Wayfair Inc. Fundamental Analysis (NYSE: W)
Wayfair Inc. (NYSE: W) shows moderate financial fundamentals with a PE ratio of -41.67, profit margin of -2.49%, and ROE of 11.48%. The company generates $13.4B in annual revenue with moderate year-over-year growth of 5.11%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 56.5/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze W's fundamental strength across five key dimensions:
Efficiency Score
WeakW struggles to generate sufficient returns from assets.
Valuation Score
ModerateW shows balanced valuation metrics.
Growth Score
ExcellentW delivers strong and consistent growth momentum.
Financial Health Score
ModerateW shows balanced financial health with some risks.
Profitability Score
WeakW struggles to sustain strong margins.
Key Financial Metrics
Is W Expensive or Cheap?
P/E Ratio
W trades at -41.67 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, W's PEG of 10.51 indicates potential overvaluation.
Price to Book
The market values Wayfair Inc. at -4.85 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 106.56 times EBITDA. This signals the market has high growth expectations.
How Well Does W Make Money?
Net Profit Margin
For every $100 in sales, Wayfair Inc. keeps $-2.49 as profit after all expenses.
Operating Margin
Core operations generate 1.74 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $11.48 in profit for every $100 of shareholder equity.
ROA
Wayfair Inc. generates $-10.78 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Wayfair Inc. generates limited operating cash flow of $690.03M, signaling weaker underlying cash strength.
Free Cash Flow
Wayfair Inc. produces free cash flow of $513.63M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $3.75 in free cash annually.
FCF Yield
W converts 3.50% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-41.67
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
10.51
vs 25 benchmark
P/B Ratio
Price to book value ratio
-4.85
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.09
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-1.25
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.74
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.11
vs 25 benchmark
ROA
Return on assets percentage
-0.11
vs 25 benchmark
ROCE
Return on capital employed
0.32
vs 25 benchmark
How W Stacks Against Its Sector Peers
| Metric | W Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -41.67 | 26.74 | Better (Cheaper) |
| ROE | 11.48% | 965.00% | Weak |
| Net Margin | -2.49% | -4914.00% (disorted) | Weak |
| Debt/Equity | -1.25 | 0.61 | Strong (Low Leverage) |
| Current Ratio | 0.74 | 2.31 | Weak Liquidity |
| ROA | -10.78% | 295.00% | Weak |
W outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Wayfair Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-35.25%
Industry Style: Cyclical, Growth, Discretionary
DecliningEPS CAGR
-224.39%
Industry Style: Cyclical, Growth, Discretionary
DecliningFCF CAGR
-72.29%
Industry Style: Cyclical, Growth, Discretionary
Declining