WIPRO LTD-ADR (WIT) Stock Fundamental Analysis
NYSE:WIT - US97651M1099 - ADR
2.825 USD
+0.03 (+0.89%)
Taking everything into account, WIT scores 6 out of 10 in our fundamental rating. WIT was compared to 83 industry peers in the IT Services industry. WIT is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. WIT has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
WIT had positive earnings in the past year.
In the past year WIT had a positive cash flow from operations.
In the past 5 years WIT has always been profitable.
In the past 5 years WIT always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 10.30%, WIT belongs to the top of the industry, outperforming 86.75% of the companies in the same industry.
The Return On Equity of WIT (15.49%) is better than 75.90% of its industry peers.
WIT has a better Return On Invested Capital (10.39%) than 73.49% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for WIT is significantly below the industry average of 22.73%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.3% | ||
| ROE | 15.49% | ||
| ROIC | 10.39% |
ROA(3y)9.82%
ROA(5y)10.75%
ROE(3y)15.04%
ROE(5y)16.64%
ROIC(3y)10.49%
ROIC(5y)11.45%
1.3 Margins
WIT has a better Profit Margin (15.08%) than 90.36% of its industry peers.
In the last couple of years the Profit Margin of WIT has declined.
WIT has a better Operating Margin (16.99%) than 90.36% of its industry peers.
In the last couple of years the Operating Margin of WIT has remained more or less at the same level.
WIT has a worse Gross Margin (30.34%) than 61.45% of its industry peers.
WIT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.99% | ||
| PM (TTM) | 15.08% | ||
| GM | 30.34% |
OM growth 3Y-0.16%
OM growth 5Y0.38%
PM growth 3Y-1.54%
PM growth 5Y-1.54%
GM growth 3Y1.04%
GM growth 5Y1.44%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so WIT is creating value.
The number of shares outstanding for WIT has been increased compared to 1 year ago.
The number of shares outstanding for WIT has been reduced compared to 5 years ago.
WIT has a worse debt/assets ratio than last year.
2.2 Solvency
WIT has an Altman-Z score of 5.83. This indicates that WIT is financially healthy and has little risk of bankruptcy at the moment.
WIT has a better Altman-Z score (5.83) than 83.13% of its industry peers.
The Debt to FCF ratio of WIT is 1.02, which is an excellent value as it means it would take WIT, only 1.02 years of fcf income to pay off all of its debts.
WIT has a Debt to FCF ratio of 1.02. This is amongst the best in the industry. WIT outperforms 83.13% of its industry peers.
WIT has a Debt/Equity ratio of 0.17. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of WIT (0.17) is better than 62.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 1.02 | ||
| Altman-Z | 5.83 |
ROIC/WACC1.88
WACC5.52%
2.3 Liquidity
A Current Ratio of 2.40 indicates that WIT has no problem at all paying its short term obligations.
With a decent Current ratio value of 2.40, WIT is doing good in the industry, outperforming 72.29% of the companies in the same industry.
WIT has a Quick Ratio of 2.39. This indicates that WIT is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 2.39, WIT is in the better half of the industry, outperforming 72.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.4 | ||
| Quick Ratio | 2.39 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 20.21% over the past year.
WIT shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.52% yearly.
WIT shows a small growth in Revenue. In the last year, the Revenue has grown by 0.41%.
Measured over the past years, WIT shows a small growth in Revenue. The Revenue has been growing by 7.86% on average per year.
EPS 1Y (TTM)20.21%
EPS 3Y3.89%
EPS 5Y8.52%
EPS Q2Q%10.65%
Revenue 1Y (TTM)0.41%
Revenue growth 3Y4.05%
Revenue growth 5Y7.86%
Sales Q2Q%0.78%
3.2 Future
The Earnings Per Share is expected to grow by 7.90% on average over the next years.
Based on estimates for the next years, WIT will show a small growth in Revenue. The Revenue will grow by 4.41% on average per year.
EPS Next Y6.18%
EPS Next 2Y6.49%
EPS Next 3Y5.55%
EPS Next 5Y7.9%
Revenue Next Year1.07%
Revenue Next 2Y3.35%
Revenue Next 3Y3.91%
Revenue Next 5Y4.41%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 18.83, which indicates a rather expensive current valuation of WIT.
Compared to the rest of the industry, the Price/Earnings ratio of WIT indicates a somewhat cheap valuation: WIT is cheaper than 65.06% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.76. WIT is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 17.33, the valuation of WIT can be described as rather expensive.
65.06% of the companies in the same industry are more expensive than WIT, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 34.91. WIT is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.83 | ||
| Fwd PE | 17.33 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WIT is valued cheaper than 81.93% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, WIT is valued a bit cheaper than 73.49% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.58 | ||
| EV/EBITDA | 9.15 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of WIT may justify a higher PE ratio.
PEG (NY)3.05
PEG (5Y)2.21
EPS Next 2Y6.49%
EPS Next 3Y5.55%
5. Dividend
5.1 Amount
WIT has a yearly dividend return of 0.05%, which is pretty low.
WIT's Dividend Yield is a higher than the industry average which is at 2.48.
Compared to an average S&P500 Dividend Yield of 2.36, WIT's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.05% |
5.2 History
The dividend of WIT is nicely growing with an annual growth rate of 38.62%!
WIT has paid a dividend for at least 10 years, which is a reliable track record.
WIT has decreased its dividend recently.
Dividend Growth(5Y)38.62%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
46.61% of the earnings are spent on dividend by WIT. This is a bit on the high side, but may be sustainable.
WIT's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP46.61%
EPS Next 2Y6.49%
EPS Next 3Y5.55%
NYSE:WIT (8/22/2025, 2:49:05 PM)
2.825
+0.03 (+0.89%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners13.01%
Inst Owner Change1.16%
Ins Owners60.82%
Ins Owner ChangeN/A
Market Cap29.58B
Analysts51.91
Price Target2.9 (2.65%)
Short Float %2.81%
Short Ratio12.68
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.05% |
Yearly Dividend0.07
Dividend Growth(5Y)38.62%
DP46.61%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.57%
Min EPS beat(2)0.03%
Max EPS beat(2)3.1%
EPS beat(4)3
Avg EPS beat(4)1.21%
Min EPS beat(4)-2.73%
Max EPS beat(4)4.44%
EPS beat(8)3
Avg EPS beat(8)-0.97%
EPS beat(12)4
Avg EPS beat(12)-2.42%
EPS beat(16)4
Avg EPS beat(16)-3.23%
Revenue beat(2)0
Avg Revenue beat(2)-3%
Min Revenue beat(2)-3.42%
Max Revenue beat(2)-2.58%
Revenue beat(4)0
Avg Revenue beat(4)-2.81%
Min Revenue beat(4)-3.42%
Max Revenue beat(4)-2.51%
Revenue beat(8)0
Avg Revenue beat(8)-3.07%
Revenue beat(12)0
Avg Revenue beat(12)-3.18%
Revenue beat(16)0
Avg Revenue beat(16)-2.94%
PT rev (1m)1.28%
PT rev (3m)-4.19%
EPS NQ rev (1m)0.21%
EPS NQ rev (3m)-4.54%
EPS NY rev (1m)-0.19%
EPS NY rev (3m)2.26%
Revenue NQ rev (1m)1.04%
Revenue NQ rev (3m)-5.99%
Revenue NY rev (1m)1.16%
Revenue NY rev (3m)1.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.83 | ||
| Fwd PE | 17.33 | ||
| P/S | 2.89 | ||
| P/FCF | 16.58 | ||
| P/OCF | 15.13 | ||
| P/B | 2.97 | ||
| P/tB | 5.02 | ||
| EV/EBITDA | 9.15 |
EPS(TTM)0.15
EY5.31%
EPS(NY)0.16
Fwd EY5.77%
FCF(TTM)0.17
FCFY6.03%
OCF(TTM)0.19
OCFY6.61%
SpS0.98
BVpS0.95
TBVpS0.56
PEG (NY)3.05
PEG (5Y)2.21
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.3% | ||
| ROE | 15.49% | ||
| ROCE | 15.54% | ||
| ROIC | 10.39% | ||
| ROICexc | 20.03% | ||
| ROICexgc | 52.69% | ||
| OM | 16.99% | ||
| PM (TTM) | 15.08% | ||
| GM | 30.34% | ||
| FCFM | 17.45% |
ROA(3y)9.82%
ROA(5y)10.75%
ROE(3y)15.04%
ROE(5y)16.64%
ROIC(3y)10.49%
ROIC(5y)11.45%
ROICexc(3y)18.66%
ROICexc(5y)20.95%
ROICexgc(3y)47.85%
ROICexgc(5y)48.79%
ROCE(3y)15.2%
ROCE(5y)16.7%
ROICexcg growth 3Y6.71%
ROICexcg growth 5Y4%
ROICexc growth 3Y1.11%
ROICexc growth 5Y-3.29%
OM growth 3Y-0.16%
OM growth 5Y0.38%
PM growth 3Y-1.54%
PM growth 5Y-1.54%
GM growth 3Y1.04%
GM growth 5Y1.44%
F-Score6
Asset Turnover0.68
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 1.02 | ||
| Debt/EBITDA | 0.83 | ||
| Cap/Depr | 50.99% | ||
| Cap/Sales | 1.66% | ||
| Interest Coverage | 17.82 | ||
| Cash Conversion | 94.35% | ||
| Profit Quality | 115.67% | ||
| Current Ratio | 2.4 | ||
| Quick Ratio | 2.39 | ||
| Altman-Z | 5.83 |
F-Score6
WACC5.52%
ROIC/WACC1.88
Cap/Depr(3y)41.69%
Cap/Depr(5y)52.21%
Cap/Sales(3y)1.49%
Cap/Sales(5y)2.03%
Profit Quality(3y)123.26%
Profit Quality(5y)112.51%
High Growth Momentum
Growth
EPS 1Y (TTM)20.21%
EPS 3Y3.89%
EPS 5Y8.52%
EPS Q2Q%10.65%
EPS Next Y6.18%
EPS Next 2Y6.49%
EPS Next 3Y5.55%
EPS Next 5Y7.9%
Revenue 1Y (TTM)0.41%
Revenue growth 3Y4.05%
Revenue growth 5Y7.86%
Sales Q2Q%0.78%
Revenue Next Year1.07%
Revenue Next 2Y3.35%
Revenue Next 3Y3.91%
Revenue Next 5Y4.41%
EBIT growth 1Y8.98%
EBIT growth 3Y3.88%
EBIT growth 5Y8.27%
EBIT Next Year20.12%
EBIT Next 3Y10.15%
EBIT Next 5Y9.21%
FCF growth 1Y1.02%
FCF growth 3Y19.5%
FCF growth 5Y14.93%
OCF growth 1Y2.56%
OCF growth 3Y15.21%
OCF growth 5Y10.98%