WIX.COM LTD (WIX) Stock Fundamental Analysis
USA - NASDAQ:WIX - IL0011301780 - Common Stock
153.66 USD
-0.13 (-0.08%)
154 USD
+0.34 (+0.22%)
We assign a fundamental rating of 5 out of 10 to WIX. WIX was compared to 87 industry peers in the IT Services industry. WIX has an average financial health and profitability rating. WIX is valued quite expensive, but it does show an excellent growth.
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.
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 has a better Return On Assets (8.33%) than 78.16% of its industry peers.
WIX has a Return On Invested Capital of 30.96%. This is amongst the best in the industry. WIX outperforms 97.70% 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
Looking at the Profit Margin, with a value of 8.90%, WIX is in the better half of the industry, outperforming 75.86% of the companies in the same industry.
WIX has a better Operating Margin (7.68%) than 60.92% of its industry peers.
Looking at the Gross Margin, with a value of 68.38%, WIX belongs to the top of the industry, outperforming 86.21% 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 | 7.68% | ||
| 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.
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 2.82. 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.
The Altman-Z score of WIX (2.82) 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.
Looking at the Debt to FCF ratio, with a value of 1.07, WIX is in the better half of the industry, outperforming 78.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 1.07 | ||
| Altman-Z | 2.82 |
ROIC/WACC3.63
WACC8.53%
2.3 Liquidity
A Current Ratio of 0.81 indicates that WIX may have some problems paying its short term obligations.
WIX's Current ratio of 0.81 is on the low side compared to the rest of the industry. WIX is outperformed by 83.91% of its industry peers.
A Quick Ratio of 0.81 indicates that WIX may have some problems paying its short term obligations.
WIX's Quick ratio of 0.81 is on the low side compared to the rest of the industry. WIX is outperformed by 82.76% of its industry peers.
| 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.
WIX shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 40.43% yearly.
The Revenue has grown by 13.04% in the past year. This is quite good.
The Revenue has been growing by 18.37% on average over the past years. This is quite good.
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
WIX is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.77% yearly.
Based on estimates for the next years, WIX will show a quite strong growth in Revenue. The Revenue will grow by 12.31% on average per year.
EPS Next Y8.26%
EPS Next 2Y8.82%
EPS Next 3Y13.12%
EPS Next 5Y19.77%
Revenue Next Year12.98%
Revenue Next 2Y13.25%
Revenue Next 3Y13.23%
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 21.17.
65.52% 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 27.86. WIX is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 20.31 indicates a rather expensive valuation of WIX.
WIX's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of WIX to the average of the S&P500 Index (23.29), we can say WIX is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.17 | ||
| Fwd PE | 20.31 |
4.2 Price Multiples
WIX's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, WIX is valued a bit cheaper than 77.01% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.65 | ||
| EV/EBITDA | 43.04 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as WIX's earnings are expected to grow with 13.12% in the coming years.
PEG (NY)2.56
PEG (5Y)0.52
EPS Next 2Y8.82%
EPS Next 3Y13.12%
5. Dividend
5.1 Amount
WIX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
153.66
-0.13 (-0.08%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners92.02%
Inst Owner Change1.26%
Ins Owners3.18%
Ins Owner ChangeN/A
Market Cap8.44B
Analysts82.76
Price Target212.22 (38.11%)
Short Float %7.08%
Short Ratio2.16
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)-0.03%
PT rev (3m)-6.97%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-20.29%
EPS NY rev (1m)0%
EPS NY rev (3m)-5.33%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.08%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.17 | ||
| Fwd PE | 20.31 | ||
| P/S | 4.51 | ||
| P/FCF | 15.65 | ||
| P/OCF | 15.08 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 43.04 |
EPS(TTM)7.26
EY4.72%
EPS(NY)7.57
Fwd EY4.92%
FCF(TTM)9.82
FCFY6.39%
OCF(TTM)10.19
OCFY6.63%
SpS34.04
BVpS-2.14
TBVpS-3.86
PEG (NY)2.56
PEG (5Y)0.52
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 | 2.82 |
F-Score7
WACC8.53%
ROIC/WACC3.63
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 Y8.26%
EPS Next 2Y8.82%
EPS Next 3Y13.12%
EPS Next 5Y19.77%
Revenue 1Y (TTM)13.04%
Revenue growth 3Y11.51%
Revenue growth 5Y18.37%
Sales Q2Q%12.43%
Revenue Next Year12.98%
Revenue Next 2Y13.25%
Revenue Next 3Y13.23%
Revenue Next 5Y12.31%
EBIT growth 1Y248.51%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year27.85%
EBIT Next 3Y25.48%
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%