Wix.com Ltd.

Where It Passes

Where It Falls Short

• Profitability0% pass✓ 6✗ 29▾

  No clean pass — all 16 investors flag at least one profitability criterion

  Positive EPS (10 years)3/16 years positive

  ✗GrahamPositive EPS every year for 10 years

  EPS Growth (3-yr avg, 10-yr window)

  ✗Graham>= 33% growth

  Net Income Positive (10+ years)3/16 years positive

  ✗BuffettPositive every year for 10+ years

  ROE (up to 5-year arithmetic mean)-141.4%

  ✗Buffett> 15% arithmetic mean (app rule)

  Operating Margin (10-yr trend)0.1% (latest)

  ✓BuffettStable or rising over 10 years

  Free Cash Flow Proxy

  ✗BuffettPositive and growing

  Earnings Variance (10-yr CoV)

  ✗BuffettCoV < 0.3

  Retained Earnings Effectiveness

  ✗Buffett$1 retained -> > $1 market value created

  Basic earnings-growth PEG (dividends excluded)P/E 76.3x (growth N/A)

  ✗Lynch< 1.0 (ideally < 0.5)

  3-5 Year EPS CAGR

  ✗Lynch15-30% (Fast Grower); > 0% to pass

  ROEN/A (negative equity)

  ✗Lynch> 15%

  EBIT / Enterprise Value0.0%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=0.0%, ROC=12.2%

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Net Income / Total Assets1.94%

  ✓PiotroskiROA > 0

  ROA Change YoY7.23% -> 1.94% (delta: -5.29%)

  ✗PiotroskiCurrent ROA > Prior ROA

  (CFO / Total Assets) vs ROACFO/Assets=22.32%, ROA=1.94%

  ✓PiotroskiCFO/Assets > ROA

  Gross Margin Change YoY67.9% -> 68.1%

  ✓PiotroskiImproved YoY

  Pre-Tax Income / Revenue0.1%

  ✗Dreman>= 8%

  Net Income / Shareholders' Equity

  ✗Dreman> 12%

  Margin of SafetyP/E=76.3x

  ✗PabraiP/B < 1.5 or P/E < 15

  Return on Equity-61.2% (3-yr avg)

  ✗AkreROE > 20% (3-year avg)

  Discount to Intrinsic Value-252.6% (IV=$19.05 vs Price=$67.17)

  ✗Marks>= 20% below intrinsic value

  Positive Net Income Frequency3/15 years positive

  ✗MarksPositive net income in >= 7 of last 10 years

  Operating Income / Revenue0.1%

  ✗Ackman>= 15%

  Net Income / Shareholders Equity

  ✗Ackman>= 15%

  5-Year EPS CAGR

  ✗Templeton> 0% (5-year EPS CAGR)

  Operating Margin Trend-1.6% (2023) -> 0.1% (2025)

  ✓TempletonNon-negative operating-margin trend over 3 years

  Revenue growth vs. gross and operating margin trendgross margin 67.2% -> 68.1%, operating margin -1.6% -> 0.1%

  ✗SleepRevenue rising; gross margin flat or falling; operating margin holding

  Net income / market capitalization+1.29%; #2912/6340 (top 45.9%)

  ✗AsnessTop 30% of eligible cross-section✗OshaughnessyTop 10% of eligible cross-section

  Gross profit / total assets+51.96%; #627/3702 (top 16.9%)

  ✓AsnessTop 30% of eligible cross-section

  Net income / positive book equity

  ✗AsnessTop 30% of eligible cross-section

  Negative 5-year standard deviation of ROA-0.1100; #3598/5884 (top 61.1%)

  ✗AsnessTop 30% of eligible cross-section

  3-5 Year Diluted EPS CAGR

  ✗Neff7%-20% annualized

  Positive Diluted-EPS Years3/10 years positive

  ✗Schloss>= 70% positive over 5-10 observed years (app rule)
• Valuation0% pass✓ 2✗ 26▾

  No clean pass — all 13 investors flag at least one valuation criterion

  Price / 3-yr avg EPS52.9x

  ✗Graham<= 15x

  Price-to-Book Ratio

  ✗Graham<= 1.5x

  P/E x P/B

  ✗Graham<= 22.5

  Basic earnings-growth PEG (dividends excluded)P/E 76.3x (growth N/A)

  ✗Lynch< 1.0 (ideally < 0.5)

  EBIT / Enterprise Value0.0%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=0.0%, ROC=12.2%

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Price / EPS76.3x

  ✗Dreman< 12x✗Templeton< 12x (fixed ceiling; proxy for the market's cheapest 40%)

  Price / (CFO / Shares)6.3x

  ✓Dreman< 8x

  Price / Book Value per ShareN/A (negative BVPS)

  ✗Dreman< 1.2x✗Templeton< 1.5x✗SchlossP/B <= 0.80x (app cutoff)

  Valuation ReasonablenessP/E=76.3x

  ✗MungerP/E < 25 or Owner Earnings Yield > 5%

  P/E or FCF YieldP/E=76.3x

  ✗PabraiP/E < 15 or FCF Yield > 10%

  P/B or P/E vs. Historical AverageP/E=76.3x

  ✗MarksP/E < 15 or P/B < 2.0

  Discount to Intrinsic Value-252.6% (IV=$19.05 vs Price=$67.17)

  ✗Marks>= 20% below intrinsic value

  Price / FCF per Share

  ✗Ackman<= 25

  Price vs. Trailing Low103% of trailing low ($65.13)

  ✓Templeton<= 120% of trailing low (certified split-adjusted live window)

  Net income / market capitalization+1.29%; #2912/6340 (top 45.9%)

  ✗AsnessTop 30% of eligible cross-section✗OshaughnessyTop 10% of eligible cross-section

  Positive book equity / market capitalization-0.0934; #5703/6449 (top 88.4%)

  ✗AsnessTop 30% of eligible cross-section

  Price / Diluted EPS76.3x

  ✗NeffP/E <= 15x (app proxy for a P/E 40%-60% below the market)

  (EPS CAGR % + Dividend Yield %) / P/E

  ✗Neff> 0.7 (Neff's published traditional edge)

  Price / Tangible Book Value per ShareN/A (non-positive TBVPS)

  ✗SchlossP/TBV <= 1.00x (app cutoff)

  Book Value per Share Change-229.8%

  ✗SchlossLatest BVPS >= earliest BVPS over >= 3 years (app rule)

  Revenue / market capitalization+0.5088; #2609/5247 (top 49.7%)

  ✗OshaughnessyTop 10% of eligible cross-section

  (Operating cash flow - capex) / market capitalization

  ✗OshaughnessyTop 10% of eligible cross-section

  Trailing six-month price return through the evaluation date+3.13%; #2291/6202 (top 36.9%)

  ✗OshaughnessyTop 10% of eligible cross-section
• Growth0% pass✓ 4✗ 9▾

  No clean pass — all 8 investors flag at least one growth criterion

  EPS Growth (3-yr avg, 10-yr window)

  ✗Graham>= 33% growth

  Basic earnings-growth PEG (dividends excluded)P/E 76.3x (growth N/A)

  ✗Lynch< 1.0 (ideally < 0.5)

  3-5 Year EPS CAGR

  ✗Lynch15-30% (Fast Grower); > 0% to pass

  Inventory Growth vs Revenue GrowthN/A (no inventory)

  ✓LynchInventory growth < Revenue growth

  EPS Growth Direction

  ✗DremanPositive over recent years

  EPS CAGR24.3% CAGR over 2 years

  ✓Dreman> 5% annualized

  Positive Net Income Frequency3/15 years positive

  ✗MarksPositive net income in >= 7 of last 10 years

  3yr Median Revenue Growth12.7%

  ✓Ackman>= 5%

  Positive EPS Growth Frequency

  ✗AckmanPositive EPS growth in >= 3 of last 5 years

  5-Year EPS CAGR

  ✗Templeton> 0% (5-year EPS CAGR)

  Revenue growth vs. gross and operating margin trendgross margin 67.2% -> 68.1%, operating margin -1.6% -> 0.1%

  ✗SleepRevenue rising; gross margin flat or falling; operating margin holding

  5-year Revenue CAGR15.2%

  ✓SleepCAGR > 7%

  3-5 Year Diluted EPS CAGR

  ✗Neff7%-20% annualized
• Efficiency0% pass✓ 1✗ 10▾

  No clean pass — all 8 investors flag at least one efficiency criterion

  Current Ratio1.19

  ✗Graham>= 2.0

  ROIC (3-5 yr avg)-10.1%

  ✗Buffett> 10%

  ROIC - WACC-20.1%

  ✗BuffettPositive (WACC = 10%)

  EBIT / (NWC + Net Fixed Assets)12.2%

  ✗Greenblatt> 25%

  Current Ratio Change YoY0.84 -> 1.19

  ✓PiotroskiIncreased YoY

  Revenue / Total Assets Change YoY0.92x -> 0.76x

  ✗PiotroskiImproved YoY

  Current Assets / Current Liabilities1.19

  ✗Dreman> 1.5

  Return on Invested CapitalN/A (non-positive invested capital)

  ✗Munger> 15%

  ROIC (high and growing)FY2023: ROIC=unavailable; FY2024: ROIC=16.0%; FY2025: ROIC=unavailable

  ✗AkreLatest 3 consecutive FYs: ROIC > 15% in each

  Reinvestment Rate x ROIC

  ✗AkreReinvestment Rate * ROIC > 10%

  ROIC (5-year)1/3 years above 12% (latest 16.0%)

  ✗SleepROIC > 12% in a majority of years
• Valuation models0% pass✗ 2▾

  WIX overvalued: all 2 models price fair value below $67.17 (median $11.38)

  Greenblatt fair value$3.71

  ✗Greenblatt-1710.5% margin vs $67.17

  Dreman fair value$19.05

  ✗Dreman-252.6% margin vs $67.17
• Verdicts7% pass✓ 1✗ 13▾

  Split decision: 12 FAIL · 3 NEUTRAL · 1 PASS

  Overall verdict

  ✗GrahamFAIL (1/9)✗BuffettFAIL (1/9)✗LynchFAIL (2/7)✗GreenblattRank #1694•PiotroskiNEUTRAL (F-Score 7)✗DremanFAIL (3/11)✗MungerFAIL (1/4)✗PabraiFAIL (0/3)✗AkreFAIL (0/6)✗MarksFAIL (1/5)✗AckmanFAIL (3/9)✗TempletonFAIL (3/8)✓SleepPASS (3/6)•AsnessNEUTRAL (Not ranked)✗NeffFAIL (1/6)✗SchlossFAIL (0/7)•OshaughnessyNEUTRAL (Not ranked)
• Debt & Leverage8% pass✓ 1✗ 14▾

  11 of 12 flag WIX's debt & leverage — Graham, Buffett, Lynch +8 more

  LT Debt vs Net Current Assets

  ✗GrahamLT Debt <= Net Current Assets

  Debt/Equity & Interest CoverageD/E: N/A (negative equity), IC: N/A

  ✗BuffettD/E < 0.5 AND Interest Coverage > 5x

  Total Debt / EquityN/A (negative equity)

  ✗Lynch< 0.33

  Cash - Long-term Debt

  ✗LynchPositive preferred

  LT Debt / Total Assets Change0.00% -> 0.00%

  ✓PiotroskiDecreased YoY

  Current Assets / Current Liabilities1.19

  ✗Dreman> 1.5✗SchlossCurrent ratio >= 1.50x (app cutoff)

  Total Debt / Shareholders' Equity

  ✗Dreman< 0.8✗Templeton< 1.0 (fixed cap; proxy for below-sector-median leverage)✗SchlossD/E < 1.00x

  Debt LevelsN/A (non-positive equity)

  ✗MungerDebt/Equity < 0.5✗AkreDebt/Equity < 0.3

  Interest Coverage & Debt/EBITDA

  ✗MarksInterest Coverage > 3x; Debt/EBITDA < 4x

  Total Debt / Shareholders Equity

  ✗Ackman<= 1.0

  Negative debt-to-equity (higher means less debt)

  ✗AsnessTop 30% of eligible cross-section
• Cash Flow50% pass✓ 6✗ 6▾

  5 of 10 pass — Buffett, Pabrai, Ackman +2 more object

  Free Cash Flow Proxy

  ✗BuffettPositive and growing

  FCF Positive and Growing$129.6M

  ✓LynchPositive and growing

  Operating Cash Flow$582.9M

  ✓PiotroskiCFO > 0

  (CFO / Total Assets) vs ROACFO/Assets=22.32%, ROA=1.94%

  ✓PiotroskiCFO/Assets > ROA

  Price / (CFO / Shares)6.3x

  ✓Dreman< 8x

  P/E or FCF YieldP/E=76.3x

  ✗PabraiP/E < 15 or FCF Yield > 10%

  FCF Positive7/10 years FCF positive

  ✓MarksPositive FCF in majority of recent years

  (OCF - CapEx) / Market Cap

  ✗Ackman>= 4%

  Price / FCF per Share

  ✗Ackman<= 25

  Positive Operating Cash Flow frequency12/15 years positive

  ✓SleepPositive OCF in >= 70% of available years

  Operating Cash Flow - Capital Expenditures

  ✗Neff> $0 (app proxy for a strong fundamental case)

  (Operating cash flow - capex) / market capitalization

  ✗OshaughnessyTop 10% of eligible cross-section