- Market conditions are very favorable. Although the e-commerce market has grown rapidly, the penetration rate is still quite low.
- Wix announced a mobile app builder that allows users to create and customize their own apps. It is also an essential driver.
- The company can show a net profit margin and increase the FCF margin by reducing share-based compensation and advertising expenses as a percentage of revenue.
- However, the company is currently trading without significant upside potential. On an EV/Sales multiple, WIX is trading at a 3 years average level.
- We are neutral on Wix but adding the company to our watchlist.
For further details see:
Wix: Still A Promising Company