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European Wax Center, Inc. (EWCZ) 10-Year Financial Performance & Capital Metrics

EWCZ • • Industrial / General
Consumer DefensiveHousehold ProductsBeauty Services & RetailBeauty Service Providers
AboutEuropean 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.Show more
  • Revenue $217M -1.9%
  • EBITDA $68M +4.6%
  • Net Income $10M +20.2%
  • EPS (Diluted) 0.22 +29.4%
  • Gross Margin 73.58% +2.7%
  • EBITDA Margin 31.37% +6.6%
  • Operating Margin 22.02% +9.4%
  • Net Margin 4.82% +22.5%
  • ROE 10.13% +42.7%
  • ROIC 8.28% +12.8%
  • Debt/Equity 4.16 +25.7%
  • Interest Coverage 1.87 +12.4%
Technical Analysis

Key Insights

Based on financial data analysis

✓Strengths

  • ✓Strong Piotroski F-Score: 7/9
  • ✓FCF machine: 25.8% free cash flow margin
  • ✓High quality earnings: Operating CF exceeds net income
  • ✓Share count reduced 5.5% through buybacks

✗Weaknesses

  • ✗High debt to equity ratio of 4.2x
  • ✗Trading more than 30% below 52-week high

* These insights are generated automatically based on available financial data. Please conduct your own research before making investment decisions.

Price & Volume

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Growth Metrics

Revenue CAGR

10Y-
5Y7.06%
3Y6.68%
TTM-5.47%

Profit (Net Income) CAGR

10Y-
5Y-
3Y14.82%
TTM2.33%

EPS CAGR

10Y-
5Y-
3Y-
TTM13.84%

ROCE

10Y Avg4.25%
5Y Avg4.68%
3Y Avg6.58%
Latest6.99%

Peer Comparison

Beauty Service Providers
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Sector-Specific
NameMarket CapCurrent PriceP/E RatioRevenue Growth 1YNet MarginROEFCF YieldDebt/Equity
EWCZEuropean Wax Center, Inc.189.63M4.3419.73-1.86%5.32%10.72%29.52%4.16
SKINThe Beauty Health Company198.9M1.56-4.33-16%-3.89%-17.89%4.7%10.97

Profit & Loss

Dec 2019Dec 2020Dec 2021Dec 2022Dec 2023Dec 2024
Sales/Revenue+154.2M103.41M178.68M207.35M221.02M216.92M
Revenue Growth %--0.33%0.73%0.16%0.07%-0.02%
Cost of Goods Sold+40.9M35.51M46.84M59.23M62.64M57.31M
COGS % of Revenue0.27%0.34%0.26%0.29%0.28%0.26%
Gross Profit+113.3M67.9M131.84M148.12M158.39M159.6M
Gross Margin %0.73%0.66%0.74%0.71%0.72%0.74%
Gross Profit Growth %--0.4%0.94%0.12%0.07%0.01%
Operating Expenses+101.63M71.12M107.28M108.22M113.91M111.84M
OpEx % of Revenue0.66%0.69%0.6%0.52%0.52%0.52%
Selling, General & Admin86.1M50.49M86.61M87.61M93.35M91.64M
SG&A % of Revenue0.56%0.49%0.48%0.42%0.42%0.42%
Research & Development18.18M00000
R&D % of Revenue0.12%-----
Other Operating Expenses-2.65M20.63M20.67M20.61M20.55M20.2M
Operating Income+11.67M-3.22M24.56M39.9M44.48M47.76M
Operating Margin %0.08%-0.03%0.14%0.19%0.2%0.22%
Operating Income Growth %--1.28%8.63%0.62%0.11%0.07%
EBITDA+27.2M16.36M44.9M60.51M65.03M68.04M
EBITDA Margin %0.18%0.16%0.25%0.29%0.29%0.31%
EBITDA Growth %--0.4%1.74%0.35%0.07%0.05%
D&A (Non-Cash Add-back)15.53M19.58M20.33M20.61M20.55M20.28M
EBIT11.67M-2.17M24.37M39.91M44.48M42.36M
Net Interest Income+-15.55M-18.28M-20.29M-23.63M-26.69M-25.49M
Interest Income000000
Interest Expense15.55M18.28M20.29M23.63M26.69M25.49M
Other Income/Expense-36.06M-18.28M-20.48M-79.85M-26.27M-30.89M
Pretax Income+-24.4M-21.5M4.08M-39.95M18.2M16.87M
Pretax Margin %-0.16%-0.21%0.02%-0.19%0.08%0.08%
Income Tax+00114K-53.47M6.16M2.19M
Effective Tax Rate %1%1%1.69%-0.18%0.48%0.62%
Net Income+-24.4M-21.5M6.91M7.31M8.7M10.46M
Net Margin %-0.16%-0.21%0.04%0.04%0.04%0.05%
Net Income Growth %-0.12%1.32%0.06%0.19%0.2%
Net Income (Continuing)-24.4M-21.5M3.97M13.51M12.04M14.68M
Discontinued Operations000000
Minority Interest00161.85M51.3M32.98M27.55M
EPS (Diluted)+-1.27-0.81-0.090.180.170.22
EPS Growth %-0.36%0.89%2.95%-0.06%0.29%
EPS (Basic)-1.27-0.81-0.090.180.170.22
Diluted Shares Outstanding31.37M31.37M36.93M40.15M49.59M46.87M
Basic Shares Outstanding31.37M31.37M36.93M40.01M49.51M46.84M
Dividend Payout Ratio---28.09%0.33%0.08%

Balance Sheet

Dec 2019Dec 2020Dec 2021Dec 2022Dec 2023Dec 2024
Total Current Assets+41.99M56.88M75.31M86.32M95.5M87.84M
Cash & Short-Term Investments10.26M36.72M43.3M44.22M52.73M49.73M
Cash Only10.26M36.72M43.3M44.22M52.73M49.73M
Short-Term Investments000000
Accounts Receivable6.79M5.07M6.66M6.93M9.25M7.28M
Days Sales Outstanding16.0717.913.612.215.2812.26
Inventory22.04M12.28M19.42M23.02M20.77M19.07M
Days Inventory Outstanding196.67126.23151.35141.85121.01121.45
Other Current Assets2.9M2.49M07.27M7.66M7M
Total Non-Current Assets+534.49M550.02M538.13M629.72M638.62M619.23M
Property, Plant & Equipment4.46M5.04M3.86M7.65M6.3M5.63M
Fixed Asset Turnover34.60x20.52x46.25x27.12x35.11x38.56x
Goodwill328.55M328.55M328.55M328.55M39.11M39.11M
Intangible Assets198.41M213.27M202M183.03M451.5M432.16M
Long-Term Investments000000
Other Non-Current Assets3.08M3.16M3.72M4.3M3.09M2.02M
Total Assets+576.48M606.9M613.44M716.03M734.12M707.07M
Asset Turnover0.27x0.17x0.29x0.29x0.30x0.31x
Asset Growth %-0.05%0.01%0.17%0.03%-0.04%
Total Current Liabilities+29.98M18.45M31.97M32.81M37.82M36.11M
Accounts Payable3.84M615K7.68M5.87M6.05M5.62M
Days Payables Outstanding34.256.3259.8836.235.2435.76
Short-Term Debt2.29M2.43M5.63M4M4M4M
Deferred Revenue (Current)1000K1000K1000K1000K1000K1000K
Other Current Liabilities19.69M9.15M8.82M9.15M14.01M13.98M
Current Ratio1.40x3.08x2.36x2.63x2.52x2.43x
Quick Ratio0.67x2.42x1.75x1.93x1.98x1.90x
Cash Conversion Cycle178.49137.8105.07117.85101.0597.94
Total Non-Current Liabilities+232.19M270.43M240.23M552.92M581.29M579.36M
Long-Term Debt222.99M262.98M172.61M370.94M372M373.25M
Capital Lease Obligations0004.23M3.16M2.32M
Deferred Tax Liabilities00000738K
Other Non-Current Liabilities2.39M925K60.84M170.85M199.52M197.23M
Total Liabilities262.16M288.88M272.2M585.73M619.11M615.48M
Total Debt+225.28M265.4M178.23M380.47M380.39M380.82M
Net Debt215.01M228.68M134.93M336.25M327.65M331.09M
Debt / Equity0.72x0.83x0.52x2.92x3.31x4.16x
Debt / EBITDA8.28x16.22x3.97x6.29x5.85x5.60x
Net Debt / EBITDA7.90x13.98x3.01x5.56x5.04x4.87x
Interest Coverage0.75x-0.18x1.21x1.69x1.67x1.87x
Total Equity+314.32M318.02M341.24M130.3M115M91.59M
Equity Growth %-0.01%0.07%-0.62%-0.12%-0.2%
Book Value per Share10.0210.149.243.252.321.95
Total Shareholders' Equity314.32M318.02M179.39M79M82.02M64.05M
Common Stock265.79M265.79M0000
Retained Earnings-55.02M-61.39M-3.49M-118.44M-110.88M-100.42M
Treasury Stock000-10.08M-40M-80.15M
Accumulated OCI-735K-527K-45K000
Minority Interest00161.85M51.3M32.98M27.55M

Cash Flow

Dec 2019Dec 2020Dec 2021Dec 2022Dec 2023Dec 2024
Cash from Operations+14.7M1.4M41.35M44.35M55.6M56.51M
Operating CF Margin %0.1%0.01%0.23%0.21%0.25%0.26%
Operating CF Growth %--0.9%28.6%0.07%0.25%0.02%
Net Income-24.4M-21.5M3.97M13.51M12.04M14.68M
Depreciation & Amortization15.53M19.58M20.33M20.61M20.55M20.28M
Stock-Based Compensation1.57M2.05M11.13M9.03M10.99M5.15M
Deferred Taxes18.54M0195K2.24M5.04M7.73M
Other Non-Cash Items3.67M8.98M8.63M5.63M5.49M6.34M
Working Capital Changes-212K-7.73M-2.91M-6.67M1.49M2.32M
Change in Receivables1.1M1.72M-2.19M-802K-2.7M1.33M
Change in Inventory-5.36M5.1M-9.46M-3.53M2.31M1.42M
Change in Payables2.8M00000
Cash from Investing+-40.69M-36.84M-8.2M-245K-785K-386K
Capital Expenditures-42.53M-2.16M-559K-245K-785K-521K
CapEx % of Revenue0.28%0.02%0%0%0%0%
Acquisitions------
Investments------
Other Investing0-34.69M-7.64M000
Cash from Financing+27.81M61.9M-26.56M-36.62M-46.38M-59.15M
Debt Issued (Net)------
Equity Issued (Net)------
Dividends Paid-5.19M00-205.25M-2.85M-789K
Share Repurchases------
Other Financing-1.45M22.3M-9.01M-23.62M-9.61M-14.22M
Net Change in Cash------
Free Cash Flow+-27.83M-35.45M33.14M44.11M54.82M55.98M
FCF Margin %-0.18%-0.34%0.19%0.21%0.25%0.26%
FCF Growth %--0.27%1.94%0.33%0.24%0.02%
FCF per Share-0.89-1.130.901.101.111.19
FCF Conversion (FCF/Net Income)-0.60x-0.06x5.98x6.07x6.39x5.40x
Interest Paid016.47M11.76M18.46M22.24M21.89M
Taxes Paid0010K169K860K498K

Key Ratios

Metric201920202021202220232024
Return on Equity (ROE)-7.76%-6.8%2.1%3.1%7.1%10.13%
Return on Invested Capital (ROIC)--0.45%3.6%6.35%7.34%8.28%
Gross Margin73.48%65.66%73.78%71.44%71.66%73.58%
Net Margin-15.82%-20.79%3.87%3.52%3.94%4.82%
Debt / Equity0.72x0.83x0.52x2.92x3.31x4.16x
Interest Coverage0.75x-0.18x1.21x1.69x1.67x1.87x
FCF Conversion-0.60x-0.06x5.98x6.07x6.39x5.40x
Revenue Growth--32.94%72.79%16.05%6.59%-1.86%

Revenue by Segment

2021202220232024
Product99.74M117.75M125.27M121.45M
Product Growth-18.05%6.39%-3.05%
Royalty43.65M49.73M53.35M53.09M
Royalty Growth-13.94%7.28%-0.48%
Marketing24.61M28.04M29.99M30.17M
Marketing Growth-13.94%6.96%0.59%
Other Revenue10.68M11.83M12.41M12.2M
Other Revenue Growth-10.79%4.88%-1.70%
Franchise7.91M---
Franchise Growth----
Service1.88M---
Service Growth----

Frequently Asked Questions

Valuation & Price

European Wax Center, Inc. (EWCZ) has a price-to-earnings (P/E) ratio of 19.7x. This is roughly in line with market averages.

Growth & Financials

European Wax Center, Inc. (EWCZ) reported $211.3M in revenue for fiscal year 2024. This represents a 37% increase from $154.2M in 2019.

European Wax Center, Inc. (EWCZ) saw revenue decline by 1.9% over the past year.

Yes, European Wax Center, Inc. (EWCZ) is profitable, generating $11.2M in net income for fiscal year 2024 (4.8% net margin).

Dividend & Returns

Yes, European Wax Center, Inc. (EWCZ) pays a dividend with a yield of 0.39%. This makes it attractive for income-focused investors.

European Wax Center, Inc. (EWCZ) has a return on equity (ROE) of 10.1%. This is reasonable for most industries.

European Wax Center, Inc. (EWCZ) generated $59.3M in free cash flow for fiscal year 2024. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.

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