![]() The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers). But if you buy a loss making company then you could become a loss making investor. In a hot market it's easy to forget growth is the life-blood of a loss making company. Given this fairly low revenue growth (and lack of profits), it's not particularly surprising to see the stock down 16% in a year. While that may seem decent it isn't great considering the company is still making a loss. In the last year European Wax Center saw its revenue grow by 13%. For shareholders to have confidence a company will grow profits significantly, it must grow revenue. As a general rule, we think this kind of company is more comparable to loss-making stocks, since the actual profit is so low. We think revenue is probably a better guide. ![]() We don't think that European Wax Center's modest trailing twelve month profit has the market's full attention at the moment. See our latest analysis for European Wax Center The last week also saw the share price slip down another 6.4%.Īfter losing 6.4% this past week, it's worth investigating the company's fundamentals to see what we can infer from past performance. We wouldn't rush to judgement on European Wax Center because we don't have a long term history to look at. That contrasts poorly with the market return of 8.2%. ( NASDAQ:EWCZ) share price slid 16% over twelve months. Unfortunately the European Wax Center, Inc. While individual stocks can be big winners, plenty more fail to generate satisfactory returns. It's easy to match the overall market return by buying an index fund.
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