ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. European Wax Center's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was 1.88%.
As of today (2026-06-28), European Wax Center's WACC % is 7.12%. European Wax Center's ROIC % is 4.83% (calculated using TTM income statement data).
European Wax Center earns returns that do not match up to its cost of capital. It will destroy value as it grows.
European Wax Center (NAS:EWCZ) ROIC % Explanation
ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.
There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.
Why is ROIC % important?
Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, European Wax Center's WACC % is 7.12%. European Wax Center's ROIC % is 4.83% (calculated using TTM income statement data).
European Wax Center earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Be Aware
Like ROE % and ROA %, ROIC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
European Wax Center ROIC % Related Terms
European Wax Center ROIC % Historical Data
* Premium members only.
The historical data trend for European Wax Center's ROIC % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Household & Personal Products subindustry, European Wax Center's ROIC %, along with its competitors' market caps and ROIC % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
European Wax Center ROIC % vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, European Wax Center's ROIC % distribution charts can be found below:
* The bar in red indicates where European Wax Center's ROIC % falls into.
Note:
The Operating Income data used here is four times the quarterly (Dec. 2025) data.
The tax rate is limited to between 0% and 100%.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
European Wax Center (EWCZ) has a ROIC % of 1.88% as of Dec. 2025. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on European Wax Center and its competitors.
Is European Wax Center's ROIC % too high?
European Wax Center's current ROIC % is 1.88%. The Consumer Packaged Goods industry median ROIC % is 5.13. European Wax Center's value of 1.88% is 63.4% below this industry median. Overall, European Wax Center has a GF Score™ of 53/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does European Wax Center's ROIC % compare to NUS and WALD?
European Wax Center's ROIC % of 1.88% can be compared against companies in the Consumer Packaged Goods industry. The industry median ROIC % is 5.13. European Wax Center's value of 1.88% is 63.4% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROIC % for a Consumer Packaged Goods company?
The median ROIC % among Consumer Packaged Goods companies is 5.13, based on 1,945 companies in the industry. Companies in the top quartile (top 25%) have a ROIC % significantly above this median, while those in the bottom quartile fall well below. However, ROIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. European Wax Center's current ROIC % of 1.88% is 63.4% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROIC % mean?
A high ROIC % can signal that a stock is expensive relative to its fundamentals. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on European Wax Center and its competitors. For the Consumer Packaged Goods industry, the median ROIC % is 5.13 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. European Wax Center's current ROIC % is 1.88%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is European Wax Center stock overvalued right now?
Based on GuruFocus' analysis, European Wax Center (EWCZ) is currently considered Modestly Undervalued. The stock's GF Value™ is $7.72, compared to a current price of $5.82 — trading 24.6% below its estimated fair value. The current ROIC % is 1.88% and 63.4% below the Consumer Packaged Goods industry median of 5.13. European Wax Center's overall GF Score™ is 53/100 with 10 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROIC % calculated?
ROIC % is calculated from a company's financial statements. For European Wax Center (EWCZ), the current ROIC % is 1.88% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is European Wax Center (EWCZ) Overvalued in 2026?
Based on GuruFocus' analysis, European Wax Center stock appears to be undervalued.
The current stock price of $5.82 is trading 24.6% below its estimated GF Value™ of $7.72.
GuruFocus considers European Wax Center to be Modestly Undervalued.
Key valuation signals for EWCZ:
ROIC %: 1.88%
GF Value™: $7.72 vs. price of $5.82 (24.6% below fair value)
Industry Position: 63.4% below the Consumer Packaged Goods median
No single metric tells the full story. See the EWCZ stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
European Wax Center Inc is a franchisor and operator of OOH waxing services. Its product sales consist of revenue earned from sales of proprietary wax. Its services include Brazilian Waxing, Brow Waxing, Body Waxing, Facial Waxing, All Waxing Services, Eyebrow Tinting, Laser Hair Removal, Men's Waxing Services, and others.
53GF Score
Get the complete analysis for EWCZ
ROIC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
EWCZ has been successfully added to your 
