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European Wax Center Inc (EWCZ)



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Upturn Advisory Summary
04/07/2025: EWCZ (1-star) is currently NOT-A-BUY. Pass it for now.
Analysis of Past Performance
Type Stock | Historic Profit -56.89% | Avg. Invested days 25 | Today’s Advisory PASS |
Upturn Star Rating ![]() ![]() | Upturn Advisory Performance ![]() | Stock Returns Performance ![]() |
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Key Highlights
Company Size Small-Cap Stock | Market Capitalization 197.03M USD | Price to earnings Ratio 16.18 | 1Y Target Price 6.31 |
Price to earnings Ratio 16.18 | 1Y Target Price 6.31 | ||
Volume (30-day avg) 754066 | Beta 1.26 | 52 Weeks Range 2.72 - 12.89 | Updated Date 04/7/2025 |
52 Weeks Range 2.72 - 12.89 | Updated Date 04/7/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) 0.22 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Earnings Date
Report Date 2025-03-11 | When - | Estimate 0.0575 | Actual 0.165 |
Profitability
Profit Margin 4.82% | Operating Margin (TTM) 28.97% |
Management Effectiveness
Return on Assets (TTM) 4.34% | Return on Equity (TTM) 14.21% |
Valuation
Trailing PE 16.18 | Forward PE - | Enterprise Value 485389095 | Price to Sales(TTM) 0.91 |
Enterprise Value 485389095 | Price to Sales(TTM) 0.91 | ||
Enterprise Value to Revenue 2.24 | Enterprise Value to EBITDA 7.75 | Shares Outstanding 43341300 | Shares Floating 27417285 |
Shares Outstanding 43341300 | Shares Floating 27417285 | ||
Percent Insiders 2.39 | Percent Institutions 95.03 |
Analyst Ratings
Rating 3.44 | Target Price 8.06 | Buy - | Strong Buy 3 |
Buy - | Strong Buy 3 | ||
Hold 5 | Sell - | Strong Sell 1 | |
Strong Sell 1 |
Upturn AI SWOT
European Wax Center Inc
Company Overview
History and Background
European Wax Center (EWC) was founded in 2004 by siblings David and Josh Coba. The company provides waxing services and related retail products. Initially a family-run business, it has expanded through franchising. It went public in August 2021.
Core Business Areas
- Waxing Services: EWC's primary business is providing various waxing services for both men and women, including facial waxing, body waxing, and Brazilian waxing. They utilize a proprietary Comfort Wax.
- Retail Products: EWC also sells a range of pre- and post-wax care products designed to enhance the waxing experience and maintain skin health.
- Franchising: EWC operates a franchise model allowing entrepreneurs to own and operate EWC centers.
Leadership and Structure
David Coba serves as the CEO. The company operates with a corporate structure overseeing a large network of franchise locations. The board of directors guides strategic decision-making.
Top Products and Market Share
Key Offerings
- Brazilian Wax: EWC is known for its Brazilian waxing services. It is difficult to pinpoint exact market share specifically for the Brazilian wax market but EWC is a recognized leader in the space. Competitors include independent salons, national chains like Massage Envy (private), and other waxing studios.
- Market Share: EWC does not publicly report market share breakdown by specific waxing type.
- Brow Wax: EWC offers brow waxing and shaping services. Competitors include Benefit Cosmetics (private) brow bars, Ulta Beauty (ULTA), and independent estheticians.
- Market Share: EWC does not publicly report market share breakdown by specific waxing type.
- Market Share: EWC does not publicly report market share breakdown by product type.
- Retail Products: EWC sells skincare and body care products. Competitors include Sephora, Ulta Beauty, and various skincare brands.
Market Dynamics
Industry Overview
The beauty services industry, including waxing, is competitive and driven by consumer spending and trends. Factors such as disposable income, fashion trends, and cultural norms influence demand. The market is fragmented with a mix of national chains, regional players, and independent salons.
Positioning
EWC positions itself as a premium waxing-only salon experience, focusing on hygiene, expertise, and a consistent brand experience across its franchise network. Its competitive advantages include brand recognition, a proprietary wax formula, and a standardized service protocol.
Total Addressable Market (TAM)
The beauty services market is estimated to be in the tens of billions of dollars. EWC is positioned to capture a portion of this TAM by focusing on the waxing segment and expanding its franchise network. The exact TAM applicable to EWC would depend on their specific addressable customer base and service range.
Upturn SWOT Analysis
Strengths
- Strong brand recognition
- Proprietary Comfort Wax formula
- Standardized service protocols
- Franchise model allows for rapid expansion
- Focus on waxing specialization
Weaknesses
- High reliance on franchise performance
- Vulnerable to economic downturns impacting consumer spending
- Potential for inconsistent service quality across franchise locations
- Relatively high price point compared to some competitors
Opportunities
- Expansion into new geographic markets
- Increased focus on retail product sales
- Partnerships with complementary businesses (e.g., fitness studios)
- Adoption of new technologies to improve the customer experience
- Growing demand for specialized beauty services
Threats
- Increased competition from other waxing salons and beauty retailers
- Changes in consumer preferences and beauty trends
- Economic downturns impacting disposable income
- Negative publicity related to service quality or franchise operations
- Labor shortages in the beauty industry
Competitors and Market Share
Key Competitors
- Massage Envy (private)
- Ulta Beauty (ULTA)
Competitive Landscape
EWC competes with a mix of national chains, regional players, and independent salons. EWC's advantages include its brand recognition, proprietary wax, and specialized focus on waxing. Disadvantages include its higher price point and reliance on franchise performance.
Major Acquisitions
Growth Trajectory and Initiatives
Historical Growth: EWC's historical growth has been driven by franchise expansion and same-store sales growth.
Future Projections: Future growth projections depend on analyst estimates and company guidance. These projections are subject to change based on market conditions.
Recent Initiatives: Recent initiatives may include expansion into new markets, enhancements to the customer experience, and investments in technology.
Summary
European Wax Center (EWCZ) is a leading waxing service provider with a strong brand and franchise network. Its specialization in waxing and proprietary Comfort Wax offer competitive advantages. However, EWC relies heavily on franchisee performance and faces competition from other beauty retailers. EWCZ should monitor consumer trends, manage franchisee relationships, and continue expanding its service offerings to maintain its market position.
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Sources and Disclaimers
Data Sources:
- European Wax Center Inc. SEC Filings
- Market Research Reports on Beauty Services
- Industry Analysis Reports
Disclaimers:
The data and analysis provided are for informational purposes only and should not be considered financial advice. Market conditions and company performance are subject to change. Consult with a qualified financial advisor before making any investment decisions.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About European Wax Center Inc
Exchange NASDAQ | Headquaters Plano, TX, United States | ||
IPO Launch date 2021-08-05 | CEO & Chairman Mr. Christopher D. Morris | ||
Sector Consumer Defensive | Industry Household & Personal Products | Full time employees 124 | Website https://waxcenter.com |
Full time employees 124 | Website https://waxcenter.com |
European Wax Center, Inc. operates as the franchisor and operator of out-of-home waxing services in the United States. It offers body and facial waxing services; and pre- and post-service products, including ingrown hair serums, exfoliating gels, brow shapers, and skin treatments, as well as skincare retail products. European Wax Center, Inc. was founded in 2004 and is headquartered in Plano, Texas.
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