WIX.COM LTD (WIX) Stock Fundamental Analysis
NASDAQ:WIX - Nasdaq - IL0011301780 - Common Stock - Currency: USD
Taking everything into account, WIX scores 5 out of 10 in our fundamental rating. 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 showing excellent growth while it is valued at reasonable prices. 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.
WIX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
WIX's Return On Assets of 8.20% is fine compared to the rest of the industry. WIX outperforms 75.61% of its industry peers.
With an excellent Return On Invested Capital value of 37.11%, WIX belongs to the best of the industry, outperforming 97.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.2% | ||
| ROE | N/A | ||
| ROIC | 37.11% |
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
With a decent Profit Margin value of 8.16%, WIX is doing good in the industry, outperforming 73.17% of the companies in the same industry.
The Operating Margin of WIX (7.05%) is comparable to the rest of the industry.
With an excellent Gross Margin value of 68.08%, WIX belongs to the best of the industry, outperforming 86.59% 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 | 7.05% | ||
| PM (TTM) | 8.16% | ||
| GM | 68.08% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), WIX is creating value.
Compared to 1 year ago, WIX has less shares outstanding
WIX has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, WIX has an improved debt to assets ratio.
2.2 Solvency
WIX has an Altman-Z score of 2.88. 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 (2.88) which is in line with its industry peers.
The Debt to FCF ratio of WIX is 1.11, which is an excellent value as it means it would take WIX, only 1.11 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.11, WIX belongs to the top of the industry, outperforming 80.49% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 1.11 | ||
| Altman-Z | 2.88 |
ROIC/WACC4.23
WACC8.77%
2.3 Liquidity
A Current Ratio of 0.79 indicates that WIX may have some problems paying its short term obligations.
WIX's Current ratio of 0.79 is on the low side compared to the rest of the industry. WIX is outperformed by 85.37% of its industry peers.
A Quick Ratio of 0.79 indicates that WIX may have some problems paying its short term obligations.
WIX has a worse Quick ratio (0.79) than 84.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.79 |
3. Growth
3.1 Past
WIX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 36.55%, which is quite impressive.
WIX shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 40.43% yearly.
WIX shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.89%.
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)36.55%
EPS 3YN/A
EPS 5Y40.43%
EPS Q2Q%20.16%
Revenue 1Y (TTM)12.89%
Revenue growth 3Y11.51%
Revenue growth 5Y18.37%
Sales Q2Q%12.83%
3.2 Future
The Earnings Per Share is expected to grow by 19.67% on average over the next years. This is quite good.
WIX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.35% yearly.
EPS Next Y14.36%
EPS Next 2Y16.46%
EPS Next 3Y18.81%
EPS Next 5Y19.67%
Revenue Next Year12.75%
Revenue Next 2Y12.78%
Revenue Next 3Y12.79%
Revenue Next 5Y12.35%
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.
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
With a Price/Earnings ratio of 22.08, WIX is valued on the expensive side.
62.20% of the companies in the same industry are more expensive than WIX, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.19. WIX is around the same levels.
Based on the Price/Forward Earnings ratio of 16.94, the valuation of WIX can be described as correct.
67.07% of the companies in the same industry are more expensive than WIX, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.33, WIX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.08 | ||
| Fwd PE | 16.94 |
4.2 Price Multiples
60.98% of the companies in the same industry are cheaper than WIX, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, WIX is valued cheaply inside the industry as 82.93% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.88 | ||
| EV/EBITDA | 46.74 |
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 18.81% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.54
PEG (5Y)0.55
EPS Next 2Y16.46%
EPS Next 3Y18.81%
5. Dividend
5.1 Amount
No dividends for WIX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
146.83
-2.78 (-1.86%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners90.43%
Inst Owner Change0%
Ins Owners3.14%
Ins Owner ChangeN/A
Market Cap8.17B
Analysts82.07
Price Target228.11 (55.36%)
Short Float %5.2%
Short Ratio2.91
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)8.12%
Min EPS beat(2)-4.22%
Max EPS beat(2)20.45%
EPS beat(4)3
Avg EPS beat(4)10.47%
Min EPS beat(4)-4.22%
Max EPS beat(4)22.11%
EPS beat(8)7
Avg EPS beat(8)32.5%
EPS beat(12)11
Avg EPS beat(12)131.87%
EPS beat(16)14
Avg EPS beat(16)103.25%
Revenue beat(2)0
Avg Revenue beat(2)-0.96%
Min Revenue beat(2)-1.27%
Max Revenue beat(2)-0.66%
Revenue beat(4)0
Avg Revenue beat(4)-0.83%
Min Revenue beat(4)-1.27%
Max Revenue beat(4)-0.55%
Revenue beat(8)2
Avg Revenue beat(8)-0.46%
Revenue beat(12)3
Avg Revenue beat(12)-0.38%
Revenue beat(16)5
Avg Revenue beat(16)-0.4%
PT rev (1m)0.91%
PT rev (3m)-10.12%
EPS NQ rev (1m)0.11%
EPS NQ rev (3m)-3.46%
EPS NY rev (1m)-0.93%
EPS NY rev (3m)-1.27%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)-0.7%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)-0.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.08 | ||
| Fwd PE | 16.94 | ||
| P/S | 4.5 | ||
| P/FCF | 15.88 | ||
| P/OCF | 15.45 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 46.74 |
EPS(TTM)6.65
EY4.53%
EPS(NY)8.67
Fwd EY5.9%
FCF(TTM)9.25
FCFY6.3%
OCF(TTM)9.5
OCFY6.47%
SpS32.59
BVpS-3.03
TBVpS-4.29
PEG (NY)1.54
PEG (5Y)0.55
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.2% | ||
| ROE | N/A | ||
| ROCE | 41.56% | ||
| ROIC | 37.11% | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 7.05% | ||
| PM (TTM) | 8.16% | ||
| GM | 68.08% | ||
| FCFM | 28.37% |
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
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 3Y3.36%
GM growth 5Y-1.77%
F-Score8
Asset Turnover1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 1.11 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 46.32% | ||
| Cap/Sales | 0.79% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 333.45% | ||
| Profit Quality | 347.64% | ||
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.79 | ||
| Altman-Z | 2.88 |
F-Score8
WACC8.77%
ROIC/WACC4.23
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)36.55%
EPS 3YN/A
EPS 5Y40.43%
EPS Q2Q%20.16%
EPS Next Y14.36%
EPS Next 2Y16.46%
EPS Next 3Y18.81%
EPS Next 5Y19.67%
Revenue 1Y (TTM)12.89%
Revenue growth 3Y11.51%
Revenue growth 5Y18.37%
Sales Q2Q%12.83%
Revenue Next Year12.75%
Revenue Next 2Y12.78%
Revenue Next 3Y12.79%
Revenue Next 5Y12.35%
EBIT growth 1Y393.75%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year40.76%
EBIT Next 3Y28.44%
EBIT Next 5Y24.5%
FCF growth 1Y1950.79%
FCF growth 3Y157.5%
FCF growth 5Y30.26%
OCF growth 1Y446.7%
OCF growth 3Y96.36%
OCF growth 5Y27.16%