Why is Wix.com Ltd. ?
1
With a Negative Book Value, the company has a Weak Long Term Fundamental Strength
- Poor long term growth as Operating profit has grown by an annual rate 25.77% of over the last 5 years
- Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of 26.26
2
Risky - Negative Book Value
- The stock is trading risky as compared to its average historical valuations
- Over the past year, while the stock has generated a return of -57.71%, its profits have risen by 77.6% ; the PEG ratio of the company is 0.8
3
Below par performance in long term as well as near term
- Along with generating -57.71% returns in the last 1 year, the stock has also underperformed S&P 500 in the last 3 years, 1 year and 3 months
How much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Wix.com Ltd. for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Wix.com Ltd.
-53.29%
-0.85
51.96%
S&P 500
13.22%
0.61
20.17%
Quality key factors
Factor
Value
Sales Growth (5y)
16.97%
EBIT Growth (5y)
25.77%
EBIT to Interest (avg)
26.26
Debt to EBITDA (avg)
Negative Net Debt
Net Debt to Equity (avg)
2.77
Sales to Capital Employed (avg)
3.70
Tax Ratio
11.04%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
95.44%
ROCE (avg)
0
ROE (avg)
0
Valuation Key Factors 
Factor
Value
P/E Ratio
58
Industry P/E
Price to Book Value
-50.29
EV to EBIT
62.65
EV to EBITDA
50.49
EV to Capital Employed
-12.59
EV to Sales
4.42
PEG Ratio
0.77
Dividend Yield
NA
ROCE (Latest)
Negative Capital Employed
ROE (Latest)
Negative BV
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bearish
Mildly Bearish
Technical Movement
17What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 562.67 MM
NET SALES(Q)
Highest at USD 489.93 MM
RAW MATERIAL COST(Y)
Fallen by -1.82% (YoY
OPERATING PROFIT(Q)
Highest at USD 57.76 MM
OPERATING PROFIT MARGIN(Q)
Highest at 11.79 %
NET PROFIT(Q)
Highest at USD 63.79 MM
EPS(Q)
Highest at USD 0.97
-11What is not working for the Company
INTEREST(Q)
Highest at USD 38.38 MM
PRE-TAX PROFIT(Q)
Lowest at USD 12.14 MM
Here's what is working for Wix.com Ltd.
Operating Cash Flow
Highest at USD 562.67 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (USD MM)
Net Sales
Highest at USD 489.93 MM and Grown
In each period in the last five periodsMOJO Watch
Near term sales trend is very positive
Net Sales (USD MM)
Operating Profit
Highest at USD 57.76 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (USD MM)
Operating Profit Margin
Highest at 11.79 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Net Profit
Highest at USD 63.79 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (USD MM)
Net Profit
At USD 63.79 MM has Grown at 64.75%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is positive
Net Profit (USD MM)
EPS
Highest at USD 0.97
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (USD)
Raw Material Cost
Fallen by -1.82% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Here's what is not working for Wix.com Ltd.
Pre-Tax Profit
At USD 12.14 MM has Fallen at -69.8%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (USD MM)
Interest
At USD 38.38 MM has Grown at inf%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Interest
Highest at USD 38.38 MM
in the last five periods and Increased by inf% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Pre-Tax Profit
Lowest at USD 12.14 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (USD MM)






