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

Fundamentals

High growth potential with adequate balance sheet.


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


Market Performance


7 Day Return

3.0%

WIX

2.0%

US IT

1.3%

US Market


1 Year Return

22.8%

WIX

23.1%

US IT

5.9%

US Market

Return vs Industry: WIX matched the US IT industry which returned 23.1% over the past year.

Return vs Market: WIX exceeded the US Market which returned 5.9% over the past year.


Shareholder returns

WIXIndustryMarket
7 Day3.0%2.0%1.3%
30 Day1.5%-0.1%-1.9%
90 Day-11.4%-2.2%-1.8%
1 Year22.8%22.8%24.5%23.1%8.3%5.9%
3 Year184.3%184.3%97.9%89.7%45.6%36.2%
5 Year623.1%623.1%154.6%131.0%66.1%47.9%

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?

36.6x

Price to Book (PB) ratio


Share Price vs. Fair Value

Undervalued: WIX ($125.67) is trading above our estimate of fair value ($114.95)

Significantly Undervalued: 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

Low 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 (36.6x) compared to the US IT industry average (4.3x).


Next Steps

Future Growth

How is Wix.com forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

61.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WIX is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.7%).

Earnings vs Market: WIX is forecast to become profitable over the next 3 year, which is considered above average market growth.

High Growth Earnings: WIX's loss is forecast to worsen by 0% next year.

Revenue vs Market: WIX's revenue (19.9% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: WIX's revenue (19.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: WIX's Return on Equity is forecast to be very high in 3 years time (47.6%).


Next Steps

Past Performance

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

3.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: WIX is unprofitable, but has reduced losses over the past 5 years at a rate of 3.2% 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 (8.4%).


Return on Equity

High ROE: WIX has a negative Return on Equity (-34.26%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: WIX is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: WIX is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Wix.com's financial position?


Financial Position Analysis

Short Term Liabilities: WIX's short term assets ($794.7M) exceeds its short term liabilities ($412.0M)

Long Term Liabilities: WIX's short term assets (794.7M) exceeds its long term liabilities (412.4M)


Debt to Equity History and Analysis

Debt Level: WIX's debt to equity ratio (202.3%) 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 2.275140x 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 44.5% 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%3.8%industryaverage1.3%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

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.

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

What is the CEO of Wix.com's salary, the management and board of directors tenure and is there insider trading?

7.8yrs

Average management tenure


CEO

Avishai Abrahami (48yo)

9.1yrs

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 ($USD443.00K) is about average for companies of similar size in the US market ($USD6.81M).

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


Management Age and Tenure

7.8yrs

Average Tenure

48yo

Average Age

Experienced Management: WIX's management team is seasoned and experienced (7.8 years average tenure).


Board Age and Tenure

3.7yrs

Average Tenure

53yo

Average Age

Experienced Board: WIX's board of directors are considered experienced (3.7 years average tenure).


Insider Trading

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


Ownership Breakdown


Management Team

  • Menashe Shemesh (49yo)

    Chief Financial Officer

    • Tenure: 6.6yrs
    • Compensation: US$399.00k
  • Gig Kaplan (49yo)

    Co-Founder

    • Tenure: 13.8yrs
    • Compensation: US$455.00k
  • Avishai Abrahami (48yo)

    Co-Founder

    • Tenure: 9.1yrs
    • Compensation: US$443.00k
  • Nadav Abrahami

    Co-Founder & VP of Client Development

    • Tenure: 13.8yrs
  • Omer Shai (42yo)

    Chief Marketing Officer

    • Tenure: 6.1yrs
    • Compensation: US$398.00k
  • Shelly Meyer

    Chief People Officer

    • Tenure: 9.8yrs
  • Eitan Israeli

    VP & General Counsel

    • Tenure: 0yrs
  • Yoav Abrahami

    Chief Architect of Research and Development

    • Tenure: 0yrs
  • Nir Zohar (41yo)

    President & COO

    • Tenure: 6.1yrs
    • Compensation: US$412.00k
  • Maggie O'Donnell

    Director of Investor Relations

    • Tenure: 0yrs

Board Members

  • Yuval Cohen (57yo)

    Independent Director

    • Tenure: 6.2yrs
  • Allon Bloch (49yo)

    Independent Director

    • Tenure: 3.3yrs
  • Mark Tluszcz (53yo)

    Non-Executive Chairman

    • Tenure: 3.7yrs
  • Ron Gutler (61yo)

    Lead Independent Director

    • Tenure: 3.7yrs
  • Roy Saar (49yo)

    Independent Director

    • Tenure: 12.8yrs
  • Erika Rottenberg (57yo)

    Independent Director

    • Tenure: 5yrs
  • Deirdre Bigley (54yo)

    Independent Director

    • Tenure: 1.9yrs
  • Gig Kaplan (49yo)

    Co-Founder

    • Tenure: 13.8yrs
    • Compensation: US$455.00k
  • Avishai Abrahami (48yo)

    Co-Founder

    • Tenure: 9.1yrs
    • Compensation: US$443.00k

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$6.428b
  • 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

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-d ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/15 00:25
End of Day Share Price2019/10/14 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.