WIPRO LTD-ADR (WIT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WIT - US97651M1099 - ADR
2.87 USD
-0.04 (-1.37%)
2.87 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to WIT. WIT was compared to 88 industry peers in the IT Services industry. WIT gets an excellent profitability rating and is at the same time showing great financial health properties. WIT has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year WIT was profitable.
WIT had a positive operating cash flow in the past year.
WIT had positive earnings in each of the past 5 years.
Each year in the past 5 years WIT had a positive operating cash flow.
1.2 Ratios
The Return On Assets of WIT (10.30%) is better than 84.09% of its industry peers.
The Return On Equity of WIT (15.68%) is better than 80.68% of its industry peers.
With a decent Return On Invested Capital value of 11.00%, WIT is doing good in the industry, outperforming 78.41% of the companies in the same industry.
WIT had an Average Return On Invested Capital over the past 3 years of 10.49%. This is significantly below the industry average of 28.99%.
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
Looking at the Profit Margin, with a value of 15.06%, WIT belongs to the top of the industry, outperforming 89.77% of the companies in the same industry.
In the last couple of years the Profit Margin of WIT has declined.
WIT has a Operating Margin of 16.76%. This is amongst the best in the industry. WIT outperforms 87.50% of its industry peers.
In the last couple of years the Operating Margin of WIT has remained more or less at the same level.
The Gross Margin of WIT (30.12%) is comparable to the rest of the industry.
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
WIT has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for WIT has been increased compared to 1 year ago.
WIT has less shares outstanding than it did 5 years ago.
WIT has a worse debt/assets ratio than last year.
2.2 Solvency
WIT has an Altman-Z score of 5.92. This indicates that WIT is financially healthy and has little risk of bankruptcy at the moment.
WIT has a Altman-Z score of 5.92. This is amongst the best in the industry. WIT outperforms 80.68% of its industry peers.
The Debt to FCF ratio of WIT is 1.11, which is an excellent value as it means it would take WIT, only 1.11 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of WIT (1.11) is better than 79.55% of its industry peers.
WIT has a Debt/Equity ratio of 0.10. This is a healthy value indicating a solid balance between debt and equity.
WIT has a Debt to Equity ratio of 0.10. This is in the better half of the industry: WIT outperforms 70.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | 1.11 | ||
| Altman-Z | 5.92 |
ROIC/WACC1.98
WACC5.56%
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.
With a decent Current ratio value of 2.26, WIT is doing good in the industry, outperforming 63.64% of the companies in the same industry.
A Quick Ratio of 2.25 indicates that WIT has no problem at all paying its short term obligations.
The Quick ratio of WIT (2.25) is better than 64.77% 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.
WIT shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.52% yearly.
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
Based on estimates for the next years, WIT will show a small growth in Earnings Per Share. The EPS will grow by 6.37% on average per year.
The Revenue is expected to grow by 3.53% on average over the next years.
EPS Next Y4.54%
EPS Next 2Y4.77%
EPS Next 3Y5.37%
EPS Next 5Y6.37%
Revenue Next Year2.21%
Revenue Next 2Y3.83%
Revenue Next 3Y4.45%
Revenue Next 5Y3.53%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
A Price/Earnings ratio of 20.50 indicates a rather expensive valuation of WIT.
Based on the Price/Earnings ratio, WIT is valued a bit cheaper than 65.91% of the companies in the same industry.
When comparing the Price/Earnings ratio of WIT to the average of the S&P500 Index (27.19), we can say WIT is valued slightly cheaper.
WIT is valuated rather expensively with a Price/Forward Earnings ratio of 18.75.
Based on the Price/Forward Earnings ratio, WIT is valued a bit cheaper than the industry average as 64.77% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.88, WIT is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.5 | ||
| Fwd PE | 18.75 |
4.2 Price Multiples
78.41% of the companies in the same industry are more expensive than WIT, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, WIT is valued a bit cheaper than the industry average as 67.05% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.52 | ||
| EV/EBITDA | 10.96 |
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)4.52
PEG (5Y)2.41
EPS Next 2Y4.77%
EPS Next 3Y5.37%
5. Dividend
5.1 Amount
WIT has a yearly dividend return of 0.05%, which is pretty low.
WIT's Dividend Yield is a higher than the industry average which is at 0.44.
With a Dividend Yield of 0.05, WIT pays less dividend than the S&P500 average, which is at 1.94.
| 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.
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.
The dividend of WIT is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP85.26%
EPS Next 2Y4.77%
EPS Next 3Y5.37%
2.87
-0.04 (-1.37%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners14.62%
Inst Owner Change0%
Ins Owners64.08%
Ins Owner ChangeN/A
Market Cap30.06B
Revenue(TTM)896.55B
Net Income(TTM)135.00B
Analysts53.62
Price Target3 (4.53%)
Short Float %4.13%
Short Ratio15.84
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-DateN/A
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)6.81%
PT rev (3m)0.44%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.7%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.88%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.74%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.5 | ||
| Fwd PE | 18.75 | ||
| P/S | 3.01 | ||
| P/FCF | 18.52 | ||
| P/OCF | 16.71 | ||
| P/B | 3.14 | ||
| P/tB | 5.45 | ||
| EV/EBITDA | 10.96 |
EPS(TTM)0.14
EY4.88%
EPS(NY)0.15
Fwd EY5.33%
FCF(TTM)0.15
FCFY5.4%
OCF(TTM)0.17
OCFY5.99%
SpS0.95
BVpS0.91
TBVpS0.53
PEG (NY)4.52
PEG (5Y)2.41
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 | 5.92 |
F-Score5
WACC5.56%
ROIC/WACC1.98
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 Y4.54%
EPS Next 2Y4.77%
EPS Next 3Y5.37%
EPS Next 5Y6.37%
Revenue 1Y (TTM)1.1%
Revenue growth 3Y4.05%
Revenue growth 5Y7.86%
Sales Q2Q%1.77%
Revenue Next Year2.21%
Revenue Next 2Y3.83%
Revenue Next 3Y4.45%
Revenue Next 5Y3.53%
EBIT growth 1Y4.09%
EBIT growth 3Y3.88%
EBIT growth 5Y8.27%
EBIT Next Year18%
EBIT Next 3Y9.94%
EBIT Next 5Y6.55%
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.
What is the valuation status of WIPRO LTD-ADR (WIT) stock?
ChartMill assigns a valuation rating of 4 / 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.
What is the valuation of WIPRO LTD-ADR based on its PE and PB ratios?
The Price/Earnings (PE) ratio for WIPRO LTD-ADR (WIT) is 20.5 and the Price/Book (PB) ratio is 3.14.
Is the dividend of WIPRO LTD-ADR sustainable?
The dividend rating of WIPRO LTD-ADR (WIT) is 3 / 10 and the dividend payout ratio is 85.26%.