Wayfair Inc Class A (W) (2024)

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Stock XNYS Rating as of Jul 11, 2024

$58.05 +2.82(5.11%)

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As of Jul 12, 2024 4:08pm Cboe BZX Real-Time Price Open

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Company Report

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Wayfair on Track for Consistently Positive Adjusted EBITDA as Cost-Cutting Efforts Bolster Savings

Jaime M Katz May 7, 2024

Wayfair plays in the fragmented home goods market in North America and Western Europe ($800 billion-plus global opportunity), offering more than 30 million products from more than 20,000 suppliers. We think its differentiation comes from its breadth of products and logistics network, which permits faster delivery with fewer touch points and less product damage than its peers. However, we believe Wayfair lacks brand strength, evidenced by its elevated advertising spending relative to peers and customer acquisition costs. Moreover, we think peers will continue to attempt faster delivery, spurring rising competition. Targeting a wide consumer base of customers aged 25-54 years with an average household income of $60,000-$175,000 means Wayfair is competing with mass-market retailers, specialty retail, and low-cost providers, making it harder to stay top of mind. This, along with no switching costs, underlies our no moat rating.

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Price vs Fair Value

See Also
Wayfair Inc. (W) Stock Price, Quote & News - Stock Analysis Wayfair Stock Price | W Stock Quote, News, and History | Markets Insider Wayfair - W - Stock Price Today Wayfair Inc. (W) Latest Stock News & Headlines - Yahoo Finance

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W is trading at a 389% premium.

Price

$55.25

Jul 11, 2024

Fair Value

$95.00

May 7, 2024

Uncertainty

Very High

1-Star Price: $759.00
5-Star Price: $64.00
Economic Moat: Rsv
Capital Allocation: Mwlrvbbb

Bulls Say, Bears Say

Bulls

Different brands in the Wayfair portfolio cater across income and age demographics, offering some resilience in cases of economic cyclicality and uncertainty.

Bears

Low customer switching costs, along with the proliferation of other e-commerce and mass-merchant competitors in the home furnishing category, may bound long-term margin expansion. If Amazon or big-box retailers pursue growth in the market aggressively, it could lead to higher customer acquisition costs.

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News

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Wayfair Schedules Second Quarter 2024 Earnings Release and Conference Call
Wayfair Releases Third-Annual Corporate Responsibility Report, Sets Ambitious Zero Waste Target
Now Open: Wayfair's First Large-Format Store Reimagines the Shopping Experience for Home
The furniture industry's recovery relies on customers getting used to paying more
Wayfair's stock jumps after retailer narrows loss, says quarter ended 'on an upswing'
Wayfair Announces First Quarter 2024 Results, Reports Fourth Consecutive Quarter of Strong Profitability
Save the Date: Wayfair to Host Way Day May 4-6, the Biggest Sale of the Year on All Things Home
Wayfair Announces Grand Opening Date for Its First Large-Format Store

Trading Information

Previous Close Price: $55.23
Day Range: $55.70–58.42
52-Week Range: $38.37–90.69
Bid/Ask: $57.95/$58.06
Market Cap: $7.09 Bil
Volume/Avg: 1.6 Mil/4.1 Mil

Key Statistics

Price/Earnings (Normalized): —
Price/Sales: 0.54
Dividend Yield (Trailing): —
Dividend Yield (Forward): —
Total Yield: —

Company Profile

Wayfair engages in e-commerce in the United States (87% of 2023 sales), Canada, the United Kingdom, Germany, and Ireland. At the end of 2023, the firm offered more than 30 million products from more than 20,000 suppliers under the brands Wayfair, Joss & Main, AllModern, Birch Lane, and Perigold. Its offerings include furniture, everyday and seasonal decor, decorative accents, housewares, and other home goods. Wayfair was founded in 2002 and began trading publicly in 2014.

Sector: Consumer Cyclical
Industry: Internet Retail
Stock Style Box: Small Value
Total Number of Employees: 14,400
Website: https://www.wayfair.com

Competitors

Williams-Sonoma Inc WSM
RH Class A RH
Sherwin-Williams Co SHW

Valuation

Metric	W	WSM	RH
Price/Earnings (Normalized)	—	9.69	69.69
Price/Book Value	—	8.94	—
Price/Sales	0.54	2.61	1.79
Price/Cash Flow	23.58	12.35	13.46

Price/Earnings

WSM

Financial Strength

Metric	W	WSM	RH
Quick Ratio	0.63	0.80	0.20
Current Ratio	0.78	1.55	1.19
Interest Coverage	−33.50	—	1.33

Quick Ratio

WSM

Profitability

Metric	W	WSM	RH
Return on Assets (Normalized)	−1.26%	23.23%	1.99%
Return on Equity (Normalized)	—	61.26%	—
Return on Invested Capital (Normalized)	−2.10%	34.07%	7.73%

Return on Assets

WSM

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