Skip to Content

Wayfair Inc Class A W

Morningstar Rating
$67.10 −1.57 (2.29%)
View Full Chart
Unlock our analysis with Morningstar Investor

Company Report

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

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.

Price vs Fair Value

W is trading at a 352% premium.
Price
$67.10
Fair Value
$57.00
Uncertainty
Very High
1-Star Price
$643.00
5-Star Price
$93.00
Economic Moat
Dzwfp
Capital Allocation
Rzxjjpnb

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.

Is it the right time to buy, sell, or hold?
Start a free trial of Morningstar Investor to unlock exclusive ratings and continuous analyst coverage to help you decide if W is a good fit for your portfolio.

News

Trading Information

Previous Close Price
$68.67
Day Range
$66.8868.98
52-Week Range
$33.8590.71
Bid/Ask
$65.78 / $67.29
Market Cap
$8.18 Bil
Volume/Avg
145 / 4.6 Mil

Key Statistics

Price/Earnings (Normalized)
Price/Sales
0.65
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

Competitors

Valuation

Metric
W
SHW
RH
Price/Earnings (Normalized)
29.7343.23
Price/Book Value
22.61
Price/Sales
0.653.501.99
Price/Cash Flow
28.6321.5913.12
Price/Earnings
W
SHW
RH

Financial Strength

Metric
W
SHW
RH
Quick Ratio
0.630.400.25
Current Ratio
0.780.781.26
Interest Coverage
−33.508.561.53
Quick Ratio
W
SHW
RH

Profitability

Metric
W
SHW
RH
Return on Assets (Normalized)
−1.26%11.01%3.17%
Return on Equity (Normalized)
71.59%103.95%
Return on Invested Capital (Normalized)
−2.10%17.88%7.96%
Return on Assets
W
SHW
RH
See how this stock stacks up to its competitors with Morningstar Investor

Internet Retail Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
AMZN
Amazon.com IncPrqxlrbvsfXcn$1.9 Tril
BABA
Alibaba Group Holding Ltd ADRHdqxvyjsLlr$213.9 Bil
PDD
PDD Holdings Inc ADRNmnmxdpkYctrbl$194.2 Bil
MELI
MercadoLibre IncDyrbvwcvclWrh$88.7 Bil
JD
JD.com Inc ADRDqdvsbjfmKykpf$52.6 Bil
SE
Sea Ltd ADRQyqhdzscxNbsy$42.4 Bil
EBAY
eBay IncRvvdntrlWscmknd$26.1 Bil
CART
Maplebear IncWycptcqRbf$9.1 Bil
ETSY
Etsy IncFsrvmqwysBjfs$7.5 Bil

Sponsor Center