European Wax Center (EWCZ) AI Stock Analysis

• Market Cap: $215.36M
• Dividend Yield: N/A
• Average Volume (3M): 400.72K
• Price to Earnings (P/E): 19.3
• Beta (1Y): 1.90
• Revenue Growth: -5.04%
• EPS Growth: -22.01%
• Country: US
• Employees: 124
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Household & Personal Products
• EPS (TTM): 0.24
• Shares Outstanding: 43,360,718
• 10 Day Avg. Volume: 291,351
• 30 Day Avg. Volume: 400,722
• PEG Ratio: 0.99
• Price to Book (P/B): 4.78
• Price to Sales (P/S): 1.41
• P/FCF Ratio: 5.46
• Enterprise Value/Market Cap: 2.75
• Enterprise Value/Revenue: 3.77
• Enterprise Value/Gross Profit: 5.29
• Enterprise Value/Ebitda: 12.43
• 1Y Price Target: $5.28
• Price Target Upside: 35.38% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 65 Neutral
• Price Target: $5.00 ▲(28.21% Upside)

European Wax Center's overall stock score reflects strong financial performance and promising strategic initiatives, balanced by technical indicators showing bearish trends and valuation metrics that are moderate. The earnings call highlighted both operational efficiencies and regional challenges, contributing to a cautiously optimistic outlook.

Positive Factors

Operational Efficiency

The significant improvement in EBITDA margin indicates strong operational efficiency, which can enhance profitability and support long-term growth.

Leadership Enhancements

The addition of experienced leaders can drive strategic initiatives and operational improvements, strengthening the company's competitive position.

Marketing Efficiency

Improved marketing efficiency reduces customer acquisition costs, enhancing profitability and enabling more effective market penetration.

Negative Factors

Revenue Decline

The decline in revenue and closure of centers suggest challenges in maintaining growth momentum, potentially affecting long-term revenue stability.

Regional Challenges

Ongoing regional difficulties, especially in key markets like California, could hinder overall market expansion and revenue growth.

System-Wide Sales Decline

A decline in system-wide sales indicates potential issues in service demand and retail performance, which could impact future revenue streams.

European Wax Center Business Overview & Revenue Model

Company Description

European Wax Center, Inc. operates as the franchisor and operator of out-of-home waxing services in the United States. The company offers body and facial waxing services; and pre- and post-service products, including ingrown hair serums, exfoliating gels, brow shapers, and skin treatments. As of March 26, 2022, it had a portfolio of centers operating in 874 locations across 44 states, including 868 franchised centers and six corporate-owned centers. European Wax Center, Inc. was founded in 2004 and is headquartered in Plano, Texas.

How the Company Makes Money

European Wax Center primarily generates revenue through its core services of body waxing. Customers pay for individual waxing services, which are priced based on the type of treatment and body area. In addition to service revenue, EWCZ also earns money through the sale of its exclusive line of skin care products designed to enhance and maintain the results of waxing treatments. The company operates on a franchise model, allowing it to expand its footprint while earning franchise fees and a percentage of sales from franchisees. Partnerships with suppliers for high-quality wax and skin care products also contribute to cost efficiencies and revenue stability. Overall, EWCZ's revenue model is driven by both service and product sales, alongside franchise operations, creating a diversified income stream.

European Wax Center Financial Statement Overview

Summary

European Wax Center exhibits solid financial health with strong operational efficiency and cash flow management. Despite a lower net profit margin, the company maintains healthy revenue growth and effective leverage control. The balance sheet poses some stability concerns with low equity levels, yet cash flow metrics strongly support liquidity and operational sustainability.

Income Statement

European Wax Center shows a strong performance with a notable TTM (Trailing-Twelve-Months) gross profit margin of approximately 73.6% and consistent revenue growth over previous years. However, net profit margin is relatively low at about 4.4% for TTM, reflecting some profit retention challenges. The company has improved its EBIT margin to 21.8% in TTM, indicating efficient operating performance.

Balance Sheet

The balance sheet reveals a moderate debt-to-equity ratio of 0.11 in TTM, showing effective leverage management. However, the equity ratio stands at approximately 9.9%, which is relatively low, indicating potential financial stability risks. Return on equity is at a satisfactory level of 13.5% in TTM, showcasing decent equity efficiency.

Cash Flow

The company demonstrates robust cash flow management with a strong free cash flow to net income ratio of 6.04 in TTM, indicating excellent cash generation relative to net income. The operating cash flow to net income ratio is also healthy at 6.16, underscoring solid operational cash efficiency. Free cash flow growth has been positive, contributing to overall financial resilience.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2020	Dec 2019
Income Statement
Total Revenue	157.08M	216.92M	221.02M	207.35M	103.41M	154.20M
Gross Profit	111.86M	159.60M	158.39M	148.12M	67.90M	113.30M
EBITDA	47.61M	62.64M	65.44M	60.51M	16.36M	6.69M
Net Income	7.46M	10.46M	8.93M	7.31M	-21.50M	-24.40M
Balance Sheet
Total Assets	716.38M	707.07M	734.12M	716.03M	606.90M	576.48M
Cash, Cash Equivalents and Short-Term Investments	70.33M	49.73M	52.73M	44.22M	36.72M	10.26M
Total Debt	381.39M	380.82M	380.39M	380.47M	265.40M	225.28M
Total Liabilities	610.51M	615.48M	619.11M	585.73M	288.88M	262.16M
Stockholders Equity	76.52M	64.05M	82.02M	79.00M	-62.00M	-55.75M
Cash Flow
Free Cash Flow	42.85M	55.98M	54.82M	44.11M	-35.45M	-27.83M
Operating Cash Flow	44.46M	56.51M	55.60M	44.35M	1.40M	14.70M
Investing Cash Flow	-1.61M	-386.00K	-785.00K	-245.00K	-36.84M	-40.69M
Financing Cash Flow	-27.03M	-59.15M	-46.38M	-36.62M	61.90M	27.81M

European Wax Center Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 3.90
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EWCZ, the sentiment is Neutral. The current price of 3.9 is above the 20-day moving average (MA) of 3.58, below the 50-day MA of 3.90, and below the 200-day MA of 4.78, indicating a neutral trend. The MACD of -0.04 indicates Negative momentum. The RSI at 56.05 is Neutral, neither overbought nor oversold. The STOCH value of 63.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for EWCZ.

European Wax Center Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NUS	―	$530.62M	5.35	13.68%	2.24%	-11.79%	―
EWCZ	―	$215.36M	19.29	10.98%	―	-5.04%	-22.01%
EPC	―	$900.94M	14.32	4.12%	3.09%	-2.92%	-43.06%
Sector *	―	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
SLSN	―	$230.48M	45.29	34.76%	―	65.67%	―
HELE	―	$429.03M	―	-52.84%	―	-5.64%	-577.74%
SKIN	―	$176.29M	-4.94	-26.54%	―	-15.33%	75.52%

European Wax Center Corporate Events

European Wax Center CAO Gavin O’Connor Resigns

On October 14, 2025, Gavin M. O’Connor announced his resignation from European Wax Center, Inc., where he served as Chief Administrative Officer, General Counsel, and Corporate Secretary. His departure, effective November 7, 2025, marks a significant change in the company’s leadership as he transitions to a new role at another company.

The most recent analyst rating on (EWCZ) stock is a Hold with a $4.60 price target. To see the full list of analyst forecasts on European Wax Center stock, see the EWCZ Stock Forecast page.

David P. Berg Resigns from European Wax Center Board

On September 10, 2025, David P. Berg resigned from the Board of Directors of European Wax Center, Inc., with no disagreements cited. Following his departure, the Board reduced its size to seven directors, potentially streamlining decision-making processes.

The most recent analyst rating on (EWCZ) stock is a Hold with a $5.00 price target. To see the full list of analyst forecasts on European Wax Center stock, see the EWCZ Stock Forecast page.

European Wax Center’s Earnings Call: Strategic Success Amid Challenges

European Wax Center’s recent earnings call revealed a blend of optimism and challenges. The company is witnessing early success in its strategic initiatives, bolstered by leadership enhancements and improved marketing efficiency. However, it faces hurdles such as a slight decline in system-wide sales and ongoing regional difficulties, particularly in California. Despite these challenges, the strong EBITDA margin and leadership changes indicate potential for future growth.

Navigating Uncertainties: European Wax Center’s Risk Factors and Financial Outlook

European Wax Center, Inc. Class A is exposed to a range of risks and uncertainties that could impact its operations and financial outcomes. These risks are detailed in the company’s annual report on Form 10-K for the year ending January 4, 2025, and should be reviewed carefully. While the company has not reported any significant changes in these risk factors since the annual report, it acknowledges that unknown or currently deemed immaterial risks could still adversely affect its business. Stakeholders should remain vigilant as these potential risks could influence the company’s financial health and operational performance.

European Wax Center, Inc. Reports Mixed Q2 2025 Results

European Wax Center, Inc. is a leading franchisor and operator of out-of-home waxing services in the United States, known for its innovative Comfort Wax® and a network of over 1,000 centers across 44 states.