WIPRO LTD-ADR (WIT) Stock Fundamental Analysis
NYSE:WIT - New York Stock Exchange, Inc. - US97651M1099 - ADR - Currency: USD
We assign a fundamental rating of 6 out of 10 to WIT. WIT was compared to 82 industry peers in the IT Services industry. WIT has an excellent financial health rating, but there are some minor concerns on its profitability. 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.
WIT had a positive operating cash flow in the past year.
WIT had positive earnings in each of the past 5 years.
WIT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
WIT's Return On Assets of 9.52% is amongst the best of the industry. WIT outperforms 81.71% of its industry peers.
WIT has a better Return On Equity (14.52%) than 74.39% of its industry peers.
With a decent Return On Invested Capital value of 10.07%, WIT is doing good in the industry, outperforming 71.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.52% | ||
| ROE | 14.52% | ||
| ROIC | 10.07% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 13.97%, WIT belongs to the top of the industry, outperforming 90.24% of the companies in the same industry.
In the last couple of years the Profit Margin of WIT has declined.
Looking at the Operating Margin, with a value of 16.87%, WIT belongs to the top of the industry, outperforming 89.02% of the companies in the same industry.
WIT's Operating Margin has been stable in the last couple of years.
WIT's Gross Margin of 30.23% is on the low side compared to the rest of the industry. WIT is outperformed by 62.20% of its industry peers.
WIT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.87% | ||
| PM (TTM) | 13.97% | ||
| GM | 30.23% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), WIT is destroying value.
WIT has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 5.78 indicates that WIT is not in any danger for bankruptcy at the moment.
WIT has a better Altman-Z score (5.78) than 80.49% of its industry peers.
WIT has a debt to FCF ratio of 1.13. This is a very positive value and a sign of high solvency as it would only need 1.13 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 1.13, WIT belongs to the best of the industry, outperforming 80.49% of the companies in the same industry.
A Debt/Equity ratio of 0.22 indicates that WIT is not too dependend on debt financing.
WIT has a better Debt to Equity ratio (0.22) than 60.98% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 1.13 | ||
| Altman-Z | 5.78 |
ROIC/WACC0.95
WACC10.55%
2.3 Liquidity
A Current Ratio of 2.83 indicates that WIT has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.83, WIT belongs to the top of the industry, outperforming 80.49% of the companies in the same industry.
A Quick Ratio of 2.82 indicates that WIT has no problem at all paying its short term obligations.
WIT has a better Quick ratio (2.82) than 80.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.83 | ||
| Quick Ratio | 2.82 |
3. Growth
3.1 Past
WIT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 20.80%, which is quite impressive.
WIT shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.52% yearly.
The Revenue has decreased by -0.75% in the past year.
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)20.8%
EPS 3Y3.89%
EPS 5Y8.52%
EPS Q2Q%25.32%
Revenue 1Y (TTM)-0.75%
Revenue growth 3Y4.05%
Revenue growth 5Y7.86%
Sales Q2Q%1.33%
3.2 Future
The Earnings Per Share is expected to grow by 9.72% on average over the next years. This is quite good.
Based on estimates for the next years, WIT will show a small growth in Revenue. The Revenue will grow by 7.28% on average per year.
EPS Next Y3.56%
EPS Next 2Y5.01%
EPS Next 3Y5.17%
EPS Next 5Y9.72%
Revenue Next Year-0.08%
Revenue Next 2Y2.59%
Revenue Next 3Y3.26%
Revenue Next 5Y7.28%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 19.40, 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 64.63% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 25.91. WIT is valued slightly cheaper when compared to this.
WIT is valuated rather expensively with a Price/Forward Earnings ratio of 19.02.
Based on the Price/Forward Earnings ratio, WIT is valued a bit cheaper than the industry average as 65.85% of the companies are valued more expensively.
WIT's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.77.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.4 | ||
| Fwd PE | 19.02 |
4.2 Price Multiples
WIT's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. WIT is cheaper than 86.59% of the companies in the same industry.
WIT's Price/Free Cash Flow ratio is rather cheap when compared to the industry. WIT is cheaper than 86.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.06 | ||
| EV/EBITDA | 9.08 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates WIT does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of WIT may justify a higher PE ratio.
PEG (NY)5.46
PEG (5Y)2.28
EPS Next 2Y5.01%
EPS Next 3Y5.17%
5. Dividend
5.1 Amount
WIT has a Yearly Dividend Yield of 2.39%. Purely for dividend investing, there may be better candidates out there.
WIT's Dividend Yield is rather good when compared to the industry average which is at 2.35. WIT pays more dividend than 95.12% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, WIT has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.39% |
5.2 History
The dividend of WIT decreases each year by -11.63%.
WIT has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-11.63%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
WIT pays out 4.21% of its income as dividend. This is a sustainable payout ratio.
DP4.21%
EPS Next 2Y5.01%
EPS Next 3Y5.17%
NYSE:WIT (5/27/2025, 2:46:03 PM)
2.91
+0.05 (+1.75%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners14.08%
Inst Owner Change18.54%
Ins Owners60.74%
Ins Owner ChangeN/A
Market Cap30.46B
Analysts52.61
Price Target3.03 (4.12%)
Short Float %2.4%
Short Ratio10.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.39% |
Yearly Dividend0.01
Dividend Growth(5Y)-11.63%
DP4.21%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.86%
Min EPS beat(2)-2.73%
Max EPS beat(2)4.44%
EPS beat(4)1
Avg EPS beat(4)-0.13%
Min EPS beat(4)-2.73%
Max EPS beat(4)4.44%
EPS beat(8)1
Avg EPS beat(8)-3.15%
EPS beat(12)2
Avg EPS beat(12)-4.19%
EPS beat(16)4
Avg EPS beat(16)-2.69%
Revenue beat(2)0
Avg Revenue beat(2)-2.62%
Min Revenue beat(2)-2.72%
Max Revenue beat(2)-2.51%
Revenue beat(4)0
Avg Revenue beat(4)-2.98%
Min Revenue beat(4)-4.04%
Max Revenue beat(4)-2.51%
Revenue beat(8)0
Avg Revenue beat(8)-3.29%
Revenue beat(12)0
Avg Revenue beat(12)-3.15%
Revenue beat(16)0
Avg Revenue beat(16)-2.66%
PT rev (1m)5.13%
PT rev (3m)-14.11%
EPS NQ rev (1m)0.21%
EPS NQ rev (3m)-7.5%
EPS NY rev (1m)-0.06%
EPS NY rev (3m)-3.48%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.42%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)-5.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.4 | ||
| Fwd PE | 19.02 | ||
| P/S | 2.92 | ||
| P/FCF | 15.06 | ||
| P/OCF | 14.07 | ||
| P/B | 3.04 | ||
| P/tB | 5.18 | ||
| EV/EBITDA | 9.08 |
EPS(TTM)0.15
EY5.15%
EPS(NY)0.15
Fwd EY5.26%
FCF(TTM)0.19
FCFY6.64%
OCF(TTM)0.21
OCFY7.11%
SpS1
BVpS0.96
TBVpS0.56
PEG (NY)5.46
PEG (5Y)2.28
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.52% | ||
| ROE | 14.52% | ||
| ROCE | 14.67% | ||
| ROIC | 10.07% | ||
| ROICexc | 20.14% | ||
| ROICexgc | 54.37% | ||
| OM | 16.87% | ||
| PM (TTM) | 13.97% | ||
| GM | 30.23% | ||
| FCFM | 19.37% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
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 | 0.22 | ||
| Debt/FCF | 1.13 | ||
| Debt/EBITDA | 1.03 | ||
| Cap/Depr | 39.36% | ||
| Cap/Sales | 1.36% | ||
| Interest Coverage | 15.73 | ||
| Cash Conversion | 101.96% | ||
| Profit Quality | 138.73% | ||
| Current Ratio | 2.83 | ||
| Quick Ratio | 2.82 | ||
| Altman-Z | 5.78 |
F-Score6
WACC10.55%
ROIC/WACC0.95
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)20.8%
EPS 3Y3.89%
EPS 5Y8.52%
EPS Q2Q%25.32%
EPS Next Y3.56%
EPS Next 2Y5.01%
EPS Next 3Y5.17%
EPS Next 5Y9.72%
Revenue 1Y (TTM)-0.75%
Revenue growth 3Y4.05%
Revenue growth 5Y7.86%
Sales Q2Q%1.33%
Revenue Next Year-0.08%
Revenue Next 2Y2.59%
Revenue Next 3Y3.26%
Revenue Next 5Y7.28%
EBIT growth 1Y8.27%
EBIT growth 3Y3.88%
EBIT growth 5Y8.27%
EBIT Next Year20.12%
EBIT Next 3Y9.73%
EBIT Next 5Y12.33%
FCF growth 1Y13.13%
FCF growth 3Y19.5%
FCF growth 5Y14.93%
OCF growth 1Y14.14%
OCF growth 3Y15.21%
OCF growth 5Y10.98%