NYSE:W

Stock Analysis Report

Executive Summary

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

Snowflake

Concerning outlook with poor track record.


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

0.3%

W

-0.5%

US Online Retail

0.9%

US Market


1 Year Return

-4.8%

W

19.2%

US Online Retail

16.8%

US Market

Return vs Industry: W underperformed the US Online Retail industry which returned 19.2% over the past year.

Return vs Market: W underperformed the US Market which returned 16.8% over the past year.


Shareholder returns

WIndustryMarket
7 Day0.3%-0.5%0.9%
30 Day-25.6%1.2%4.5%
90 Day-28.4%-0.6%6.2%
1 Year-4.8%-4.8%19.3%19.2%19.4%16.8%
3 Year139.4%139.4%90.3%90.1%47.5%38.0%
5 Year251.0%251.0%148.2%138.2%62.0%44.1%

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?


Share Price vs. Fair Value

Below Fair Value: W ($83.9) is trading above our estimate of fair value ($69.84)

Significantly Below Fair Value: W is trading above our estimate of fair value.


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 30 analysts?

4.2%

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 (19.8% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: W's revenue (19.8% 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?

-42.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: W has high quality earnings.

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 -42.1% 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 (8.2%).


Return on Equity

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


Return on Assets


Return on Capital Employed


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: Insufficient data to determine if W has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.0%forecastin3Years0%

Current dividend yield vs market & industry

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

What is the CEO of Wayfair's salary, the management and board of directors tenure and is there insider trading?

5.9yrs

Average management tenure


CEO

Niraj Shah (45yo)

17.8yrs

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 ($USD83.21K) is below average for companies of similar size in the US market ($USD6.77M).

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


Management Age and Tenure

5.9yrs

Average Tenure

46yo

Average Age

Experienced Management: W's management team is seasoned and experienced (5.9 years average tenure).


Board Age and Tenure

3.3yrs

Average Tenure

54yo

Average Age

Experienced Board: W's board of directors are considered experienced (3.3 years average tenure).


Insider Trading

Insider Buying: W insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$184,09804 Sep 19
James Miller
EntityIndividual
Role
Member of the Board of Directors
Interim CTO & Director
Shares1,656
Max PriceUS$111.17
BuyUS$3,182,61027 Aug 19
Michael Kumin
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares29,000
Max PriceUS$109.85
SellUS$29,32806 Aug 19
James Miller
EntityIndividual
Role
Member of the Board of Directors
Interim CTO & Director
Shares231
Max PriceUS$126.96
SellUS$4,44505 Aug 19
Romero Rodrigues
EntityIndividual
Shares35
Max PriceUS$126.99
SellUS$9,81817 Jul 19
Romero Rodrigues
EntityIndividual
Shares66
Max PriceUS$148.75
BuyUS$423,12015 May 19
Michael Kumin
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares3,000
Max PriceUS$141.04
SellUS$5,35303 May 19
Romero Rodrigues
EntityIndividual
Shares33
Max PriceUS$162.20
SellUS$9,57017 Apr 19
Romero Rodrigues
EntityIndividual
Shares66
Max PriceUS$145.00
SellUS$3,59105 Feb 19
Romero Rodrigues
EntityIndividual
Shares33
Max PriceUS$108.83
SellUS$8,10317 Jan 19
Romero Rodrigues
EntityIndividual
Shares87
Max PriceUS$93.14
BuyUS$1,651,12527 Nov 18
Michael Kumin
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares18,500
Max PriceUS$89.25

Ownership Breakdown

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


Management Team

  • Niraj Shah (45yo)

    Co-Founder

    • Tenure: 17.8yrs
    • Compensation: US$83.21k
  • Michael Fleisher (54yo)

    Chief Financial Officer

    • Tenure: 6.1yrs
    • Compensation: US$23.64m
  • Jim Miller (54yo)

    Interim CTO & Director

    • Tenure: 3.3yrs
    • Compensation: US$100.35k
  • Julia Donnelly (36yo)

    Head of Corporate Finance

    • Tenure: 0yrs
  • Steve Conine (46yo)

    Co-Founder & Co-Chairman

    • Tenure: 0yrs
    • Compensation: US$83.21k
  • Steve Oblak (46yo)

    Chief Merchandising Officer

    • Tenure: 5.7yrs
    • Compensation: US$5.36m
  • Ed Macri (47yo)

    Chief Product & Marketing Officer

    • Tenure: 0yrs
    • Compensation: US$5.36m
  • Enrique Colbert

    General Counsel & Secretary

    • Tenure: 0yrs
  • Thomas Netzer

    Senior VP & COO

    • Tenure: 0.3yrs
  • Jane Gelfand

    Head of Investor Relations & Special Projects

    • Tenure: 0yrs

Board Members

  • Niraj Shah (45yo)

    Co-Founder

    • Tenure: 17.8yrs
    • Compensation: US$83.21k
  • Mike Kumin (46yo)

    Lead Independent Director

    • Tenure: 5.8yrs
    • Compensation: US$203.34k
  • Andrea Jung (61yo)

    Director

    • Tenure: 1.5yrs
    • Compensation: US$200.70k
  • Jeff Naylor (60yo)

    Independent Director

    • Tenure: 1.8yrs
    • Compensation: US$203.34k
  • Julie M. Bradley (51yo)

    Independent Director

    • Tenure: 7.2yrs
    • Compensation: US$100.11k
  • Anke Schäferkordt (57yo)

    Director

    • Tenure: 0.2yrs
  • Bob Gamgort (57yo)

    Independent Director

    • Tenure: 4.8yrs
    • Compensation: US$101.67k
  • Jim Miller (54yo)

    Interim CTO & Director

    • Tenure: 3.3yrs
    • Compensation: US$100.35k
  • Steve Conine (46yo)

    Co-Founder & Co-Chairman

    • Tenure: 0yrs
    • Compensation: US$83.21k

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$7.814b
  • Shares outstanding: 93.13m
  • 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

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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/20 00:31
End of Day Share Price2019/11/19 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.