NYSE:W

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Limited growth with imperfect balance sheet.

Risks

  • Wayfair has significant price volatility in the past 3 months.

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


Market Performance


7 Day Return

-10.9%

NYSE:W

2.2%

US Online Retail

-1.0%

US Market


1 Year Return

-9.5%

NYSE:W

-2.1%

US Online Retail

-0.4%

US Market

W underperformed the Online Retail industry which returned -2.1% over the past year.

W underperformed the Market in United States of America which returned -0.4% over the past year.


Share holder returns

WIndustryMarket
7 Day-10.9%2.2%-1.0%
30 Day-24.0%-5.4%-3.3%
90 Day-27.5%0.7%0.8%
1 Year-9.5%-9.5%-2.1%-2.1%1.9%-0.4%
3 Year191.4%191.4%91.6%91.3%39.4%30.4%
5 Yearn/a215.2%192.5%54.2%37.1%

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 based on future cash flows and its price relative to the stock market?


Intrinsic Value Based on Future Cash Flows

Wayfair's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Wayfair's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Wayfair is loss making, we can't compare its value to the US Online Retail industry average.

Wayfair is loss making, we can't compare the value of its earnings to the United States of America market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Wayfair, we can't assess if its growth is good value.


Price Based on Value of Assets

Wayfair has negative assets, we can't compare the value of its assets to the US Online Retail industry average.


Next Steps

Future Growth

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

18.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Wayfair's revenue is expected to grow significantly at over 20% yearly.

Wayfair is not considered high growth as it is expected to be loss making for the next 1-3 years.

Wayfair's revenue growth is expected to exceed the United States of America market average.

Unable to compare Wayfair's earnings growth to the United States of America market average as it is expected to be loss making during the next 1-3 years.

Unable to compare Wayfair's earnings growth to the low risk savings rate as it is expected to be loss making during the next 1-3 years.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Wayfair will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Wayfair performed over the past 5 years?

-40.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Wayfair does not make a profit and their year on year earnings growth rate was negative over the past 5 years.

Unable to compare Wayfair's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Wayfair's 1-year growth to the US Online Retail industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if Wayfair has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) due to its liabilities exceeding its assets.


Return on Assets

It is difficult to establish if Wayfair has efficiently used its assets last year compared to the US Online Retail industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if Wayfair improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is Wayfair's financial position?


Financial Position Analysis

Wayfair's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Wayfair's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Wayfair has negative shareholder equity (liabilities exceed assets), this is a more serious situation compared with a high debt level.

Irrelevant to check if Wayfair's debt level has increased considering it has negative shareholder equity.


Balance Sheet

High level of physical assets or inventory.

Wayfair 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.

Wayfair has sufficient cash runway for 2.1 years based on current free cash flow.

Wayfair has sufficient cash runway for 1.7 years if free cash flow continues to grow at historical rates of 75.2% each year.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate Wayfair's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Wayfair's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Wayfair has not reported any payouts.

Unable to verify if Wayfair's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Wayfair has not reported any payouts.


Future Payout to Shareholders

No need to calculate the sustainability of Wayfair's dividends in 3 years as they are not expected to pay a notable one for United States of America.


Next Steps

Management

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

5.6yrs

Average management tenure


CEO

Niraj Shah (45yo)

17.6yrs

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

Niraj's remuneration is lower than average for companies of similar size in United States of America.

Niraj's compensation has increased whilst company is loss making.


Management Age and Tenure

5.6yrs

Average Tenure

46yo

Average Age

The average tenure for the Wayfair management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

4.5yrs

Average Tenure

51yo

Average Age

The tenure for the Wayfair board of directors is about average.


Insider Trading

Wayfair individual insiders have only sold shares in the past 3 months, but not in substantial volumes.


Recent Insider Transactions

SellUS$29,32806 Aug 19
James Miller
EntityIndividual
Role
Member of the Board of Directors
Director
Shares231
Max PriceUS$126.96
SellUS$4,44505 Aug 19
Romero Rodrigues
EntityIndividual
Role
Member of the Board of Directors
Director
Shares35
Max PriceUS$126.99
SellUS$9,81817 Jul 19
Romero Rodrigues
EntityIndividual
Role
Member of the Board of Directors
Director
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
Role
Member of the Board of Directors
Director
Shares33
Max PriceUS$162.20
SellUS$9,57017 Apr 19
Romero Rodrigues
EntityIndividual
Role
Member of the Board of Directors
Director
Shares66
Max PriceUS$145.00
SellUS$3,59105 Feb 19
Romero Rodrigues
EntityIndividual
Role
Member of the Board of Directors
Director
Shares33
Max PriceUS$108.83
SellUS$8,10317 Jan 19
Romero Rodrigues
EntityIndividual
Role
Member of the Board of Directors
Director
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
BuyUS$255,10420 Nov 18
Robert Gamgort
EntityIndividual
Role
Member of the Board of Directors
Director
Shares2,850
Max PriceUS$89.51
SellUS$3,76406 Nov 18
Romero Rodrigues
EntityIndividual
Role
Member of the Board of Directors
Director
Shares39
Max PriceUS$96.50
SellUS$7,90517 Oct 18
Romero Rodrigues
EntityIndividual
Role
Member of the Board of Directors
Director
Shares67
Max PriceUS$117.99
SellUS$547,46224 Aug 18
Michael Fleisher
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares4,520
Max PriceUS$121.12

Ownership Breakdown


Management Team

  • Niraj Shah (45yo)

    Co-Founder

    • Tenure: 17.6yrs
    • Compensation: US$83.21k
  • Michael Fleisher (54yo)

    Chief Financial Officer

    • Tenure: 5.8yrs
    • Compensation: US$23.64m
  • Julia Donnelly (36yo)

    Head of Corporate Finance

    • Tenure: 0.0yrs
  • Steve Conine (46yo)

    Co-Founder & Co-Chairman

    • Tenure: 0.0yrs
    • Compensation: US$83.21k
  • Steve Oblak (46yo)

    Chief Merchandising Officer

    • Tenure: 5.4yrs
    • Compensation: US$5.36m
  • Ed Macri (47yo)

    Chief Product & Marketing Officer

    • Tenure: 0.0yrs
    • Compensation: US$5.36m
  • John Mulliken (47yo)

    Chief Technology Officer

    • Tenure: 2.3yrs
    • Compensation: US$5.36m
  • Enrique Colbert

    General Counsel & Secretary

    • Tenure: 0.0yrs
  • Thomas Netzer

    Senior VP & COO

    • Tenure: 0.1yrs
  • Jane Gelfand

    Head of Investor Relations & Special Projects

    • Tenure: 0.0yrs

Board Members

  • Niraj Shah (45yo)

    Co-Founder

    • Tenure: 17.6yrs
    • Compensation: US$83.21k
  • Mike Kumin (46yo)

    Lead Independent Director

    • Tenure: 5.6yrs
    • Compensation: US$203.34k
  • Andrea Jung (61yo)

    Director

    • Tenure: 1.3yrs
    • Compensation: US$200.70k
  • Jeff Naylor (60yo)

    Director

    • Tenure: 1.6yrs
    • Compensation: US$203.34k
  • Julie M. Bradley (51yo)

    Director

    • Tenure: 6.9yrs
    • Compensation: US$100.11k
  • Bob Gamgort (57yo)

    Director

    • Tenure: 4.5yrs
    • Compensation: US$101.67k
  • Jim Miller (54yo)

    Director

    • Tenure: 3.1yrs
    • Compensation: US$100.35k
  • Steve Conine (46yo)

    Co-Founder & Co-Chairman

    • Tenure: 0.0yrs
    • Compensation: US$83.21k
  • Romero Rodrigues (41yo)

    Director

    • Tenure: 5.1yrs
    • Compensation: US$100.35k

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$10.196b
  • Shares outstanding: 92.34m
  • 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 Analysis2019/08/19 00:38
End of Day Share Price2019/08/16 00:00
Earnings2019/06/30
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.