Wayfair Inc.

Scaled home-goods e-commerce platform with positive FCF but still posting a net loss and only mid-pack returns.

Strengths

• Strong cash/FCF position (cash 86th pct, FCF 86th pct, FCF margin 79th pct)
• Returned to operating profitability and improving OCF margin (67th pct)

Risks

• Net loss for the year (net margin -2.5%) and ROA deeply negative (-9%)
• Heavy China sourcing exposes margins to escalating tariffs on home goods
• Discretionary demand sensitive to weak consumer/housing cycle

Notable findings

• No interest coverageInterest coverage 0.10 (cannot cover interest)
• Negative equityNegative book equity (debt/equity -1.16)
• Net lossNet loss (net margin -2.5%)
• Weak liquidityCurrent ratio 0.94 (<1)
• Exec changeRecent 8-K item 5.02 8-K ↗
• Strong balance sheetStrong balance sheet — $1.6B cash & investments
• Revenue declineRevenue -12.2% YoY
• China exposureThese adverse conditions include economic instability, changes in tax laws, regulations and new or increased tariffs, including retaliatory tariffs, export controls, the impacts of inflation, slower g
• Insider sellingInsider selling — 65 open-market sale(s) by 5 insider(s) (cluster of 5 insiders, ~$94M, last 6mo) Form 4 ↗