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WAYFAIR INC- CLASS A (W) Stock Fundamental Analysis

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

41.24  -1.54 (-3.6%)

After market: 41.24 0 (0%)

Fundamental Rating

2

We assign a fundamental rating of 2 out of 10 to W. W was compared to 120 industry peers in the Specialty Retail industry. Both the profitability and financial health of W have multiple concerns. W is quite expensive at the moment. It does show a decent growth rate.


Dividend Valuation Growth Profitability Health

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2

1. Profitability

1.1 Basic Checks

W had positive earnings in the past year.
W had a positive operating cash flow in the past year.
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's Return On Assets of -10.44% is on the low side compared to the rest of the industry. W is outperformed by 79.17% 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

The Gross Margin of W (30.31%) is worse than 65.00% of its industry peers.
W's Gross Margin has improved in the last couple of years.
The Profit Margin and Operating Margin are not available for W so they could not be analyzed.
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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1

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
The debt/assets ratio for W has been reduced compared to a year ago.
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

Based on the Altman-Z score of 1.74, we must say that W is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.74, W is doing worse than 62.50% of the companies in the same industry.
W has a debt to FCF ratio of 21.90. This is a negative value and a sign of low solvency as W would need 21.90 years to pay back of all of its debts.
W has a Debt to FCF ratio of 21.90. This is comparable to the rest of the industry: W outperforms 44.17% of its industry peers.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 21.9
Altman-Z 1.74
ROIC/WACCN/A
WACC8.34%
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.
Looking at the Current ratio, with a value of 0.83, W is doing worse than 85.00% of the companies in the same industry.
W has a Quick 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.
W has a better Quick ratio (0.79) than 65.83% of its industry peers.
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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5

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 254.29% over the past year.
Measured over the past years, W shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -61.54% on average per year.
W shows a decrease in Revenue. In the last year, the revenue decreased by -0.89%.
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

W is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 105.39% yearly.
Based on estimates for the next years, W will show a small growth in Revenue. The Revenue will grow by 4.46% on average per year.
EPS Next Y430.4%
EPS Next 2Y224.8%
EPS Next 3Y162.42%
EPS Next 5Y105.39%
Revenue Next Year0.32%
Revenue Next 2Y1.91%
Revenue Next 3Y3.07%
Revenue Next 5Y4.46%

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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

A Price/Earnings ratio of 76.37 indicates a quite expensive valuation of W.
The rest of the industry has a similar Price/Earnings ratio as W.
W's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.19.
Based on the Price/Forward Earnings ratio of 32.58, the valuation of W can be described as expensive.
W's Price/Forward Earnings is on the same level as the industry average.
W is valuated rather expensively when we compare the Price/Forward Earnings ratio to 22.13, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 76.37
Fwd PE 32.58
W Price Earnings VS Forward Price EarningsW Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of W indicates a slightly more expensive valuation: W is more expensive than 67.50% of the companies listed in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as W.
Industry RankSector Rank
P/FCF 38.63
EV/EBITDA 53.72
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 162.42% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.18
PEG (5Y)N/A
EPS Next 2Y224.8%
EPS Next 3Y162.42%

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0

5. Dividend

5.1 Amount

No dividends for W!.
Industry RankSector Rank
Dividend Yield N/A

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WAYFAIR INC- CLASS A

NYSE:W (5/30/2025, 4:20:04 PM)

After market: 41.24 0 (0%)

41.24

-1.54 (-3.6%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)05-01 2025-05-01/bmo
Earnings (Next)07-30 2025-07-30/bmo
Inst Owners109.3%
Inst Owner Change3.49%
Ins Owners4.9%
Ins Owner Change7.23%
Market Cap5.29B
Analysts72.86
Price Target44.14 (7.03%)
Short Float %24.95%
Short Ratio3.38
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)-19.67%
PT rev (3m)-21.37%
EPS NQ rev (1m)-11.55%
EPS NQ rev (3m)-21.24%
EPS NY rev (1m)17.21%
EPS NY rev (3m)-2.75%
Revenue NQ rev (1m)-0.38%
Revenue NQ rev (3m)-0.87%
Revenue NY rev (1m)-0.62%
Revenue NY rev (3m)-1.19%
Valuation
Industry RankSector Rank
PE 76.37
Fwd PE 32.58
P/S 0.45
P/FCF 38.63
P/OCF 14.7
P/B N/A
P/tB N/A
EV/EBITDA 53.72
EPS(TTM)0.54
EY1.31%
EPS(NY)1.27
Fwd EY3.07%
FCF(TTM)1.07
FCFY2.59%
OCF(TTM)2.81
OCFY6.8%
SpS92.36
BVpS-21.89
TBVpS-21.89
PEG (NY)0.18
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 1.74
F-Score5
WACC8.34%
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 Y430.4%
EPS Next 2Y224.8%
EPS Next 3Y162.42%
EPS Next 5Y105.39%
Revenue 1Y (TTM)-0.89%
Revenue growth 3Y-4.74%
Revenue growth 5Y5.36%
Sales Q2Q%0.04%
Revenue Next Year0.32%
Revenue Next 2Y1.91%
Revenue Next 3Y3.07%
Revenue Next 5Y4.46%
EBIT growth 1Y62.64%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year1006.8%
EBIT Next 3Y153.11%
EBIT Next 5Y87.65%
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