WIPRO LTD-ADR (WIT) Stock Fundamental Analysis
USA - NYSE:WIT - US97651M1099 - ADR
2.62 USD
0 (0%)
2.64 USD
+0.02 (+0.76%)
Overall WIT gets a fundamental rating of 6 out of 10. We evaluated WIT against 87 industry peers in the IT Services industry. While WIT has a great health rating, its profitability is only average at the moment. WIT has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year WIT was profitable.
In the past year WIT had a positive cash flow from operations.
In the past 5 years WIT has always been profitable.
WIT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
WIT's Return On Assets of 10.30% is amongst the best of the industry. WIT outperforms 87.36% of its industry peers.
With a decent Return On Equity value of 15.49%, WIT is doing good in the industry, outperforming 75.86% of the companies in the same industry.
The Return On Invested Capital of WIT (10.39%) is better than 73.56% of its industry peers.
The Average Return On Invested Capital over the past 3 years for WIT is significantly below the industry average of 21.81%.
| 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 90.80% of its industry peers.
In the last couple of years the Profit Margin of WIT has declined.
With an excellent Operating Margin value of 16.99%, WIT belongs to the best of the industry, outperforming 89.66% of the companies in the same industry.
In the last couple of years the Operating Margin of WIT has remained more or less at the same level.
Looking at the Gross Margin, with a value of 30.34%, WIT is doing worse than 60.92% of the companies in the same industry.
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.
Compared to 1 year ago, WIT has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.66 indicates that WIT is not in any danger for bankruptcy at the moment.
WIT's Altman-Z score of 5.66 is fine compared to the rest of the industry. WIT outperforms 77.01% 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's Debt to FCF ratio of 1.02 is fine compared to the rest of the industry. WIT outperforms 79.31% 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.
WIT's Debt to Equity ratio of 0.17 is fine compared to the rest of the industry. WIT outperforms 63.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 1.02 | ||
| Altman-Z | 5.66 |
ROIC/WACC1.92
WACC5.42%
2.3 Liquidity
A Current Ratio of 2.40 indicates that WIT has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.40, WIT is in the better half of the industry, outperforming 72.41% 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.
The Quick ratio of WIT (2.39) is better than 72.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.4 | ||
| Quick Ratio | 2.39 |
3. Growth
3.1 Past
WIT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 20.21%, 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 been growing slightly by 0.41% in the past year.
WIT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.86% yearly.
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
WIT is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.13% yearly.
The Revenue is expected to grow by 3.31% on average over the next years.
EPS Next Y4.57%
EPS Next 2Y5.19%
EPS Next 3Y5.57%
EPS Next 5Y6.13%
Revenue Next Year1.21%
Revenue Next 2Y3.44%
Revenue Next 3Y4.35%
Revenue Next 5Y3.31%
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 decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 18.71, WIT is valued on the expensive side.
Based on the Price/Earnings ratio, WIT is valued a bit cheaper than 70.11% of the companies in the same industry.
WIT is valuated rather cheaply when we compare the Price/Earnings ratio to 27.86, which is the current average of the S&P500 Index.
WIT is valuated correctly with a Price/Forward Earnings ratio of 16.75.
Based on the Price/Forward Earnings ratio, WIT is valued a bit cheaper than the industry average as 70.11% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of WIT to the average of the S&P500 Index (23.32), we can say WIT is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.71 | ||
| Fwd PE | 16.75 |
4.2 Price Multiples
WIT's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. WIT is cheaper than 83.91% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, WIT is valued a bit cheaper than the industry average as 75.86% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.63 | ||
| EV/EBITDA | 8.46 |
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.
WIT has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)4.1
PEG (5Y)2.2
EPS Next 2Y5.19%
EPS Next 3Y5.57%
5. Dividend
5.1 Amount
WIT has a yearly dividend return of 0.05%, which is pretty low.
Compared to an average industry Dividend Yield of 2.48, WIT pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.41, 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 been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of WIT decreased 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.
The dividend of WIT is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP46.61%
EPS Next 2Y5.19%
EPS Next 3Y5.57%
2.62
0 (0%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners14.48%
Inst Owner Change1.16%
Ins Owners64.1%
Ins Owner ChangeN/A
Market Cap27.44B
Analysts51.06
Price Target2.98 (13.74%)
Short Float %3.96%
Short Ratio15.02
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)-0.6%
PT rev (3m)3.13%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.52%
EPS NY rev (1m)-2.55%
EPS NY rev (3m)-1.73%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.04%
Revenue NY rev (1m)-0.32%
Revenue NY rev (3m)1.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.71 | ||
| Fwd PE | 16.75 | ||
| P/S | 2.73 | ||
| P/FCF | 15.63 | ||
| P/OCF | 14.27 | ||
| P/B | 2.8 | ||
| P/tB | 4.73 | ||
| EV/EBITDA | 8.46 |
EPS(TTM)0.14
EY5.34%
EPS(NY)0.16
Fwd EY5.97%
FCF(TTM)0.17
FCFY6.4%
OCF(TTM)0.18
OCFY7.01%
SpS0.96
BVpS0.94
TBVpS0.55
PEG (NY)4.1
PEG (5Y)2.2
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 | 5.66 |
F-Score6
WACC5.42%
ROIC/WACC1.92
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 Y4.57%
EPS Next 2Y5.19%
EPS Next 3Y5.57%
EPS Next 5Y6.13%
Revenue 1Y (TTM)0.41%
Revenue growth 3Y4.05%
Revenue growth 5Y7.86%
Sales Q2Q%0.78%
Revenue Next Year1.21%
Revenue Next 2Y3.44%
Revenue Next 3Y4.35%
Revenue Next 5Y3.31%
EBIT growth 1Y8.98%
EBIT growth 3Y3.88%
EBIT growth 5Y8.27%
EBIT Next Year17.59%
EBIT Next 3Y10.21%
EBIT Next 5Y6.43%
FCF growth 1Y1.02%
FCF growth 3Y19.5%
FCF growth 5Y14.93%
OCF growth 1Y2.56%
OCF growth 3Y15.21%
OCF growth 5Y10.98%