WIPRO LTD-ADR (WIT) Stock Fundamental Analysis
USA - NYSE:WIT - US97651M1099 - ADR
2.67 USD
-0.02 (-0.74%)
2.66 USD
-0.01 (-0.37%)
Taking everything into account, WIT scores 6 out of 10 in our fundamental rating. WIT was compared to 85 industry peers in the IT Services industry. Both the health and profitability get an excellent rating, making WIT a very profitable company, without any liquidiy or solvency issues. WIT is not valued too expensively and it also shows a decent 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
Looking at the Return On Assets, with a value of 10.30%, WIT belongs to the top of the industry, outperforming 88.24% of the companies in the same industry.
WIT has a Return On Equity of 15.68%. This is in the better half of the industry: WIT outperforms 77.65% of its industry peers.
WIT's Return On Invested Capital of 11.00% is fine compared to the rest of the industry. WIT outperforms 76.47% of its industry peers.
WIT had an Average Return On Invested Capital over the past 3 years of 10.49%. This is significantly below the industry average of 21.61%.
The last Return On Invested Capital (11.00%) for WIT is above the 3 year average (10.49%), which is a sign of increasing profitability.
| 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
Looking at the Profit Margin, with a value of 15.06%, WIT belongs to the top of the industry, outperforming 90.59% of the companies in the same industry.
WIT's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 16.76%, WIT belongs to the top of the industry, outperforming 89.41% 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.
WIT's Gross Margin of 30.12% is on the low side compared to the rest of the industry. WIT is outperformed by 60.00% of its industry peers.
WIT's Gross Margin has been stable in the last couple of years.
| 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
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.
Compared to 5 years ago, WIT has less shares outstanding
WIT has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.56 indicates that WIT is not in any danger for bankruptcy at the moment.
WIT has a Altman-Z score of 5.56. This is in the better half of the industry: WIT outperforms 74.12% of its industry peers.
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's Debt to FCF ratio of 1.11 is fine compared to the rest of the industry. WIT outperforms 76.47% of its industry peers.
A Debt/Equity ratio of 0.10 indicates that WIT is not too dependend on debt financing.
WIT's Debt to Equity ratio of 0.10 is fine compared to the rest of the industry. WIT outperforms 68.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | 1.11 | ||
| Altman-Z | 5.56 |
ROIC/WACC2.02
WACC5.45%
2.3 Liquidity
WIT has a Current Ratio of 2.26. This indicates that WIT is financially healthy and has no problem in meeting its short term obligations.
WIT has a better Current ratio (2.26) than 64.71% of its industry peers.
A Quick Ratio of 2.25 indicates that WIT has no problem at all paying its short term obligations.
With a decent Quick ratio value of 2.25, WIT is doing good in the industry, outperforming 65.88% of the companies in the same industry.
| 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 20.80%, which is quite impressive.
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.
The Revenue has been growing slightly by 1.10% 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%1.03%
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 6.03% 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 3.20% on average per year.
EPS Next Y4.57%
EPS Next 2Y5.19%
EPS Next 3Y5.37%
EPS Next 5Y6.03%
Revenue Next Year1.45%
Revenue Next 2Y3.54%
Revenue Next 3Y4.13%
Revenue Next 5Y3.2%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
The Price/Earnings ratio is 19.07, 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 68.24% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.08, WIT is valued a bit cheaper.
WIT is valuated correctly with a Price/Forward Earnings ratio of 16.98.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WIT indicates a somewhat cheap valuation: WIT is cheaper than 70.59% of the companies listed in the same industry.
WIT's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.09.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.07 | ||
| Fwd PE | 16.98 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of WIT indicates a somewhat cheap valuation: WIT is cheaper than 78.82% of the companies listed in the same industry.
WIT's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. WIT is cheaper than 71.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.91 | ||
| EV/EBITDA | 9.42 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
WIT has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)4.18
PEG (5Y)2.24
EPS Next 2Y5.19%
EPS Next 3Y5.37%
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 2.50, WIT pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.05, WIT pays less dividend than the S&P500 average, which is at 2.30.
| 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.
The dividend of WIT decreased recently.
Dividend Growth(5Y)38.62%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
85.26% of the earnings are spent on dividend by WIT. 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 2Y5.19%
EPS Next 3Y5.37%
2.67
-0.02 (-0.74%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners14.48%
Inst Owner Change0.1%
Ins Owners64.1%
Ins Owner ChangeN/A
Market Cap27.96B
Revenue(TTM)896.55B
Net Income(TTM)135.00B
Analysts51.06
Price Target2.98 (11.61%)
Short Float %3.93%
Short Ratio14.12
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)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-2.63%
Min Revenue beat(2)-2.69%
Max Revenue beat(2)-2.58%
Revenue beat(4)0
Avg Revenue beat(4)-2.8%
Min Revenue beat(4)-3.42%
Max Revenue beat(4)-2.51%
Revenue beat(8)0
Avg Revenue beat(8)-2.89%
Revenue beat(12)0
Avg Revenue beat(12)-3.19%
Revenue beat(16)0
Avg Revenue beat(16)-3.03%
PT rev (1m)1.09%
PT rev (3m)4.24%
EPS NQ rev (1m)0.03%
EPS NQ rev (3m)0.02%
EPS NY rev (1m)0.03%
EPS NY rev (3m)-1.5%
Revenue NQ rev (1m)0.95%
Revenue NQ rev (3m)1.08%
Revenue NY rev (1m)0.24%
Revenue NY rev (3m)1.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.07 | ||
| Fwd PE | 16.98 | ||
| P/S | 2.75 | ||
| P/FCF | 16.91 | ||
| P/OCF | 15.25 | ||
| P/B | 2.87 | ||
| P/tB | 4.97 | ||
| EV/EBITDA | 9.42 |
EPS(TTM)0.14
EY5.24%
EPS(NY)0.16
Fwd EY5.89%
FCF(TTM)0.16
FCFY5.91%
OCF(TTM)0.18
OCFY6.56%
SpS0.97
BVpS0.93
TBVpS0.54
PEG (NY)4.18
PEG (5Y)2.24
Graham Number1.71
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 | 5.56 |
F-Score5
WACC5.45%
ROIC/WACC2.02
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%1.03%
EPS Next Y4.57%
EPS Next 2Y5.19%
EPS Next 3Y5.37%
EPS Next 5Y6.03%
Revenue 1Y (TTM)1.1%
Revenue growth 3Y4.05%
Revenue growth 5Y7.86%
Sales Q2Q%1.77%
Revenue Next Year1.45%
Revenue Next 2Y3.54%
Revenue Next 3Y4.13%
Revenue Next 5Y3.2%
EBIT growth 1Y4.09%
EBIT growth 3Y3.88%
EBIT growth 5Y8.27%
EBIT Next Year17.59%
EBIT Next 3Y10.21%
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 4.57% 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%.