Wayfair Inc. Class A Common Stock (W)

FairStock Score: 24/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for a durable business with consistent earning power and a margin of safety. Wayfair is a large online home-goods retailer: in fiscal 2025, the year ended 2025-12-31, revenue was $12.5B and net loss was $313.0M, an improvement from a $492.0M loss in fiscal 2024 and a $738.0M loss in fiscal 2023. The latest report—fiscal Q2 2026, the quarter ended 2026-06-30—showed revenue of $3.5B and a net loss of only $1.0M, so it is close to break-even. That is encouraging, and trailing free cash flow is positive at $433.0M, a 3.0% FCF yield on the $14.3B market cap. But Graham would ask what you are paying for those uncertain future profits. At the 2026-10-13 close of $107.99, FairStock calculates a P/E of -43.72 and EV/EBITDA of 152.91 because earnings are negative or tiny. The Altman Z-Score of 0.23 signals financial-distress risk, and Piotroski is only 5/9. ROCE is 5.33%, not the high return of a wide-moat compounder. The company has lost money in each of the last four years, so FairStock assigns no Peter Lynch category. Its beta of 3.02 means the stock is very volatile and tied to consumer-cyclical demand. Wayfair may have scale and brand recognition in online furniture, but scale without consistent profits is not a moat I can underwrite. The recent near-breakeven quarter is a positive sign, but one quarter does not prove durable earning power. With a FairStock Score of 24/100 and EV/EBITDA over 150, the price already reflects a sharp profit recovery. I would need much more evidence of sustainable margins and a wider margin of safety before calling this a bargain.

In plain English: Wayfair sells furniture, décor, and home goods online. The business has grown sales and its latest quarter was almost break-even, but it has lost money over the past four years and shows signs of financial strain. At the recent price, the stock looks expensive compared with current profits and cash flow.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer