European Wax Center, Inc. — Earnings Quality Grade F
EWCZ · Consumer Defensive
Major red flags
Screening Summary
Management Signals
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 19 days, change +7 days YoY
AR growth 50.4% exceeds revenue growth -4.7%
Revenue -4.7%, CFFO -6.2%. Cash follows revenue
Expense Quality
Inventory -6.8% vs COGS -6.1%. Normal
CapEx growth 458.9% is >2x revenue growth -4.7%
SG&A/Gross Profit = 58.4%. Normal
Gross margin 73.9%, change +0.4pp. Stable
Cash Flow Quality
CFFO/NI = 6.10. Profits backed by cash
FCF $0.1B, FCF/NI = 5.77
Accruals ratio = -6.1%. Low accruals
Cash $0.1B covers only 20% of debt $0.4B
Balance Sheet Health
Goodwill+Intangibles $0.5B = 570% of equity. Over 50%
Debt/EBITDA = 6.0x (>4x). Interest coverage = 1.6x (<2x). Financial stress
Other assets -36.2% vs revenue -4.7%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change -4% YoY. Normal
Manipulation Score
M-Score = -2.27 (< -2.22). Unlikely manipulator
Portfolio monitoring
Monitor EWCZ continuously
The full checks and model details are free to read. Use Watchlist to track your holdings; Pro adds automatic quarterly rescoring, risk-event email alerts, scans up to 50 tickers, and export workflows.
Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25