WIPRO LTD's gross profit margin for the fourth quarter of its fiscal year 2015 has significantly decreased when compared to the same period a year ago. Even though sales increased, the net income has decreased. WIPRO LTD has weak liquidity. Currently, the Quick Ratio is 0.96 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.
During the same period, stockholders' equity ("net worth") has increased by 7.44% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
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|Income Statement||Q4 FY15||Q4 FY14|
|Net Sales ($mil)||2052.57||2013.34|
|Net Income ($mil)||336.45||376.49|
|Balance Sheet||Q4 FY15||Q4 FY14|
|Cash & Equiv. ($mil)||1495.08||4029.02|
|Total Assets ($mil)||10942.2||9629.8|
|Total Debt ($mil)||1890.13||1266.46|
|Profitability||Q4 FY15||Q4 FY14|
|Gross Profit Margin||14.71||35.38|
|Return on Assets||12.26||14.42|
|Return on Equity||19.07||21.2|
|Debt||Q4 FY15||Q4 FY14|
|Share Data||Q4 FY15||Q4 FY14|
|Shares outstanding (mil)||2455.57||2454.21|
|Div / share||0.07||0.08|
|Book value / share||2.87||2.67|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||575790.0||599965.0|
BUY. WIPRO LTD's P/E ratio indicates a discount compared to an average of 24.96 for the IT Services industry and a value on par with the S&P 500 average of 23.99. To use another comparison, its price-to-book ratio of 4.24 indicates a significant premium versus the S&P 500 average of 2.74 and a significant discount versus the industry average of 8.21. 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, WIPRO LTD proves to trade at a discount to investment alternatives within the industry.
|WIT 22.11||Peers 24.96||WIT NA||Peers 21.15|
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.
WIT is trading at a discount to its peers.
Neutral. The P/CF ratio is the stock’s price divided by the sum of the company's cash flow from operations. It is useful for comparing companies with different capital requirements or financing structures.
Ratio not available.
|WIT 19.39||Peers 21.37||WIT 4.51||Peers 2.71|
Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.
WIT is trading at a valuation on par with its peers.
Premium. 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.
WIT trades at a significant premium to its peers.
|WIT 4.24||Peers 8.21||WIT 0.00||Peers 11.04|
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.
WIT is trading at a significant discount to its peers.
Neutral. Higher earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
The growth rate for WIT is not available.
|WIT 3.86||Peers 5.41||WIT 2.64||Peers 6.25|
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.
WIT is trading at a significant discount to its industry on this measurement.
Lower. A sales growth rate that trails the industry implies that a company is losing market share.
WIT significantly trails its peers on the basis of sales growth
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