* Note: Prices are in Million (M) USD.
Description:
European Wax Center, Inc. is a franchised holding company of EWC Ventures, LLC that operates out-of-home waxing services in the United States. The company is headquartered in Plano, Texas.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $50 M
Debt : $381 M
EBITDA : $70 M
Net Debt (Debt - Cash): $331 M
Since EBITDA cannot cover net debt within 3 years, Avoid This Stock.
This criteria used industry in which company operates:
Sector: Consumer Discretionary
Industry: Household & Personal Products
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 7.64
Since Forward PE Ratio is less than 15, 5 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Average Free Cash Flow: $21 M
Average Revenue: $180 M
Revenue Converted To Free Cash Flow (%): 12%
Avg Free Cash Flow Growth Per Year (Last 5 Years): 45.13%
Since Free Cash Flow (FCF) to Revenue percentage is less than 15, 1 point assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $217 M
Revenue 4 Years Ago (2020-12-31): $103 M
Last 5 Years Average Revenue Growth: 22%
Since Revenue Growth is greater than 20, 5 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $47 M
Share Count 5 Years Ago (2020-12-31): $31 M
Company is not buying back its own shares, 0 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $0.64
Trailing 12-Month Earnings Per Share (EPS): $0.58
Average Earnings Per Share (EPS): $0.61
Dividend Per Share (DPS): $0
Payout Ratio: 0%
Dividend Yield: 0%
Since Dividend Per Share is less than or equal to 0, 0 point assigned.
Since Dividend Yield is less than 1, 0 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Average ROE: 15%
Since Average ROE is between 10 - 20, 3 points assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $5
52-Week Low: $3
Threshold Price (15% Above 52-Week Low): $3
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $256 M
Since Market Cap is less than 10B, 1 point assigned.
% Exposure to Total Portfolio
Based the market cap, we recommend do not exceed 0.5% exposure of Total Portfolio.
Value-Trade has assigned 18 points to above European Wax Center Inc (EWCZ) stock.
Last 4 Years Avg PE (Limited to last 4 years of EPS data) 24.38, Fair Value PE 12, Industry Based PE is 23 and Growth based PE is 15. Based on these all values average assigned is 18.60.
Value-Trades has assined P/E value 18.60. Since an average (Current Year EPS + Next Year EPS) earning per share is $0.61.
The fair value of European Wax Center Inc (EWCZ) stock should be (18.60 x $0.61) = $11.35
