Wayfair, Inc. (W) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Williams-Sonoma, Inc.

Casey's General Stores, Inc.

BJ's Wholesale Club Holdings, Inc.

Murphy USA, Inc.

Lithia Motors, Inc.

Penske Automotive Group, Inc.

Dick's Sporting Goods, Inc.

Wayfair, Inc.

AutoNation, Inc.

CarMax, Inc.

Why is Wayfair, Inc. ?

With a Negative Book Value, the company has a Weak Long Term Fundamental Strength

Poor long term growth as Operating profit has grown by an annual rate 10.85% of over the last 5 years
Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of -20.13

Risky - Negative Operating Profits

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of 81.18%, its profits have risen by 54.7%

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Retailing)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Wayfair, Inc. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Wayfair, Inc.

140.61%

0.96

77.47%

S&P 500

14.9%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-2.51%

EBIT Growth (5y)

-23.73%

EBIT to Interest (avg)

-20.13

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-0.67

Sales to Capital Employed (avg)

31.29

Tax Ratio

2.88%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

ROE (avg)

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

-3.72

EV to EBIT

131.87

EV to EBITDA

30.81

EV to Capital Employed

-14.23

EV to Sales

0.98

PEG Ratio

Dividend Yield

ROCE (Latest)

Negative Capital Employed

ROE (Latest)

Negative BV

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

27What is working for the Company

INTEREST COVERAGE RATIO(Q)

Highest at 388.89

OPERATING CASH FLOW(Y)

Highest at USD 534 MM

OPERATING PROFIT(Q)

Highest at USD 140 MM

OPERATING PROFIT MARGIN(Q)

Highest at 4.2 %

RAW MATERIAL COST(Y)

Fallen by -0.41% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 121.44 times

NET SALES(Q)

Highest at USD 3,337 MM

PRE-TAX PROFIT(Q)

Highest at USD 36 MM

NET PROFIT(Q)

Highest at USD 34 MM

-11What is not working for the Company

INTEREST(Q)

Highest at USD 36 MM

Here's what is working for Wayfair, Inc.

Interest Coverage Ratio

Highest at 388.89 and Grown

In each period in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Operating Profit

Highest at USD 140 MM and Grown

In each period in the last five periods

MOJO Watch

Near term Operating Profit trend is quite positive

Operating Profit (USD MM)

Operating Profit Margin

Highest at 4.2 % and Grown

In each period in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

At USD 36 MM has Grown at 130%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (USD MM)

Net Profit

At USD 34 MM has Grown at 127.87%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (USD MM)

Operating Cash Flow

Highest at USD 534 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Net Sales

Highest at USD 3,337 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Pre-Tax Profit

Highest at USD 36 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Net Profit

Highest at USD 34 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

Inventory Turnover Ratio

Highest at 121.44 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -0.41% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Wayfair, Inc.

Interest

At USD 36 MM has Grown at 16.13%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Interest

Highest at USD 36 MM

in the last five periods and Increased by 16.13% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)