Wix.com Ltd. Fundamental Analysis (NASDAQ: WIX)
Wix.com Ltd. (NASDAQ: WIX) shows strong financial fundamentals with a PE ratio of -23.32, profit margin of -8.19%, and ROE of 28.08%. The company generates $2.6B in annual revenue with strong year-over-year growth of 13.20%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 76.8/100 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
ExcellentWIX trades at attractive valuation levels.
Growth Score
ModerateWIX shows steady but slowing expansion.
Financial Health Score
ModerateWIX shows balanced financial health with some risks.
Profitability Score
ModerateWIX maintains healthy but balanced margins.
Key Financial Metrics
Is WIX Expensive or Cheap?
P/E Ratio
WIX trades at -23.32 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, WIX's PEG of 0.77 indicates potential undervaluation.
Price to Book
The market values Wix.com Ltd. at -2.04 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -25.51 times EBITDA. This is generally considered low.
How Well Does WIX Make Money?
Net Profit Margin
For every $100 in sales, Wix.com Ltd. keeps $-8.19 as profit after all expenses.
Operating Margin
Core operations generate -8.50 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $28.08 in profit for every $100 of shareholder equity.
ROA
Wix.com Ltd. generates $-9.44 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Wix.com Ltd. produces operating cash flow of $559.78M, showing steady but balanced cash generation.
Free Cash Flow
Wix.com Ltd. generates strong free cash flow of $547.26M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $10.43 in free cash annually.
FCF Yield
WIX converts 10.33% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-23.32
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.77
vs 25 benchmark
P/B Ratio
Price to book value ratio
-2.04
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.03
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-1.17
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.61
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.28
vs 25 benchmark
ROA
Return on assets percentage
-0.09
vs 25 benchmark
ROCE
Return on capital employed
-3.98
vs 25 benchmark
How WIX Stacks Against Its Sector Peers
| Metric | WIX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -23.32 | 34.40 | Better (Cheaper) |
| ROE | 28.08% | 730.00% | Weak |
| Net Margin | -8.19% | -3110.00% (disorted) | Weak |
| Debt/Equity | -1.17 | 0.22 | Strong (Low Leverage) |
| Current Ratio | 0.61 | 6.05 | Weak Liquidity |
| ROA | -9.44% | 254.00% | Weak |
WIX outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
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
98.37%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
129.74%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
285.71%
Industry Style: Growth, Innovation, High Beta
High Growth