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EWCZ

European Wax Center NasdaqGS:EWCZ Stock Report

Last Price

US$20.31

Market Cap

US$1.3b

7D

-3.9%

1Y

-15.4%

Updated

09 Aug, 2022

Data

Company Financials +
EWCZ fundamental analysis
Snowflake Score
Valuation1/6
Future Growth4/6
Past Performance3/6
Financial Health1/6
Dividends0/6

EWCZ Stock Overview

European Wax Center, Inc. operates as the franchisor and operator of out-of-home waxing services in the United States.

European Wax Center Competitors

Price History & Performance

Summary of all time highs, changes and price drops for European Wax Center
Historical stock prices
Current Share PriceUS$20.31
52 Week HighUS$34.67
52 Week LowUS$16.30
Beta0
1 Month Change13.78%
3 Month Change-16.93%
1 Year Change-15.38%
3 Year Changen/a
5 Year Changen/a
Change since IPO-5.05%

Recent News & Updates

Aug 06
Returns At European Wax Center (NASDAQ:EWCZ) Are On The Way Up

Returns At European Wax Center (NASDAQ:EWCZ) Are On The Way Up

What are the early trends we should look for to identify a stock that could multiply in value over the long term...

Aug 04

European Wax Center reports Q2 results

European Wax Center press release (NASDAQ:EWCZ): Q2Revenue of $53.4M (+11.5% Y/Y) misses by $0.6M. Net income of $2.0 million decreased $5.7 million from $7.7 million and Adjusted Net Income of $7.4 million decreased $2.5 million from $9.9 million in the prior year period.

Shareholder Returns

EWCZUS Consumer ServicesUS Market
7D-3.9%-3.3%0.3%
1Y-15.4%-32.4%-13.5%

Return vs Industry: EWCZ exceeded the US Consumer Services industry which returned -31.8% over the past year.

Return vs Market: EWCZ underperformed the US Market which returned -13% over the past year.

Price Volatility

Is EWCZ's price volatile compared to industry and market?
EWCZ volatility
EWCZ Average Weekly Movement9.1%
Consumer Services Industry Average Movement10.0%
Market Average Movement7.9%
10% most volatile stocks in US Market17.2%
10% least volatile stocks in US Market3.2%

Stable Share Price: EWCZ is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: EWCZ's weekly volatility (9%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2004149David Berghttps://waxcenter.com

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 Fundamentals Summary

How do European Wax Center's earnings and revenue compare to its market cap?
EWCZ fundamental statistics
Market CapUS$1.33b
Earnings (TTM)US$1.44m
Revenue (TTM)US$192.90m

555.7x

P/E Ratio

4.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
EWCZ income statement (TTM)
RevenueUS$192.90m
Cost of RevenueUS$52.22m
Gross ProfitUS$140.68m
Other ExpensesUS$139.24m
EarningsUS$1.44m

Last Reported Earnings

Jun 25, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.037
Gross Margin72.93%
Net Profit Margin0.75%
Debt/Equity Ratio279.2%

How did EWCZ perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is EWCZ undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for EWCZ?

Other financial metrics that can be useful for relative valuation.

EWCZ key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue6.3x
Enterprise Value/EBITDA28.3x
PEG Ratio14.2x

Price to Sales Ratio vs Peers

How does EWCZ's PS Ratio compare to its peers?

EWCZ PS Ratio vs Peers
The above table shows the PS ratio for EWCZ vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average2.3x
VVNT Vivint Smart Home
0.7x6.4%US$1.2b
FTDR Frontdoor
1.2x6.2%US$2.0b
OSW OneSpaWorld Holdings
2.3x26.2%US$806.1m
ROVR Rover Group
4.9x26.7%US$701.9m
EWCZ European Wax Center
4.2x10.7%US$1.3b

Price-To-Sales vs Peers: EWCZ is expensive based on its Price-To-Sales Ratio (4.2x) compared to the peer average (2.3x).


Price to Earnings Ratio vs Industry

How does EWCZ's PE Ratio compare vs other companies in the US Consumer Services Industry?

Price-To-Sales vs Industry: EWCZ is expensive based on its Price-To-Sales Ratio (4.2x) compared to the US Consumer Services industry average (1.6x)


Price to Sales Ratio vs Fair Ratio

What is EWCZ's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

EWCZ PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio4.2x
Fair PS Ratio2.5x

Price-To-Sales vs Fair Ratio: EWCZ is expensive based on its Price-To-Sales Ratio (4.2x) compared to the estimated Fair Price-To-Sales Ratio (2.5x).


Share Price vs Fair Value

What is the Fair Price of EWCZ when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: EWCZ ($20.31) is trading above our estimate of fair value ($13.24)

Significantly Below Fair Value: EWCZ is trading above our estimate of fair value.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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Future Growth

How is European Wax Center forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


39.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EWCZ's forecast earnings growth (39.1% per year) is above the savings rate (1.9%).

Earnings vs Market: EWCZ's earnings (39.1% per year) are forecast to grow faster than the US market (14.6% per year).

High Growth Earnings: EWCZ's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: EWCZ's revenue (10.7% per year) is forecast to grow faster than the US market (7.9% per year).

High Growth Revenue: EWCZ's revenue (10.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: EWCZ's Return on Equity is forecast to be low in 3 years time (14%).


Discover growth companies

Past Performance

How has European Wax Center performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


34.0%

Last years revenue growth

Earnings and Revenue History

Quality Earnings: EWCZ has high quality earnings.

Growing Profit Margin: EWCZ became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: EWCZ has become profitable over the past 5 years.

Accelerating Growth: EWCZ has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: EWCZ has become profitable in the last year, making it difficult to compare its past year earnings growth to the Consumer Services industry (2.9%).


Return on Equity

High ROE: EWCZ's Return on Equity (0.9%) is considered low.


Discover strong past performing companies

Financial Health

How is European Wax Center's financial position?

Financial Health Score

1/6

Financial Health Score 1/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: EWCZ's short term assets ($81.9M) exceed its short term liabilities ($31.9M).

Long Term Liabilities: EWCZ's short term assets ($81.9M) do not cover its long term liabilities ($451.1M).


Debt to Equity History and Analysis

Debt Level: EWCZ's net debt to equity ratio (255.9%) is considered high.

Reducing Debt: Insufficient data to determine if EWCZ's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: EWCZ's debt is not well covered by operating cash flow (13.6%).

Interest Coverage: EWCZ's interest payments on its debt are not well covered by EBIT (1.1x coverage).


Balance Sheet


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Dividend

What is European Wax Center current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate EWCZ's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate EWCZ's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if EWCZ's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if EWCZ's dividend payments have been increasing.


Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as EWCZ has not reported any payouts.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

2.8yrs

Average management tenure


CEO

David Berg (61 yo)

1.33yrs

Tenure

US$8,193,736

Compensation

Mr. David Berg has been Chief Executive Officer at European Wax Center, Inc. since October 2018 and its Director Since April 2021. He served as a Director of Planet Fitness, Inc. since September 2015 until...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD8.19M) is above average for companies of similar size in the US market ($USD5.45M).

Compensation vs Earnings: Insufficient data to compare David's compensation with company performance.


Leadership Team

Experienced Management: EWCZ's management team is considered experienced (2.8 years average tenure).


Board Members

Experienced Board: EWCZ's board of directors are not considered experienced ( 1.3 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

European Wax Center, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: European Wax Center, Inc.
  • Ticker: EWCZ
  • Exchange: NasdaqGS
  • Founded: 2004
  • Industry: Specialized Consumer Services
  • Sector: Consumer Services
  • Implied Market Cap: US$1.326b
  • Market Cap: US$802.322m
  • Shares outstanding: 63.45m
  • Website: https://waxcenter.com

Number of Employees


Location

  • European Wax Center, Inc.
  • 5830 Granite Parkway
  • 3rd Floor
  • Plano
  • Texas
  • 75024
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/09 00:00
End of Day Share Price2022/08/09 00:00
Earnings2022/06/25
Annual Earnings2021/12/25


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.