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 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 not overvalued while it is showing excellent growth. This is an interesting combination.
1. Profitability
1.1 Basic Checks
In the past year WIX was profitable.
WIX had a positive operating cash flow in the past year.
In multiple years WIX reported negative net income over the last 5 years.
Each year in the past 5 years WIX had a positive operating cash flow.
1.2 Ratios
WIX's Return On Assets of 8.20% is fine compared to the rest of the industry. WIX outperforms 75.31% of its industry peers.
WIX has a Return On Invested Capital of 37.11%. This is amongst the best in the industry. WIX outperforms 97.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.2% | ||
| ROE | N/A | ||
| ROIC | 37.11% |
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 (8.16%) is better than 72.84% of its industry peers.
With a Operating Margin value of 7.05%, WIX perfoms like the industry average, outperforming 59.26% of the companies in the same industry.
Looking at the Gross Margin, with a value of 68.08%, WIX belongs to the top of the industry, outperforming 86.42% 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 | 7.05% | ||
| PM (TTM) | 8.16% | ||
| GM | 68.08% |
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
The number of shares outstanding for WIX has been increased compared to 5 years ago.
Compared to 1 year ago, WIX has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.13 indicates that WIX is not in any danger for bankruptcy at the moment.
With a Altman-Z score value of 3.13, WIX perfoms like the industry average, outperforming 50.62% of the companies in the same industry.
WIX has a debt to FCF ratio of 1.11. This is a very positive value and a sign of high solvency as it would only need 1.11 years to pay back of all of its debts.
The Debt to FCF ratio of WIX (1.11) is better than 80.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 1.11 | ||
| Altman-Z | 3.13 |
ROIC/WACC2.42
WACC15.35%
2.3 Liquidity
WIX has a Current Ratio of 0.79. 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 Current ratio of 0.79. This is amonst the worse of the industry: WIX underperforms 85.19% of its industry peers.
WIX has a Quick Ratio of 0.79. This is a bad value and indicates that WIX is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of WIX (0.79) is worse than 83.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.79 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 36.55% over the past year.
The Earnings Per Share has been growing by 40.43% on average over the past years. This is a very strong growth
Looking at the last year, WIX shows a quite strong growth in Revenue. The Revenue has grown by 12.89% in the last year.
The Revenue has been growing by 18.37% on average over the past years. This is quite good.
EPS 1Y (TTM)36.55%
EPS 3YN/A
EPS 5Y40.43%
EPS Q2Q%20.16%
Revenue 1Y (TTM)12.89%
Revenue growth 3Y11.51%
Revenue growth 5Y18.37%
Sales Q2Q%12.83%
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 19.67% on average per year.
The Revenue is expected to grow by 12.35% on average over the next years. This is quite good.
EPS Next Y14.36%
EPS Next 2Y16.4%
EPS Next 3Y18.81%
EPS Next 5Y19.67%
Revenue Next Year12.7%
Revenue Next 2Y12.7%
Revenue Next 3Y12.72%
Revenue Next 5Y12.35%
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
The Price/Earnings ratio is 24.71, which indicates a rather expensive current valuation of WIX.
Compared to the rest of the industry, the Price/Earnings ratio of WIX indicates a somewhat cheap valuation: WIX is cheaper than 61.73% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of WIX to the average of the S&P500 Index (27.45), we can say WIX is valued inline with the index average.
With a Price/Forward Earnings ratio of 18.97, WIX is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WIX indicates a somewhat cheap valuation: WIX is cheaper than 67.90% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.90, WIX is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.71 | ||
| Fwd PE | 18.97 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of WIX is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, WIX is valued cheaper than 80.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.77 | ||
| EV/EBITDA | 51.89 |
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)1.72
PEG (5Y)0.61
EPS Next 2Y16.4%
EPS Next 3Y18.81%
5. Dividend
5.1 Amount
No dividends for WIX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
164.29
-0.29 (-0.18%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners90.43%
Inst Owner Change1.78%
Ins Owners3.14%
Ins Owner ChangeN/A
Market Cap9.15B
Analysts81.38
Price Target228.11 (38.85%)
Short Float %5.56%
Short Ratio3.12
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)8.12%
Min EPS beat(2)-4.22%
Max EPS beat(2)20.45%
EPS beat(4)3
Avg EPS beat(4)10.47%
Min EPS beat(4)-4.22%
Max EPS beat(4)22.11%
EPS beat(8)7
Avg EPS beat(8)32.5%
EPS beat(12)11
Avg EPS beat(12)131.87%
EPS beat(16)14
Avg EPS beat(16)103.25%
Revenue beat(2)0
Avg Revenue beat(2)-0.96%
Min Revenue beat(2)-1.27%
Max Revenue beat(2)-0.66%
Revenue beat(4)0
Avg Revenue beat(4)-0.83%
Min Revenue beat(4)-1.27%
Max Revenue beat(4)-0.55%
Revenue beat(8)2
Avg Revenue beat(8)-0.46%
Revenue beat(12)3
Avg Revenue beat(12)-0.38%
Revenue beat(16)5
Avg Revenue beat(16)-0.4%
PT rev (1m)-7.08%
PT rev (3m)-10.09%
EPS NQ rev (1m)-1.7%
EPS NQ rev (3m)-3.56%
EPS NY rev (1m)-0.93%
EPS NY rev (3m)-1.27%
Revenue NQ rev (1m)-0.16%
Revenue NQ rev (3m)-0.69%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.71 | ||
| Fwd PE | 18.97 | ||
| P/S | 5.04 | ||
| P/FCF | 17.77 | ||
| P/OCF | 17.29 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 51.89 |
EPS(TTM)6.65
EY4.05%
EPS(NY)8.66
Fwd EY5.27%
FCF(TTM)9.25
FCFY5.63%
OCF(TTM)9.5
OCFY5.78%
SpS32.59
BVpS-3.03
TBVpS-4.29
PEG (NY)1.72
PEG (5Y)0.61
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.2% | ||
| ROE | N/A | ||
| ROCE | 41.56% | ||
| ROIC | 37.11% | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 7.05% | ||
| PM (TTM) | 8.16% | ||
| GM | 68.08% | ||
| FCFM | 28.37% |
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 Turnover1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 1.11 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 46.32% | ||
| Cap/Sales | 0.79% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 333.45% | ||
| Profit Quality | 347.64% | ||
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.79 | ||
| Altman-Z | 3.13 |
F-Score8
WACC15.35%
ROIC/WACC2.42
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)36.55%
EPS 3YN/A
EPS 5Y40.43%
EPS Q2Q%20.16%
EPS Next Y14.36%
EPS Next 2Y16.4%
EPS Next 3Y18.81%
EPS Next 5Y19.67%
Revenue 1Y (TTM)12.89%
Revenue growth 3Y11.51%
Revenue growth 5Y18.37%
Sales Q2Q%12.83%
Revenue Next Year12.7%
Revenue Next 2Y12.7%
Revenue Next 3Y12.72%
Revenue Next 5Y12.35%
EBIT growth 1Y393.75%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year40.76%
EBIT Next 3Y28.44%
EBIT Next 5Y24.5%
FCF growth 1Y1950.79%
FCF growth 3Y157.5%
FCF growth 5Y30.26%
OCF growth 1Y446.7%
OCF growth 3Y96.36%
OCF growth 5Y27.16%