WIX.COM LTD (WIX) Stock Fundamental Analysis
NASDAQ:WIX - Nasdaq - IL0011301780 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to WIX. WIX was compared to 83 industry peers in the IT Services industry. WIX has an average financial health and profitability rating. WIX is growing strongly while it is still valued neutral. This is a good combination!
1. Profitability
1.1 Basic Checks
WIX had positive earnings in the past year.
WIX had a positive operating cash flow in the past year.
In multiple years WIX reported negative net income over the last 5 years.
In the past 5 years WIX always reported a positive cash flow from operatings.
1.2 Ratios
WIX's Return On Assets of 8.33% is fine compared to the rest of the industry. WIX outperforms 78.31% of its industry peers.
WIX has a better Return On Invested Capital (30.96%) than 97.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.33% | ||
| ROE | N/A | ||
| ROIC | 30.96% |
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
The Profit Margin of WIX (8.90%) is better than 75.90% of its industry peers.
With a decent Operating Margin value of 7.68%, WIX is doing good in the industry, outperforming 60.24% of the companies in the same industry.
The Gross Margin of WIX (68.38%) is better than 86.75% of its industry peers.
In the last couple of years the Gross Margin of WIX has declined.
| 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), WIX is creating value.
The number of shares outstanding for WIX has been reduced compared to 1 year ago.
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 2.42. 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 (2.42) which is comparable to the rest of the industry.
WIX has a debt to FCF ratio of 1.07. This is a very positive value and a sign of high solvency as it would only need 1.07 years to pay back of all of its debts.
WIX has a better Debt to FCF ratio (1.07) than 80.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 1.07 | ||
| Altman-Z | 2.42 |
ROIC/WACC3.65
WACC8.49%
2.3 Liquidity
WIX has a Current 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.
Looking at the Current ratio, with a value of 0.81, WIX is doing worse than 84.34% of the companies in the same industry.
A Quick Ratio of 0.81 indicates that WIX may have some problems paying its short term obligations.
With a Quick ratio value of 0.81, WIX is not doing good in the industry: 83.13% of the companies in the same industry are doing better.
| 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
WIX shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.04%.
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)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 12.31% yearly.
EPS Next Y14.36%
EPS Next 2Y16.46%
EPS Next 3Y18.81%
EPS Next 5Y19.77%
Revenue Next Year12.7%
Revenue Next 2Y12.78%
Revenue Next 3Y12.77%
Revenue Next 5Y12.31%
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
WIX is valuated rather expensively with a Price/Earnings ratio of 17.44.
WIX's Price/Earnings ratio is a bit cheaper when compared to the industry. WIX is cheaper than 68.67% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.85. WIX is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 14.61, WIX is valued correctly.
WIX's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. WIX is cheaper than 69.88% of the companies in the same industry.
WIX is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.44 | ||
| Fwd PE | 14.61 |
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 60.24% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, WIX is valued cheaper than 85.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.07 | ||
| EV/EBITDA | 35.02 |
4.3 Compensation for Growth
WIX's 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 18.81% in the coming years.
PEG (NY)1.21
PEG (5Y)0.43
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 |
126.62
-2.15 (-1.67%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners89.71%
Inst Owner Change1.21%
Ins Owners3.14%
Ins Owner ChangeN/A
Market Cap7.05B
Analysts82.07
Price Target226.65 (79%)
Short Float %4.02%
Short Ratio1.9
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)-0.64%
PT rev (3m)-7.67%
EPS NQ rev (1m)-13.55%
EPS NQ rev (3m)-15.98%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.93%
Revenue NQ rev (1m)-0.05%
Revenue NQ rev (3m)-0.8%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.44 | ||
| Fwd PE | 14.61 | ||
| P/S | 3.77 | ||
| P/FCF | 13.07 | ||
| P/OCF | 12.6 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 35.02 |
EPS(TTM)7.26
EY5.73%
EPS(NY)8.67
Fwd EY6.85%
FCF(TTM)9.69
FCFY7.65%
OCF(TTM)10.05
OCFY7.94%
SpS33.57
BVpS-2.11
TBVpS-3.8
PEG (NY)1.21
PEG (5Y)0.43
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.33% | ||
| ROE | N/A | ||
| ROCE | 34.67% | ||
| ROIC | 30.96% | ||
| 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
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-Score7
Asset Turnover0.94
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 1.07 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 66.78% | ||
| Cap/Sales | 1.08% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 321.82% | ||
| Profit Quality | 324.28% | ||
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.81 | ||
| Altman-Z | 2.42 |
F-Score7
WACC8.49%
ROIC/WACC3.65
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 Y14.36%
EPS Next 2Y16.46%
EPS Next 3Y18.81%
EPS Next 5Y19.77%
Revenue 1Y (TTM)13.04%
Revenue growth 3Y11.51%
Revenue growth 5Y18.37%
Sales Q2Q%12.43%
Revenue Next Year12.7%
Revenue Next 2Y12.78%
Revenue Next 3Y12.77%
Revenue Next 5Y12.31%
EBIT growth 1Y248.51%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year40.36%
EBIT Next 3Y28.86%
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%