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Wayfair Piotroski F-Score

: 4 (As of Today)
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The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Wayfair has an F-score of 4 indicating the company's financial situation is typical for a stable company.

The historical rank and industry rank for Wayfair's Piotroski F-Score or its related term are showing as below:

W' s Piotroski F-Score Range Over the Past 10 Years
Min: 2   Med: 4   Max: 8
Current: 4

During the past 10 years, the highest Piotroski F-Score of Wayfair was 8. The lowest was 2. And the median was 4.


Wayfair Piotroski F-Score Historical Data

The historical data trend for Wayfair's Piotroski F-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Wayfair Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Piotroski F-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.00 2.00 2.00 7.00 3.00

Wayfair Quarterly Data
Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22
Piotroski F-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 7.00 7.00 8.00 3.00 4.00

Competitive Comparison

For the Internet Retail subindustry, Wayfair's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Wayfair Piotroski F-Score Distribution

For the Retail - Cyclical industry and Consumer Cyclical sector, Wayfair's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Wayfair's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Mar22) TTM:Last Year (Mar21) TTM:
Net Income was 130.428 + -78.021 + -201.641 + -319 = $-468 Mil.
Cash Flow from Operations was 275.035 + -130.848 + 88.813 + -226 = $7 Mil.
Revenue was 3857.626 + 3121.083 + 3251.773 + 2993 = $13,223 Mil.
Gross Profit was 1128.06 + 882.728 + 881.185 + 803 = $3,695 Mil.
Average Total Assets from the begining of this year (Mar21)
to the end of this year (Mar22) was
(4774.933 + 4681.224 + 4466.217 + 4570 + 4256) / 5 = $4549.6748 Mil.
Total Assets at the begining of this year (Mar21) was $4,775 Mil.
Long-Term Debt & Capital Lease Obligation was $3,935 Mil.
Total Current Assets was $2,680 Mil.
Total Current Liabilities was $2,199 Mil.
Net Income was 273.877 + 173.166 + 23.822 + 18 = $489 Mil.

Revenue was 4304.672 + 3839.57 + 3670.695 + 3478 = $15,293 Mil.
Gross Profit was 1321.03 + 1147.428 + 1064.419 + 1003 = $4,536 Mil.
Average Total Assets from the begining of last year (Mar20)
to the end of last year (Mar21) was
(2751.421 + 4379.496 + 4558.44 + 4570 + 4774.933) / 5 = $4206.858 Mil.
Total Assets at the begining of last year (Mar20) was $2,751 Mil.
Long-Term Debt & Capital Lease Obligation was $3,981 Mil.
Total Current Assets was $3,217 Mil.
Total Current Liabilities was $2,220 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Wayfair's current Net Income (TTM) was -468. ==> Negative ==> Score 0.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Wayfair's current Cash Flow from Operations (TTM) was 7. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Mar21)
=-468.234/4774.933
=-0.09806085

ROA (Last Year)=Net Income/Total Assets (Mar20)
=488.865/2751.421
=0.17767728

Wayfair's return on assets of this year was -0.09806085. Wayfair's return on assets of last year was 0.17767728. ==> Last year is higher ==> Score 0.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Wayfair's current Net Income (TTM) was -468. Wayfair's current Cash Flow from Operations (TTM) was 7. ==> 7 > -468 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Mar22)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Mar21 to Mar22
=3935/4549.6748
=0.86489698

Gearing (Last Year: Mar21)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Mar20 to Mar21
=3981.027/4206.858
=0.94631837

Wayfair's gearing of this year was 0.86489698. Wayfair's gearing of last year was 0.94631837. ==> This year is lower or equal to last year. ==> Score 1.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Mar22)=Total Current Assets/Total Current Liabilities
=2680/2199
=1.21873579

Current Ratio (Last Year: Mar21)=Total Current Assets/Total Current Liabilities
=3216.875/2220.022
=1.44902843

Wayfair's current ratio of this year was 1.21873579. Wayfair's current ratio of last year was 1.44902843. ==> Last year's current ratio is higher ==> Score 0.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Wayfair's number of shares in issue this year was 105. Wayfair's number of shares in issue last year was 107. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=3694.973/13223.482
=0.27942512

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=4535.877/15292.937
=0.29659947

Wayfair's gross margin of this year was 0.27942512. Wayfair's gross margin of last year was 0.29659947. ==> Last year's gross margin is higher ==> Score 0.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Mar21)
=13223.482/4774.933
=2.76935446

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Mar20)
=15292.937/2751.421
=5.55819593

Wayfair's asset turnover of this year was 2.76935446. Wayfair's asset turnover of last year was 5.55819593. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=0+1+0+1+1+0+1+0+0
=4

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Wayfair has an F-score of 4 indicating the company's financial situation is typical for a stable company.

Wayfair  (NYSE:W) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Wayfair Piotroski F-Score Related Terms

Thank you for viewing the detailed overview of Wayfair's Piotroski F-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


Wayfair Business Description

Wayfair logo
Industry
Consumer Cyclical » Retail - Cyclical NAICS : 454110 SIC : 5961
Traded in Other Exchanges
Address
4 Copley Place, Boston, MA, USA, 02116
Wayfair engages in e-commerce in the United States and Europe. At the end of 2021, the firm offered more than 33 million products from 23,000-plus suppliers for the home sector under the brands Wayfair, Joss & Main, AllModern, DwellStudio, Birch Lane, and Perigold. This includes a selection of furniture, decor, decorative accent, housewares, seasonal decor, and other home goods. Wayfair was founded in 2002 and is focused on helping people find the perfect product at the right price.
Executives
Fleisher Michael D officer: Chief Financial Officer C/O WAYFAIR INC. 4 COPLEY PLACE BOSTON MA 02116
Oblak Steve officer: Chief Merchandising Officer C/O WAYFAIR INC. 4 COPLEY PLACE BOSTON MA 02116
Macri Edmond officer: Chief Product/Marketing C/O WAYFAIR INC. 4 COPLEY PLACE BOSTON MA 02116
Shah Niraj director, 10 percent owner, officer: Chief Executive Officer C/O WAYFAIR INC. 4 COPLEY PLACE BOSTON MA 02116
Conine Steven director, 10 percent owner, officer: Co-Founder C/O WAYFAIR INC. 4 COPLEY PLACE BOSTON MA 02116
Spruce House Partnership (qp) Lp 10 percent owner 435 HUDSON ST #804 NEW YORK NY 10014
Stein Benjamin Forester 10 percent owner 435 HUDSON STREET SUITE 804 NEW YORK NY 10014
Sternberg Zachary 10 percent owner 435 HUDSON STREET SUITE 804 NEW YORK NY 10014
Spruce House Investment Management Llc 10 percent owner 435 HUDSON STREET 8TH FLOOR NEW YORK NY 10014
Spruce House Capital Llc 10 percent owner 435 HUDSON STREET SUITE 804 NEW YORK NY 10014
Spruce House Partnership (ai) Lp 10 percent owner 435 HUDSON STREET 8TH FLOOR NEW YORK NY 10014
Spruce House Partnership Llc 10 percent owner 435 HUDSON STREET 8TH FLOOR NEW YORK NY 10014
Choe Michael W. director C/O CHARLESBANK CAPITAL PARTNERS 200 CLARENDON STREET, 54TH FLOOR BOSTON MA 02109
Miller James R. officer: Chief Technology Officer 4050 EAST COTTON CENTER BLVD. 6-68 PHOENIX AZ 85040
Netzer Thomas officer: Chief Operating Officer C/O WAYFAIR INC. 4 COPLEY PLACE BOSTON MA 02116

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