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.
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 !