WIX.COM LTD (WIX)
IL0011301780 - Common Stock
Overall WIX gets a fundamental rating of 4 out of 10. We evaluated WIX against 86 industry peers in the IT Services industry. The financial health of WIX is average, but there are quite some concerns on its profitability. WIX shows excellent growth, but is valued quite expensive already.
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 the past 5 years WIX reported 4 times negative net income.
WIX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of WIX (1.84%) is comparable to the rest of the industry.
WIX has a Return On Invested Capital (0.71%) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.84% | ||
| ROE | N/A | ||
| ROIC | 0.71% |
ROA(3y)-9.34%
ROA(5y)-8.96%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Profit Margin of WIX (2.12%) is comparable to the rest of the industry.
Looking at the Operating Margin, with a value of 0.53%, WIX is in line with its industry, outperforming 47.62% of the companies in the same industry.
The Gross Margin of WIX (67.18%) is better than 83.33% of its industry peers.
WIX's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.53% | ||
| PM (TTM) | 2.12% | ||
| GM | 67.18% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.5%
GM growth 5Y-3.18%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), WIX is destroying value.
WIX has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, WIX has more shares outstanding
WIX has a better debt/assets ratio than last year.
2.2 Solvency
WIX has an Altman-Z score of 2.41. 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.
Looking at the Altman-Z score, with a value of 2.41, WIX is in line with its industry, outperforming 52.38% of the companies in the same industry.
WIX has a debt to FCF ratio of 3.13. This is a good value and a sign of high solvency as WIX would need 3.13 years to pay back of all of its debts.
The Debt to FCF ratio of WIX (3.13) is better than 61.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.13 | ||
| Altman-Z | 2.41 |
ROIC/WACC0.08
WACC8.54%
2.3 Liquidity
WIX has a Current Ratio of 1.36. 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 1.36 is in line compared to the rest of the industry. WIX outperforms 45.24% of its industry peers.
A Quick Ratio of 1.36 indicates that WIX should not have too much problems paying its short term obligations.
The Quick ratio of WIX (1.36) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.36 | ||
| Quick Ratio | 1.36 |
3. Growth
3.1 Past
WIX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 2463.16%, 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 33.72% on average per year.
WIX shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.55%.
WIX shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 20.94% yearly.
EPS 1Y (TTM)2463.16%
EPS 3YN/A
EPS 5Y33.72%
EPS growth Q2Q100%
Revenue 1Y (TTM)12.55%
Revenue growth 3Y16.63%
Revenue growth 5Y20.94%
Revenue growth Q2Q13.74%
3.2 Future
The Earnings Per Share is expected to grow by 26.97% on average over the next years. This is a very strong growth
WIX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.20% yearly.
EPS Next Y8.94%
EPS Next 2Y20.43%
EPS Next 3Y20.63%
EPS Next 5Y26.97%
Revenue Next Year11.97%
Revenue Next 2Y12.83%
Revenue Next 3Y12.7%
Revenue Next 5Y10.2%
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.
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
The Price/Earnings ratio is 26.69, which means the current valuation is very expensive for WIX.
The rest of the industry has a similar Price/Earnings ratio as WIX.
The average S&P500 Price/Earnings ratio is at 28.28. WIX is around the same levels.
The Price/Forward Earnings ratio is 24.50, which indicates a rather expensive current valuation of WIX.
WIX's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 20.88. WIX is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.69 | ||
| Fwd PE | 24.5 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WIX is valued a bit more expensive than 65.48% of the companies in the same industry.
WIX's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.6 | ||
| EV/EBITDA | 170.34 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
WIX's earnings are expected to grow with 20.63% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.99
PEG (5Y)0.79
EPS Next 2Y20.43%
EPS Next 3Y20.63%
5. Dividend
5.1 Amount
WIX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
WIX.COM LTD
NASDAQ:WIX (5/3/2024, 7:26:33 PM)
After market: 120.134 +0.3 (+0.25%)119.83
+0.3 (+0.25%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap6.67B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.69 | ||
| Fwd PE | 24.5 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.99
PEG (5Y)0.79
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.84% | ||
| ROE | N/A | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 0.53% | ||
| PM (TTM) | 2.12% | ||
| GM | 67.18% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.87
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.36 | ||
| Quick Ratio | 1.36 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)2463.16%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y8.94%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)12.55%
Revenue growth 3Y16.63%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y