Wix.com Ltd. Ordinary Shares (WIX)

FairStock Score: 19/100 — RISKY

Key Financials

Strengths

• Generates $486 million in annual free cash flow (11.8% yield on market cap)

Concerns

• Elevated P/E of 62.9x prices in substantial future growth that may not materialize
• Currently unprofitable—sustained losses could lead to dilutive capital raises or balance sheet deterioration
• Altman Z-Score of 0.6 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

Wix.com Ltd. Ordinary Shares is a small-cap technology company valued at $4.1 billion. Revenue stands at $2.1 billion, though the company is currently unprofitable. From a quality standpoint, Wix.com shows distressed Altman Z-Score of 0.6 warrants caution. On valuation, the stock is commanding a steep 62.9x multiple, with 3.8% FCF yield. Growth dynamics show revenue growing at 13.9% and profit growth of -183.8%. Our composite FairStock Score of 19/100 reflects below-average fundamentals overall. Without profitability, this remains speculative—suitable only for those with high risk tolerance and a long time horizon.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $486 million in annual free cash flow (11.8% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

At 63x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer