WIPRO 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. Even though sales decreased, the net income has increased, representing an increase to the bottom line. WIPRO LTD is extremely liquid. Currently, the Quick Ratio is 2.34 which clearly shows the ability to cover any short-term cash needs. WIT managed to increase the liquidity from the same period a year ago, despite already having very strong liquidity to begin with. This would indicate improved cash flow.
During the same period, stockholders' equity ("net worth") has increased by 18.78% 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 ($mil)||1836.95||1855.22|
|Net Income ($mil)||335.83||331.44|
|Balance Sheet||Q3 FY14||Q3 FY13|
|Cash & Equiv. ($mil)||3673.83||2779.64|
|Total Assets ($mil)||9127.63||7789.28|
|Total Debt ($mil)||1104.16||767.38|
|Profitability||Q3 FY14||Q3 FY13|
|Gross Profit Margin||33.38||34.49|
|Return on Assets||15.46||15.69|
|Return on Equity||22.33||22.43|
|Debt||Q3 FY14||Q3 FY13|
|Share Data||Q3 FY14||Q3 FY13|
|Shares outstanding (mil)||2453.87||2448.87|
|Div / share||0.0||0.0|
|Book value / share||2.58||2.17|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||581589.0||461836.0|
BUY. The current P/E ratio indicates a discount compared to an average of 25.27 for the IT Services industry and a premium compared to the S&P 500 average of 19.41. To use another comparison, its price-to-book ratio of 5.13 indicates a significant premium versus the S&P 500 average of 2.74 and a significant discount versus the industry average of 9.14. 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 23.61||Peers 25.27||WIT 25.57||Peers 19.04|
Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation.
WIT is trading at a valuation on par with its peers.
Premium. 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.
WIT is trading at a significant premium to its peers.
|WIT 21.50||Peers 20.12||WIT 3.13||Peers 2.50|
Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.
WIT is trading at a premium to 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 5.13||Peers 9.14||WIT 17.40||Peers 22.82|
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.
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
However, WIT is expected to trail its peers on the basis of its earnings growth rate.
|WIT 4.25||Peers 5.17||WIT 10.15||Peers 9.92|
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 discount to its industry on this measurement.
Average. Comparing a company's sales growth to its industry helps to determine if the company is adding or losing market share.
WIT is keeping pace with its peers on the basis of sales growth.
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