WIPRO LTD's gross profit margin for the second 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. WIPRO LTD is extremely liquid. Currently, the Quick Ratio is 2.22 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has increased from the same period last year.
During the same period, stockholders' equity ("net worth") has increased by 23.27% 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||Q2 FY14||Q2 FY13|
|Net Sales ($mil)||1831.22||1641.5|
|Net Income ($mil)||326.17||295.42|
|Balance Sheet||Q2 FY14||Q2 FY13|
|Cash & Equiv. ($mil)||3230.59||2610.8|
|Total Assets ($mil)||8714.02||7548.39|
|Total Debt ($mil)||923.71||901.47|
|Profitability||Q2 FY14||Q2 FY13|
|Gross Profit Margin||33.1||33.4|
|Return on Assets||16.15||15.66|
|Return on Equity||23.3||23.11|
|Debt||Q2 FY14||Q2 FY13|
|Share Data||Q2 FY14||Q2 FY13|
|Shares outstanding (mil)||2451.14||2448.45|
|Div / share||0.08||0.0|
|Book value / share||2.46||2.0|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||469381.0||523789.0|
BUY. WIPRO LTD's P/E ratio indicates a discount compared to an average of 23.47 for the IT Services industry and a value on par with the S&P 500 average of 19.74. To use another comparison, its price-to-book ratio of 4.74 indicates a significant premium versus the S&P 500 average of 2.73 and a significant discount versus the industry average of 8.91. 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 20.49||Peers 23.47||WIT 23.14||Peers 17.45|
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.
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 18.84||Peers 20.23||WIT 2.72||Peers 1.58|
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 4.74||Peers 8.91||WIT 31.00||Peers 14.42|
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.
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
WIT is expected to have an earnings growth rate that significantly exceeds its peers.
|WIT 3.74||Peers 5.20||WIT 14.44||Peers 8.47|
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.
Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.
WIT has a sales growth rate that significantly exceeds its peers.
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