assets of 1.71% is in line compared to the rest of the industry. EWCZ outperforms 55.56% of its industry peers.
EWCZ's Return On Equity of 17.31% is amongst the best of the industry. EWCZ outperforms 81.94% of its industry peers.
EWCZ has a better Return On Invested Capital (6.57%) than 76.39% of its industry peers.
The Average Return On Invested Capital over the past 3 years for EWCZ is significantly below the industry average of 10.64%.
The 3 year average ROIC (4.95%) for EWCZ is below the current ROIC(6.57%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 1.71%
ROE 17.31%
ROIC 6.57%
ROA(3y)1.23%
ROA(5y)-0.08%
ROE(3y)12.06%
ROE(5y)5.51%
ROIC(3y)4.95%
ROIC(5y)N/A
EWCZ Yearly ROA, ROE, ROICEWCZ Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2019 2020 2021 2022 2023 2024 0 5 -5 10 15

1.3 Margins

Looking at the Profit Margin, with a value of 4.55%, EWCZ is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
EWCZ has a better Operating Margin (21.71%) than 88.89% of its industry peers.
EWCZ's Operating Margin has improved in the last couple of years.
EWCZ has a better Gross Margin (73.69%) than 90.28% of its industry peers.
In the last couple of years the Gross Margin of EWCZ has remained more or less at the same level.
Industry RankSector Rank
OM 21.71%
PM (TTM) 4.55%
GM 73.69%
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%
EWCZ Yearly Profit, Operating, Gross MarginsEWCZ Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2019 2020 2021 2022 2023 2024 0 20 -20 40 60

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5

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so EWCZ is destroying value.
The number of shares outstanding for EWCZ has been reduced compared to 1 year ago.
The number of shares outstanding for EWCZ has been reduced compared to 5 years ago.
Compared to 1 year ago, EWCZ has a worse debt to assets ratio.
EWCZ Yearly Shares OutstandingEWCZ Yearly Shares OutstandingYearly Shares Outstanding 2019 2020 2021 2022 2023 2024 20M 40M 60M
EWCZ Yearly Total Debt VS Total AssetsEWCZ Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2019 2020 2021 2022 2023 2024 200M 400M 600M

2.2 Solvency

Based on the Altman-Z score of 0.81, we must say that EWCZ is in the distress zone and has some risk of bankruptcy.
EWCZ has a Altman-Z score of 0.81. This is comparable to the rest of the industry: EWCZ outperforms 45.83% of its industry peers.
The Debt to FCF ratio of EWCZ is 6.59, which is on the high side as it means it would take EWCZ, 6.59 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 6.59, EWCZ is doing good in the industry, outperforming 68.06% of the companies in the same industry.
EWCZ has a Debt/Equity ratio of 5.30. This is a high value indicating a heavy dependency on external financing.
EWCZ has a Debt to Equity ratio of 5.30. This is in the lower half of the industry: EWCZ underperforms 76.39% of its industry peers.
Industry RankSector Rank
Debt/Equity 5.3
Debt/FCF 6.59
Altman-Z 0.81
ROIC/WACC0.83
WACC7.96%
EWCZ Yearly LT Debt VS Equity VS FCFEWCZ Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2019 2020 2021 2022 2023 2024 0 100M 200M 300M

2.3 Liquidity

A Current Ratio of 2.71 indicates that EWCZ has no problem at all paying its short term obligations.
EWCZ has a better Current ratio (2.71) than 80.56% of its industry peers.
EWCZ has a Quick Ratio of 2.18. This indicates that EWCZ is financially healthy and has no problem in meeting its short term obligations.
EWCZ has a Quick ratio of 2.18. This is in the better half of the industry: EWCZ outperforms 76.39% of its industry peers.
Industry RankSector Rank
Current Ratio 2.71
Quick Ratio 2.18
EWCZ Yearly Current Assets VS Current LiabilitesEWCZ Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M

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4

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 50.00% over the past year.
EWCZ shows a strong growth in Revenue. In the last year, the Revenue has grown by 20.33%.
Measured over the past years, EWCZ shows a small growth in Revenue. The Revenue has been growing by 7.06% on average per year.
EPS 1Y (TTM)50%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%144.44%
Revenue 1Y (TTM)20.33%
Revenue growth 3Y6.67%
Revenue growth 5Y7.06%
Sales Q2Q%-0.86%

3.2 Future

The Earnings Per Share is expected to grow by 4.93% on average over the next years.
The Revenue is expected to grow by 1.92% on average over the next years.
EPS Next Y-3.13%
EPS Next 2Y2.12%
EPS Next 3Y4.93%
EPS Next 5YN/A
Revenue Next Year-3.11%
Revenue Next 2Y-0.51%
Revenue Next 3Y1.92%
Revenue Next 5YN/A

3.3 Evolution

When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
EWCZ Yearly Revenue VS EstimatesEWCZ Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2019 2020 2021 2022 2023 2024 2025 2026 2027 50M 100M 150M 200M
EWCZ Yearly EPS VS EstimatesEWCZ Yearly EPS VS EstimatesYearly EPS VS Estimates 2021 2022 2023 2024 2025 2026 2027 0.5 1 1.5

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8

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 7.42, which indicates a rather cheap valuation of EWCZ.
Compared to the rest of the industry, the Price/Earnings ratio of EWCZ indicates a rather cheap valuation: EWCZ is cheaper than 93.06% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.46, EWCZ is valued rather cheaply.
The Price/Forward Earnings ratio is 8.87, which indicates a very decent valuation of EWCZ.
Based on the Price/Forward Earnings ratio, EWCZ is valued cheaper than 95.83% of the companies in the same industry.
EWCZ's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.44.
Industry RankSector Rank
PE 7.42
Fwd PE 8.87
EWCZ Price Earnings VS Forward Price EarningsEWCZ Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

EWCZ's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. EWCZ is cheaper than 80.56% of the companies in the same industry.
EWCZ's Price/Free Cash Flow ratio is rather cheap when compared to the industry. EWCZ is cheaper than 97.22% of the companies in the same industry.
Industry RankSector Rank
P/FCF 4.72
EV/EBITDA 7.51
EWCZ Per share dataEWCZ EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 -2 4 -4 -6

4.3 Compensation for Growth

EWCZ has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y2.12%
EPS Next 3Y4.93%

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0

5. Dividend

5.1 Amount

No dividends for EWCZ!.
Industry RankSector Rank
Dividend Yield N/A

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EUROPEAN WAX CENTER INC-A

NASDAQ:EWCZ (7/21/2025, 8:00:01 PM)

After market: 4.65 -0.25 (-5.1%)

4.9

0 (0%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)05-14 2025-05-14/bmo
Earnings (Next)N/A N/A
Inst Owners61.62%
Inst Owner Change0.05%
Ins Owners3.2%
Ins Owner Change26.93%
Market Cap270.53M
Analysts75.71
Price Target6.85 (39.8%)
Short Float %9.44%
Short Ratio3.72
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly Dividend0.01
Dividend Growth(5Y)N/A
DP0.92%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)255.48%
Min EPS beat(2)189.86%
Max EPS beat(2)321.1%
EPS beat(4)4
Avg EPS beat(4)171.32%
Min EPS beat(4)78.25%
Max EPS beat(4)321.1%
EPS beat(8)8
Avg EPS beat(8)104.9%
EPS beat(12)12
Avg EPS beat(12)213.62%
EPS beat(16)16
Avg EPS beat(16)235.5%
Revenue beat(2)1
Avg Revenue beat(2)-2.54%
Min Revenue beat(2)-6.52%
Max Revenue beat(2)1.45%
Revenue beat(4)2
Avg Revenue beat(4)-2.26%
Min Revenue beat(4)-6.52%
Max Revenue beat(4)1.45%
Revenue beat(8)3
Avg Revenue beat(8)-2.17%
Revenue beat(12)5
Avg Revenue beat(12)-1.75%
Revenue beat(16)7
Avg Revenue beat(16)-1.47%
PT rev (1m)0%
PT rev (3m)6.37%
EPS NQ rev (1m)0%
EPS NQ rev (3m)31.53%
EPS NY rev (1m)0%
EPS NY rev (3m)70.91%
Revenue NQ rev (1m)-0.5%
Revenue NQ rev (3m)-1.29%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.33%
Valuation
Industry RankSector Rank
PE 7.42
Fwd PE 8.87
P/S 1.01
P/FCF 4.72
P/OCF 4.63
P/B 3.84
P/tB N/A
EV/EBITDA 7.51
EPS(TTM)0.66
EY13.47%
EPS(NY)0.55
Fwd EY11.28%
FCF(TTM)1.04
FCFY21.19%
OCF(TTM)1.06
OCFY21.62%
SpS4.86
BVpS1.28
TBVpS-7.17
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 1.71%
ROE 17.31%
ROCE 8.58%
ROIC 6.57%
ROICexc 7.19%
ROICexgc 28.99%
OM 21.71%
PM (TTM) 4.55%
GM 73.69%
FCFM 21.37%
ROA(3y)1.23%
ROA(5y)-0.08%
ROE(3y)12.06%
ROE(5y)5.51%
ROIC(3y)4.95%
ROIC(5y)N/A
ROICexc(3y)5.33%
ROICexc(5y)N/A
ROICexgc(3y)23.62%
ROICexgc(5y)N/A
ROCE(3y)6.46%
ROCE(5y)N/A
ROICexcg growth 3Y-54.19%
ROICexcg growth 5Y-26.67%
ROICexc growth 3Y18.53%
ROICexc growth 5Y24.42%
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%
F-Score6
Asset Turnover0.38
Health
Industry RankSector Rank
Debt/Equity 5.3
Debt/FCF 6.59
Debt/EBITDA 4.76
Cap/Depr 5.68%
Cap/Sales 0.43%
Interest Coverage 2.67
Cash Conversion 74.49%
Profit Quality 470.1%
Current Ratio 2.71
Quick Ratio 2.18
Altman-Z 0.81
F-Score6
WACC7.96%
ROIC/WACC0.83
Cap/Depr(3y)2.57%
Cap/Depr(5y)47.24%
Cap/Sales(3y)0.24%
Cap/Sales(5y)8.19%
Profit Quality(3y)589.72%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)50%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%144.44%
EPS Next Y-3.13%
EPS Next 2Y2.12%
EPS Next 3Y4.93%
EPS Next 5YN/A
Revenue 1Y (TTM)20.33%
Revenue growth 3Y6.67%
Revenue growth 5Y7.06%
Sales Q2Q%-0.86%
Revenue Next Year-3.11%
Revenue Next 2Y-0.51%
Revenue Next 3Y1.92%
Revenue Next 5YN/A
EBIT growth 1Y14.76%
EBIT growth 3Y24.34%
EBIT growth 5Y28.14%
EBIT Next Year42.59%
EBIT Next 3Y18.08%
EBIT Next 5YN/A
FCF growth 1Y34.09%
FCF growth 3Y19.09%
FCF growth 5YN/A
OCF growth 1Y35.8%
OCF growth 3Y10.97%
OCF growth 5Y30.9%