European Wax CenterBeauty Health

European Wax Center vs Beauty Health

European Wax Center vs Beauty Health: This page compares business models, financial performance, and market context for the two organisations. The aim is to present neutral, accessible information abo...

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Ulta's UK Splash: Beauty M&A

Ulta's UK Splash: Beauty M&A

This carefully selected group of stocks represents companies positioned to benefit from increasing beauty industry consolidation. Following Ulta Beauty's acquisition of British retailer Space NK, we've identified both potential acquirers with deep pockets and attractive takeover targets in the global beauty market.

Published: July 11, 2025

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Self-Care & Confidence

Self-Care & Confidence

Invest in the companies behind the powerful daily rituals that millions can't live without. These carefully selected beauty and skincare stocks blend established global leaders with innovative disruptors, all benefiting from famously loyal customers who drive consistent, recurring revenue.

Published: June 17, 2025

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Investment Analysis

Pros

  • European Wax Center operates a large network of franchised locations, providing broad market reach and brand recognition in the US beauty services sector.
  • The company maintains a strong balance sheet with a current ratio above 2.7, indicating solid short-term liquidity and financial stability.
  • European Wax Center has demonstrated high return on equity, exceeding 40% in recent periods, reflecting efficient use of shareholder capital.

Considerations

  • The stock has declined significantly over the past year, trading well below its 52-week high and indicating persistent investor concerns.
  • Analyst consensus is mixed, with more hold and sell ratings than buy ratings, and a target price below recent highs.
  • Enterprise value has trended lower over the past year, suggesting reduced market confidence compared to historical levels.

Pros

  • Beauty Health owns a portfolio of well-known beauty brands, providing diversified revenue streams and strong consumer recognition.
  • The company has shown consistent revenue growth, supported by expanding international distribution and product innovation.
  • Beauty Health maintains a healthy gross margin profile, reflecting pricing power and efficient supply chain management.

Considerations

  • Beauty Health faces intense competition in the global beauty market, which can pressure margins and market share.
  • The company is exposed to regulatory risks in multiple jurisdictions, particularly around product safety and labelling.
  • Recent earnings have been volatile, with fluctuations in profitability due to changing consumer trends and marketing costs.

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