Overlooked Alpha

Overlooked Alpha

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Overlooked Alpha
Overlooked Alpha
European Wax Center: A Cyclical Short Even At The Lows

European Wax Center: A Cyclical Short Even At The Lows

Between valuation, leverage and concerns about growth, EWCZ looks like a short.

Overlooked Alpha
Oct 16, 2022
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Overlooked Alpha
Overlooked Alpha
European Wax Center: A Cyclical Short Even At The Lows
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TLDR:

  • Franchisor European Wax Center has been a strong growth story since its founding 18 years ago.

  • But the company has benefited from a constructive external environment; that’s changing.

  • At 19x EBITDA, the stock isn’t cheap even if targets are hit.

  • A real path exists to a sub-$10 share price and 30%-plus downside. Investors willing to short should be loo…

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