WIX.COM LTD (WIX) Stock Fundamental Analysis
NASDAQ:WIX - Nasdaq - IL0011301780 - Common Stock - Currency: USD
Overall WIX gets a fundamental rating of 4 out of 10. We evaluated WIX against 82 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 valued quite expensively, but it does show have an excellent growth rating.
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.
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
WIX has a better Return On Assets (7.23%) than 74.39% of its industry peers.
The Return On Invested Capital of WIX (22.49%) is better than 93.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.23% | ||
| ROE | N/A | ||
| ROIC | 22.49% |
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 7.86%. This is in the better half of the industry: WIX outperforms 70.73% of its industry peers.
With a Operating Margin value of 5.69%, WIX perfoms like the industry average, outperforming 58.54% of the companies in the same industry.
Looking at the Gross Margin, with a value of 67.93%, WIX belongs to the top of the industry, outperforming 86.59% of the companies in the same industry.
WIX's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.69% | ||
| PM (TTM) | 7.86% | ||
| GM | 67.93% |
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.
WIX has less shares outstanding than it did 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 3.35. This indicates that WIX is financially healthy and has little risk of bankruptcy at the moment.
With a Altman-Z score value of 3.35, WIX perfoms like the industry average, outperforming 59.76% of the companies in the same industry.
WIX has a debt to FCF ratio of 1.20. This is a very positive value and a sign of high solvency as it would only need 1.20 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.20, WIX is in the better half of the industry, outperforming 75.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 1.2 | ||
| Altman-Z | 3.35 |
ROIC/WACC2.56
WACC8.79%
2.3 Liquidity
A Current Ratio of 0.84 indicates that WIX may have some problems paying its short term obligations.
WIX has a worse Current ratio (0.84) than 80.49% of its industry peers.
A Quick Ratio of 0.84 indicates that WIX may have some problems paying its short term obligations.
WIX has a worse Quick ratio (0.84) than 80.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 42.32% over the past year.
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.
The Revenue has grown by 12.74% in the past year. This is quite good.
Measured over the past years, WIX shows a quite strong growth in Revenue. The Revenue has been growing by 18.37% on average per year.
EPS 1Y (TTM)42.32%
EPS 3YN/A
EPS 5Y40.43%
EPS Q2Q%58.2%
Revenue 1Y (TTM)12.74%
Revenue growth 3Y11.51%
Revenue growth 5Y18.37%
Sales Q2Q%14.04%
3.2 Future
The Earnings Per Share is expected to grow by 21.81% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 12.56% on average over the next years. This is quite good.
EPS Next Y15.59%
EPS Next 2Y17.55%
EPS Next 3Y19.16%
EPS Next 5Y21.81%
Revenue Next Year12.7%
Revenue Next 2Y12.8%
Revenue Next 3Y12.69%
Revenue Next 5Y12.56%
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
With a Price/Earnings ratio of 28.60, WIX can be considered very expensive at the moment.
WIX's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of WIX to the average of the S&P500 Index (25.25), we can say WIX is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 24.74, the valuation of WIX can be described as rather expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as WIX.
WIX's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.6 | ||
| Fwd PE | 24.74 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WIX is valued a bit more expensive than the industry average as 65.85% of the companies are valued more cheaply.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of WIX indicates a somewhat cheap valuation: WIX is cheaper than 63.41% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.28 | ||
| EV/EBITDA | 70.12 |
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 19.16% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.83
PEG (5Y)0.71
EPS Next 2Y17.55%
EPS Next 3Y19.16%
5. Dividend
5.1 Amount
No dividends for WIX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
182.75
-0.16 (-0.09%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners94.3%
Inst Owner Change-3.28%
Ins Owners3.53%
Ins Owner ChangeN/A
Market Cap10.17B
Analysts80
Price Target245.49 (34.33%)
Short Float %3.12%
Short Ratio2.07
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)12%
Min EPS beat(2)3.55%
Max EPS beat(2)20.45%
EPS beat(4)4
Avg EPS beat(4)16.89%
Min EPS beat(4)3.55%
Max EPS beat(4)22.11%
EPS beat(8)8
Avg EPS beat(8)103.08%
EPS beat(12)11
Avg EPS beat(12)131.34%
EPS beat(16)15
Avg EPS beat(16)104.71%
Revenue beat(2)0
Avg Revenue beat(2)-1.07%
Min Revenue beat(2)-1.27%
Max Revenue beat(2)-0.86%
Revenue beat(4)0
Avg Revenue beat(4)-0.8%
Min Revenue beat(4)-1.27%
Max Revenue beat(4)-0.53%
Revenue beat(8)3
Avg Revenue beat(8)-0.35%
Revenue beat(12)3
Avg Revenue beat(12)-0.38%
Revenue beat(16)6
Avg Revenue beat(16)-0.3%
PT rev (1m)-3.27%
PT rev (3m)0.77%
EPS NQ rev (1m)-0.05%
EPS NQ rev (3m)-1.97%
EPS NY rev (1m)-0.21%
EPS NY rev (3m)-0.25%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)-1.79%
Revenue NY rev (1m)-0.2%
Revenue NY rev (3m)-1.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.6 | ||
| Fwd PE | 24.74 | ||
| P/S | 5.78 | ||
| P/FCF | 21.28 | ||
| P/OCF | 20.45 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 70.12 |
EPS(TTM)6.39
EY3.5%
EPS(NY)7.39
Fwd EY4.04%
FCF(TTM)8.59
FCFY4.7%
OCF(TTM)8.94
OCFY4.89%
SpS31.63
BVpS-1.42
TBVpS-2.7
PEG (NY)1.83
PEG (5Y)0.71
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.23% | ||
| ROE | N/A | ||
| ROCE | 25.18% | ||
| ROIC | 22.49% | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 5.69% | ||
| PM (TTM) | 7.86% | ||
| GM | 67.93% | ||
| FCFM | 27.15% |
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 Turnover0.92
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 1.2 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 62.14% | ||
| Cap/Sales | 1.1% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 378.97% | ||
| Profit Quality | 345.63% | ||
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.84 | ||
| Altman-Z | 3.35 |
F-Score8
WACC8.79%
ROIC/WACC2.56
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)42.32%
EPS 3YN/A
EPS 5Y40.43%
EPS Q2Q%58.2%
EPS Next Y15.59%
EPS Next 2Y17.55%
EPS Next 3Y19.16%
EPS Next 5Y21.81%
Revenue 1Y (TTM)12.74%
Revenue growth 3Y11.51%
Revenue growth 5Y18.37%
Sales Q2Q%14.04%
Revenue Next Year12.7%
Revenue Next 2Y12.8%
Revenue Next 3Y12.69%
Revenue Next 5Y12.56%
EBIT growth 1Y1116.19%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year40.84%
EBIT Next 3Y27.92%
EBIT Next 5Y24.59%
FCF growth 1Y162.4%
FCF growth 3Y157.5%
FCF growth 5Y30.26%
OCF growth 1Y100.37%
OCF growth 3Y96.36%
OCF growth 5Y27.16%