WIPRO LTD-ADR (WIT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WIT - US97651M1099 - ADR
2.69 USD
-0.01 (-0.37%)
2.7085 USD
+0.02 (+0.69%)
Taking everything into account, WIT scores 6 out of 10 in our fundamental rating. WIT was compared to 86 industry peers in the IT Services industry. WIT has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. 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
Looking at the Return On Assets, with a value of 10.30%, WIT belongs to the top of the industry, outperforming 84.88% of the companies in the same industry.
WIT has a better Return On Equity (15.68%) than 80.23% of its industry peers.
WIT has a better Return On Invested Capital (11.00%) than 77.91% 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 29.74%.
The 3 year average ROIC (10.49%) for WIT is below the current ROIC(11.00%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.3% | ||
| ROE | 15.68% | ||
| ROIC | 11% |
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 Profit Margin of 15.06%. This is amongst the best in the industry. WIT outperforms 90.70% of its industry peers.
In the last couple of years the Profit Margin of WIT has declined.
WIT has a better Operating Margin (16.76%) than 87.21% 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 Gross Margin (30.12%) which is in line with its industry peers.
In the last couple of years the Gross Margin of WIT has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.76% | ||
| PM (TTM) | 15.06% | ||
| GM | 30.12% |
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) well above the Cost of Capital (WACC), WIT is creating value.
WIT has more shares outstanding than it did 1 year ago.
The number of shares outstanding for WIT has been reduced compared to 5 years ago.
The debt/assets ratio for WIT is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 5.62 indicates that WIT is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.62, WIT belongs to the top of the industry, outperforming 80.23% of the companies in the same industry.
WIT has a debt to FCF ratio of 1.11. This is a very positive value and a sign of high solvency as it would only need 1.11 years to pay back of all of its debts.
WIT has a Debt to FCF ratio of 1.11. This is in the better half of the industry: WIT outperforms 77.91% of its industry peers.
A Debt/Equity ratio of 0.10 indicates that WIT is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.10, WIT is doing good in the industry, outperforming 68.60% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | 1.11 | ||
| Altman-Z | 5.62 |
ROIC/WACC2.01
WACC5.46%
2.3 Liquidity
A Current Ratio of 2.26 indicates that WIT has no problem at all paying its short term obligations.
With a decent Current ratio value of 2.26, WIT is doing good in the industry, outperforming 66.28% of the companies in the same industry.
WIT has a Quick Ratio of 2.25. This indicates that WIT is financially healthy and has no problem in meeting its short term obligations.
WIT has a Quick ratio of 2.25. This is in the better half of the industry: WIT outperforms 67.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.26 | ||
| Quick Ratio | 2.25 |
3. Growth
3.1 Past
WIT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.68%, which is quite good.
Measured over the past years, WIT shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.52% on average per year.
Looking at the last year, WIT shows a small growth in Revenue. The Revenue has grown by 1.10% in the last year.
The Revenue has been growing slightly by 7.86% on average over the past years.
EPS 1Y (TTM)14.68%
EPS 3Y3.89%
EPS 5Y8.52%
EPS Q2Q%0.98%
Revenue 1Y (TTM)1.1%
Revenue growth 3Y4.05%
Revenue growth 5Y7.86%
Sales Q2Q%1.77%
3.2 Future
The Earnings Per Share is expected to grow by 6.13% 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 3.30% on average per year.
EPS Next Y4.51%
EPS Next 2Y4.75%
EPS Next 3Y5.51%
EPS Next 5Y6.13%
Revenue Next Year2.17%
Revenue Next 2Y3.8%
Revenue Next 3Y4.36%
Revenue Next 5Y3.3%
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.
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
Based on the Price/Earnings ratio of 19.21, the valuation of WIT can be described as rather expensive.
66.28% of the companies in the same industry are more expensive than WIT, based on the Price/Earnings ratio.
WIT's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.15.
A Price/Forward Earnings ratio of 17.43 indicates a rather expensive valuation of WIT.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WIT indicates a somewhat cheap valuation: WIT is cheaper than 66.28% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.12, WIT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.21 | ||
| Fwd PE | 17.43 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WIT is valued a bit cheaper than the industry average as 77.91% of the companies are valued more expensively.
63.95% of the companies in the same industry are more expensive than WIT, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.22 | ||
| EV/EBITDA | 9.68 |
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)4.26
PEG (5Y)2.25
EPS Next 2Y4.75%
EPS Next 3Y5.51%
5. Dividend
5.1 Amount
With a yearly dividend of 0.05%, WIT is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.06, 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
On average, the dividend of WIT grows each year by 38.62%, which is quite nice.
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
WIT pays out 85.26% of its income as dividend. This is not a sustainable payout ratio.
WIT's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP85.26%
EPS Next 2Y4.75%
EPS Next 3Y5.51%
2.69
-0.01 (-0.37%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners14.48%
Inst Owner Change6.4%
Ins Owners64.1%
Ins Owner ChangeN/A
Market Cap28.17B
Revenue(TTM)896.55B
Net Income(TTM)135.00B
Analysts52.77
Price Target2.81 (4.46%)
Short Float %4.21%
Short Ratio14.36
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.05% |
Yearly Dividend0.07
Dividend Growth(5Y)38.62%
DP85.26%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.9%
Min EPS beat(2)-3.83%
Max EPS beat(2)0.03%
EPS beat(4)2
Avg EPS beat(4)-0.86%
Min EPS beat(4)-3.83%
Max EPS beat(4)3.1%
EPS beat(8)3
Avg EPS beat(8)-0.26%
EPS beat(12)4
Avg EPS beat(12)-1.95%
EPS beat(16)4
Avg EPS beat(16)-3.43%
Revenue beat(2)0
Avg Revenue beat(2)-2.73%
Min Revenue beat(2)-2.88%
Max Revenue beat(2)-2.58%
Revenue beat(4)0
Avg Revenue beat(4)-2.85%
Min Revenue beat(4)-3.42%
Max Revenue beat(4)-2.51%
Revenue beat(8)0
Avg Revenue beat(8)-2.91%
Revenue beat(12)0
Avg Revenue beat(12)-3.21%
Revenue beat(16)0
Avg Revenue beat(16)-3.04%
PT rev (1m)-5.96%
PT rev (3m)-5.51%
EPS NQ rev (1m)0.47%
EPS NQ rev (3m)0.49%
EPS NY rev (1m)-0.05%
EPS NY rev (3m)-2.57%
Revenue NQ rev (1m)1.29%
Revenue NQ rev (3m)2.25%
Revenue NY rev (1m)0.71%
Revenue NY rev (3m)0.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.21 | ||
| Fwd PE | 17.43 | ||
| P/S | 2.8 | ||
| P/FCF | 17.22 | ||
| P/OCF | 15.53 | ||
| P/B | 2.92 | ||
| P/tB | 5.06 | ||
| EV/EBITDA | 9.68 |
EPS(TTM)0.14
EY5.2%
EPS(NY)0.15
Fwd EY5.74%
FCF(TTM)0.16
FCFY5.81%
OCF(TTM)0.17
OCFY6.44%
SpS0.96
BVpS0.92
TBVpS0.53
PEG (NY)4.26
PEG (5Y)2.25
Graham Number1.7
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.3% | ||
| ROE | 15.68% | ||
| ROCE | 15.49% | ||
| ROIC | 11% | ||
| ROICexc | 21.77% | ||
| ROICexgc | 72.41% | ||
| OM | 16.76% | ||
| PM (TTM) | 15.06% | ||
| GM | 30.12% | ||
| FCFM | 16.28% |
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%
ROICexgc growth 3Y6.71%
ROICexgc 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-Score5
Asset Turnover0.68
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | 1.11 | ||
| Debt/EBITDA | 0.49 | ||
| Cap/Depr | 57.05% | ||
| Cap/Sales | 1.77% | ||
| Interest Coverage | 19.56 | ||
| Cash Conversion | 90.89% | ||
| Profit Quality | 108.1% | ||
| Current Ratio | 2.26 | ||
| Quick Ratio | 2.25 | ||
| Altman-Z | 5.62 |
F-Score5
WACC5.46%
ROIC/WACC2.01
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)14.68%
EPS 3Y3.89%
EPS 5Y8.52%
EPS Q2Q%0.98%
EPS Next Y4.51%
EPS Next 2Y4.75%
EPS Next 3Y5.51%
EPS Next 5Y6.13%
Revenue 1Y (TTM)1.1%
Revenue growth 3Y4.05%
Revenue growth 5Y7.86%
Sales Q2Q%1.77%
Revenue Next Year2.17%
Revenue Next 2Y3.8%
Revenue Next 3Y4.36%
Revenue Next 5Y3.3%
EBIT growth 1Y4.09%
EBIT growth 3Y3.88%
EBIT growth 5Y8.27%
EBIT Next Year17.59%
EBIT Next 3Y10.27%
EBIT Next 5Y6.31%
FCF growth 1Y-0.5%
FCF growth 3Y19.5%
FCF growth 5Y14.93%
OCF growth 1Y3.07%
OCF growth 3Y15.21%
OCF growth 5Y10.98%
WIPRO LTD-ADR / WIT FAQ
Can you provide the ChartMill fundamental rating for WIPRO LTD-ADR?
ChartMill assigns a fundamental rating of 6 / 10 to WIT.
Can you provide the valuation status for WIPRO LTD-ADR?
ChartMill assigns a valuation rating of 5 / 10 to WIPRO LTD-ADR (WIT). This can be considered as Fairly Valued.
What is the profitability of WIT stock?
WIPRO LTD-ADR (WIT) has a profitability rating of 7 / 10.
Can you provide the expected EPS growth for WIT stock?
The Earnings per Share (EPS) of WIPRO LTD-ADR (WIT) is expected to grow by 4.51% in the next year.
How sustainable is the dividend of WIPRO LTD-ADR (WIT) stock?
The dividend rating of WIPRO LTD-ADR (WIT) is 3 / 10 and the dividend payout ratio is 85.26%.