European Wax Center: A Cyclical Short Even At The Lows
Between valuation, leverage and concerns about growth, EWCZ looks like a short.
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…