Wix.com Ltd.
Find Ratings ReportsWIX.COM LTD's gross profit margin for the third quarter of its fiscal year 2020 has decreased when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line. WIX.COM LTD has strong liquidity. Currently, the Quick Ratio is 1.73 which shows the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.
At the same time, stockholders' equity ("net worth") has greatly increased by 34.57% from the same quarter last year. The key liquidity measurements indicate that the company is unlikely to face financial difficulties in the near future.
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Income Statement | Q3 FY20 | Q3 FY19 |
---|---|---|
Net Sales ($mil) | 254.18 | 196.79 |
EBITDA ($mil) | -43.71 | -16.11 |
EBIT ($mil) | -48.25 | -20.04 |
Net Income ($mil) | -56.84 | -17.37 |
Balance Sheet | Q3 FY20 | Q3 FY19 |
---|---|---|
Cash & Equiv. ($mil) | 999.4 | 775.87 |
Total Assets ($mil) | 1795.13 | 1036.14 |
Total Debt ($mil) | 912.71 | 409.09 |
Equity ($mil) | 267.5 | 198.77 |
Profitability | Q3 FY20 | Q3 FY19 |
---|---|---|
Gross Profit Margin | 70.13 | 74.54 |
EBITDA Margin | -17.19 | -8.18 |
Operating Margin | -18.98 | -10.18 |
Sales Turnover | 0.51 | 0.7 |
Return on Assets | -9.76 | -6.81 |
Return on Equity | -65.53 | -35.52 |
Debt | Q3 FY20 | Q3 FY19 |
---|---|---|
Current Ratio | 1.82 | 1.95 |
Debt/Capital | 0.77 | 0.67 |
Interest Expense | 0.0 | 0.0 |
Interest Coverage | 0.0 | 0.0 |
Share Data | Q3 FY20 | Q3 FY19 |
---|---|---|
Shares outstanding (mil) | 55.12 | 49.27 |
Div / share | 0.0 | 0.0 |
EPS | -1.03 | -0.34 |
Book value / share | 4.85 | 4.03 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 609412.0 | 677469.0 |
HOLD. The current P/E ratio is negative, which has no meaningful value in the assessment of premium or discount valuation, it simply displays that the company has negative earnings. For additional comparison, its price-to-book ratio of 51.20 indicates a significant premium versus the S&P 500 average of 4.02 and a significant premium versus the subsector average of 27.77. The price-to-sales ratio is well above the S&P 500 average, but well below the subsector average. After reviewing these and other key valuation criteria, WIX.COM LTD proves to trade at a premium to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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WIX NM | Peers 108.22 | WIX 86.52 | Peers 143.45 | |||||||||||||||||||||
Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings. WIX's P/E is negative making this valuation measure meaningless. |
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. WIX is trading at a significant discount to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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WIX 903.67 | Peers 217.54 | WIX NA | Peers 2.74 | |||||||||||||||||||||
Neutral. The absence of a valid price-to-projected earnings ratio happens when a stock can not be valued on the basis of a negative expected future earnings. WIX's ratio is negative making this valuation measure meaningless. |
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. Ratio not available. |
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Price/Book |
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Earnings Growth |
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WIX 51.20 | Peers 27.77 | WIX -131.91 | Peers 21.34 | |||||||||||||||||||||
Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. WIX is trading at a significant premium to its peers. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, WIX is expected to significantly trail its peers on the basis of its earnings growth rate. |
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Price/Sales |
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Sales Growth |
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WIX 15.04 | Peers 15.67 | WIX 26.37 | Peers 18.14 | |||||||||||||||||||||
Average. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. WIX is trading at a valuation on par with its subsector on this measurement. |
Higher. A sales growth rate that exceeds the subsector implies that a company is gaining market share. WIX has a sales growth rate that significantly exceeds its peers. |
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