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Market Cap

US$34.0b

Last Updated

2021/04/11 22:21 UTC

Data Sources

Company Financials +

Executive Summary

Wayfair Inc. engages in the e-commerce business in the United States and internationally. More Details


Snowflake Analysis

High growth potential with acceptable 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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 10% a week.

Volatility Over Time: W's weekly volatility (10%) has been stable over the past year.


Market Performance


7 Day Return

-3.1%

W

3.2%

US Online Retail

2.1%

US Market


1 Year Return

326.1%

W

60.3%

US Online Retail

56.3%

US Market

Return vs Industry: W exceeded the US Online Retail industry which returned 60.3% over the past year.

Return vs Market: W exceeded the US Market which returned 56.3% over the past year.


Shareholder returns

WIndustryMarket
7 Day-3.1%3.2%2.1%
30 Day3.6%2.3%2.4%
90 Day26.4%1.7%6.8%
1 Year326.1%326.1%60.5%60.3%59.1%56.3%
3 Year390.2%390.2%94.4%94.2%65.7%55.1%
5 Year672.4%672.4%304.1%303.5%122.3%97.7%

Long-Term 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?

18.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: W ($327.49) is trading below our estimate of fair value ($401.83)

Significantly Below Fair Value: W is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: W is poor value based on its PE Ratio (169.6x) compared to the US Online Retail industry average (34.2x).

PE vs Market: W is poor value based on its PE Ratio (169.6x) compared to the US market (22.3x).


Price to Earnings Growth Ratio

PEG Ratio: W is poor value based on its PEG Ratio (4x)


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.


Future Growth

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

42.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: W's forecast earnings growth (42% per year) is above the savings rate (2%).

Earnings vs Market: W's earnings (42% per year) are forecast to grow faster than the US market (18.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: W's revenue (14.1% per year) is forecast to grow faster than the US market (9.9% per year).

High Growth Revenue: W's revenue (14.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: W's Return on Equity is forecast to be very high in 3 years time (91.4%).


Past Performance

How has Wayfair performed over the past 5 years?

-26.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: W has high quality earnings.

Growing Profit Margin: W became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: W has become profitable over the past 5 years, growing earnings by -26.2% per year.

Accelerating Growth: W has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: W has become profitable in the last year, making it difficult to compare its past year earnings growth to the Online Retail industry (66.3%).


Return on Equity

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


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.

Debt Coverage: W's debt is well covered by operating cash flow (53.3%).

Interest Coverage: W's interest payments on its debt are not well covered by EBIT (2.5x coverage).


Balance Sheet


Dividend

What is Wayfair 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 recent payouts.

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

3.5yrs

Average management tenure


CEO

Niraj Shah (46 yo)

19.25yrs

Tenure

US$83,274

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 ($USD83.27K) is below average for companies of similar size in the US market ($USD10.98M).

Compensation vs Earnings: Niraj's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: W's management team is considered experienced (3.5 years average tenure).


Board Members

Experienced Board: W's board of directors are not considered experienced ( 2.9 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

Insider Buying: W 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 9.9%.


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$33.966b
  • Shares outstanding: 103.72m
  • Website: https://www.wayfair.com

Number of Employees


Location

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

Listings


Biography

Wayfair Inc. engages in the e-commerce business in the United States and internationally. It provides approximately twenty-two 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 Analysis2021/04/11 22:21
End of Day Share Price2021/04/09 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.