![]() ![]() As depicted in the graphic below, the CAGR that has been achieved in both store location (center) count and gross sales is nothing short of astounding. Historically, the company has enjoyed substantial, sustained growth as they began the quest to consolidate an industry. The potential to be a long-term compounder of wealth is high due to the high margin nature of its business and multiple avenues for growth. #European wax center freeThis three-pronged approach has already begun to show its rewards as free cash flow has been accelerating. The company has not only focused on location growth, but also on expansion of product offerings, and the integration of digital technology. Market Dominance (EWCZ Investor Presentation) Using economies of scale, they have a large runway for growth on both the top and bottom lines. As you can see from the most recent investor presentation below, European Wax is miles ahead of the next biggest competitor. Now that has all changed, and European Wax Center has wasted no time in accelerating its market dominance. Until the EWCZ IPO, there was no way to invest in personal care companies in the public market such as hairdressers and nail salons. With 900 locations and counting, this waxy company has successfully begun to consolidate a historically fragmented industry that is personal care and services. About European Wax CenterĮWCZ is a highly specialized provider of personal services that has established itself as a runaway market leader for the out-of-home waxing space. #European wax center serialAs a little-discussed stock, I believe there is massive potential to be an early entrant into a serial compounder of growth. Having just IPO'ed in August of 2021, EWCZ stock is still in its early stages of finding its footing in the public market, however, EWCZ seems to have not only found its footing but is already sprinting. ( NASDAQ: EWCZ) is a silent giant in a specialized market that has continuously proved the strength of its business model. ![]()
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