WIX.COM LTD (WIX) Stock Fundamental Analysis
NASDAQ:WIX - Nasdaq - IL0011301780 - Common Stock - Currency: USD
Overall WIX gets a fundamental rating of 5 out of 10. We evaluated WIX against 81 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 valued quite expensively, but it does show have an excellent growth rating.
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.
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
WIX's Return On Assets of 7.23% is fine compared to the rest of the industry. WIX outperforms 75.31% of its industry peers.
The Return On Invested Capital of WIX (22.49%) is better than 96.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.23% | ||
| ROE | N/A | ||
| ROIC | 22.49% |
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 7.86%, WIX is doing good in the industry, outperforming 71.60% of the companies in the same industry.
WIX has a better Operating Margin (5.69%) than 60.49% of its industry peers.
WIX's Gross Margin of 67.93% is amongst the best of the industry. WIX outperforms 87.65% of its industry peers.
WIX's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.69% | ||
| PM (TTM) | 7.86% | ||
| GM | 67.93% |
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 2.97. 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.
With a Altman-Z score value of 2.97, WIX perfoms like the industry average, outperforming 55.56% of the companies in the same industry.
WIX has a debt to FCF ratio of 1.20. This is a very positive value and a sign of high solvency as it would only need 1.20 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 1.20, WIX is doing good in the industry, outperforming 79.01% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 1.2 | ||
| Altman-Z | 2.97 |
ROIC/WACC2.59
WACC8.68%
2.3 Liquidity
WIX has a Current Ratio of 0.84. 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 has a worse Current ratio (0.84) than 80.25% of its industry peers.
A Quick Ratio of 0.84 indicates that WIX may have some problems paying its short term obligations.
With a Quick ratio value of 0.84, WIX is not doing good in the industry: 80.25% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
WIX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 42.32%, 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
WIX shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.74%.
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)42.32%
EPS 3YN/A
EPS 5Y40.43%
EPS Q2Q%58.2%
Revenue 1Y (TTM)12.74%
Revenue growth 3Y11.51%
Revenue growth 5Y18.37%
Sales Q2Q%14.04%
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 21.81% 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 12.56% on average per year.
EPS Next Y15.59%
EPS Next 2Y17.55%
EPS Next 3Y19.16%
EPS Next 5Y21.81%
Revenue Next Year12.92%
Revenue Next 2Y12.93%
Revenue Next 3Y12.92%
Revenue Next 5Y12.56%
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
With a Price/Earnings ratio of 25.00, WIX can be considered very expensive at the moment.
The rest of the industry has a similar Price/Earnings ratio as WIX.
WIX is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 21.63, WIX is valued on the expensive side.
WIX's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. WIX is cheaper than 60.49% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of WIX to the average of the S&P500 Index (21.08), we can say WIX is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25 | ||
| Fwd PE | 21.63 |
4.2 Price Multiples
WIX's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. WIX is more expensive than 61.73% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, WIX is valued a bit cheaper than 67.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.6 | ||
| EV/EBITDA | 60.3 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as WIX's earnings are expected to grow with 19.16% in the coming years.
PEG (NY)1.6
PEG (5Y)0.62
EPS Next 2Y17.55%
EPS Next 3Y19.16%
5. Dividend
5.1 Amount
No dividends for WIX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
159.76
-1.29 (-0.8%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners94.3%
Inst Owner Change0.7%
Ins Owners3.53%
Ins Owner ChangeN/A
Market Cap8.89B
Analysts80
Price Target253.78 (58.85%)
Short Float %4%
Short Ratio2.41
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%
Min EPS beat(2)3.55%
Max EPS beat(2)20.45%
EPS beat(4)4
Avg EPS beat(4)16.89%
Min EPS beat(4)3.55%
Max EPS beat(4)22.11%
EPS beat(8)8
Avg EPS beat(8)103.08%
EPS beat(12)11
Avg EPS beat(12)131.34%
EPS beat(16)15
Avg EPS beat(16)104.71%
Revenue beat(2)0
Avg Revenue beat(2)-1.07%
Min Revenue beat(2)-1.27%
Max Revenue beat(2)-0.86%
Revenue beat(4)0
Avg Revenue beat(4)-0.8%
Min Revenue beat(4)-1.27%
Max Revenue beat(4)-0.53%
Revenue beat(8)3
Avg Revenue beat(8)-0.35%
Revenue beat(12)3
Avg Revenue beat(12)-0.38%
Revenue beat(16)6
Avg Revenue beat(16)-0.3%
PT rev (1m)-0.27%
PT rev (3m)6.57%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.79%
EPS NY rev (1m)-2.84%
EPS NY rev (3m)-0.01%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)-1.79%
Revenue NY rev (1m)-0.35%
Revenue NY rev (3m)-1.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25 | ||
| Fwd PE | 21.63 | ||
| P/S | 5.05 | ||
| P/FCF | 18.6 | ||
| P/OCF | 17.88 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 60.3 |
EPS(TTM)6.39
EY4%
EPS(NY)7.39
Fwd EY4.62%
FCF(TTM)8.59
FCFY5.38%
OCF(TTM)8.94
OCFY5.59%
SpS31.63
BVpS-1.42
TBVpS-2.7
PEG (NY)1.6
PEG (5Y)0.62
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.23% | ||
| ROE | N/A | ||
| ROCE | 25.18% | ||
| ROIC | 22.49% | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 5.69% | ||
| PM (TTM) | 7.86% | ||
| GM | 67.93% | ||
| FCFM | 27.15% |
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 Turnover0.92
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 1.2 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 62.14% | ||
| Cap/Sales | 1.1% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 378.97% | ||
| Profit Quality | 345.63% | ||
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.84 | ||
| Altman-Z | 2.97 |
F-Score8
WACC8.68%
ROIC/WACC2.59
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)42.32%
EPS 3YN/A
EPS 5Y40.43%
EPS Q2Q%58.2%
EPS Next Y15.59%
EPS Next 2Y17.55%
EPS Next 3Y19.16%
EPS Next 5Y21.81%
Revenue 1Y (TTM)12.74%
Revenue growth 3Y11.51%
Revenue growth 5Y18.37%
Sales Q2Q%14.04%
Revenue Next Year12.92%
Revenue Next 2Y12.93%
Revenue Next 3Y12.92%
Revenue Next 5Y12.56%
EBIT growth 1Y1116.19%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year40.84%
EBIT Next 3Y27.92%
EBIT Next 5Y24.59%
FCF growth 1Y162.4%
FCF growth 3Y157.5%
FCF growth 5Y30.26%
OCF growth 1Y100.37%
OCF growth 3Y96.36%
OCF growth 5Y27.16%