NasdaqGS:WIX

Stock Analysis Report

Executive Summary

Wix.com Ltd. develops and markets an Internet service that allows users to create Web content in North America, Europe, Latin America, Asia, and internationally.


Snowflake Analysis

Adequate balance sheet with concerning outlook.


Similar Companies

Share Price & News

How has Wix.com's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: WIX has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-13.9%

WIX

-9.8%

US IT

-7.4%

US Market


1 Year Return

17.6%

WIX

23.3%

US IT

10.5%

US Market

Return vs Industry: WIX underperformed the US IT industry which returned 29.5% over the past year.

Return vs Market: WIX exceeded the US Market which returned 14% over the past year.


Shareholder returns

WIXIndustryMarket
7 Day-13.9%-9.8%-7.4%
30 Day-4.3%-3.5%-3.6%
90 Day9.6%2.5%-0.6%
1 Year17.6%17.6%24.5%23.3%12.8%10.5%
3 Year113.1%113.1%89.8%81.6%37.4%28.6%
5 Year665.3%665.3%129.0%108.9%61.3%43.6%

Price Volatility Vs. Market

How volatile is Wix.com's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Wix.com undervalued compared to its fair value and its price relative to the market?

3.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: WIX ($131.5) is trading above our estimate of fair value ($53.21)

Significantly Below Fair Value: WIX is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: WIX is unprofitable, so we can't compare its PE Ratio to the IT industry average.

PE vs Market: WIX is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate WIX's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: WIX is overvalued based on its PB Ratio (32.5x) compared to the US IT industry average (4.1x).


Next Steps

Future Growth

How is Wix.com forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

34.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WIX is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: WIX is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: WIX is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: WIX's revenue (17.3% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: WIX's revenue (17.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: WIX is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has Wix.com performed over the past 5 years?

-2.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WIX is currently unprofitable.

Growing Profit Margin: WIX is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: WIX is unprofitable, and losses have increased over the past 5 years at a rate of -2.1% per year.

Accelerating Growth: Unable to compare WIX's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: WIX is unprofitable, making it difficult to compare its past year earnings growth to the IT industry (12%).


Return on Equity

High ROE: WIX has a negative Return on Equity (-41.6%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Wix.com's financial position?


Financial Position Analysis

Short Term Liabilities: WIX's short term assets ($765.5M) exceed its short term liabilities ($444.2M).

Long Term Liabilities: WIX's short term assets ($765.5M) exceed its long term liabilities ($447.7M).


Debt to Equity History and Analysis

Debt Level: WIX's debt to equity ratio (173.3%) is considered high.

Reducing Debt: Insufficient data to determine if WIX's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

Inventory Level: WIX has a low level of unsold assets or inventory.

Debt Coverage by Assets: WIX's debt is covered by short term assets (assets are 2.1x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable WIX has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: WIX is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 50.3% per year.


Next Steps

Dividend

What is Wix.com's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.9%industryaverage1.3%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate WIX's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate WIX's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if WIX's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if WIX's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of WIX's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

8.2yrs

Average management tenure


CEO

Avishai Abrahami (48yo)

9.4yrs

Tenure

US$443,000

Compensation

Mr. Avishai Abrahami co-founded Wix.com Ltd. (Wixpress Ltd.) in 2006 and has been its Chief Executive Officer since September 2010. Mr. Abrahami also served as Co-Chief Executive Officer of Wix.com Ltd. si ...


CEO Compensation Analysis

Compensation vs Market: Avishai 's total compensation ($USD443.00K) is below average for companies of similar size in the US market ($USD6.39M).

Compensation vs Earnings: Avishai 's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Avishai Abrahami
Co-Founder9.4yrsUS$443.00k0.039% $2.6m
Nir Zohar
President & COO6.4yrsUS$412.00k0.67% $44.8m
Giora Kaplan
Co-Founder & Advisor0yrsUS$455.00k0.79% $53.1m
Menashe Shemesh
Chief Financial Officer6.9yrsUS$399.00k0.046% $3.1m
Omer Shai
Chief Marketing Officer6.4yrsUS$398.00k0.67% $45.3m
Nadav Abrahami
Co-Founder & VP of Client Development14.1yrsno datano data
Maggie O'Donnell
Director of Investor Relations0yrsno datano data
Eitan Israeli
VP & General Counsel0yrsno datano data
Shelly Meyer
Chief People Officer10.1yrsno datano data
Yoav Abrahami
Chief Architect of Research and Development0yrsno datano data

8.2yrs

Average Tenure

48yo

Average Age

Experienced Management: WIX's management team is seasoned and experienced (8.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Avishai Abrahami
Co-Founder9.4yrsUS$443.00k0.039% $2.6m
Yuval Cohen
Independent Director6.5yrsno datano data
Diane Greene
Director0yrsno datano data
Allon Bloch
Independent Director3.6yrsno datano data
Mark Tluszcz
Non-Executive Chairman4yrsno data0.016% $1.0m
Ron Gutler
Lead Independent Director4yrsno datano data
Roy Saar
Independent Director13.1yrsno data0.29% $19.2m
Erika Rottenberg
Independent Director5.3yrsno datano data
Deirdre Bigley
Independent Director2.3yrsno datano data

4.0yrs

Average Tenure

54yo

Average Age

Experienced Board: WIX's board of directors are considered experienced (4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 5.2%.


Top Shareholders

Company Information

Wix.com Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Wix.com Ltd.
  • Ticker: WIX
  • Exchange: NasdaqGS
  • Founded: 2006
  • Industry: Internet Services and Infrastructure
  • Sector: Software
  • Market Cap: US$6.726b
  • Shares outstanding: 51.15m
  • Website: https://www.wix.com

Number of Employees


Location

  • Wix.com Ltd.
  • 40 Namal Tel Aviv Street
  • Tel Aviv
  • 6350671
  • Israel

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WIXNasdaqGS (Nasdaq Global Select)YesOrdinary SharesUSUSDNov 2013
W1XDB (Deutsche Boerse AG)YesOrdinary SharesDEEURNov 2013
WIX NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNNov 2013

Biography

Wix.com Ltd. develops and markets an Internet service that allows users to create Web content in North America, Europe, Latin America, Asia, and internationally. The company offers Wix Editor, a drag-and-drop visual development and Website editing environment platform; Wix ADI that enables users to create a Website for their specific needs; and Wix Code to create Websites and Web applications. It also provides Ascend by Wix, which offers its users access to a suite of approximately 20 products or features enabling them to connect with their customers, automate their work, and grow their business; Wix Logo Maker that allows users to generate a logo using artificial intelligence; Wix Answers, a support infrastructure enabling its users to help their users across various channels; and Wix Payments, a payment platform, which helps its users receive payments from their users through their Wix Website. In addition, the company offers various vertical-specific applications that business owners use to operate various aspects of their business online. Further, it provides a range of complementary services, including App Market that offers its registered users the ability to install and uninstall a range of free and paid Web applications; Wix Arena, an online marketplace that brings users seeking help in creating and managing a Website, together with Web experts; and Wix App, a native mobile application, which enables users to manage their Websites and Wix operating systems. As of December 31, 2018, the company had approximately 142 million registered users and 3,983,415 premium subscriptions. Wix.com Ltd. has a strategic partnership with NTT Town Page Corporation. The company was formerly known as Wixpress Ltd. Wix.com Ltd. was founded in 2006 and is headquartered in Tel Aviv, Israel. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/26 01:15
End of Day Share Price2020/02/25 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.