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WAYFAIR INC- CLASS A (W) Stock Fundamental Analysis

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

56.44  -0.13 (-0.23%)

After market: 55.4755 -0.96 (-1.71%)

Fundamental Rating

2

Taking everything into account, W scores 2 out of 10 in our fundamental rating. W was compared to 122 industry peers in the Specialty Retail industry. Both the profitability and financial health of W have multiple concerns. 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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2

1. Profitability

1.1 Basic Checks

In the past year W was profitable.
In the past year W had a positive cash flow from operations.
In the past 5 years W reported 4 times negative net income.
W had a positive operating cash flow in 4 of the past 5 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 2024 0 500M -500M 1B -1B

1.2 Ratios

W has a Return On Assets of -10.44%. This is in the lower half of the industry: W underperforms 76.23% of its industry peers.
Industry RankSector Rank
ROA -10.44%
ROE N/A
ROIC N/A
ROA(3y)-24.22%
ROA(5y)-14.29%
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 2024 0 200 -200 400

1.3 Margins

Looking at the Gross Margin, with a value of 30.31%, W is doing worse than 65.57% of the companies in the same industry.
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 30.31%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.01%
GM growth 5Y5.09%
W Yearly Profit, Operating, Gross MarginsW Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 -10 20 30

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2

2. Health

2.1 Basic Checks

W does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for W has been increased compared to 1 year ago.
Compared to 5 years ago, W has more shares outstanding
W has a better debt/assets ratio than last year.
W Yearly Shares OutstandingW Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 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 2024 1B 2B 3B 4B

2.2 Solvency

An Altman-Z score of 1.91 indicates that W is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of W (1.91) is comparable to the rest of the industry.
The Debt to FCF ratio of W is 21.90, which is on the high side as it means it would take W, 21.90 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 21.90, W perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 21.9
Altman-Z 1.91
ROIC/WACCN/A
WACC8.37%
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 2024 0 1B -1B 2B -2B 3B

2.3 Liquidity

W has a Current Ratio of 0.83. This is a bad value and indicates that W is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of W (0.83) is worse than 85.25% of its industry peers.
A Quick Ratio of 0.79 indicates that W may have some problems paying its short term obligations.
With a decent Quick ratio value of 0.79, W is doing good in the industry, outperforming 68.03% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 0.83
Quick Ratio 0.79
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 2024 1B 2B 3B

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4

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 254.29% over the past year.
The earnings per share for W have been decreasing by -61.54% on average. This is quite bad
The Revenue has decreased by -0.89% in the past year.
W shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.36% yearly.
EPS 1Y (TTM)254.29%
EPS 3Y-61.54%
EPS 5YN/A
EPS Q2Q%131.25%
Revenue 1Y (TTM)-0.89%
Revenue growth 3Y-4.74%
Revenue growth 5Y5.36%
Sales Q2Q%0.04%

3.2 Future

Based on estimates for the next years, W will show a very strong growth in Earnings Per Share. The EPS will grow by 104.31% on average per year.
The Revenue is expected to grow by 3.76% on average over the next years.
EPS Next Y431.22%
EPS Next 2Y223.75%
EPS Next 3Y162.33%
EPS Next 5Y104.31%
Revenue Next Year0.38%
Revenue Next 2Y2%
Revenue Next 3Y3.27%
Revenue Next 5Y3.76%

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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

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3

4. Valuation

4.1 Price/Earnings Ratio

W is valuated quite expensively with a Price/Earnings ratio of 104.52.
W's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 27.54. W is valued rather expensively when compared to this.
With a Price/Forward Earnings ratio of 44.87, W can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of W is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.44, W is valued a bit more expensive.
Industry RankSector Rank
PE 104.52
Fwd PE 44.87
W Price Earnings VS Forward Price EarningsW Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80 100

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, W is valued a bit more expensive than 69.67% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of W is on the same level as its industry peers.
Industry RankSector Rank
P/FCF 52.86
EV/EBITDA 67
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 162.33% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.24
PEG (5Y)N/A
EPS Next 2Y223.75%
EPS Next 3Y162.33%

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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 (7/18/2025, 8:19:46 PM)

After market: 55.4755 -0.96 (-1.71%)

56.44

-0.13 (-0.23%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)05-01 2025-05-01/bmo
Earnings (Next)08-04 2025-08-04/bmo
Inst Owners111.27%
Inst Owner Change0%
Ins Owners4.34%
Ins Owner Change-4.51%
Market Cap7.24B
Analysts73.81
Price Target48.02 (-14.92%)
Short Float %22.42%
Short Ratio4.26
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
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)-677.39%
Min EPS beat(2)-1499.86%
Max EPS beat(2)145.08%
EPS beat(4)2
Avg EPS beat(4)-322.21%
Min EPS beat(4)-1499.86%
Max EPS beat(4)145.08%
EPS beat(8)6
Avg EPS beat(8)-128.22%
EPS beat(12)8
Avg EPS beat(12)-82.54%
EPS beat(16)10
Avg EPS beat(16)331.17%
Revenue beat(2)0
Avg Revenue beat(2)-0.7%
Min Revenue beat(2)-1.23%
Max Revenue beat(2)-0.16%
Revenue beat(4)0
Avg Revenue beat(4)-1.73%
Min Revenue beat(4)-3.86%
Max Revenue beat(4)-0.16%
Revenue beat(8)2
Avg Revenue beat(8)-1.26%
Revenue beat(12)3
Avg Revenue beat(12)-0.95%
Revenue beat(16)3
Avg Revenue beat(16)-1.56%
PT rev (1m)6.89%
PT rev (3m)-12.62%
EPS NQ rev (1m)0.76%
EPS NQ rev (3m)-10.41%
EPS NY rev (1m)0.48%
EPS NY rev (3m)17.39%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)-0.35%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)-0.75%
Valuation
Industry RankSector Rank
PE 104.52
Fwd PE 44.87
P/S 0.61
P/FCF 52.86
P/OCF 20.12
P/B N/A
P/tB N/A
EV/EBITDA 67
EPS(TTM)0.54
EY0.96%
EPS(NY)1.26
Fwd EY2.23%
FCF(TTM)1.07
FCFY1.89%
OCF(TTM)2.81
OCFY4.97%
SpS92.36
BVpS-21.89
TBVpS-21.89
PEG (NY)0.24
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -10.44%
ROE N/A
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 30.31%
FCFM 1.16%
ROA(3y)-24.22%
ROA(5y)-14.29%
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 3Y2.01%
GM growth 5Y5.09%
F-Score5
Asset Turnover3.47
Health
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 21.9
Debt/EBITDA 22.73
Cap/Depr 61.26%
Cap/Sales 1.88%
Interest Coverage N/A
Cash Conversion 272.73%
Profit Quality N/A
Current Ratio 0.83
Quick Ratio 0.79
Altman-Z 1.91
F-Score5
WACC8.37%
ROIC/WACCN/A
Cap/Depr(3y)89.36%
Cap/Depr(5y)94.42%
Cap/Sales(3y)2.88%
Cap/Sales(5y)2.61%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)254.29%
EPS 3Y-61.54%
EPS 5YN/A
EPS Q2Q%131.25%
EPS Next Y431.22%
EPS Next 2Y223.75%
EPS Next 3Y162.33%
EPS Next 5Y104.31%
Revenue 1Y (TTM)-0.89%
Revenue growth 3Y-4.74%
Revenue growth 5Y5.36%
Sales Q2Q%0.04%
Revenue Next Year0.38%
Revenue Next 2Y2%
Revenue Next 3Y3.27%
Revenue Next 5Y3.76%
EBIT growth 1Y62.64%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year1006.8%
EBIT Next 3Y153.11%
EBIT Next 5Y86.17%
FCF growth 1Y113.24%
FCF growth 3Y-13.89%
FCF growth 5YN/A
OCF growth 1Y160.5%
OCF growth 3Y-8.22%
OCF growth 5YN/A