WIX.COM LTD (WIX) Stock Fundamental Analysis

USA - Nasdaq - NASDAQ:WIX - IL0011301780 - Common Stock

91.97 USD

-1.07 (-1.15%)

Last: 1/29/2026, 12:06:23 PM

Fundamental Rating

Overall WIX gets a fundamental rating of 5 out of 10. We evaluated WIX against 88 industry peers in the IT Services industry. WIX has an average financial health and profitability rating. WIX is not overvalued while it is showing excellent growth. This is an interesting combination.

Quickly go to:

1. Profitability

1.1 Basic Checks

WIX had positive earnings in the past year.
In the past year WIX had a positive cash flow from operations.
In multiple years WIX reported negative net income over the last 5 years.
WIX had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

With a decent Return On Assets value of 5.43%, WIX is doing good in the industry, outperforming 70.45% of the companies in the same industry.
WIX has a Return On Invested Capital of 6.66%. This is in the better half of the industry: WIX outperforms 65.91% of its industry peers.

		Industry Rank	Sector Rank
ROA	5.43%
ROE	N/A
ROIC	6.66%

ROA(3y)-5.03%

ROA(5y)-5.92%

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 (7.20%) than 75.00% of its industry peers.
WIX has a Operating Margin of 5.72%. This is comparable to the rest of the industry: WIX outperforms 59.09% of its industry peers.
The Gross Margin of WIX (68.45%) is better than 89.77% of its industry peers.
In the last couple of years the Gross Margin of WIX has declined.

		Industry Rank	Sector Rank
OM	5.72%
PM (TTM)	7.2%
GM	68.45%

OM growth 3YN/A

OM growth 5YN/A

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y3.36%

GM growth 5Y-1.77%

More info and screens

ROA

ROE

ROIC

Operating and Profit Margin

Show most profitable peers

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so WIX is destroying value.
The number of shares outstanding for WIX has been reduced compared to 1 year ago.
Compared to 5 years ago, WIX has more shares outstanding
The debt/assets ratio for WIX has been reduced compared to a year ago.

2.2 Solvency

WIX has an Altman-Z score of 1.84. This is not the best score and indicates that WIX is in the grey zone with still only limited risk for bankruptcy at the moment.
WIX has a Altman-Z score of 1.84. This is in the lower half of the industry: WIX underperforms 61.36% of its industry peers.
WIX has a debt to FCF ratio of 2.09. This is a good value and a sign of high solvency as WIX would need 2.09 years to pay back of all of its debts.
WIX's Debt to FCF ratio of 2.09 is fine compared to the rest of the industry. WIX outperforms 70.45% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	N/A
Debt/FCF	2.09
Altman-Z	1.84

ROIC/WACC0.8

WACC8.3%

2.3 Liquidity

WIX has a Current Ratio of 1.62. This is a normal value and indicates that WIX is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.62, WIX perfoms like the industry average, outperforming 48.86% of the companies in the same industry.
A Quick Ratio of 1.62 indicates that WIX should not have too much problems paying its short term obligations.
WIX has a Quick ratio of 1.62. This is comparable to the rest of the industry: WIX outperforms 48.86% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	1.62
Quick Ratio	1.62

More info and screens

WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

Show peers with great health

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 30.99% 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 40.43% on average per year.
Looking at the last year, WIX shows a quite strong growth in Revenue. The Revenue has grown by 13.22% in the last year.
WIX shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 18.37% yearly.

EPS 1Y (TTM)30.99%

EPS 3YN/A

EPS 5Y40.43%

EPS Q2Q%12%

Revenue 1Y (TTM)13.22%

Revenue growth 3Y11.51%

Revenue growth 5Y18.37%

Sales Q2Q%13.61%

3.2 Future

Based on estimates for the next years, WIX will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.78% on average per year.
WIX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.25% yearly.

EPS Next Y7.12%

EPS Next 2Y3.58%

EPS Next 3Y9.51%

EPS Next 5Y11.78%

Revenue Next Year13.31%

Revenue Next 2Y13.72%

Revenue Next 3Y13.58%

Revenue Next 5Y12.25%

3.3 Evolution

The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.

More info and screens

Find the best growth stocks

Show best growing peers

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 12.36, which indicates a correct valuation of WIX.
Compared to the rest of the industry, the Price/Earnings ratio of WIX indicates a rather cheap valuation: WIX is cheaper than 81.82% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.60, WIX is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 13.41, the valuation of WIX can be described as correct.
78.41% of the companies in the same industry are more expensive than WIX, based on the Price/Forward Earnings ratio.
WIX's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.83.

		Industry Rank	Sector Rank
PE	12.36
Fwd PE	13.41

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of WIX is on the same level as its industry peers.
WIX's Price/Free Cash Flow ratio is rather cheap when compared to the industry. WIX is cheaper than 88.64% of the companies in the same industry.