European Wax Center Inc. Class A Common Stock (EWCZ)

FairStock Score: 30/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach European Wax Center as a potential asset-light franchisor. It earns fees and product sales from waxing centers, with only 121 employees. That model can be attractive, but the numbers here are not those of a robust compounder. In the latest reported quarter, fiscal Q4 2025, revenue was $45.1M, net income was -$587,000, and net margin was -1.30%. The provided revenue growth figure is -9.32%, and the provided profit growth figure is -129.83%. That tells me demand or franchisee economics are under pressure. Financial health is mixed. Return on capital employed is only 4.04%, and debt-to-equity is 3.65. The Altman Z-Score of 0.28 and Piotroski F-Score of 4/9 suggest fragility. Yet trailing free cash flow is $50.1M, a 19.5% yield on the $257.5M market cap, and EV/EBITDA is 8.90. That cash is real and important. The trouble is price. At $5.82 on 2026-05-11, the P/E is 29.10, P/B is 3.22, and the Graham Number is $2.85, leaving a margin of safety of -104.21%. I see no bargain in earnings or assets. FairStock score is 30/100, and no Lynch category is assigned because there are only 0 years of filed annual results under those rules. A franchise may have some routine-demand stickiness, but I cannot pay a premium for falling revenue and negative quarterly earnings without a stronger balance sheet. Watch cash flow, but demand protection first.

In plain English: European Wax Center sells waxing services through franchised locations and related skin products. The latest quarter showed a small loss and falling sales, and the company carries a lot of debt, so the business looks weak now. At $5.82 on 2026-05-11, the price looks high compared with its profits and net worth, even though it generates substantial cash relative to its market value.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-05-11 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer