WIT : NYSE : Technology
$10.54 up 0.03 | 0.29%
Today's Range: 10.51 - 10.58
Avg. Daily Volume: 606800.0
05/24/17 - 10:39 AM ET

Financial Analysis

WIPRO LTD's gross profit margin for the fourth quarter of its fiscal year 2016 has decreased 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 has strong liquidity. Currently, the Quick Ratio is 1.99 which shows the ability to cover short-term cash needs. The company managed to increase its liquidity from the same period a year ago, despite already having strong liquidity to begin with. This would indicate improved cash flow.

During the same period, stockholders' equity ("net worth") has increased by 14.04% from the same quarter last year. The key liquidity measurements indicate that the company is unlikely to face financial difficulties in the near future.

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Income Statement Q4 FY16 Q4 FY15
Net Sales ($mil)2443.042052.57
EBITDA ($mil)0.0411.96
EBIT ($mil)354.44356.82
Net Income ($mil)392.08336.9

Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)5315.964549.92
Total Assets ($mil)12236.1810942.2
Total Debt ($mil)2196.021890.13
Equity ($mil)8023.197035.14

Profitability Q4 FY16 Q4 FY15
Gross Profit Margin28.132.38
EBITDA Margin0.020.07
Operating Margin14.5117.38
Sales Turnover0.690.71
Return on Assets10.6912.28
Return on Equity16.3119.11
Debt Q4 FY16 Q4 FY15
Current Ratio2.352.31
Interest Expense9.886.16
Interest Coverage35.8957.93

Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)2417.172455.88
Div / share0.030.07
Book value / share3.322.86
Institutional Own % n/a n/a
Avg Daily Volume595024.0584638.0


BUY. The current P/E ratio indicates a significant discount compared to an average of 30.61 for the IT Services industry and a discount compared to the S&P 500 average of 25.02. To use another comparison, its price-to-book ratio of 3.13 indicates valuation on par with the S&P 500 average of 3.00 and a significant discount versus the industry average of 9.31. 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.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
WIT 19.22 Peers 30.61   WIT 17.54 Peers 21.27

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.


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.

WIT is trading at a discount to its peers.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
WIT 18.80 Peers 21.60   WIT NM Peers 1.55

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.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
WIT 3.13 Peers 9.31   WIT -1.82 Peers -6.96

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.

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.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
WIT 2.96 Peers 5.43   WIT 9.72 Peers 11.84

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



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