European Wax Center (EWCZ) AI Stock Analysis

• Market Cap: $270.51M
• Dividend Yield: N/A
• Average Volume (3M): 531.61K
• Price to Earnings (P/E): 24.0
• Beta (1Y): 1.62
• Revenue Growth: -2.93%
• EPS Growth: -17.72%
• Country: US
• Employees: 124
• Sector: Consumer Cyclical
• Sector Strength: 69
• Industry: Household & Personal Products
• EPS (TTM): 0.20
• Shares Outstanding: 43,339,565
• 10 Day Avg. Volume: 350,946
• 30 Day Avg. Volume: 531,610
• PEG Ratio: -2.60
• Price to Book (P/B): 3.18
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 3.91
• Enterprise Value/Market Cap: 0.64
• Enterprise Value/Revenue: 0.20
• Enterprise Value/Gross Profit: 1.08
• Enterprise Value/Ebitda: 0.66
• 1Y Price Target: $5.40
• Price Target Upside: 10.20% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 6

• Rating: 65 Neutral
• Price Target: $5.50 ▲(12.24%Upside)

The overall stock score reflects solid financial performance and positive corporate events, offset by weak technical indicators and a moderate valuation. Challenges from the earnings call and market conditions are notable but are being actively addressed, which provides a balanced outlook.

Positive Factors

Financial Performance

Raising the target price from $4.50 to $6 reflects stabilized comps and no announced franchise store closures, indicating improved financial outlook.

Leadership and Strategy

New leadership is revitalizing growth and improving franchise profitability through enhanced marketing efforts.

Profitability and Cash Flow

EWCZ's profitable model and strong free cash flow suggest a higher valuation multiple than the current 7x EV/EBITDA.

Negative Factors

Market Challenges

Consumer environment pressure and tariff uncertainties could temper new guest acquisition efforts.

Store Closures

Shares have decreased by approximately 15% as the anticipated number of store closures in '25 is higher than previously expected.

Unit Growth Uncertainty

Limited visibility on the unfolding of EWCZ's initiatives raises concerns about resuming unit growth by the end of '26.

European Wax Center Business Overview & Revenue Model

Company Description

European Wax Center (EWCZ) is a leading personal care brand specializing in hair removal services. The company is renowned for its unique waxing techniques and high-quality products, offering a comprehensive range of services including body and facial waxing for both men and women. With a strong presence in the beauty and wellness sector, European Wax Center is committed to providing exceptional customer experiences through its network of franchised locations across the United States.

How the Company Makes Money

European Wax Center primarily generates revenue through its franchised locations, where franchisees pay initial franchise fees and ongoing royalties based on their sales. Additionally, the company earns income from the sale of proprietary waxing products, which are used in their services and also available for purchase by customers. These products contribute to both in-store sales and online revenue. The company's earnings are further supported by strategic marketing partnerships and customer loyalty programs that enhance brand visibility and customer retention.

European Wax Center Financial Statement Overview

Summary

European Wax Center demonstrates strong operational efficiency with a high gross profit margin of 73.6% and robust cash flow management. However, a relatively low net profit margin of 4.4% and low equity levels on the balance sheet suggest potential financial stability concerns.

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	Mar 2025	Mar 2024	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	216.92M	221.02M	207.35M	178.68M	103.41M
Gross Profit	159.60M	158.39M	148.12M	131.84M	67.90M
EBITDA	62.64M	65.44M	4.28M	45.03M	16.36M
Net Income	10.46M	8.93M	13.61M	3.97M	-39.77M
Balance Sheet
Total Assets	707.07M	734.12M	716.03M	613.44M	606.90M
Cash, Cash Equivalents and Short-Term Investments	49.73M	52.73M	44.22M	43.30M	36.72M
Total Debt	380.82M	380.39M	380.47M	178.23M	265.40M
Total Liabilities	615.48M	619.11M	585.73M	272.20M	288.88M
Stockholders Equity	64.05M	82.02M	79.00M	-3.53M	-62.00M
Cash Flow
Free Cash Flow	55.98M	54.82M	44.11M	33.14M	-35.45M
Operating Cash Flow	56.51M	55.60M	44.35M	41.35M	1.40M
Investing Cash Flow	-386.00K	-785.00K	-245.00K	-8.20M	-36.84M
Financing Cash Flow	-59.15M	-46.38M	-36.62M	-26.56M	61.90M

European Wax Center Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.90
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EWCZ, the sentiment is Negative. The current price of 4.9 is below the 20-day moving average (MA) of 5.47, below the 50-day MA of 5.34, and below the 200-day MA of 5.68, indicating a bearish trend. The MACD of -0.11 indicates Positive momentum. The RSI at 35.70 is Neutral, neither overbought nor oversold. The STOCH value of 4.80 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EWCZ.

European Wax Center Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ACU	79 Outperform	$157.73M	16.99	9.68%	1.54%	2.56%	-47.22%
EWCZ	65 Neutral	$270.51M	24.00	11.85%	―	-2.93%	-17.72%
Sector *	62 Neutral	$16.95B	10.84	-7.26%	3.05%	1.71%	-25.14%
NUS	61 Neutral	$412.10M	―	-4.93%	2.88%	-11.85%	-1080.00%
TANH	54 Neutral	$2.54M	1.82	-1.68%	―	-9.25%	-109.49%
SKIN	54 Neutral	$200.36M	―	-70.44%	―	-17.97%	49.13%
GROV	41 Neutral	$60.68M	―	-180.03%	―	-19.83%	22.76%

European Wax Center Corporate Events

European Wax Center Announces New Leadership Appointments

On July 16, 2025, European Wax Center, Inc. announced the appointment of Angela Jaskolski as Chief Operating Officer and Kurt Smith as Chief Development Officer, effective August 18, 2025, and July 22, 2025, respectively. These appointments aim to enhance the company’s operational efficiency and franchise development, with Jaskolski bringing extensive experience in operations and Smith in franchise development. The leadership changes are expected to support the company’s growth strategy and strengthen its franchisee network.

The most recent analyst rating on (EWCZ) stock is a Buy with a $6.00 price target. To see the full list of analyst forecasts on European Wax Center stock, see the EWCZ Stock Forecast page.

European Wax Center Elects New Board Directors

On June 3, 2025, European Wax Center, Inc. held its annual meeting of stockholders, where key proposals were voted upon. The stockholders elected directors Alexa Bartlett and Julia Hunter to the Board of Directors for a three-year term. Additionally, the selection of Deloitte & Touche LLP as the company’s independent registered public accounting firm for the year ending January 3, 2026, was ratified.

The most recent analyst rating on (EWCZ) stock is a Buy with a $6.00 price target. To see the full list of analyst forecasts on European Wax Center stock, see the EWCZ Stock Forecast page.