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Wayfair logo

Wayfair

W
24
Specialty Retail · Consumer Cyclical
Price
$89.31
-2.17 (-2.37%)
Market Cap
$11.79B
Winston Score
24
Winston is worried
Weak fundamentals across most pillars.

Share count rising — dilution

+25.3% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 104.0M (2021) → 130.3M (2025)

Wayfair is an online store that sells furniture and home goods — things like sofas, beds, rugs, and kitchen items. It serves everyday consumers who want to shop for their homes without going to a physical store. Wayfair owns several brands under one roof, including Wayfair, Joss & Main, AllModern, Birch Lane, and Perigold, each targeting a different style or budget.

Wayfair makes money by selling products directly to customers on its websites, keeping a portion of each sale as revenue after paying suppliers. It operates mainly in the United States, with a smaller presence in Canada, the United Kingdom, and Germany. The company has built a large logistics network and supplier base that is hard to replicate quickly, but it has struggled to turn consistent profits due to high shipping and operating costs. The key challenge ahead is proving it can grow sales while keeping costs low enough to sustain profitability.

Winston Score History

Politician Trades

3 trades / 12mo

3 Congressional buys and 0 sells on W in the last 12 months.

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Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+7.4% YoY

YoY Growth Rate

Slow revenue growth

EPS Growth

+10.1% YoY

YoY Growth Rate

Steady EPS growth

R&D Spend

$0/ year

Declining (-100% vs prior year)

0.0% of revenue

Below sector average (4%)

R&D spend declining — could signal cost-cutting or efficiency

Insider Activity

22.1%ownership

Insiders own a meaningful stake in the company

Cash Runway

~3 years

$1.0B cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

$1.0B cash & investments at current burn rate

Growth context

Wayfair is growing revenue at 7% year-over-year. The Winston Score measures business quality today — these growth metrics show what could matter tomorrow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Gross Margin
30.0%
Modest — 30.0% gross margin
Operating Margin
0.4%
Thin — 0.4% operating margin
ROCE
1.6%
Weak — 1.6% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY
+6.8%
Slow sales growth (6.8% YoY)
EPS YoY
N/A
Data not available
EPS Consistency
2/8 quarters
Earnings rarely grow — volatile business

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Cash Flow

Cash Conversion
N/A
Data not available
FCF Margin
3.6%
Thin free cash flow (3.6%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

Debt / Equity
N/A
Data not available
Interest Cover
1.01x
Dangerous — barely covers interest (1.0x)

Interest coverage between 1 and 3. Profits cover interest, but with little room to spare.

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Valuation

P/E Ratio (TTM)
N/M
Negative earnings — P/E not meaningful
P/E vs Forward
N/A
not available
Data not available

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Dividends

Not applicable for this business.
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