EUROPEAN WAX CENTER INC-A (EWCZ) Stock Fundamental Analysis
USA - NASDAQ:EWCZ - US29882P1066 - Common Stock
3.8 USD
-0.1 (-2.56%)
3.8 USD
0 (0%)
Taking everything into account, EWCZ scores 5 out of 10 in our fundamental rating. EWCZ was compared to 79 industry peers in the Diversified Consumer Services industry. Both the profitability and the financial health of EWCZ get a neutral evaluation. Nothing too spectacular is happening here. EWCZ is valued quite cheap, but it does not seem to be growing. These ratings would make EWCZ suitable for value investing!
1. Profitability
1.1 Basic Checks
In the past year EWCZ was profitable.
EWCZ had a positive operating cash flow in the past year.
In multiple years EWCZ reported negative net income over the last 5 years.
In the past 5 years EWCZ always reported a positive cash flow from operatings.
1.2 Ratios
EWCZ's Return On Assets of 1.25% is in line compared to the rest of the industry. EWCZ outperforms 53.16% of its industry peers.
With a decent Return On Equity value of 11.68%, EWCZ is doing good in the industry, outperforming 68.35% of the companies in the same industry.
EWCZ's Return On Invested Capital of 5.24% is fine compared to the rest of the industry. EWCZ outperforms 65.82% of its industry peers.
EWCZ had an Average Return On Invested Capital over the past 3 years of 4.95%. This is significantly below the industry average of 10.04%.
The last Return On Invested Capital (5.24%) for EWCZ is above the 3 year average (4.95%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.25% | ||
| ROE | 11.68% | ||
| ROIC | 5.24% |
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
Looking at the Profit Margin, with a value of 4.20%, EWCZ is in the better half of the industry, outperforming 60.76% of the companies in the same industry.
EWCZ has a better Operating Margin (22.09%) than 87.34% of its industry peers.
EWCZ's Operating Margin has improved in the last couple of years.
EWCZ has a better Gross Margin (74.02%) than 86.08% of its industry peers.
EWCZ's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.09% | ||
| PM (TTM) | 4.2% | ||
| GM | 74.02% |
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%
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.
The number of shares outstanding for EWCZ has been reduced compared to 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 0.65, we must say that EWCZ is in the distress zone and has some risk of bankruptcy.
EWCZ's Altman-Z score of 0.65 is in line compared to the rest of the industry. EWCZ outperforms 44.30% of its industry peers.
The Debt to FCF ratio of EWCZ is 6.56, which is on the high side as it means it would take EWCZ, 6.56 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of EWCZ (6.56) is better than 68.35% of its industry peers.
A Debt/Equity ratio of 4.89 is on the high side and indicates that EWCZ has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 4.89, EWCZ is doing worse than 81.01% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.89 | ||
| Debt/FCF | 6.56 | ||
| Altman-Z | 0.65 |
ROIC/WACC0.69
WACC7.62%
2.3 Liquidity
EWCZ has a Current Ratio of 3.38. This indicates that EWCZ is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of EWCZ (3.38) is better than 92.41% of its industry peers.
A Quick Ratio of 2.76 indicates that EWCZ has no problem at all paying its short term obligations.
EWCZ has a better Quick ratio (2.76) than 86.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.38 | ||
| Quick Ratio | 2.76 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 89.58% over the past year.
Looking at the last year, EWCZ shows a decrease in Revenue. The Revenue has decreased by -1.86% 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)-1.86%
Revenue growth 3Y6.67%
Revenue growth 5Y7.06%
Sales Q2Q%-2.24%
3.2 Future
EWCZ is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.78% yearly.
The Revenue is expected to grow by 0.46% on average over the next years.
EPS Next Y33.27%
EPS Next 2Y5.1%
EPS Next 3Y3.78%
EPS Next 5YN/A
Revenue Next Year-5.23%
Revenue Next 2Y-1.55%
Revenue Next 3Y0.46%
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 4.18, 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 94.94% of the companies in the same industry.
When comparing the Price/Earnings ratio of EWCZ to the average of the S&P500 Index (25.89), we can say EWCZ is valued rather cheaply.
A Price/Forward Earnings ratio of 6.49 indicates a rather cheap valuation of EWCZ.
Based on the Price/Forward Earnings ratio, EWCZ is valued cheaper than 97.47% 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 34.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.18 | ||
| Fwd PE | 6.49 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EWCZ is valued a bit cheaper than the industry average as 74.68% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, EWCZ is valued cheaper than 98.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.64 | ||
| EV/EBITDA | 7.79 |
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.
PEG (NY)0.13
PEG (5Y)N/A
EPS Next 2Y5.1%
EPS Next 3Y3.78%
5. Dividend
5.1 Amount
EWCZ does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
3.8
-0.1 (-2.56%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners58.92%
Inst Owner Change-5.18%
Ins Owners3.7%
Ins Owner Change13.03%
Market Cap209.84M
Revenue(TTM)216.92M
Net Income(TTM)8.94M
Analysts75.71
Price Target6.72 (76.84%)
Short Float %6.61%
Short Ratio4.72
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0.01
Dividend Growth(5Y)N/A
DP0.83%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)189.33%
Min EPS beat(2)57.56%
Max EPS beat(2)321.1%
EPS beat(4)4
Avg EPS beat(4)166.15%
Min EPS beat(4)57.56%
Max EPS beat(4)321.1%
EPS beat(8)8
Avg EPS beat(8)111.9%
EPS beat(12)12
Avg EPS beat(12)175.71%
EPS beat(16)16
Avg EPS beat(16)231.49%
Revenue beat(2)1
Avg Revenue beat(2)-1.1%
Min Revenue beat(2)-3.65%
Max Revenue beat(2)1.45%
Revenue beat(4)2
Avg Revenue beat(4)-2.1%
Min Revenue beat(4)-6.52%
Max Revenue beat(4)1.45%
Revenue beat(8)3
Avg Revenue beat(8)-2.5%
Revenue beat(12)5
Avg Revenue beat(12)-1.79%
Revenue beat(16)7
Avg Revenue beat(16)-1.59%
PT rev (1m)0%
PT rev (3m)-1.92%
EPS NQ rev (1m)0%
EPS NQ rev (3m)11.11%
EPS NY rev (1m)0%
EPS NY rev (3m)37.58%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.09%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.18 | ||
| Fwd PE | 6.49 | ||
| P/S | 0.99 | ||
| P/FCF | 3.64 | ||
| P/OCF | 3.54 | ||
| P/B | 2.74 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.79 |
EPS(TTM)0.91
EY23.95%
EPS(NY)0.59
Fwd EY15.41%
FCF(TTM)1.04
FCFY27.45%
OCF(TTM)1.07
OCFY28.25%
SpS3.85
BVpS1.39
TBVpS-6.97
PEG (NY)0.13
PEG (5Y)N/A
Graham Number5.33
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.25% | ||
| ROE | 11.68% | ||
| ROCE | 6.85% | ||
| ROIC | 5.24% | ||
| ROICexc | 5.78% | ||
| ROICexgc | 22.43% | ||
| OM | 22.09% | ||
| PM (TTM) | 4.2% | ||
| GM | 74.02% | ||
| FCFM | 27.11% |
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
ROICexgc growth 3Y-54.19%
ROICexgc 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-Score5
Asset Turnover0.3
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.89 | ||
| Debt/FCF | 6.56 | ||
| Debt/EBITDA | 5.56 | ||
| Cap/Depr | 8.23% | ||
| Cap/Sales | 0.79% | ||
| Interest Coverage | 2.16 | ||
| Cash Conversion | 88.18% | ||
| Profit Quality | 644.77% | ||
| Current Ratio | 3.38 | ||
| Quick Ratio | 2.76 | ||
| Altman-Z | 0.65 |
F-Score5
WACC7.62%
ROIC/WACC0.69
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)89.58%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%108.33%
EPS Next Y33.27%
EPS Next 2Y5.1%
EPS Next 3Y3.78%
EPS Next 5YN/A
Revenue 1Y (TTM)-1.86%
Revenue growth 3Y6.67%
Revenue growth 5Y7.06%
Sales Q2Q%-2.24%
Revenue Next Year-5.23%
Revenue Next 2Y-1.55%
Revenue Next 3Y0.46%
Revenue Next 5YN/A
EBIT growth 1Y-24.06%
EBIT growth 3Y24.34%
EBIT growth 5Y28.14%
EBIT Next Year42.18%
EBIT Next 3Y16.05%
EBIT Next 5YN/A
FCF growth 1Y22.11%
FCF growth 3Y19.09%
FCF growth 5YN/A
OCF growth 1Y23.58%
OCF growth 3Y10.97%
OCF growth 5Y30.9%
EUROPEAN WAX CENTER INC-A / EWCZ FAQ
What is the fundamental rating for EWCZ stock?
ChartMill assigns a fundamental rating of 5 / 10 to EWCZ.
Can you provide the valuation status for EUROPEAN WAX CENTER INC-A?
ChartMill assigns a valuation rating of 9 / 10 to EUROPEAN WAX CENTER INC-A (EWCZ). This can be considered as Undervalued.
How profitable is EUROPEAN WAX CENTER INC-A (EWCZ) stock?
EUROPEAN WAX CENTER INC-A (EWCZ) has a profitability rating of 6 / 10.
How financially healthy is EUROPEAN WAX CENTER INC-A?
The financial health rating of EUROPEAN WAX CENTER INC-A (EWCZ) is 5 / 10.
How sustainable is the dividend of EUROPEAN WAX CENTER INC-A (EWCZ) stock?
The dividend rating of EUROPEAN WAX CENTER INC-A (EWCZ) is 0 / 10 and the dividend payout ratio is 0.83%.