100.22 USD
-2.42 (-2.36%)
100.01 USD
-0.21 (-0.21%)
We assign a fundamental rating of 5 out of 10 to WIX. WIX was compared to 85 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.
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
The Return On Assets of WIX (5.43%) is better than 69.41% of its industry peers.
With a decent Return On Invested Capital value of 6.66%, WIX is doing good in the industry, outperforming 63.53% of the companies in the same industry.
| 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 Profit Margin of 7.20%. This is in the better half of the industry: WIX outperforms 75.29% of its industry peers.
With a Operating Margin value of 5.72%, WIX perfoms like the industry average, outperforming 57.65% of the companies in the same industry.
WIX has a better Gross Margin (68.45%) than 89.41% of its industry peers.
WIX's Gross Margin has declined in the last couple of years.
| 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%
2. Health
2.1 Basic Checks
WIX has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, WIX has less shares outstanding
WIX has more shares outstanding than it did 5 years ago.
The debt/assets ratio for WIX has been reduced compared to a year ago.
2.2 Solvency
WIX has an Altman-Z score of 1.96. 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's Altman-Z score of 1.96 is in line compared to the rest of the industry. WIX outperforms 41.18% 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.
Looking at the Debt to FCF ratio, with a value of 2.09, WIX is in the better half of the industry, outperforming 69.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 2.09 | ||
| Altman-Z | 1.96 |
ROIC/WACC0.46
WACC14.52%
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's Current ratio of 1.62 is in line compared to the rest of the industry. WIX outperforms 50.59% of its industry peers.
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.
The Quick ratio of WIX (1.62) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.62 | ||
| Quick Ratio | 1.62 |
3. Growth
3.1 Past
WIX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 30.99%, which is quite impressive.
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.
WIX shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.22%.
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 13.55% 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 13.27% on average per year.
EPS Next Y8.97%
EPS Next 2Y8.42%
EPS Next 3Y13.07%
EPS Next 5Y13.55%
Revenue Next Year13.03%
Revenue Next 2Y13.33%
Revenue Next 3Y13.43%
Revenue Next 5Y13.27%
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
Based on the Price/Earnings ratio of 13.47, the valuation of WIX can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of WIX indicates a somewhat cheap valuation: WIX is cheaper than 80.00% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.46. WIX is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 13.34 indicates a correct valuation of WIX.
Based on the Price/Forward Earnings ratio, WIX is valued a bit cheaper than the industry average as 78.82% of the companies are valued more expensively.
WIX's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.10.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.47 | ||
| Fwd PE | 13.34 |
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 88.24% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.18 | ||
| EV/EBITDA | 31.72 |
4.3 Compensation for Growth
WIX's 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 13.07% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.5
PEG (5Y)0.33
EPS Next 2Y8.42%
EPS Next 3Y13.07%
5. Dividend
5.1 Amount
WIX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
100.22
-2.42 (-2.36%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners92.02%
Inst Owner Change6.14%
Ins Owners3.18%
Ins Owner ChangeN/A
Market Cap5.48B
Revenue(TTM)1.93B
Net Income(TTM)138.90M
Analysts82.86
Price Target212.83 (112.36%)
Short Float %8.04%
Short Ratio2.51
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)21.61%
Min EPS beat(2)13.16%
Max EPS beat(2)30.07%
EPS beat(4)3
Avg EPS beat(4)14.87%
Min EPS beat(4)-4.22%
Max EPS beat(4)30.07%
EPS beat(8)7
Avg EPS beat(8)16.7%
EPS beat(12)11
Avg EPS beat(12)116.99%
EPS beat(16)14
Avg EPS beat(16)101.13%
Revenue beat(2)1
Avg Revenue beat(2)-0.2%
Min Revenue beat(2)-0.49%
Max Revenue beat(2)0.09%
Revenue beat(4)1
Avg Revenue beat(4)-0.58%
Min Revenue beat(4)-1.27%
Max Revenue beat(4)0.09%
Revenue beat(8)1
Avg Revenue beat(8)-0.63%
Revenue beat(12)4
Avg Revenue beat(12)-0.33%
Revenue beat(16)4
Avg Revenue beat(16)-0.47%
PT rev (1m)-0.03%
PT rev (3m)0.26%
EPS NQ rev (1m)-9.64%
EPS NQ rev (3m)-8.23%
EPS NY rev (1m)0%
EPS NY rev (3m)0.66%
Revenue NQ rev (1m)0.39%
Revenue NQ rev (3m)0.46%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.47 | ||
| Fwd PE | 13.34 | ||
| P/S | 2.84 | ||
| P/FCF | 10.18 | ||
| P/OCF | 9.82 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 31.72 |
EPS(TTM)7.44
EY7.42%
EPS(NY)7.51
Fwd EY7.49%
FCF(TTM)9.85
FCFY9.83%
OCF(TTM)10.21
OCFY10.18%
SpS35.27
BVpS-5.1
TBVpS-8.28
PEG (NY)1.5
PEG (5Y)0.33
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.43% | ||
| ROE | N/A | ||
| ROCE | 7.45% | ||
| ROIC | 6.66% | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 5.72% | ||
| PM (TTM) | 7.2% | ||
| GM | 68.45% | ||
| FCFM | 27.92% |
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-Score6
Asset Turnover0.75
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 2.09 | ||
| Debt/EBITDA | 8 | ||
| Cap/Depr | 64.67% | ||
| Cap/Sales | 1.01% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 397.05% | ||
| Profit Quality | 387.82% | ||
| Current Ratio | 1.62 | ||
| Quick Ratio | 1.62 | ||
| Altman-Z | 1.96 |
F-Score6
WACC14.52%
ROIC/WACC0.46
Cap/Depr(3y)207.02%
Cap/Depr(5y)186.08%
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)30.99%
EPS 3YN/A
EPS 5Y40.43%
EPS Q2Q%12%
EPS Next Y8.97%
EPS Next 2Y8.42%
EPS Next 3Y13.07%
EPS Next 5Y13.55%
Revenue 1Y (TTM)13.22%
Revenue growth 3Y11.51%
Revenue growth 5Y18.37%
Sales Q2Q%13.61%
Revenue Next Year13.03%
Revenue Next 2Y13.33%
Revenue Next 3Y13.43%
Revenue Next 5Y13.27%
EBIT growth 1Y59.96%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year27.85%
EBIT Next 3Y25.48%
EBIT Next 5Y19.5%
FCF growth 1Y283.71%
FCF growth 3Y157.55%
FCF growth 5Y30.26%
OCF growth 1Y164.45%
OCF growth 3Y96.37%
OCF growth 5Y27.17%
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 4 / 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.