Wayfair Inc Class A W

Morningstar Rating
$101.37 −1.19 (1.16%)
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Company Report

Profit Expansion Takes Hold at Wayfair as Expenses Lever on Sales Acceleration

Wayfair plays in the fragmented home goods market in North America and the UK (more than $500 billion global opportunity), offering more than 40 million products from around 20,000 suppliers. We think its differentiation comes from its breadth of products and logistics network, which allows for faster delivery with fewer touchpoints 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 innovation and delivery, spurring elevated competition. Its largest namesake brand targets a wide consumer base of customers aged 25-54 years with an average household incomes of $60,000-$175,000, leaving Wayfair competing with mass-market retailers, specialty retail, and low-cost providers, making it hard to stay top of mind. This, along with no switching costs, underlies our no-moat rating.

Price vs Fair Value

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Price
$101.37
Fair Value
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Uncertainty
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1-Star Price
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5-Star Price
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Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Different brands in the Wayfair portfolio cater across income and age demographics, offering some resilience during periods 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.

News

Articles & Videos

Trading Information

Previous Close Price
$102.56
Day Range
$98.62–102.47
52-Week Range
$55.60–119.98
Bid/Ask
$98.51 / $103.70
Shares Outstanding
136.97M
Market Cap
$13.88B
Volume/Avg
1,867 / 3M

Key Statistics

Price/Earnings (Normalized)
36.73
Price/Sales
1.02
Dividend Yield (Trailing)
0.00%
Dividend Yield (Forward)
0.00%
Dividend Payment Schedule
—
Total Yield
—

Company Profile

Wayfair engages in e-commerce in the United States (88% of 2025 sales), Canada, the United Kingdom, and Ireland. It's also embarked on expansion into the brick-and-mortar landscape, with 13 stores (excluding outlets) between the AllModern, Birch Lane, Joss & Main, and Wayfair banners. The firm offers more than 40 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, as well as advertising and logistics services. Wayfair was founded in 2002 and began trading publicly in 2014.
Sector
Consumer Cyclical
Industry
Internet Retail
Stock Style Box
Small Core
Total Number of Employees
12,800

Competitors

Valuation

Metric
W
RH
SHW
Price/Earnings (Normalized)
36.7329.6927.32
Price/Book Value
—18.9520.20
Price/Sales
1.020.693.26
Price/Cash Flow
22.604.6618.60
Price/Earnings
W
RH
SHW

Financial Strength

Metric
W
RH
SHW
Quick Ratio
0.590.260.40
Current Ratio
0.741.120.73
Interest Coverage
−1.161.587.74
Quick Ratio
W
RH
SHW

Profitability

Metric
W
RH
SHW
Return on Assets (Normalized)
13.42%1.64%10.59%
Return on Equity (Normalized)
—199.65%63.78%
Return on Invested Capital (Normalized)
55.01%5.87%17.73%
Return on Assets
W
RH
SHW

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