European Wax Center (EWCZ) AI Stock Analysis

• Market Cap: $318.53M
• Dividend Yield: N/A
• Average Volume (3M): 705.56K
• Price to Earnings (P/E): 28.3
• Beta (1Y): 1.60
• Revenue Growth: -2.93%
• EPS Growth: -17.72%
• Country: US
• Employees: 124
• Sector: Consumer Cyclical
• Sector Strength: 56
• Industry: Household & Personal Products
• EPS (TTM): 0.20
• Shares Outstanding: 43,339,565
• 10 Day Avg. Volume: 604,495
• 30 Day Avg. Volume: 705,560
• PEG Ratio: 0.18
• Price to Book (P/B): 6.31
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 11.29
• Enterprise Value/Market Cap: 2.62
• Enterprise Value/Revenue: 0.95
• Enterprise Value/Gross Profit: 5.23
• Enterprise Value/Ebitda: 3.17
• 1Y Price Target: $5.40
• Price Target Upside: -6.41% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 6

• Rating: 66 Neutral
• Price Target: $6.00 ▲(3.99%Upside)

European Wax Center displays solid financial performance with strong cash flow management and operational efficiency, making it a resilient investment. However, technical indicators show moderate strength, and the valuation suggests the stock may be overpriced. Mixed sentiment from the earnings call adds caution, but strategic initiatives could drive future growth.

Positive Factors

Financial Performance

Raising target price from $4.50 to $6 reflects higher estimates and a higher terminal multiple in the DCF, given underlying comps have stabilized and no more franchise store closures were announced.

Revenue Growth

System-wide sales increased 2% in 1Q, driven in part by demand pull-forward from 2Q due to a successful retail promotion.

Strategic Initiatives

New leadership is doing what they can to reignite comp growth and get better visibility into franchise-level store profitability, including retooling their marketing efforts to bring new customers into centers.

Negative Factors

Market Challenges

New guest acquisition could be tempered as the consumer environment is pressured and tariffs add uncertainty to the mix.

Store Closures

Shares are down (~15%) as the number of store closures in '25 will likely be more than previously expected.

Unit Growth

Closures to outweigh openings in '25, resulting in a ~4% decline in units.

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 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 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	Mar 2025	Mar 2024	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	216.47M	216.92M	221.02M	207.35M	178.68M	103.41M
Gross Profit	159.40M	159.60M	158.39M	148.12M	131.84M	67.90M
EBITDA	61.53M	62.64M	65.44M	4.28M	45.03M	16.36M
Net Income	9.49M	10.46M	8.93M	13.61M	3.97M	-39.77M
Balance Sheet
Total Assets	713.79M	707.07M	734.12M	716.03M	613.44M	606.90M
Cash, Cash Equivalents and Short-Term Investments	58.33M	49.73M	52.73M	44.22M	43.30M	36.72M
Total Debt	7.70M	380.82M	380.39M	380.47M	178.23M	265.40M
Total Liabilities	615.28M	615.48M	619.11M	585.73M	272.20M	288.88M
Stockholders Equity	70.45M	64.05M	82.02M	79.00M	-3.53M	-62.00M
Cash Flow
Free Cash Flow	57.34M	55.98M	54.82M	44.11M	33.14M	-35.45M
Operating Cash Flow	58.49M	56.51M	55.60M	44.35M	41.35M	1.40M
Investing Cash Flow	-1.15M	-386.00K	-785.00K	-245.00K	-8.20M	-36.84M
Financing Cash Flow	-59.43M	-59.15M	-46.38M	-36.62M	-26.56M	61.90M

European Wax Center Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.77
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• 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 5.77 is above the 20-day moving average (MA) of 5.73, above the 50-day MA of 4.73, and below the 200-day MA of 5.80, indicating a neutral trend. The MACD of 0.21 indicates Positive momentum. The RSI at 57.64 is Neutral, neither overbought nor oversold. The STOCH value of 42.37 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	66 Neutral	$318.53M	28.26	11.85%	―	-2.93%	-17.72%
ACU	66 Neutral	$151.93M	16.36	9.68%	1.48%	2.56%	-47.22%
NUS	62 Neutral	$381.96M	―	-4.93%	3.10%	-11.85%	-1080.00%
Sector *	62 Neutral	$16.72B	10.85	-7.48%	3.15%	1.66%	-24.52%
SKIN	56 Neutral	$245.72M	―	-70.44%	―	-17.97%	49.13%
TANH	54 Neutral	$2.68M	1.82	-1.68%	―	-9.25%	-109.49%
GROV	38 Underperform	$44.28M	―	-180.03%	―	-19.83%	22.76%

European Wax Center Corporate Events

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.