Wix.com Ltd.
Wix.com Ltd. Fundamental Analysis
Wix.com Ltd. (WIX) shows weak financial fundamentals with a PE ratio of 88.91, profit margin of 2.54%, and ROE of -21.76%. The company generates $2.0B in annual revenue with strong year-over-year growth of 12.74%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 77.2/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze WIX's fundamental strength across five key dimensions:
Efficiency Score
WeakWIX struggles to generate sufficient returns from assets.
Valuation Score
ModerateWIX shows balanced valuation metrics.
Growth Score
ModerateWIX shows steady but slowing expansion.
Financial Health Score
ExcellentWIX maintains a strong and stable balance sheet.
Profitability Score
WeakWIX struggles to sustain strong margins.
Key Financial Metrics
Is WIX Expensive or Cheap?
P/E Ratio
WIX trades at 88.91 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, WIX's PEG of -1.39 indicates potential undervaluation.
Price to Book
The market values Wix.com Ltd. at -12.30 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 97.39 times EBITDA. This signals the market has high growth expectations.
How Well Does WIX Make Money?
Net Profit Margin
For every $100 in sales, Wix.com Ltd. keeps $2.54 as profit after all expenses.
Operating Margin
Core operations generate 0.09 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-21.76 in profit for every $100 of shareholder equity.
ROA
Wix.com Ltd. generates $1.94 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Wix.com Ltd. generates strong operating cash flow of $617.91M, reflecting robust business health.
Free Cash Flow
Wix.com Ltd. generates strong free cash flow of $608.02M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $11.05 in free cash annually.
FCF Yield
WIX converts 13.45% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
88.91
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.39
vs 25 benchmark
P/B Ratio
Price to book value ratio
-12.30
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.26
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-4.33
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.19
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.22
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.001
vs 25 benchmark
How WIX Stacks Against Its Sector Peers
| Metric | WIX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 88.91 | 33.94 | Worse (Expensive) |
| ROE | -21.76% | 1002.00% | Weak |
| Net Margin | 2.54% | -48794.00% (disorted) | Weak |
| Debt/Equity | -4.33 | 0.44 | Strong (Low Leverage) |
| Current Ratio | 1.19 | 5.74 | Neutral |
| ROA | 1.94% | -288341.00% (disorted) | Weak |
WIX outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Wix.com Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
110.21%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
245.45%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
202.21%
Industry Style: Growth, Innovation, High Beta
High Growth