WIT : NYSE : Technology
$6.12 up 0.11 | 1.83%
Today's Range: 6.0 - 6.13
Avg. Daily Volume: 1592700.0
07/25/17 - 4:02 PM ET

Financial Analysis


WIPRO LTD's gross profit margin for the first quarter of its fiscal year 2017 has decreased when compared to the same period a year ago. Sales and net income have grown, and although the growth in revenues has outpaced the average competitor within the industry, the net income growth has not.

During the same period, stockholders' equity ("net worth") has increased by 15.44% from the same quarter last year.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. To learn more visit www.TheStreetRatings.com.



Income Statement Q1 FY17 Q1 FY16
Net Sales ($mil)2108.652014.4
EBITDA ($mil)0.0383.03
EBIT ($mil)336.43323.85
Net Income ($mil)321.34303.93


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)5757.274771.23
Total Assets ($mil)12853.5311155.53
Total Debt ($mil)2262.441905.88
Equity ($mil)8367.617247.93


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin28.7332.06
EBITDA Margin0.019.01
Operating Margin15.9516.08
Sales Turnover0.670.7
Return on Assets10.3211.68
Return on Equity15.8517.98
Debt Q1 FY17 Q1 FY16
Current Ratio2.412.37
Debt/Capital0.210.21
Interest Expense0.06.1
Interest Coverage0.053.06


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)4834.344912.36
Div / share0.00.0
EPS0.070.06
Book value / share1.731.48
Institutional Own % n/a n/a
Avg Daily Volume951107.0563663.0

Valuation


BUY. The current P/E ratio indicates a significant discount compared to an average of 31.03 for the IT Services industry and a discount compared to the S&P 500 average of 24.66. To use another comparison, its price-to-book ratio of 3.32 indicates valuation on par with the S&P 500 average of 3.07 and a significant discount versus the industry average of 10.05. 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.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
WIT 20.54 Peers 31.03   WIT NA Peers 20.16

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

WIT is trading at a significant 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.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
WIT 18.55 Peers 23.07   WIT NM Peers 1.67

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.

 

Neutral. 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's negative PEG ratio makes this valuation measure meaningless.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
WIT 3.32 Peers 10.05   WIT 5.66 Peers 8.14

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 significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
WIT 3.24 Peers 5.83   WIT 9.67 Peers 12.37

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 trails its peers on the basis of sales growth

 

 

Latest Stock Upgrades/Downgrades