Infosys Ltd
Find Ratings Reports
-0.15 |
-0.91%
INFOSYS LTD's gross profit margin for the first 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 3.17 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 7.25% 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 | Q1 FY16 | Q1 FY15 |
|---|---|---|
| Net Sales ($mil) | 2501.0 | 2256.0 |
| EBITDA ($mil) | 664.0 | 592.0 |
| EBIT ($mil) | 604.0 | 543.0 |
| Net Income ($mil) | 511.0 | 476.0 |
| Balance Sheet | Q1 FY16 | Q1 FY15 |
|---|---|---|
| Cash & Equiv. ($mil) | 4681.0 | 4537.0 |
| Total Assets ($mil) | 11317.0 | 10587.0 |
| Total Debt ($mil) | 0.0 | 0.0 |
| Equity ($mil) | 9076.0 | 8462.0 |
| Profitability | Q1 FY16 | Q1 FY15 |
|---|---|---|
| Gross Profit Margin | 38.74 | 38.61 |
| EBITDA Margin | 26.54 | 26.24 |
| Operating Margin | 24.15 | 24.07 |
| Sales Turnover | 0.86 | 0.83 |
| Return on Assets | 18.44 | 18.95 |
| Return on Equity | 22.99 | 23.71 |
| Debt | Q1 FY16 | Q1 FY15 |
|---|---|---|
| Current Ratio | 3.54 | 3.54 |
| Debt/Capital | 0.0 | 0.0 |
| Interest Expense | 0.0 | 0.0 |
| Interest Coverage | 0.0 | 0.0 |
| Share Data | Q1 FY16 | Q1 FY15 |
|---|---|---|
| Shares outstanding (mil) | 2285.63 | 2285.61 |
| Div / share | 0.21 | 0.23 |
| EPS | 0.22 | 0.21 |
| Book value / share | 3.97 | 3.7 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 4991586.0 | 3310534.0 |
BUY. This stock's P/E ratio indicates a discount compared to an average of 27.47 for the IT Services industry and a discount compared to the S&P 500 average of 25.19. Conducting a second comparison, its price-to-book ratio of 4.09 indicates a premium versus the S&P 500 average of 2.82 and a significant discount versus the industry average of 8.10. 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 |
|
Price/Cash Flow |
| |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| INFY 17.86 | Peers 27.47 | INFY 18.86 | Peers 20.56 | |||||||||||||||||||||
|
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. |
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. |
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| Price/Projected Earnings |
|
Price to Earnings/Growth |
|
|||||||||||||||||||||
| INFY 15.48 | Peers 21.95 | INFY 2.68 | Peers 2.41 | |||||||||||||||||||||
|
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 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 premium to its peers. |
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| Price/Book |
|
Earnings Growth |
|
|||||||||||||||||||||
| INFY 4.09 | Peers 8.10 | INFY 3.11 | Peers 21.96 | |||||||||||||||||||||
|
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. |
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| Price/Sales |
|
Sales Growth |
|
|||||||||||||||||||||
| INFY 3.81 | Peers 5.57 | INFY 10.32 | Peers 22.90 | |||||||||||||||||||||
|
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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