WIPRO LTD-ADR (WIT) Stock Fundamental Analysis
NYSE:WIT - New York Stock Exchange, Inc. - US97651M1099 - ADR - Currency: USD
Taking everything into account, WIT scores 6 out of 10 in our fundamental rating. WIT was compared to 82 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 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.
Each year in the past 5 years WIT has been profitable.
In the past 5 years WIT always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 9.52%, WIT belongs to the best of the industry, outperforming 80.49% of the companies in the same industry.
WIT has a Return On Equity of 14.52%. This is in the better half of the industry: WIT outperforms 74.39% of its industry peers.
Looking at the Return On Invested Capital, with a value of 10.07%, WIT is in the better half of the industry, outperforming 71.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.52% | ||
| ROE | 14.52% | ||
| ROIC | 10.07% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With an excellent Profit Margin value of 13.97%, WIT belongs to the best of the industry, outperforming 90.24% of the companies in the same industry.
In the last couple of years the Profit Margin of WIT has declined.
WIT has a better Operating Margin (16.87%) than 89.02% of its industry peers.
WIT's Operating Margin has been stable in the last couple of years.
WIT has a worse Gross Margin (30.23%) than 62.20% of 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 | 16.87% | ||
| PM (TTM) | 13.97% | ||
| GM | 30.23% |
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 just above the Cost of Capital (WACC), which means it 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
WIT has an Altman-Z score of 5.80. This indicates that WIT is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of WIT (5.80) is better than 79.27% of its industry peers.
The Debt to FCF ratio of WIT is 1.13, which is an excellent value as it means it would take WIT, only 1.13 years of fcf income to pay off all of its debts.
WIT has a Debt to FCF ratio of 1.13. This is amongst the best in the industry. WIT outperforms 81.71% of its industry peers.
WIT has a Debt/Equity ratio of 0.22. This is a healthy value indicating a solid balance between debt and equity.
WIT has a better Debt to Equity ratio (0.22) than 62.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 1.13 | ||
| Altman-Z | 5.8 |
ROIC/WACC1.01
WACC9.97%
2.3 Liquidity
A Current Ratio of 2.83 indicates that WIT has no problem at all paying its short term obligations.
WIT's Current ratio of 2.83 is fine compared to the rest of the industry. WIT outperforms 79.27% of its industry peers.
A Quick Ratio of 2.82 indicates that WIT has no problem at all paying its short term obligations.
WIT has a better Quick ratio (2.82) than 79.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.83 | ||
| Quick Ratio | 2.82 |
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.
The Earnings Per Share has been growing by 8.52% on average over the past years. This is quite good.
The Revenue has decreased by -0.75% 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)20.8%
EPS 3Y3.89%
EPS 5Y8.52%
EPS Q2Q%25.32%
Revenue 1Y (TTM)-0.75%
Revenue growth 3Y4.05%
Revenue growth 5Y7.86%
Sales Q2Q%1.33%
3.2 Future
WIT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.72% yearly.
The Revenue is expected to grow by 7.28% on average over the next years.
EPS Next Y3.56%
EPS Next 2Y5.01%
EPS Next 3Y5.17%
EPS Next 5Y9.72%
Revenue Next Year0.01%
Revenue Next 2Y2.64%
Revenue Next 3Y3.23%
Revenue Next 5Y7.28%
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 stable.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 19.33 indicates a rather expensive valuation of WIT.
64.63% of the companies in the same industry are more expensive than WIT, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 28.18. WIT is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 18.77, the valuation of WIT can be described as rather expensive.
Based on the Price/Forward Earnings ratio, WIT is valued a bit cheaper than the industry average as 68.29% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of WIT to the average of the S&P500 Index (20.81), we can say WIT is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.33 | ||
| Fwd PE | 18.77 |
4.2 Price Multiples
82.93% of the companies in the same industry are more expensive than WIT, based on the Enterprise Value to EBITDA ratio.
WIT's Price/Free Cash Flow ratio is rather cheap when compared to the industry. WIT is cheaper than 85.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.87 | ||
| EV/EBITDA | 9.14 |
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.
The decent profitability rating of WIT may justify a higher PE ratio.
PEG (NY)5.44
PEG (5Y)2.27
EPS Next 2Y5.01%
EPS Next 3Y5.17%
5. Dividend
5.1 Amount
WIT has a Yearly Dividend Yield of 2.48%.
In the last 3 months the price of WIT has falen by -20.98%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
WIT's Dividend Yield is rather good when compared to the industry average which is at 2.46. WIT pays more dividend than 93.90% of the companies in the same industry.
WIT's Dividend Yield is comparable with the S&P500 average which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.48% |
5.2 History
The dividend of WIT decreases each year by -11.63%.
WIT has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-11.63%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
WIT pays out 4.21% of its income as dividend. This is a sustainable payout ratio.
DP4.21%
EPS Next 2Y5.01%
EPS Next 3Y5.17%
2.9
+0.04 (+1.4%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners14.08%
Inst Owner Change3.28%
Ins Owners60.74%
Ins Owner ChangeN/A
Market Cap30.34B
Analysts52.61
Price Target2.88 (-0.69%)
Short Float %2.6%
Short Ratio11.56
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.48% |
Yearly Dividend0.01
Dividend Growth(5Y)-11.63%
DP4.21%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.86%
Min EPS beat(2)-2.73%
Max EPS beat(2)4.44%
EPS beat(4)1
Avg EPS beat(4)-0.13%
Min EPS beat(4)-2.73%
Max EPS beat(4)4.44%
EPS beat(8)1
Avg EPS beat(8)-3.15%
EPS beat(12)2
Avg EPS beat(12)-4.19%
EPS beat(16)4
Avg EPS beat(16)-2.69%
Revenue beat(2)0
Avg Revenue beat(2)-2.62%
Min Revenue beat(2)-2.72%
Max Revenue beat(2)-2.51%
Revenue beat(4)0
Avg Revenue beat(4)-2.98%
Min Revenue beat(4)-4.04%
Max Revenue beat(4)-2.51%
Revenue beat(8)0
Avg Revenue beat(8)-3.29%
Revenue beat(12)0
Avg Revenue beat(12)-3.15%
Revenue beat(16)0
Avg Revenue beat(16)-2.66%
PT rev (1m)-15.86%
PT rev (3m)-18.3%
EPS NQ rev (1m)-7.72%
EPS NQ rev (3m)-7.45%
EPS NY rev (1m)-3.42%
EPS NY rev (3m)-3.29%
Revenue NQ rev (1m)0.45%
Revenue NQ rev (3m)0.42%
Revenue NY rev (1m)-5.55%
Revenue NY rev (3m)-5.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.33 | ||
| Fwd PE | 18.77 | ||
| P/S | 2.88 | ||
| P/FCF | 14.87 | ||
| P/OCF | 13.89 | ||
| P/B | 3 | ||
| P/tB | 5.11 | ||
| EV/EBITDA | 9.14 |
EPS(TTM)0.15
EY5.17%
EPS(NY)0.15
Fwd EY5.33%
FCF(TTM)0.2
FCFY6.73%
OCF(TTM)0.21
OCFY7.2%
SpS1.01
BVpS0.97
TBVpS0.57
PEG (NY)5.44
PEG (5Y)2.27
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.52% | ||
| ROE | 14.52% | ||
| ROCE | 14.67% | ||
| ROIC | 10.07% | ||
| ROICexc | 20.14% | ||
| ROICexgc | 54.37% | ||
| OM | 16.87% | ||
| PM (TTM) | 13.97% | ||
| GM | 30.23% | ||
| FCFM | 19.37% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
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 | 0.22 | ||
| Debt/FCF | 1.13 | ||
| Debt/EBITDA | 1.03 | ||
| Cap/Depr | 39.36% | ||
| Cap/Sales | 1.36% | ||
| Interest Coverage | 15.73 | ||
| Cash Conversion | 101.96% | ||
| Profit Quality | 138.73% | ||
| Current Ratio | 2.83 | ||
| Quick Ratio | 2.82 | ||
| Altman-Z | 5.8 |
F-Score6
WACC9.97%
ROIC/WACC1.01
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)20.8%
EPS 3Y3.89%
EPS 5Y8.52%
EPS Q2Q%25.32%
EPS Next Y3.56%
EPS Next 2Y5.01%
EPS Next 3Y5.17%
EPS Next 5Y9.72%
Revenue 1Y (TTM)-0.75%
Revenue growth 3Y4.05%
Revenue growth 5Y7.86%
Sales Q2Q%1.33%
Revenue Next Year0.01%
Revenue Next 2Y2.64%
Revenue Next 3Y3.23%
Revenue Next 5Y7.28%
EBIT growth 1Y8.27%
EBIT growth 3Y3.88%
EBIT growth 5Y8.27%
EBIT Next Year25.93%
EBIT Next 3Y14.91%
EBIT Next 5Y12.33%
FCF growth 1Y13.13%
FCF growth 3Y19.5%
FCF growth 5Y14.93%
OCF growth 1Y14.14%
OCF growth 3Y15.21%
OCF growth 5Y10.98%