European Wax Center (EWCZ) AI Stock Analysis

• Market Cap: $220.70M
• Dividend Yield: N/A
• Average Volume (3M): 362.46K
• Price to Earnings (P/E): 15.6
• Beta (1Y): 1.88
• 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: 282,885
• 30 Day Avg. Volume: 362,459
• 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: 2.26
• Enterprise Value/Revenue: 2.36
• Enterprise Value/Gross Profit: 3.41
• Enterprise Value/Ebitda: 7.50
• 1Y Price Target: $4.90
• Price Target Upside: 20.69% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4
• EPS Forecast (FY): 0.7
• Revenue Forecast (FY): $208.77M

• Rating: 64 Neutral
• Price Target: $4.00 ▼(-1.48% Downside)

European Wax Center's stock 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 potential bearish momentum. The stock's reasonable valuation supports its overall score.

Positive Factors

Cash Generation

Strong cash generation capabilities provide financial flexibility, enabling reinvestment in growth initiatives and debt management.

Operational Efficiency

Improved operational efficiency, reflected in EBITDA growth, enhances profitability and supports sustainable business operations.

Marketing Effectiveness

Effective marketing campaigns boost brand visibility and customer engagement, driving long-term revenue growth potential.

Negative Factors

Revenue Growth Challenges

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

High Leverage

High leverage increases financial risk and may limit the company's ability to invest in growth or weather economic downturns.

New Guest Acquisition

Challenges in acquiring new guests could hinder future revenue streams and market expansion efforts, impacting growth sustainability.

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 shows strong operational efficiency and cash flow generation, but faces challenges with revenue growth and high leverage. The company's ability to maintain profitability and manage debt levels will be crucial for future stability and growth.

Income Statement

The income statement shows a mixed performance. While the company has maintained a healthy gross profit margin of over 71% in TTM, revenue growth has been negative recently, indicating potential challenges in market expansion. The net profit margin has decreased slightly, reflecting some pressure on profitability. However, EBIT and EBITDA margins remain strong, suggesting operational efficiency.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio, which poses a risk due to significant leverage. However, the company has shown a reasonable return on equity, indicating effective use of shareholder funds. The equity ratio is relatively low, suggesting a reliance on debt financing, which could impact financial stability.

Cash Flow

Cash flow analysis indicates strong free cash flow growth and a solid operating cash flow to net income ratio, demonstrating good cash generation capabilities. The free cash flow to net income ratio is nearly 1, reflecting efficient conversion of earnings into cash. These factors contribute to a robust cash flow position.

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	382.19M	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: Positive
• Last Price: 4.06
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 4.06 is above the 20-day moving average (MA) of 3.89, above the 50-day MA of 3.75, and below the 200-day MA of 4.36, indicating a neutral trend. The MACD of 0.10 indicates Negative momentum. The RSI at 56.55 is Neutral, neither overbought nor oversold. The STOCH value of 70.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EWCZ.

European Wax Center Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EWCZ	64 Neutral	$220.70M	15.57	15.38%	―	-5.47%	13.42%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
NUS	61 Neutral	$517.24M	4.88	14.55%	2.26%	-12.10%	―
EPC	58 Neutral	$808.48M	32.61	1.62%	3.45%	-1.34%	-73.59%
HELE	53 Neutral	$483.61M	-0.73	-52.84%	―	-5.64%	-577.74%
SKIN	51 Neutral	$178.50M	-6.33	-18.73%	―	-13.14%	57.98%
SLSN	50 Neutral	$145.31M	147.14	6.60%	―	30.04%	-53.50%

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.

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.