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…