WIX.COM LTD (WIX) Stock Fundamental Analysis
USA - NASDAQ:WIX - IL0011301780 - Common Stock
125.29 USD
-1.63 (-1.28%)
125.3 USD
+0.01 (+0.01%)
We assign a fundamental rating of 5 out of 10 to WIX. WIX was compared to 84 industry peers in the IT Services industry. WIX has an average financial health and profitability rating. WIX is not priced too expensively while it is growing strongly. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
In the past year WIX was profitable.
WIX had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: WIX reported negative net income in multiple years.
In the past 5 years WIX always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 8.25%, WIX is doing good in the industry, outperforming 79.76% of the companies in the same industry.
With an excellent Return On Invested Capital value of 29.71%, WIX belongs to the best of the industry, outperforming 97.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.25% | ||
| ROE | N/A | ||
| ROIC | 29.71% |
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 (8.90%) than 76.19% of its industry peers.
With a decent Operating Margin value of 7.68%, WIX is doing good in the industry, outperforming 63.10% of the companies in the same industry.
The Gross Margin of WIX (68.38%) is better than 89.29% of its industry peers.
WIX's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.68% | ||
| PM (TTM) | 8.9% | ||
| GM | 68.38% |
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%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so WIX is creating value.
WIX has less shares outstanding than it did 1 year ago.
The number of shares outstanding for WIX has been increased compared to 5 years ago.
The debt/assets ratio for WIX has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.38 indicates that WIX is not a great score, but indicates only limited risk for bankruptcy at the moment.
WIX's Altman-Z score of 2.38 is in line compared to the rest of the industry. WIX outperforms 46.43% of its industry peers.
The Debt to FCF ratio of WIX is 1.07, which is an excellent value as it means it would take WIX, only 1.07 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 1.07, WIX is doing good in the industry, outperforming 79.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 1.07 | ||
| Altman-Z | 2.38 |
ROIC/WACC3.51
WACC8.46%
2.3 Liquidity
A Current Ratio of 0.81 indicates that WIX may have some problems paying its short term obligations.
With a Current ratio value of 0.81, WIX is not doing good in the industry: 85.71% of the companies in the same industry are doing better.
WIX has a Quick Ratio of 0.81. This is a bad value and indicates that WIX is not financially healthy enough and could expect problems in meeting its short term obligations.
WIX's Quick ratio of 0.81 is on the low side compared to the rest of the industry. WIX is outperformed by 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.81 |
3. Growth
3.1 Past
WIX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 37.50%, which is quite impressive.
The Earnings Per Share has been growing by 40.43% on average over the past years. This is a very strong growth
Looking at the last year, WIX shows a quite strong growth in Revenue. The Revenue has grown by 13.04% in the last year.
The Revenue has been growing by 18.37% on average over the past years. This is quite good.
EPS 1Y (TTM)37.5%
EPS 3YN/A
EPS 5Y40.43%
EPS Q2Q%36.53%
Revenue 1Y (TTM)13.04%
Revenue growth 3Y11.51%
Revenue growth 5Y18.37%
Sales Q2Q%12.43%
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 19.77% on average per year.
WIX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.32% yearly.
EPS Next Y8.97%
EPS Next 2Y8.42%
EPS Next 3Y13.07%
EPS Next 5Y19.77%
Revenue Next Year13.03%
Revenue Next 2Y13.33%
Revenue Next 3Y13.43%
Revenue Next 5Y12.32%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 17.26 indicates a rather expensive valuation of WIX.
Compared to the rest of the industry, the Price/Earnings ratio of WIX indicates a somewhat cheap valuation: WIX is cheaper than 69.05% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 25.89. WIX is valued slightly cheaper when compared to this.
WIX is valuated correctly with a Price/Forward Earnings ratio of 16.68.
Based on the Price/Forward Earnings ratio, WIX is valued a bit cheaper than the industry average as 70.24% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.59, WIX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.26 | ||
| Fwd PE | 16.68 |
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.
Based on the Price/Free Cash Flow ratio, WIX is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.76 | ||
| EV/EBITDA | 34.55 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates WIX does not grow enough to justify the current Price/Earnings ratio.
A more expensive valuation may be justified as WIX's earnings are expected to grow with 13.07% in the coming years.
PEG (NY)1.92
PEG (5Y)0.43
EPS Next 2Y8.42%
EPS Next 3Y13.07%
5. Dividend
5.1 Amount
No dividends for WIX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
125.29
-1.63 (-1.28%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners92.02%
Inst Owner Change-0.45%
Ins Owners3.18%
Ins Owner ChangeN/A
Market Cap6.88B
Revenue(TTM)1.87B
Net Income(TTM)166.27M
Analysts82.86
Price Target212.83 (69.87%)
Short Float %7.14%
Short Ratio2.08
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)1
Avg EPS beat(2)12.93%
Min EPS beat(2)-4.22%
Max EPS beat(2)30.07%
EPS beat(4)3
Avg EPS beat(4)12.46%
Min EPS beat(4)-4.22%
Max EPS beat(4)30.07%
EPS beat(8)7
Avg EPS beat(8)22.75%
EPS beat(12)11
Avg EPS beat(12)129.42%
EPS beat(16)14
Avg EPS beat(16)103.48%
Revenue beat(2)0
Avg Revenue beat(2)-0.57%
Min Revenue beat(2)-0.66%
Max Revenue beat(2)-0.49%
Revenue beat(4)0
Avg Revenue beat(4)-0.82%
Min Revenue beat(4)-1.27%
Max Revenue beat(4)-0.49%
Revenue beat(8)1
Avg Revenue beat(8)-0.63%
Revenue beat(12)3
Avg Revenue beat(12)-0.36%
Revenue beat(16)4
Avg Revenue beat(16)-0.44%
PT rev (1m)-0.03%
PT rev (3m)-6.1%
EPS NQ rev (1m)1.01%
EPS NQ rev (3m)-19.44%
EPS NY rev (1m)0.66%
EPS NY rev (3m)-4.71%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.04%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.26 | ||
| Fwd PE | 16.68 | ||
| P/S | 3.68 | ||
| P/FCF | 12.76 | ||
| P/OCF | 12.3 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 34.55 |
EPS(TTM)7.26
EY5.79%
EPS(NY)7.51
Fwd EY6%
FCF(TTM)9.82
FCFY7.84%
OCF(TTM)10.19
OCFY8.13%
SpS34.04
BVpS-2.14
TBVpS-4.19
PEG (NY)1.92
PEG (5Y)0.43
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.25% | ||
| ROE | N/A | ||
| ROCE | 33.27% | ||
| ROIC | 29.71% | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 7.68% | ||
| PM (TTM) | 8.9% | ||
| GM | 68.38% | ||
| FCFM | 28.85% |
ROA(3y)-5.03%
ROA(5y)-5.92%
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
ROICexgc growth 3YN/A
ROICexgc 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 3Y3.36%
GM growth 5Y-1.77%
F-Score7
Asset Turnover0.93
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 1.07 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 66.72% | ||
| Cap/Sales | 1.08% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 321.77% | ||
| Profit Quality | 324.28% | ||
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.81 | ||
| Altman-Z | 2.38 |
F-Score7
WACC8.46%
ROIC/WACC3.51
Cap/Depr(3y)207.33%
Cap/Depr(5y)186.27%
Cap/Sales(3y)3.47%
Cap/Sales(5y)3.06%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)37.5%
EPS 3YN/A
EPS 5Y40.43%
EPS Q2Q%36.53%
EPS Next Y8.97%
EPS Next 2Y8.42%
EPS Next 3Y13.07%
EPS Next 5Y19.77%
Revenue 1Y (TTM)13.04%
Revenue growth 3Y11.51%
Revenue growth 5Y18.37%
Sales Q2Q%12.43%
Revenue Next Year13.03%
Revenue Next 2Y13.33%
Revenue Next 3Y13.43%
Revenue Next 5Y12.32%
EBIT growth 1Y248.51%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year27.85%
EBIT Next 3Y25.48%
EBIT Next 5Y22.81%
FCF growth 1Y638.43%
FCF growth 3Y157.5%
FCF growth 5Y30.26%
OCF growth 1Y279.95%
OCF growth 3Y96.36%
OCF growth 5Y27.16%
WIX.COM LTD / WIX FAQ
What is the ChartMill fundamental rating of WIX.COM LTD (WIX) stock?
ChartMill assigns a fundamental rating of 5 / 10 to WIX.
What is the valuation status of WIX.COM LTD (WIX) stock?
ChartMill assigns a valuation rating of 5 / 10 to WIX.COM LTD (WIX). This can be considered as Fairly Valued.
Can you provide the profitability details for WIX.COM LTD?
WIX.COM LTD (WIX) has a profitability rating of 5 / 10.
How financially healthy is WIX.COM LTD?
The financial health rating of WIX.COM LTD (WIX) is 4 / 10.
What is the earnings growth outlook for WIX.COM LTD?
The Earnings per Share (EPS) of WIX.COM LTD (WIX) is expected to grow by 8.97% in the next year.