WIPRO LTD-ADR (WIT) Stock Fundamental Analysis
USA - NYSE:WIT - US97651M1099 - ADR
2.765 USD
-0.02 (-0.9%)
WIT gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 85 industry peers in the IT Services industry. WIT has an excellent financial health rating, but there are some minor concerns on its profitability. WIT has a correct valuation and a medium growth rate.
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.
Each year in the past 5 years WIT has been profitable.
WIT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
WIT has a better Return On Assets (10.30%) than 87.06% of its industry peers.
Looking at the Return On Equity, with a value of 15.49%, WIT is in the better half of the industry, outperforming 75.29% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 10.39%, WIT is in the better half of the industry, outperforming 72.94% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for WIT is significantly below the industry average of 21.77%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.3% | ||
| ROE | 15.49% | ||
| ROIC | 10.39% |
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 15.08%. This is amongst the best in the industry. WIT outperforms 90.59% of its industry peers.
In the last couple of years the Profit Margin of WIT has declined.
Looking at the Operating Margin, with a value of 16.99%, 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 30.34% is on the low side compared to the rest of the industry. WIT is outperformed by 62.35% 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 | 16.99% | ||
| PM (TTM) | 15.08% | ||
| GM | 30.34% |
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.
Compared to 1 year ago, WIT has more shares outstanding
The number of shares outstanding for WIT has been reduced compared to 5 years ago.
Compared to 1 year ago, WIT has a worse debt to assets ratio.
2.2 Solvency
WIT has an Altman-Z score of 5.86. This indicates that WIT is financially healthy and has little risk of bankruptcy at the moment.
WIT's Altman-Z score of 5.86 is fine compared to the rest of the industry. WIT outperforms 78.82% of its industry peers.
WIT has a debt to FCF ratio of 1.02. This is a very positive value and a sign of high solvency as it would only need 1.02 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.02, WIT belongs to the top of the industry, outperforming 81.18% of the companies in the same industry.
A Debt/Equity ratio of 0.17 indicates that WIT is not too dependend on debt financing.
The Debt to Equity ratio of WIT (0.17) is better than 62.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 1.02 | ||
| Altman-Z | 5.86 |
ROIC/WACC1.88
WACC5.52%
2.3 Liquidity
WIT has a Current Ratio of 2.40. This indicates that WIT is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.40, WIT is in the better half of the industry, outperforming 71.76% of the companies in the same industry.
A Quick Ratio of 2.39 indicates that WIT has no problem at all paying its short term obligations.
The Quick ratio of WIT (2.39) is better than 71.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.4 | ||
| Quick Ratio | 2.39 |
3. Growth
3.1 Past
WIT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 20.21%, which is quite impressive.
The Earnings Per Share has been growing by 8.52% on average over the past years. This is quite good.
Looking at the last year, WIT shows a small growth in Revenue. The Revenue has grown by 0.41% in the last year.
The Revenue has been growing slightly by 7.86% on average over the past years.
EPS 1Y (TTM)20.21%
EPS 3Y3.89%
EPS 5Y8.52%
EPS Q2Q%10.65%
Revenue 1Y (TTM)0.41%
Revenue growth 3Y4.05%
Revenue growth 5Y7.86%
Sales Q2Q%0.78%
3.2 Future
WIT is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.13% yearly.
Based on estimates for the next years, WIT will show a small growth in Revenue. The Revenue will grow by 3.31% on average per year.
EPS Next Y7.3%
EPS Next 2Y6.63%
EPS Next 3Y5.81%
EPS Next 5Y6.13%
Revenue Next Year1.54%
Revenue Next 2Y3.55%
Revenue Next 3Y3.97%
Revenue Next 5Y3.31%
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
Based on the Price/Earnings ratio of 18.43, the valuation of WIT can be described as rather expensive.
Based on the Price/Earnings ratio, WIT is valued a bit cheaper than 68.24% of the companies in the same industry.
When comparing the Price/Earnings ratio of WIT to the average of the S&P500 Index (27.43), we can say WIT is valued slightly cheaper.
WIT is valuated rather expensively with a Price/Forward Earnings ratio of 17.15.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WIT indicates a somewhat cheap valuation: WIT is cheaper than 67.06% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of WIT to the average of the S&P500 Index (22.87), we can say WIT is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.43 | ||
| Fwd PE | 17.15 |
4.2 Price Multiples
81.18% of the companies in the same industry are more expensive than WIT, based on the Enterprise Value to EBITDA ratio.
75.29% 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 | 16.44 | ||
| EV/EBITDA | 9.29 |
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)2.52
PEG (5Y)2.16
EPS Next 2Y6.63%
EPS Next 3Y5.81%
5. Dividend
5.1 Amount
With a yearly dividend of 0.05%, WIT is not a good candidate for dividend investing.
WIT's Dividend Yield is a higher than the industry average which is at 2.37.
With a Dividend Yield of 0.05, WIT pays less dividend than the S&P500 average, which is at 2.45.
| 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 been paying a dividend for at least 10 years, so it has 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 46.61% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of WIT is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP46.61%
EPS Next 2Y6.63%
EPS Next 3Y5.81%
NYSE:WIT (9/12/2025, 12:52:05 PM)
2.765
-0.02 (-0.9%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners13.01%
Inst Owner Change1.16%
Ins Owners60.82%
Ins Owner ChangeN/A
Market Cap28.95B
Analysts51.49
Price Target2.97 (7.41%)
Short Float %2.9%
Short Ratio16.18
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.05% |
Yearly Dividend0.07
Dividend Growth(5Y)38.62%
DP46.61%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.57%
Min EPS beat(2)0.03%
Max EPS beat(2)3.1%
EPS beat(4)3
Avg EPS beat(4)1.21%
Min EPS beat(4)-2.73%
Max EPS beat(4)4.44%
EPS beat(8)3
Avg EPS beat(8)-0.97%
EPS beat(12)4
Avg EPS beat(12)-2.42%
EPS beat(16)4
Avg EPS beat(16)-3.23%
Revenue beat(2)0
Avg Revenue beat(2)-3%
Min Revenue beat(2)-3.42%
Max Revenue beat(2)-2.58%
Revenue beat(4)0
Avg Revenue beat(4)-2.81%
Min Revenue beat(4)-3.42%
Max Revenue beat(4)-2.51%
Revenue beat(8)0
Avg Revenue beat(8)-3.07%
Revenue beat(12)0
Avg Revenue beat(12)-3.18%
Revenue beat(16)0
Avg Revenue beat(16)-2.94%
PT rev (1m)3.74%
PT rev (3m)1.76%
EPS NQ rev (1m)-0.01%
EPS NQ rev (3m)0.52%
EPS NY rev (1m)1.05%
EPS NY rev (3m)0.85%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.04%
Revenue NY rev (1m)0.46%
Revenue NY rev (3m)1.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.43 | ||
| Fwd PE | 17.15 | ||
| P/S | 2.87 | ||
| P/FCF | 16.44 | ||
| P/OCF | 15.01 | ||
| P/B | 2.95 | ||
| P/tB | 4.98 | ||
| EV/EBITDA | 9.29 |
EPS(TTM)0.15
EY5.42%
EPS(NY)0.16
Fwd EY5.83%
FCF(TTM)0.17
FCFY6.08%
OCF(TTM)0.18
OCFY6.66%
SpS0.96
BVpS0.94
TBVpS0.56
PEG (NY)2.52
PEG (5Y)2.16
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.3% | ||
| ROE | 15.49% | ||
| ROCE | 15.54% | ||
| ROIC | 10.39% | ||
| ROICexc | 20.03% | ||
| ROICexgc | 52.69% | ||
| OM | 16.99% | ||
| PM (TTM) | 15.08% | ||
| GM | 30.34% | ||
| FCFM | 17.45% |
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%
ROICexcg growth 3Y6.71%
ROICexcg 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-Score6
Asset Turnover0.68
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 1.02 | ||
| Debt/EBITDA | 0.83 | ||
| Cap/Depr | 50.99% | ||
| Cap/Sales | 1.66% | ||
| Interest Coverage | 17.82 | ||
| Cash Conversion | 94.35% | ||
| Profit Quality | 115.67% | ||
| Current Ratio | 2.4 | ||
| Quick Ratio | 2.39 | ||
| Altman-Z | 5.86 |
F-Score6
WACC5.52%
ROIC/WACC1.88
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)20.21%
EPS 3Y3.89%
EPS 5Y8.52%
EPS Q2Q%10.65%
EPS Next Y7.3%
EPS Next 2Y6.63%
EPS Next 3Y5.81%
EPS Next 5Y6.13%
Revenue 1Y (TTM)0.41%
Revenue growth 3Y4.05%
Revenue growth 5Y7.86%
Sales Q2Q%0.78%
Revenue Next Year1.54%
Revenue Next 2Y3.55%
Revenue Next 3Y3.97%
Revenue Next 5Y3.31%
EBIT growth 1Y8.98%
EBIT growth 3Y3.88%
EBIT growth 5Y8.27%
EBIT Next Year20.12%
EBIT Next 3Y10.28%
EBIT Next 5Y6.43%
FCF growth 1Y1.02%
FCF growth 3Y19.5%
FCF growth 5Y14.93%
OCF growth 1Y2.56%
OCF growth 3Y15.21%
OCF growth 5Y10.98%