NasdaqGS:WIX

Stock Analysis Report

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Executive Summary

Wix.com Ltd, together with its subsidiaries, develops and markets a cloud-based platform that enables anyone to create a website or web application in North America, Europe, Latin America, Asia, and internationally. More Details


Snowflake Analysis

Adequate balance sheet with moderate growth potential.


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

-4.2%

WIX

-2.7%

US IT

-1.3%

US Market


1 Year Return

126.4%

WIX

31.6%

US IT

18.5%

US Market

Return vs Industry: WIX exceeded the US IT industry which returned 31.6% over the past year.

Return vs Market: WIX exceeded the US Market which returned 18.5% over the past year.


Shareholder returns

WIXIndustryMarket
7 Day-4.2%-2.7%-1.3%
30 Day4.7%4.3%5.3%
90 Day1.5%5.2%7.5%
1 Year126.4%126.4%33.0%31.6%21.3%18.5%
3 Year302.0%302.0%92.4%84.9%42.4%32.9%
5 Year1,133.2%1,133.2%150.9%130.8%84.2%63.5%

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?

73.06x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: WIX ($271.54) is trading above our estimate of fair value ($99.5)

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 US 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 (73.1x) compared to the US IT industry average (3.7x).


Next Steps

Future Growth

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

45.9%

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 (20.9% per year) is forecast to grow faster than the US market (10.1% per year).

High Growth Revenue: WIX's revenue (20.9% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: WIX's Return on Equity is forecast to be very high in 3 years time (41.6%).


Next Steps

Past Performance

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

-12.8%

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 12.8% 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 (8.1%).


Return on Equity

High ROE: WIX has a negative Return on Equity (-66.31%), as it is currently unprofitable.


Next Steps

Financial Health

How is Wix.com's financial position?


Financial Position Analysis

Short Term Liabilities: WIX's short term assets ($824.3M) exceed its short term liabilities ($566.3M).

Long Term Liabilities: WIX's short term assets ($824.3M) exceed its long term liabilities ($470.1M).


Debt to Equity History and Analysis

Debt Level: WIX's debt to equity ratio (181.1%) 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


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 45.9% per year.


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

8.8yrs

Average management tenure


CEO

Avishai Abrahami (49 yo)

10.08yrs

Tenure

US$2,904,799

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 ($USD2.90M) is below average for companies of similar size in the US market ($USD11.20M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Avishai Abrahami
Co-Founder10.08yrsUS$2.90m0.036%
$ 5.4m
Nir Zohar
President & COO7.08yrsUS$1.98m0.52%
$ 78.8m
Giora Kaplan
Co-Founder & Advisorno dataUS$1.27mno data
Menashe Shemesh
Chief Financial Officer7.58yrsUS$1.80m0.058%
$ 8.8m
Omer Shai
Chief Marketing Officer7.08yrsUS$1.80m0.59%
$ 88.9m
Nadav Abrahami
Co-Founder & VP of Client Development14.75yrsno datano data
Maggie O'Donnell
Director of Investor Relationsno datano datano data
Eitan Israeli
VP & General Counselno datano datano data
Shelly Meyer
Chief People Officer10.75yrsno datano data
Yoav Abrahami
Chief Architect of Research and Developmentno datano datano data

8.8yrs

Average Tenure

49yo

Average Age

Experienced Management: WIX's management team is seasoned and experienced (8.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Avishai Abrahami
Co-Founder10.08yrsUS$2.90m0.036%
$ 5.4m
Yuval Cohen
Independent Director7.17yrsno data0%
$ 0
Diane Greene
Independent Director0.67yrno datano data
Allon Bloch
Independent Director4.25yrsno data0%
$ 0
Mark Tluszcz
Independent Non-Executive Chairman4.67yrsno data0.015%
$ 2.2m
Ron Gutler
Lead Independent Director4.67yrsno data0%
$ 0
Roy Saar
Independent Director13.75yrsno data0.24%
$ 36.7m
Deirdre Bigley
Independent Director2.92yrsno data0%
$ 0

4.7yrs

Average Tenure

54.5yo

Average Age

Experienced Board: WIX's board of directors are considered experienced (4.7 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 8.8%.


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$15.109b
  • Shares outstanding: 55.64m
  • 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
W1IX34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 30 REPR 1 COM NPVBRBRLOct 2020

Biography

Wix.com Ltd, together with its subsidiaries, develops and markets a cloud-based platform that enables anyone to create a website or web application in North America, Europe, Latin America, Asia, and intern ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/22 00:00
End of Day Share Price2020/10/21 00:00
Earnings2020/06/30
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.