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WIX.COM LTD (WIX) Stock Fundamental Analysis

NASDAQ:WIX - Nasdaq - IL0011301780 - Common Stock - Currency: USD

152.32  -0.93 (-0.61%)

After market: 152.32 0 (0%)

Fundamental Rating

5

Taking everything into account, WIX scores 5 out of 10 in our fundamental rating. WIX was compared to 82 industry peers in the IT Services industry. WIX has only an average score on both its financial health and profitability. WIX is not overvalued while it is showing excellent growth. This is an interesting combination.


Dividend Valuation Growth Profitability Health

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4

1. Profitability

1.1 Basic Checks

In the past year WIX was profitable.
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.
WIX had a positive operating cash flow in each of the past 5 years.
WIX Yearly Net Income VS EBIT VS OCF VS FCFWIX Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M -200M 400M -400M

1.2 Ratios

The Return On Assets of WIX (8.20%) is better than 74.39% of its industry peers.
WIX has a better Return On Invested Capital (37.11%) than 97.56% of its industry peers.
Industry RankSector 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
WIX Yearly ROA, ROE, ROICWIX Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 1K -1K -2K -3K

1.3 Margins

WIX has a better Profit Margin (8.16%) than 73.17% of its industry peers.
WIX has a Operating Margin of 7.05%. This is comparable to the rest of the industry: WIX outperforms 58.54% of its industry peers.
Looking at the Gross Margin, with a value of 68.08%, WIX belongs to the top of the industry, outperforming 86.59% of the companies in the same industry.
In the last couple of years the Gross Margin of WIX has declined.
Industry RankSector 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%
WIX Yearly Profit, Operating, Gross MarginsWIX Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 40 60 80

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4

2. Health

2.1 Basic Checks

WIX has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for WIX has been reduced compared to 1 year ago.
Compared to 5 years ago, WIX has more shares outstanding
Compared to 1 year ago, WIX has an improved debt to assets ratio.
WIX Yearly Shares OutstandingWIX Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10M 20M 30M 40M 50M
WIX Yearly Total Debt VS Total AssetsWIX Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B

2.2 Solvency

An Altman-Z score of 2.95 indicates that WIX is not a great score, but indicates only limited risk for bankruptcy at the moment.
WIX's Altman-Z score of 2.95 is in line compared to the rest of the industry. WIX outperforms 50.00% of its industry peers.
The Debt to FCF ratio of WIX is 1.11, which is an excellent value as it means it would take WIX, only 1.11 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of WIX (1.11) is better than 80.49% of its industry peers.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 1.11
Altman-Z 2.95
ROIC/WACC3.79
WACC9.8%
WIX Yearly LT Debt VS Equity VS FCFWIX Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M -200M 400M 600M 800M

2.3 Liquidity

A Current Ratio of 0.79 indicates that WIX may have some problems paying its short term obligations.
With a Current ratio value of 0.79, WIX is not doing good in the industry: 85.37% of the companies in the same industry are doing better.
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.
WIX's Quick ratio of 0.79 is on the low side compared to the rest of the industry. WIX is outperformed by 84.15% of its industry peers.
Industry RankSector Rank
Current Ratio 0.79
Quick Ratio 0.79
WIX Yearly Current Assets VS Current LiabilitesWIX Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B

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8

3. Growth

3.1 Past

WIX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 39.43%, 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 40.43% on average per year.
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)39.43%
EPS 3YN/A
EPS 5Y40.43%
EPS Q2Q%31.01%
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 very strong growth in Earnings Per Share. The EPS will grow by 21.81% on average per year.
The Revenue is expected to grow by 12.56% on average over the next years. This is quite good.
EPS Next Y15.43%
EPS Next 2Y17.49%
EPS Next 3Y19.06%
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.
WIX Yearly Revenue VS EstimatesWIX Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 1B 2B 3B 4B
WIX Yearly EPS VS EstimatesWIX Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 0 5 10 15 20

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4

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 22.43, WIX is valued on the expensive side.
Based on the Price/Earnings ratio, WIX is valued a bit cheaper than 62.20% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.52. WIX is around the same levels.
A Price/Forward Earnings ratio of 17.27 indicates a rather expensive valuation of WIX.
WIX's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. WIX is cheaper than 67.07% of the companies in the same industry.
WIX is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.25, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 22.43
Fwd PE 17.27
WIX Price Earnings VS Forward Price EarningsWIX Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80 100

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 cheaply inside the industry as 81.71% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 16.47
EV/EBITDA 48.02
WIX Per share dataWIX EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20 30

4.3 Compensation for Growth

The 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 19.06% in the coming years.
PEG (NY)1.45
PEG (5Y)0.55
EPS Next 2Y17.49%
EPS Next 3Y19.06%

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0

5. Dividend

5.1 Amount

No dividends for WIX!.
Industry RankSector Rank
Dividend Yield N/A

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WIX.COM LTD

NASDAQ:WIX (6/6/2025, 8:00:02 PM)

After market: 152.32 0 (0%)

152.32

-0.93 (-0.61%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)05-21 2025-05-21/bmo
Earnings (Next)08-05 2025-08-05/bmo
Inst Owners94.3%
Inst Owner Change1.78%
Ins Owners3.53%
Ins Owner ChangeN/A
Market Cap8.48B
Analysts81.38
Price Target226.06 (48.41%)
Short Float %3.18%
Short Ratio1.9
Dividend
Industry RankSector 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)12.44%
Min EPS beat(2)4.43%
Max EPS beat(2)20.45%
EPS beat(4)4
Avg EPS beat(4)12.63%
Min EPS beat(4)3.55%
Max EPS beat(4)22.11%
EPS beat(8)8
Avg EPS beat(8)33.58%
EPS beat(12)12
Avg EPS beat(12)132.59%
EPS beat(16)15
Avg EPS beat(16)103.79%
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)-1.4%
PT rev (3m)1.29%
EPS NQ rev (1m)-1.9%
EPS NQ rev (3m)-1.73%
EPS NY rev (1m)-0.14%
EPS NY rev (3m)-2.97%
Revenue NQ rev (1m)-0.52%
Revenue NQ rev (3m)-1.06%
Revenue NY rev (1m)-0.1%
Revenue NY rev (3m)-1.62%
Valuation
Industry RankSector Rank
PE 22.43
Fwd PE 17.27
P/S 4.67
P/FCF 16.47
P/OCF 16.03
P/B N/A
P/tB N/A
EV/EBITDA 48.02
EPS(TTM)6.79
EY4.46%
EPS(NY)8.82
Fwd EY5.79%
FCF(TTM)9.25
FCFY6.07%
OCF(TTM)9.5
OCFY6.24%
SpS32.59
BVpS-3.03
TBVpS-4.29
PEG (NY)1.45
PEG (5Y)0.55
Profitability
Industry RankSector 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 RankSector 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 2.95
F-Score8
WACC9.8%
ROIC/WACC3.79
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)39.43%
EPS 3YN/A
EPS 5Y40.43%
EPS Q2Q%31.01%
EPS Next Y15.43%
EPS Next 2Y17.49%
EPS Next 3Y19.06%
EPS Next 5Y21.81%
Revenue 1Y (TTM)12.89%
Revenue growth 3Y11.51%
Revenue growth 5Y18.37%
Sales Q2Q%12.83%
Revenue Next Year12.7%
Revenue Next 2Y12.8%
Revenue Next 3Y12.69%
Revenue Next 5Y12.56%
EBIT growth 1Y393.75%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year40.76%
EBIT Next 3Y28.44%
EBIT Next 5Y24.59%
FCF growth 1Y1950.79%
FCF growth 3Y157.5%
FCF growth 5Y30.26%
OCF growth 1Y446.7%
OCF growth 3Y96.36%
OCF growth 5Y27.16%