Infosys Ltd

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INFY : NYSE : Technology
$14.69 -0.29 | -1.9%
Today's Range: 14.64 - 14.96
Avg. Daily Volume: 5943100.0
06/22/17 - 3:14 PM ET

Financial Analysis


INFOSYS LTD's gross profit margin for the fourth quarter of its fiscal year 2016 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 3.49 which clearly shows the ability to cover any 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 14.08% 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 Q4 FY16 Q4 FY15
Net Sales ($mil)2569.02446.0
EBITDA ($mil)701.0689.0
EBIT ($mil)634.0627.0
Net Income ($mil)543.0533.0


Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)5027.04946.0
Total Assets ($mil)12854.011378.0
Total Debt ($mil)0.00.0
Equity ($mil)10637.09324.0


Profitability Q4 FY16 Q4 FY15
Gross Profit Margin39.7840.6
EBITDA Margin27.2828.16
Operating Margin24.6825.63
Sales Turnover0.790.84
Return on Assets16.6418.03
Return on Equity20.1122.0
Debt Q4 FY16 Q4 FY15
Current Ratio3.833.9
Debt/Capital0.00.0
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)2285.662285.62
Div / share0.00.0
EPS0.240.23
Book value / share4.654.08
Institutional Own % n/a n/a
Avg Daily Volume6020719.07157120.0

Valuation


BUY. The current P/E ratio indicates a significant discount compared to an average of 31.61 for the IT Services industry and a discount compared to the S&P 500 average of 25.73. To use another comparison, its price-to-book ratio of 3.24 indicates valuation on par with the S&P 500 average of 3.08 and a significant discount versus the industry average of 9.84. 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.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
INFY 16.03 Peers 31.61   INFY 16.41 Peers 21.57

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

INFY is trading at a significant discount to its peers.

 

Discount. 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 discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
INFY 14.38 Peers 22.05   INFY 3.77 Peers 1.69

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

INFY is trading at a significant discount 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.

INFY trades at a significant premium to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
INFY 3.24 Peers 9.84   INFY 4.44 Peers -0.20

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.

 

Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

INFY is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
INFY 3.37 Peers 5.64   INFY 7.44 Peers 11.46

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 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.

INFY significantly trails its peers on the basis of sales growth

 

 

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