INFOSYS LTD's gross profit margin for the third quarter of its fiscal year 2014 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. INFOSYS LTD is extremely liquid. Currently, the Quick Ratio is 4.02 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has decreased from the same period last year.
During the same period, stockholders' equity ("net worth") has increased by 13.60% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial difficulties in the near future.
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|Income Statement||Q3 FY14||Q3 FY13|
|Net Sales ($mil)||2218.0||2100.0|
|Net Income ($mil)||522.0||463.0|
|Balance Sheet||Q3 FY14||Q3 FY13|
|Cash & Equiv. ($mil)||5319.0||4236.0|
|Total Assets ($mil)||10028.0||8733.0|
|Total Debt ($mil)||0.0||0.0|
|Profitability||Q3 FY14||Q3 FY13|
|Gross Profit Margin||40.62||39.29|
|Return on Assets||19.96||19.55|
|Return on Equity||24.37||23.62|
|Debt||Q3 FY14||Q3 FY13|
|Share Data||Q3 FY14||Q3 FY13|
|Shares outstanding (mil)||1142.81||1142.81|
|Div / share||0.24||0.16|
|Book value / share||7.19||6.33|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||2551677.0||1740767.0|
BUY. INFOSYS LTD's P/E ratio indicates a discount compared to an average of 25.82 for the IT Services industry and a value on par with the S&P 500 average of 19.92. To use another comparison, its price-to-book ratio of 5.09 indicates a significant premium versus the S&P 500 average of 2.81 and a significant discount versus the industry average of 9.22. The price-to-sales ratio is well above the S&P 500 average, but well below the industry average. Upon assessment of these and other key valuation criteria, INFOSYS LTD proves to trade at a discount to investment alternatives within the industry.
|INFY 20.90||Peers 25.82||INFY 17.62||Peers 19.34|
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.
INFY is trading at a discount to its peers.
Average. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.
INFY is trading at a valuation on par to its peers.
|INFY 19.46||Peers 20.57||INFY NM||Peers 2.27|
Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.
INFY is trading at a valuation on par with its peers.
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.
INFY's negative PEG ratio makes this valuation measure meaningless.
|INFY 5.09||Peers 9.22||INFY 17.05||Peers 23.15|
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.
INFY is trading at a significant discount to its peers.
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
However, INFY is expected to significantly trail its peers on the basis of its earnings growth rate.
|INFY 4.84||Peers 5.40||INFY 6.78||Peers 9.66|
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.
INFY is trading at a discount to its industry on this measurement.
Lower. A sales growth rate that trails the industry implies that a company is losing market share.
INFY significantly trails its peers on the basis of sales growth
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