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WAYFAIR INC- CLASS A (W) Stock Fundamental Analysis

NYSE:W - New York Stock Exchange, Inc. - US94419L1017 - Common Stock - Currency: USD

41.83  -4.23 (-9.18%)

After market: 42.2 +0.37 (+0.88%)

Fundamental Rating

2

Overall W gets a fundamental rating of 2 out of 10. We evaluated W against 120 industry peers in the Specialty Retail industry. W may be in some trouble as it scores bad on both profitability and health. W is valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

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1

1. Profitability

1.1 Basic Checks

In the past year W was profitable.
W had a positive operating cash flow in the past year.
W had negative earnings in 4 of the past 5 years.
The reported operating cash flow has been mixed in the past 5 years: W reported negative operating cash flow in multiple years.
W Yearly Net Income VS EBIT VS OCF VS FCFW Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 500M -500M 1B -1B

1.2 Ratios

With a Return On Assets value of -15.76%, W is not doing good in the industry: 81.20% of the companies in the same industry are doing better.
Industry RankSector Rank
ROA -15.76%
ROE N/A
ROIC N/A
ROA(3y)-20.43%
ROA(5y)-18.12%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
W Yearly ROA, ROE, ROICW Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 200 -200 400

1.3 Margins

With a Gross Margin value of 30.20%, W is not doing good in the industry: 64.10% of the companies in the same industry are doing better.
W's Gross Margin has improved in the last couple of years.
W does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM 30.2%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.67%
GM growth 5Y5.47%
W Yearly Profit, Operating, Gross MarginsW Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 10 -10 20 30

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1

2. Health

2.1 Basic Checks

W does not have a ROIC to compare to the WACC, probably because it is not profitable.
W has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
W Yearly Shares OutstandingW Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 20M 40M 60M 80M 100M
W Yearly Total Debt VS Total AssetsW Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B 4B

2.2 Solvency

W has an Altman-Z score of 1.69. This is a bad value and indicates that W is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.69, W is not doing good in the industry: 63.25% of the companies in the same industry are doing better.
The Debt to FCF ratio of W is 71.19, which is on the high side as it means it would take W, 71.19 years of fcf income to pay off all of its debts.
W has a Debt to FCF ratio (71.19) which is in line with its industry peers.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 71.19
Altman-Z 1.69
ROIC/WACCN/A
WACC8.63%
W Yearly LT Debt VS Equity VS FCFW Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 1B -1B 2B -2B 3B

2.3 Liquidity

W has a Current Ratio of 0.84. This is a bad value and indicates that W is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.84, W is not doing good in the industry: 87.18% of the companies in the same industry are doing better.
W has a Quick Ratio of 0.84. This is a bad value and indicates that W is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.80, W is in the better half of the industry, outperforming 67.52% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 0.84
Quick Ratio 0.8
W Yearly Current Assets VS Current LiabilitesW Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B

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4

3. Growth

3.1 Past

W shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 110.34%, which is quite impressive.
Measured over the past years, W shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -61.54% on average per year.
EPS 1Y (TTM)110.34%
EPS 3Y-61.54%
EPS 5YN/A
EPS Q2Q%-127.27%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%0.22%

3.2 Future

W is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 112.69% yearly.
W is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.09% yearly.
EPS Next Y445.38%
EPS Next 2Y277.47%
EPS Next 3Y186.96%
EPS Next 5Y112.69%
Revenue Next Year1.53%
Revenue Next 2Y3.75%
Revenue Next 3Y4.49%
Revenue Next 5Y4.09%

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
W Yearly Revenue VS EstimatesW Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 5B 10B 15B
W Yearly EPS VS EstimatesW Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 0 5 -5 10

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3

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 348.58, which means the current valuation is very expensive for W.
W's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 29.63, W is valued quite expensively.
The Price/Forward Earnings ratio is 63.92, which means the current valuation is very expensive for W.
64.10% of the companies in the same industry are cheaper than W, based on the Price/Forward Earnings ratio.
W's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.68.
Industry RankSector Rank
PE 348.58
Fwd PE 63.92
W Price Earnings VS Forward Price EarningsW Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 100 200 300

4.2 Price Multiples

W's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 121.91
EV/EBITDA N/A
W Per share dataW EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 -20 40 60 80

4.3 Compensation for Growth

W's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
W's earnings are expected to grow with 186.96% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.78
PEG (5Y)N/A
EPS Next 2Y277.47%
EPS Next 3Y186.96%

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0

5. Dividend

5.1 Amount

W does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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WAYFAIR INC- CLASS A

NYSE:W (2/21/2025, 8:04:00 PM)

After market: 42.2 +0.37 (+0.88%)

41.83

-4.23 (-9.18%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)02-20 2025-02-20/bmo
Earnings (Next)04-30 2025-04-30/bmo
Inst Owners114.54%
Inst Owner Change1.77%
Ins Owners4.39%
Ins Owner Change7.44%
Market Cap5.24B
Analysts73.33
Price Target56.15 (34.23%)
Short Float %18.82%
Short Ratio4.97
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)32.97%
Min EPS beat(2)-5.86%
Max EPS beat(2)71.81%
EPS beat(4)3
Avg EPS beat(4)31.92%
Min EPS beat(4)-5.86%
Max EPS beat(4)71.81%
EPS beat(8)6
Avg EPS beat(8)45.05%
EPS beat(12)7
Avg EPS beat(12)25.87%
EPS beat(16)11
Avg EPS beat(16)438.41%
Revenue beat(2)0
Avg Revenue beat(2)-2.76%
Min Revenue beat(2)-3.86%
Max Revenue beat(2)-1.67%
Revenue beat(4)1
Avg Revenue beat(4)-1.43%
Min Revenue beat(4)-3.86%
Max Revenue beat(4)1.53%
Revenue beat(8)2
Avg Revenue beat(8)-1.27%
Revenue beat(12)3
Avg Revenue beat(12)-1.15%
Revenue beat(16)4
Avg Revenue beat(16)-1.7%
PT rev (1m)0.32%
PT rev (3m)-13.81%
EPS NQ rev (1m)34.23%
EPS NQ rev (3m)-132.4%
EPS NY rev (1m)1.5%
EPS NY rev (3m)-6.59%
Revenue NQ rev (1m)0.35%
Revenue NQ rev (3m)0.13%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0%
Valuation
Industry RankSector Rank
PE 348.58
Fwd PE 63.92
P/S 0.44
P/FCF 121.91
P/OCF 16.75
P/B N/A
P/tB N/A
EV/EBITDA N/A
EPS(TTM)0.12
EY0.29%
EPS(NY)0.65
Fwd EY1.56%
FCF(TTM)0.34
FCFY0.82%
OCF(TTM)2.5
OCFY5.97%
SpS94.51
BVpS-21.81
TBVpS-21.81
PEG (NY)0.78
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -15.76%
ROE N/A
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 30.2%
FCFM 0.36%
ROA(3y)-20.43%
ROA(5y)-18.12%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.67%
GM growth 5Y5.47%
F-Score5
Asset Turnover3.47
Health
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 71.19
Debt/EBITDA N/A
Cap/Depr 67.16%
Cap/Sales 2.28%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 0.84
Quick Ratio 0.8
Altman-Z 1.69
F-Score5
WACC8.63%
ROIC/WACCN/A
Cap/Depr(3y)98.19%
Cap/Depr(5y)124%
Cap/Sales(3y)2.91%
Cap/Sales(5y)3.09%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)110.34%
EPS 3Y-61.54%
EPS 5YN/A
EPS Q2Q%-127.27%
EPS Next Y445.38%
EPS Next 2Y277.47%
EPS Next 3Y186.96%
EPS Next 5Y112.69%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%0.22%
Revenue Next Year1.53%
Revenue Next 2Y3.75%
Revenue Next 3Y4.49%
Revenue Next 5Y4.09%
EBIT growth 1Y51.23%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year419.91%
EBIT Next 3Y86.58%
EBIT Next 5Y55.09%
FCF growth 1Y103.92%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y145.81%
OCF growth 3Y-37.31%
OCF growth 5Y32.67%