WIX.COM LTD (WIX) Stock Fundamental Analysis
NASDAQ:WIX - Nasdaq - IL0011301780 - Common Stock
We assign a fundamental rating of 4 out of 10 to WIX. WIX was compared to 82 industry peers in the IT Services industry. WIX has only an average score on both its financial health and profitability. WIX is valued quite expensive, but it does show an excellent growth.
1. Profitability
1.1 Basic Checks
In the past year WIX was profitable.
In the past year WIX had a positive cash flow from operations.
In the past 5 years WIX reported 4 times negative net income.
Each year in the past 5 years WIX had a positive operating cash flow.
1.2 Ratios
The Return On Assets of WIX (5.44%) is better than 69.62% of its industry peers.
WIX has a Return On Invested Capital of 22.06%. This is amongst the best in the industry. WIX outperforms 94.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.44% | ||
| ROE | N/A | ||
| ROIC | 22.06% |
ROA(3y)-9.34%
ROA(5y)-8.96%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
WIX has a better Profit Margin (5.47%) than 64.56% of its industry peers.
WIX has a Operating Margin (4.05%) which is in line with its industry peers.
WIX has a better Gross Margin (67.89%) than 87.34% of its industry peers.
WIX's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.05% | ||
| PM (TTM) | 5.47% | ||
| GM | 67.89% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.5%
GM growth 5Y-3.18%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), WIX is creating value.
WIX has more shares outstanding than it did 1 year ago.
The number of shares outstanding for WIX has been increased compared to 5 years ago.
Compared to 1 year ago, WIX has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.23 indicates that WIX is not in any danger for bankruptcy at the moment.
WIX's Altman-Z score of 4.23 is fine compared to the rest of the industry. WIX outperforms 65.82% of its industry peers.
The Debt to FCF ratio of WIX is 1.34, which is an excellent value as it means it would take WIX, only 1.34 years of fcf income to pay off all of its debts.
WIX has a Debt to FCF ratio of 1.34. This is in the better half of the industry: WIX outperforms 74.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 1.34 | ||
| Altman-Z | 4.23 |
ROIC/WACC2.49
WACC8.85%
2.3 Liquidity
A Current Ratio of 0.74 indicates that WIX may have some problems paying its short term obligations.
WIX has a Current ratio of 0.74. This is amonst the worse of the industry: WIX underperforms 89.87% of its industry peers.
A Quick Ratio of 0.74 indicates that WIX may have some problems paying its short term obligations.
WIX has a worse Quick ratio (0.74) than 89.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 46.39% over the past year.
Measured over the past years, WIX shows a very strong growth in Earnings Per Share. The EPS has been growing by 33.72% on average per year.
Looking at the last year, WIX shows a quite strong growth in Revenue. The Revenue has grown by 12.63% in the last year.
Measured over the past years, WIX shows a very strong growth in Revenue. The Revenue has been growing by 20.94% on average per year.
EPS 1Y (TTM)46.39%
EPS 3YN/A
EPS 5Y33.72%
EPS Q2Q%36.36%
Revenue 1Y (TTM)12.63%
Revenue growth 3Y16.63%
Revenue growth 5Y20.94%
Sales Q2Q%12.91%
3.2 Future
Based on estimates for the next years, WIX will show a very strong growth in Earnings Per Share. The EPS will grow by 31.19% on average per year.
WIX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.49% yearly.
EPS Next Y35.06%
EPS Next 2Y28.27%
EPS Next 3Y25.24%
EPS Next 5Y31.19%
Revenue Next Year12.67%
Revenue Next 2Y13.8%
Revenue Next 3Y13.6%
Revenue Next 5Y13.49%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 41.93 indicates a quite expensive valuation of WIX.
Compared to the rest of the industry, the Price/Earnings ratio of WIX is on the same level as its industry peers.
When comparing the Price/Earnings ratio of WIX to the average of the S&P500 Index (28.29), we can say WIX is valued slightly more expensively.
WIX is valuated quite expensively with a Price/Forward Earnings ratio of 32.24.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WIX is on the same level as its industry peers.
WIX is valuated rather expensively when we compare the Price/Forward Earnings ratio to 24.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.93 | ||
| Fwd PE | 32.24 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WIX is valued a bit more expensive than the industry average as 63.29% of the companies are valued more cheaply.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of WIX is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.6 | ||
| EV/EBITDA | 122.23 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
WIX's earnings are expected to grow with 25.24% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.2
PEG (5Y)1.24
EPS Next 2Y28.27%
EPS Next 3Y25.24%
5. Dividend
5.1 Amount
No dividends for WIX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
WIX.COM LTD
NASDAQ:WIX (1/21/2025, 8:00:02 PM)
After market: 237.47 -0.7 (-0.29%)238.17
-2.72 (-1.13%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners93.03%
Inst Owner Change0.96%
Ins Owners3.53%
Ins Owner ChangeN/A
Market Cap13.06B
Analysts80.74
Price Target238.13 (-0.02%)
Short Float %2.93%
Short Ratio2.56
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)12.83%
Min EPS beat(2)3.55%
Max EPS beat(2)22.11%
EPS beat(4)4
Avg EPS beat(4)18.54%
Min EPS beat(4)3.55%
Max EPS beat(4)27.04%
EPS beat(8)8
Avg EPS beat(8)168.05%
EPS beat(12)11
Avg EPS beat(12)129.88%
EPS beat(16)15
Avg EPS beat(16)108.06%
Revenue beat(2)0
Avg Revenue beat(2)-0.71%
Min Revenue beat(2)-0.86%
Max Revenue beat(2)-0.55%
Revenue beat(4)0
Avg Revenue beat(4)-0.68%
Min Revenue beat(4)-0.86%
Max Revenue beat(4)-0.53%
Revenue beat(8)3
Avg Revenue beat(8)-0.2%
Revenue beat(12)3
Avg Revenue beat(12)-0.43%
Revenue beat(16)7
Avg Revenue beat(16)-0.1%
PT rev (1m)0%
PT rev (3m)21.75%
EPS NQ rev (1m)0%
EPS NQ rev (3m)15.42%
EPS NY rev (1m)0%
EPS NY rev (3m)2.69%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.5%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.93 | ||
| Fwd PE | 32.24 | ||
| P/S | 7.66 | ||
| P/FCF | 30.6 | ||
| P/OCF | 28.76 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 122.23 |
EPS(TTM)5.68
EY2.38%
EPS(NY)7.39
Fwd EY3.1%
FCF(TTM)7.78
FCFY3.27%
OCF(TTM)8.28
OCFY3.48%
SpS31.08
BVpS-3.64
TBVpS-4.97
PEG (NY)1.2
PEG (5Y)1.24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.44% | ||
| ROE | N/A | ||
| ROCE | 25.19% | ||
| ROIC | 22.06% | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 4.05% | ||
| PM (TTM) | 5.47% | ||
| GM | 67.89% | ||
| FCFM | 25.04% |
ROA(3y)-9.34%
ROA(5y)-8.96%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.5%
GM growth 5Y-3.18%
F-Score8
Asset Turnover0.99
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 1.34 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 86.62% | ||
| Cap/Sales | 1.61% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 451.43% | ||
| Profit Quality | 457.57% | ||
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.74 | ||
| Altman-Z | 4.23 |
F-Score8
WACC8.85%
ROIC/WACC2.49
Cap/Depr(3y)253.1%
Cap/Depr(5y)200.31%
Cap/Sales(3y)4.1%
Cap/Sales(5y)3.43%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)46.39%
EPS 3YN/A
EPS 5Y33.72%
EPS Q2Q%36.36%
EPS Next Y35.06%
EPS Next 2Y28.27%
EPS Next 3Y25.24%
EPS Next 5Y31.19%
Revenue 1Y (TTM)12.63%
Revenue growth 3Y16.63%
Revenue growth 5Y20.94%
Sales Q2Q%12.91%
Revenue Next Year12.67%
Revenue Next 2Y13.8%
Revenue Next 3Y13.6%
Revenue Next 5Y13.49%
EBIT growth 1Y335.95%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year68.79%
EBIT Next 3Y40.43%
EBIT Next 5Y32.99%
FCF growth 1Y758.91%
FCF growth 3Y12.17%
FCF growth 5Y12.39%
OCF growth 1Y9056.26%
OCF growth 3Y18.82%
OCF growth 5Y16.5%