WIXWIX
US • —
$51.41
P/E
38.77
PEG
—
FCF Yield
25.2%
Rev Growth YoY
+13.6% YoY
Gross Margin
67.4%
Health Score
7/10
D/E Ratio
6.33
Confidence
LOW
Business Snapshot
Wix.com Ltd. operates a cloud-based web development platform that enables users to create and manage websites without technical expertise. The company generates revenue primarily through subscription fees for its various service tiers, along with business solutions such as e-commerce, marketing, and payments. Operating in the highly competitive website building and digital presence market, Wix is a established challenger against platforms like Squarespace and Shopify, holding a notable position among small and medium-sized businesses. With a market capitalization of $1.96B, Wix sits in the small-cap tier and generated TTM revenue that is not disclosed in the available data.
Financial Health
Wix demonstrates a mixed financial profile with a strong cash flow engine operating alongside a leveraged balance sheet. Gross margin stands at a robust 67.4%, indicating healthy unit economics, though net margin is negative at -2.0% (no prior-year margin data is available for trend comparison)...
Risk Assessment
- VALUATION — P/E of 38.77x is significantly elevated versus the sector average of 22x, suggesting a premium that may not be justified by current earnings.
- DEBT / LIQUIDITY — Debt/Equity of 6.33x is extremely high, indicating a heavily leveraged capital structure that amplifies financial risk.
- EARNINGS QUALITY — Net margin of -2.0% is negative, meaning the company is operating at a net loss on a TTM basis despite strong cash flow.
- RETURN ON EQUITY — ROE of -55.4% is deeply negative, signaling that shareholder equity is being eroded and the business is not generating returns on invested capital.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed....
Wix demonstrates a mixed financial profile with a strong cash flow engine operating alongside a leveraged balance sheet. Gross margin stands at a robust 67.4%, indicating healthy unit economics, though net margin is negative at -2.0% (no prior-year margin data is available for trend comparison). The balance sheet presents a significant concern with a Debt/Equity ratio of 6.33x, classifying it as highly leveraged, though the current ratio of 1.19x suggests adequate short-term liquidity to cover near-term obligations. Free cash flow is exceptionally strong at $495.03M, translating to an outstanding FCF yield of 25.2%, indicating the company generates substantial cash from operations relative to its market value. Overall, financial health is characterised by a stark contrast between excellent cash generation and high leverage, meaning the company has significant reinvestment capacity but limited financial flexibility should debt markets tighten.
- VALUATION — P/E of 38.77x is significantly elevated versus the sector average of 22x, suggesting a premium that may not be justified by current earnings. - DEBT / LIQUIDITY — Debt/Equity of 6.33x is extremely high, indicating a heavily leveraged capital structure that amplifies financial risk. - EARNINGS QUALITY — Net margin of -2.0% is negative, meaning the company is operating at a net loss on a TTM basis despite strong cash flow. - RETURN ON EQUITY — ROE of -55.4% is deeply negative, signaling that shareholder equity is being eroded and the business is not generating returns on invested capital. - TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
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