European Wax Center (EWCZ) AI Stock Analysis

• Market Cap: $199.51M
• Dividend Yield: N/A
• Average Volume (3M): 358.10K
• Price to Earnings (P/E): 14.1
• Beta (1Y): 1.90
• Revenue Growth: -5.47%
• EPS Growth: 13.42%
• Country: US
• Employees: 124
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Household & Personal Products
• EPS (TTM): 0.21
• Shares Outstanding: 43,692,900
• 10 Day Avg. Volume: 484,970
• 30 Day Avg. Volume: 358,097
• PEG Ratio: 1.02
• Price to Book (P/B): 4.88
• Price to Sales (P/S): 1.44
• P/FCF Ratio: 5.58
• Enterprise Value/Market Cap: 2.50
• Enterprise Value/Revenue: 2.36
• Enterprise Value/Gross Profit: 3.41
• Enterprise Value/Ebitda: 7.50
• 1Y Price Target: $4.90
• Price Target Upside: 33.51% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4
• EPS Forecast (FY): 0.7
• Revenue Forecast (FY): $208.69M

• Rating: 62 Neutral
• Price Target: $4.00 ▲(8.99% Upside)

European Wax Center's overall score reflects strong operational efficiency and cash flow generation, balanced by challenges in revenue growth and high leverage. The earnings call provided a balanced sentiment with strategic initiatives for growth, while technical indicators suggest limited momentum. Valuation is moderate, with no dividend yield to attract income investors.

Positive Factors

Operational Efficiency

A high gross profit margin indicates strong operational efficiency, allowing the company to maintain profitability despite revenue challenges.

Cash Flow Generation

Strong cash flow generation supports financial stability and provides flexibility for strategic investments and debt servicing.

Franchise Model

The franchise model enables scalable growth with reduced capital expenditure, leveraging franchisee investments for expansion.

Negative Factors

Revenue Growth Challenges

Negative revenue growth suggests difficulties in expanding market share, which could impact long-term growth prospects.

High Leverage

High leverage can strain financial resources, limiting the company's ability to invest in growth and weather economic downturns.

New Guest Acquisition

Challenges in acquiring new guests can hinder revenue growth and market expansion, impacting long-term business sustainability.

European Wax Center Business Overview & Revenue Model

Company Description

European Wax Center (EWCZ) is a leading franchise-based personal care company specializing in body waxing services. Founded in 2004, EWCZ operates in the beauty and personal care sector, offering a range of services that include full body waxing, brow shaping, and skin care products. The company is committed to providing a comfortable and luxurious waxing experience, utilizing proprietary waxing techniques and high-quality products to ensure customer satisfaction across its numerous locations in the United States.

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 2021	Dec 2020
Income Statement
Total Revenue	211.26M	216.92M	221.02M	207.35M	178.68M	103.41M
Gross Profit	146.53M	159.60M	158.39M	148.12M	131.84M	67.90M
EBITDA	66.56M	62.64M	65.03M	60.51M	44.70M	17.41M
Net Income	11.24M	10.46M	8.70M	7.31M	6.91M	-21.50M
Balance Sheet
Total Assets	720.70M	707.07M	734.12M	716.03M	613.44M	606.90M
Cash, Cash Equivalents and Short-Term Investments	73.60M	49.73M	52.73M	44.22M	43.30M	36.72M
Total Debt	7.77M	380.82M	380.39M	380.47M	178.23M	265.40M
Total Liabilities	615.89M	615.48M	619.11M	585.73M	272.20M	288.88M
Stockholders Equity	78.11M	64.05M	82.02M	79.00M	179.39M	318.02M
Cash Flow
Free Cash Flow	59.35M	55.98M	54.82M	44.11M	33.14M	-35.45M
Operating Cash Flow	61.76M	56.51M	55.60M	44.35M	41.35M	1.40M
Investing Cash Flow	-2.42M	-386.00K	-785.00K	-245.00K	-8.20M	-36.84M
Financing Cash Flow	-33.83M	-59.15M	-46.38M	-36.62M	-26.56M	61.90M

European Wax Center Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.67
• 50DMA: Negative
• 100DMA: Negative
• 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 3.67 is below the 20-day moving average (MA) of 3.74, below the 50-day MA of 3.76, and below the 200-day MA of 4.56, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 47.89 is Neutral, neither overbought nor oversold. The STOCH value of 15.94 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
EPC	63 Neutral	$814.52M	32.85	1.62%	3.26%	-1.34%	-73.59%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
EWCZ	62 Neutral	$199.51M	14.07	15.38%	―	-5.47%	13.42%
NUS	60 Neutral	$488.48M	4.60	14.55%	2.63%	-12.10%	―
HELE	47 Neutral	$424.88M	―	-52.84%	―	-5.64%	-577.74%
SKIN	46 Neutral	$175.02M	-4.90	-18.73%	―	-13.14%	57.98%
SLSN	45 Neutral	$155.89M	157.86	6.60%	―	30.04%	-53.50%

European Wax Center Corporate Events

European Wax Center, Inc. Reports Strong Net Income Growth

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. The company provides a professional personal care experience with highly trained wax specialists, revolutionizing the waxing industry since its founding in 2004.

European Wax Center’s Balanced Earnings Call Highlights Growth and Challenges

European Wax Center, Inc. Class A recently held its earnings call, presenting a balanced sentiment with notable achievements and challenges. The call underscored strong EBITDA growth and operational improvements, particularly in guest engagement and marketing effectiveness. However, the company also faced challenges with a decline in system-wide sales and difficulties in acquiring new guests.

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.