WIX gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 88 industry peers in the IT Services industry. Both the profitability and the financial health of WIX get a neutral evaluation. Nothing too spectacular is happening here. WIX is not overvalued while it is showing excellent growth. This is an interesting combination.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

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 multiple years WIX reported negative net income over the last 5 years.
In the past 5 years WIX always reported a positive cash flow from operatings.

1.2 Ratios

Looking at the Return On Assets, with a value of 5.43%, WIX is in the better half of the industry, outperforming 69.32% of the companies in the same industry.
WIX's Return On Invested Capital of 6.66% is fine compared to the rest 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's Profit Margin of 7.20% is fine compared to the rest of the industry. WIX outperforms 75.00% of its industry peers.
WIX has a Operating Margin (5.72%) which is in line with its industry peers.
With an excellent Gross Margin value of 68.45%, WIX belongs to the best of the industry, outperforming 89.77% of the companies in the same industry.
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

Based on the Altman-Z score of 1.81, we must say that WIX is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of WIX (1.81) is worse than 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.
With a decent Debt to FCF ratio value of 2.09, WIX is doing good in the industry, outperforming 69.32% of the companies in the same industry.

		Industry Rank	Sector Rank
Debt/Equity	N/A
Debt/FCF	2.09
Altman-Z	1.81

ROIC/WACC0.8

WACC8.29%

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.
WIX has a Current ratio (1.62) which is comparable to the rest of the industry.
WIX has a Quick 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.
Looking at the Quick ratio, with a value of 1.62, WIX is in line with its industry, outperforming 48.86% of the companies in the same industry.

		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.
WIX shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 40.43% yearly.
The Revenue has grown by 13.22% in the past year. This is quite good.
Measured over the past years, WIX shows a quite strong growth in Revenue. The Revenue has been growing by 18.37% on average per year.

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.
Based on estimates for the next years, WIX will show a quite strong growth in Revenue. The Revenue will grow by 12.25% on average per year.

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

With a Price/Earnings ratio of 12.09, WIX is valued correctly.
Based on the Price/Earnings ratio, WIX is valued cheaper than 84.09% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.39. WIX is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 13.12, WIX is valued correctly.
WIX's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. WIX is cheaper than 78.41% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 25.72. WIX is valued slightly cheaper when compared to this.

		Industry Rank	Sector Rank
PE	12.09
Fwd PE	13.12

4.2 Price Multiples

The rest of the industry has a similar Enterprise Value to EBITDA ratio as WIX.
Based on the Price/Free Cash Flow ratio, WIX is valued cheaply inside the industry as 88.64% of the companies are valued more expensively.