WIX.COM LTD (WIX) Stock Fundamental Analysis
USA - NASDAQ:WIX - IL0011301780 - Common Stock
135.26 USD
-0.63 (-0.46%)
137 USD
+1.74 (+1.29%)
Taking everything into account, WIX scores 5 out of 10 in our fundamental rating. WIX was compared to 85 industry peers in the IT Services industry. WIX has only an average score on both its financial health and profitability. WIX is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one!
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.
Each year in the past 5 years WIX had a positive operating cash flow.
1.2 Ratios
The Return On Assets of WIX (8.25%) is better than 78.82% of its industry peers.
WIX's Return On Invested Capital of 29.71% is amongst the best of the industry. WIX outperforms 97.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.25% | ||
| ROE | N/A | ||
| ROIC | 29.71% |
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
With a decent Profit Margin value of 8.90%, WIX is doing good in the industry, outperforming 76.47% of the companies in the same industry.
WIX has a better Operating Margin (7.68%) than 61.18% of its industry peers.
The Gross Margin of WIX (68.38%) is better than 88.24% of its industry peers.
WIX's Gross Margin has declined in the last couple of years.
| 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.
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
WIX has an Altman-Z score of 2.51. 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 of 2.51. This is comparable to the rest of the industry: WIX outperforms 47.06% of its industry peers.
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 78.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 1.07 | ||
| Altman-Z | 2.51 |
ROIC/WACC3.5
WACC8.48%
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.
WIX has a worse Current ratio (0.81) than 85.88% of its industry peers.
A Quick Ratio of 0.81 indicates that WIX may have some problems paying its short term obligations.
WIX has a Quick ratio of 0.81. This is amonst the worse of the industry: WIX underperforms 84.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.81 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 37.50% 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 13.04% in the last year.
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)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 12.32% on average per year.
EPS Next Y8.97%
EPS Next 2Y8.42%
EPS Next 3Y13.07%
EPS Next 5Y19.77%
Revenue Next Year13.03%
Revenue Next 2Y13.33%
Revenue Next 3Y13.43%
Revenue Next 5Y12.32%
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
Based on the Price/Earnings ratio of 18.63, the valuation of WIX can be described as rather expensive.
Based on the Price/Earnings ratio, WIX is valued a bit cheaper than the industry average as 68.24% of the companies are valued more expensively.
WIX is valuated rather cheaply when we compare the Price/Earnings ratio to 26.19, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 18.01 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 64.71% of the companies in the same industry.
WIX is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.50, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.63 | ||
| Fwd PE | 18.01 |
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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of WIX indicates a rather cheap valuation: WIX is cheaper than 83.53% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.77 | ||
| EV/EBITDA | 37.18 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates WIX does not grow enough to justify the current Price/Earnings ratio.
WIX's earnings are expected to grow with 13.07% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.08
PEG (5Y)0.46
EPS Next 2Y8.42%
EPS Next 3Y13.07%
5. Dividend
5.1 Amount
No dividends for WIX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
135.26
-0.63 (-0.46%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners92.02%
Inst Owner Change-0.39%
Ins Owners3.18%
Ins Owner ChangeN/A
Market Cap7.43B
Revenue(TTM)1.87B
Net Income(TTM)166.27M
Analysts82.76
Price Target212.9 (57.4%)
Short Float %7.14%
Short Ratio2.08
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)0.32%
PT rev (3m)-6.67%
EPS NQ rev (1m)1.01%
EPS NQ rev (3m)-19.44%
EPS NY rev (1m)0.66%
EPS NY rev (3m)-4.71%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.04%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)0.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.63 | ||
| Fwd PE | 18.01 | ||
| P/S | 3.97 | ||
| P/FCF | 13.77 | ||
| P/OCF | 13.28 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 37.18 |
EPS(TTM)7.26
EY5.37%
EPS(NY)7.51
Fwd EY5.55%
FCF(TTM)9.82
FCFY7.26%
OCF(TTM)10.19
OCFY7.53%
SpS34.04
BVpS-2.14
TBVpS-4.19
PEG (NY)2.08
PEG (5Y)0.46
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.25% | ||
| ROE | N/A | ||
| ROCE | 33.27% | ||
| ROIC | 29.71% | ||
| 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
ROICexgc growth 3YN/A
ROICexgc 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 Turnover0.93
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 1.07 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 66.72% | ||
| Cap/Sales | 1.08% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 321.77% | ||
| Profit Quality | 324.28% | ||
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.81 | ||
| Altman-Z | 2.51 |
F-Score7
WACC8.48%
ROIC/WACC3.5
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 Y8.97%
EPS Next 2Y8.42%
EPS Next 3Y13.07%
EPS Next 5Y19.77%
Revenue 1Y (TTM)13.04%
Revenue growth 3Y11.51%
Revenue growth 5Y18.37%
Sales Q2Q%12.43%
Revenue Next Year13.03%
Revenue Next 2Y13.33%
Revenue Next 3Y13.43%
Revenue Next 5Y12.32%
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%
WIX.COM LTD / WIX FAQ
What is the ChartMill fundamental rating of WIX.COM LTD (WIX) stock?
ChartMill assigns a fundamental rating of 5 / 10 to WIX.
What is the valuation status of WIX.COM LTD (WIX) stock?
ChartMill assigns a valuation rating of 4 / 10 to WIX.COM LTD (WIX). This can be considered as Fairly Valued.
Can you provide the profitability details for WIX.COM LTD?
WIX.COM LTD (WIX) has a profitability rating of 5 / 10.
How financially healthy is WIX.COM LTD?
The financial health rating of WIX.COM LTD (WIX) is 4 / 10.
What is the earnings growth outlook for WIX.COM LTD?
The Earnings per Share (EPS) of WIX.COM LTD (WIX) is expected to grow by 8.97% in the next year.