WIPRO LTD-ADR (WIT)
US97651M1099 - ADR
We assign a fundamental rating of 5 out of 10 to WIT. WIT was compared to 86 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 is valued correctly, but it does not seem to be growing.
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.
WIT had positive earnings in 4 of the past 5 years.
WIT had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
WIT's Return On Assets of 10.03% is amongst the best of the industry. WIT outperforms 82.14% of its industry peers.
With a decent Return On Equity value of 15.45%, WIT is doing good in the industry, outperforming 77.38% of the companies in the same industry.
The Return On Invested Capital of WIT (11.36%) is better than 79.76% of its industry peers.
The Average Return On Invested Capital over the past 3 years for WIT is in line with the industry average of 12.79%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.03% | ||
| ROE | 15.45% | ||
| ROIC | 11.36% |
ROA(3y)11.32%
ROA(5y)11.33%
ROE(3y)17.54%
ROE(5y)17.18%
ROIC(3y)12.59%
ROIC(5y)12.23%
1.3 Margins
WIT has a better Profit Margin (12.44%) than 86.90% of its industry peers.
WIT's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 15.25%, WIT belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
WIT's Operating Margin has been stable in the last couple of years.
The Gross Margin of WIT (29.80%) is worse than 61.90% of its industry peers.
WIT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.25% | ||
| PM (TTM) | 12.44% | ||
| GM | 29.8% |
OM growth 3Y-3.39%
OM growth 5Y-0.24%
PM growth 3Y-7.66%
PM growth 5Y-3.12%
GM growth 3Y0.15%
GM growth 5Y-0.39%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), WIT is creating some 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 6.04 indicates that WIT is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.04, WIT is in the better half of the industry, outperforming 78.57% of the companies in the same industry.
WIT has a debt to FCF ratio of 1.18. This is a very positive value and a sign of high solvency as it would only need 1.18 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.18, WIT is in the better half of the industry, outperforming 77.38% of the companies in the same industry.
A Debt/Equity ratio of 0.23 indicates that WIT is not too dependend on debt financing.
WIT has a better Debt to Equity ratio (0.23) than 63.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 1.18 | ||
| Altman-Z | 6.04 |
ROIC/WACC1.02
WACC11.13%
2.3 Liquidity
A Current Ratio of 2.43 indicates that WIT has no problem at all paying its short term obligations.
The Current ratio of WIT (2.43) is better than 71.43% of its industry peers.
A Quick Ratio of 2.41 indicates that WIT has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.41, WIT is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.43 | ||
| Quick Ratio | 2.41 |
3. Growth
3.1 Past
WIT shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.19%.
WIT shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.73% yearly.
EPS 1Y (TTM)0.19%
EPS 3Y2.82%
EPS 5Y6.73%
EPS growth Q2Q-3.39%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Revenue growth Q2Q-4.23%
3.2 Future
The Earnings Per Share is expected to grow by 13.30% 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 6.70% on average per year.
EPS Next Y16.21%
EPS Next 2Y14.21%
EPS Next 3Y11.08%
EPS Next 5Y13.3%
Revenue Next Year4.62%
Revenue Next 2Y6.65%
Revenue Next 3Y5.21%
Revenue Next 5Y6.7%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 21.56 indicates a rather expensive valuation of WIT.
Based on the Price/Earnings ratio, WIT is valued a bit cheaper than the industry average as 61.90% of the companies are valued more expensively.
WIT is valuated rather cheaply when we compare the Price/Earnings ratio to 28.15, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 18.65, WIT is valued on the expensive side.
WIT's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. WIT is cheaper than 66.67% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of WIT to the average of the S&P500 Index (20.20), we can say WIT is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.56 | ||
| Fwd PE | 18.65 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WIT is valued a bit cheaper than 72.62% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, WIT is valued cheaper than 80.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.45 | ||
| EV/EBITDA | 10.32 |
4.3 Compensation for Growth
WIT's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of WIT may justify a higher PE ratio.
PEG (NY)1.33
PEG (5Y)3.2
EPS Next 2Y14.21%
EPS Next 3Y11.08%
5. Dividend
5.1 Amount
With a yearly dividend of 0.22%, WIT is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.84, WIT pays a better dividend. On top of this WIT pays more dividend than 80.95% of the companies listed in the same industry.
With a Dividend Yield of 0.22, WIT pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.22% |
5.2 History
On average, the dividend of WIT grows each year by 47.09%, which is quite nice.
WIT has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)47.09%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
WIT pays out 4.85% of its income as dividend. This is a sustainable payout ratio.
WIT's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP4.85%
EPS Next 2Y14.21%
EPS Next 3Y11.08%
WIPRO LTD-ADR
NYSE:WIT (5/17/2024, 3:10:02 PM)
After market: 5.39 0 (0%)5.39
-0.05 (-0.92%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap28.13B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.22% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.56 | ||
| Fwd PE | 18.65 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.33
PEG (5Y)3.2
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.03% | ||
| ROE | 15.45% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 15.25% | ||
| PM (TTM) | 12.44% | ||
| GM | 29.8% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.81
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.43 | ||
| Quick Ratio | 2.41 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)0.19%
EPS 3Y2.82%
EPS 5Y
EPS growth Q2Q
EPS Next Y16.21%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y