NYSE:W

Stock Analysis Report

Executive Summary

Wayfair Inc. engages in the e-commerce business in the United States, Europe, and internationally.


Snowflake Analysis

Slightly overvalued with imperfect balance sheet.


Similar Companies

Share Price & News

How has Wayfair's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: W's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

52.1%

W

2.2%

US Online Retail

12.5%

US Market


1 Year Return

-68.9%

W

0.5%

US Online Retail

-12.7%

US Market

Return vs Industry: W underperformed the US Online Retail industry which returned 0.5% over the past year.

Return vs Market: W underperformed the US Market which returned -12.7% over the past year.


Shareholder returns

WIndustryMarket
7 Day52.1%2.2%12.5%
30 Day-26.8%-4.8%-14.7%
90 Day-48.8%-5.4%-21.5%
1 Year-68.9%-68.9%0.6%0.5%-10.9%-12.7%
3 Year11.9%11.9%71.7%71.5%12.6%5.4%
5 Year46.7%46.7%175.2%163.2%31.9%17.5%

Price Volatility Vs. Market

How volatile is Wayfair's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Wayfair undervalued compared to its fair value and its price relative to the market?

42.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: W ($46.3) is trading below our estimate of fair value ($80.2)

Significantly Below Fair Value: W is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: W is unprofitable, so we can't compare its PE Ratio to the Online Retail industry average.

PE vs Market: W is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate W's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: W has negative assets, so we can't compare its PB Ratio to the US Online Retail industry average.


Next Steps

Future Growth

How is Wayfair forecast to perform in the next 1 to 3 years based on estimates from 28 analysts?

16.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: W is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: W is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: W is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: W's revenue (13.8% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: W's revenue (13.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if W's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Wayfair performed over the past 5 years?

-44.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: W is currently unprofitable.

Growing Profit Margin: W is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: W is unprofitable, and losses have increased over the past 5 years at a rate of -44.9% per year.

Accelerating Growth: Unable to compare W's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: W is unprofitable, making it difficult to compare its past year earnings growth to the Online Retail industry (15%).


Return on Equity

High ROE: W's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Next Steps

Financial Health

How is Wayfair's financial position?


Financial Position Analysis

Short Term Liabilities: W has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: W has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: W has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: W's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


Balance Sheet

Inventory Level: W has a high level of physical assets or inventory.

Debt Coverage by Assets: W has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: W has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: W has sufficient cash runway for 1.6 years if free cash flow continues to reduce at historical rates of -55.8% each year.


Next Steps

Dividend

What is Wayfair's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate W's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate W's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if W's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if W's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of W's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.2yrs

Average management tenure


CEO

Niraj Shah (45yo)

18.17s

Tenure

US$83,212

Compensation

Mr. Niraj S. Shah Co-Founded ZIZO Home Pty Ltd. in 2008 and serves as its Chief Executive Officer and Co-Chairman. He serves as a Member of Advisory Board of Cove Hill Partners, L.P. Mr. Shah Co-Founded Wa ...


CEO Compensation Analysis

Compensation vs Market: Niraj's total compensation ($USD83.21K) is below average for companies of similar size in the US market ($USD5.55M).

Compensation vs Earnings: Niraj's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Niraj Shah
Co-Founder18.17yrsUS$83.21k14.5% $631.9m
Steven Conine
Co-Founder & Co-Chairmanno dataUS$83.21k14.5% $631.9m
Michael Fleisher
Chief Financial Officer6.42yrsUS$23.64m0.16% $7.1m
James Miller
Interim CTO & Director3.67yrsUS$100.35k0.021% $903.4k
Edmond Macri
Chief Product & Marketing Officerno dataUS$5.36m0.29% $12.8m
Stephen Oblak
Chief Merchandising Officer6yrsUS$5.36m0.17% $7.3m
Thomas Netzer
Senior VP & COO0.67yrno data0.011% $468.0k
Julia Donnelly
Head of Corporate Financeno datano datano data
Jane Gelfand
Head of Investor Relations & Special Projectsno datano datano data
Enrique Colbert
General Counsel & Secretaryno datano datano data

6.2yrs

Average Tenure

46yo

Average Age

Experienced Management: W's management team is seasoned and experienced (6.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Niraj Shah
Co-Founder18.17yrsUS$83.21k14.5% $631.9m
Steven Conine
Co-Founder & Co-Chairmanno dataUS$83.21k14.5% $631.9m
James Miller
Interim CTO & Director3.67yrsUS$100.35k0.021% $903.4k
Michael Kumin
Lead Independent Director6.17yrsUS$203.34k0.22% $9.5m
Andrea Jung
Director1.83yrsUS$200.70k0.00062% $27.0k
Jeffrey Naylor
Independent Director2.17yrsUS$203.34k0.0071% $309.8k
Julie M. Bradley
Independent Director7.5yrsUS$100.11k0.000010% $435.8
Anke Schäferkordt
Director0.50yrno datano data
Robert Gamgort
Independent Director5yrsUS$101.67k0.032% $1.4m

3.7yrs

Average Tenure

54yo

Average Age

Experienced Board: W's board of directors are considered experienced (3.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3%.


Top Shareholders

Company Information

Wayfair Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Wayfair Inc.
  • Ticker: W
  • Exchange: NYSE
  • Founded: 2002
  • Industry: Internet and Direct Marketing Retail
  • Sector: Retail
  • Market Cap: US$4.358b
  • Shares outstanding: 94.12m
  • Website: https://www.wayfair.com

Number of Employees


Location

  • Wayfair Inc.
  • 4 Copley Place
  • 7th Floor
  • Boston
  • Massachusetts
  • 2116
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WNYSE (New York Stock Exchange)YesClass A Common StockUSUSDOct 2014
1WFDB (Deutsche Boerse AG)YesClass A Common StockDEEUROct 2014
1WFBRSE (Berne Stock Exchange)YesClass A Common StockCHCHFOct 2014

Biography

Wayfair Inc. engages in the e-commerce business in the United States, Europe, and internationally. It provides approximately 14 million products for the home sector under various brands. The company offers selection of furniture, décor, decorative accents, housewares, seasonal décor, and other home goods through its sites, including Wayfair, Joss & Main, AllModern, Birch Lane, and Perigold. Wayfair Inc. was founded in 2002 and is headquartered in Boston, Massachusetts. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/30 04:03
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.