Logo image of EWCZ

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

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

5.09  -0.12 (-2.3%)

After market: 5.1 +0.01 (+0.2%)

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 has an excellent profitability rating, but there are some minor concerns on its financial health. EWCZ is valued quite cheap, while showing a decent growth score. This is a good combination! These ratings could make EWCZ a good candidate for value investing.


Dividend Valuation Growth Profitability Health

Quickly go to:

7

1. Profitability

1.1 Basic Checks

EWCZ had positive earnings in the past year.
In the past year EWCZ had a positive cash flow from operations.
In multiple years EWCZ reported negative net income over the last 5 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

The Return On Assets of EWCZ (1.71%) is comparable to the rest of the industry.
The Return On Equity of EWCZ (17.31%) is better than 83.33% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.57%, EWCZ is in the better half of the industry, outperforming 79.17% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for EWCZ is significantly below the industry average of 11.25%.
The last Return On Invested Capital (6.57%) for EWCZ is above the 3 year average (4.95%), which is a sign of increasing profitability.
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

With a decent Profit Margin value of 4.55%, EWCZ is doing good in the industry, outperforming 65.28% of the companies in the same industry.
With an excellent Operating Margin value of 21.71%, EWCZ belongs to the best of the industry, outperforming 90.28% of the companies in the same industry.
EWCZ's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 73.69%, EWCZ belongs to the top of the industry, outperforming 90.28% of the companies in the same industry.
EWCZ's Gross Margin has been stable in the last couple of years.
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

More info and screens

5

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), EWCZ is destroying value.
EWCZ has less shares outstanding than it did 1 year ago.
EWCZ has less shares outstanding than it did 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

EWCZ has an Altman-Z score of 0.82. This is a bad value and indicates that EWCZ is not financially healthy and even has some risk of bankruptcy.
EWCZ's Altman-Z score of 0.82 is in line compared to the rest of the industry. EWCZ outperforms 47.22% of its industry peers.
EWCZ has a debt to FCF ratio of 6.59. This is a slightly negative value and a sign of low solvency as EWCZ would need 6.59 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 6.59, EWCZ is in the better half of 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's Debt to Equity ratio of 5.30 is on the low side compared to the rest of the industry. EWCZ is outperformed by 76.39% of its industry peers.
Industry RankSector Rank
Debt/Equity 5.3
Debt/FCF 6.59
Altman-Z 0.82
ROIC/WACC0.84
WACC7.8%
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.
Looking at the Current ratio, with a value of 2.71, EWCZ belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
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's Quick ratio of 2.18 is fine compared to the rest of the industry. EWCZ outperforms 77.78% 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

More info and screens

4

3. Growth

3.1 Past

EWCZ shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 50.00%, which is quite impressive.
Looking at the last year, EWCZ shows a very strong growth in Revenue. The Revenue has grown by 20.33%.
EWCZ shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.06% yearly.
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

Based on estimates for the next years, EWCZ will show a small growth in Earnings Per Share. The EPS will grow by 7.71% on average per year.
EWCZ is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.30% yearly.
EPS Next Y-43.36%
EPS Next 2Y-1.55%
EPS Next 3Y7.71%
EPS Next 5YN/A
Revenue Next Year-3.24%
Revenue Next 2Y-0.46%
Revenue Next 3Y1.3%
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

More info and screens

7

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 7.71, the valuation of EWCZ can be described as very cheap.
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 26.25, EWCZ is valued rather cheaply.
The Price/Forward Earnings ratio is 9.91, which indicates a very decent valuation of EWCZ.
Compared to the rest of the industry, the Price/Forward Earnings ratio of EWCZ indicates a rather cheap valuation: EWCZ is cheaper than 91.67% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.15. EWCZ is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 7.71
Fwd PE 9.91
EWCZ Price Earnings VS Forward Price EarningsEWCZ Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of EWCZ indicates a somewhat cheap valuation: EWCZ is cheaper than 77.78% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, EWCZ is valued cheaply inside the industry as 97.22% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 4.9
EV/EBITDA 7.73
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

The decent profitability rating of EWCZ may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-1.55%
EPS Next 3Y7.71%

More info and screens

0

5. Dividend

5.1 Amount

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

More info and screens

EUROPEAN WAX CENTER INC-A

NASDAQ:EWCZ (5/30/2025, 8:00:01 PM)

After market: 5.1 +0.01 (+0.2%)

5.09

-0.12 (-2.3%)

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 Owners62.67%
Inst Owner Change-3.3%
Ins Owners2.19%
Ins Owner Change55.7%
Market Cap281.02M
Analysts74.67
Price Target6.31 (23.97%)
Short Float %7.54%
Short Ratio2.7
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)-1.98%
PT rev (3m)-23.26%
EPS NQ rev (1m)33.07%
EPS NQ rev (3m)9.63%
EPS NY rev (1m)-0.06%
EPS NY rev (3m)-23.69%
Revenue NQ rev (1m)-0.9%
Revenue NQ rev (3m)-5.7%
Revenue NY rev (1m)0.2%
Revenue NY rev (3m)-5.51%
Valuation
Industry RankSector Rank
PE 7.71
Fwd PE 9.91
P/S 1.05
P/FCF 4.9
P/OCF 4.8
P/B 3.99
P/tB N/A
EV/EBITDA 7.73
EPS(TTM)0.66
EY12.97%
EPS(NY)0.51
Fwd EY10.09%
FCF(TTM)1.04
FCFY20.4%
OCF(TTM)1.06
OCFY20.81%
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 0.82
F-Score6
WACC7.8%
ROIC/WACC0.84
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-43.36%
EPS Next 2Y-1.55%
EPS Next 3Y7.71%
EPS Next 5YN/A
Revenue 1Y (TTM)20.33%
Revenue growth 3Y6.67%
Revenue growth 5Y7.06%
Sales Q2Q%-0.86%
Revenue Next Year-3.24%
Revenue Next 2Y-0.46%
Revenue Next 3Y1.3%
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%