Wayfair (W) engages in the e-commerce business in the United States. It offers approximately seven million products for the home under various brands. The company offers a selection of furniture, décor, decorative accent, houseware, seasonal décor, and other home goods under the Wayfair.com, Joss & Main, AllModern, DwellStudio, and Birch Lane brands. It also sells its products through online retail partners. Wayfair Inc. was founded in 2002 and is headquartered in Boston, Massachusetts.
Wayfair (W)
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Could Walmart buy Wayfair? One analyst says it’d be a good match.
read at
http://www.bizjournals.com/boston/news/2017/05/02/could-walmart-buy-wayfair-one-analyst-says-itd-be.html?ana=yahoo&yptr=yahoo
The share price of Boston-based Wayfair Inc. was flirting with an all-time high on Tuesday
Wayfair share price chart is here:
https://finance.yahoo.com/quote/AAPL?ltr=1
Wayfair – We See 80% Downside From Here
http://seekingalpha.com/article/4051586-wayfair-see-80-percent-downside
Wayfair Earnings Sink Further, read at
http://host.madison.com/business/investment/markets-and-stocks/wayfair-earnings-sink-further/article_ec454541-dbfe-5251-b844-f9837aac8160.html
Wayfair just announced 2016Q4 results, the revenue has gone up from USD 862 millions in 2016Q3 to USD 984 millions in 2016Q4, a significant increase of about 14% in 3 months ! Compared to 2015Q4, the revenue increased from USD 740 m to USD 984 m, an increase of 33% in 12 months.
Wayfair has seen sales up every quarter in the past year, indicating customers like its products.
The adjusted EBITDA (Earnings before income tax and depreciation and amortisation ) is a 1.2% loss of the total revenue, compared to a gain of 0.4%.
The loss is significantly widened in 2016 , – 194 millions compared to – 77 millions in 2015. The loss is about – 194/3380×100 = – 5.7% of the total revenue in 2017, compared to – 77/2249 = -3.4% in 2015.
The loss is mainly due to administration expenses (advertising, administration etc.).
The share prices have dropped significantly after the announcement of the results, down about – 6.5% on the day.
Now the company is valued at 38.7 USD per share x 84,977,000 shares = 3.3 Billions USD. The sales revenue is 3.38 Billion USD.
Price / Sales <1.
As the company revenue grows rapidly, the business is taking off.
Compare to Amazon.com: Sales = 136 billions USD, market capitalisation = 407 Billions USD, prices / sales = 3.
Amazon.dom 's operational incomee margin for 2016 is 4186/135987 = 3%.
Wayfair 's operational loss margin for 2016 is -196/3380 = -5.8%.
Can Wayfair improve its operational efficiency by 9% to become another Amazon.com of home goods ?
The market capitalisation here for Wayfair is <1 x revenue , thus are not that expensive for long-term investment.
The current price is about 3.14 x Sales of the trailing 12 months.
Cheap .
This internet company in the US grows so fast !