Wipro LtdFind Ratings Reports
WIPRO 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. Even though sales increased, the net income has decreased. WIPRO LTD has strong liquidity. Currently, the Quick Ratio is 1.97 which shows the ability to cover 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 7.33% 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||Q1 FY16||Q1 FY15|
|Net Sales ($mil)||2014.4||1924.45|
|Net Income ($mil)||303.93||344.66|
|Balance Sheet||Q1 FY16||Q1 FY15|
|Cash & Equiv. ($mil)||4771.23||4354.8|
|Total Assets ($mil)||11155.53||9947.38|
|Total Debt ($mil)||1905.88||1286.11|
|Profitability||Q1 FY16||Q1 FY15|
|Gross Profit Margin||32.06||33.21|
|Return on Assets||11.67||13.9|
|Return on Equity||17.96||20.48|
|Debt||Q1 FY16||Q1 FY15|
|Share Data||Q1 FY16||Q1 FY15|
|Shares outstanding (mil)||2456.18||2454.47|
|Div / share||0.0||0.0|
|Book value / share||2.95||2.75|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||493775.0||581947.0|
BUY. This stock's P/E ratio indicates a discount compared to an average of 27.40 for the IT Services industry and a discount compared to the S&P 500 average of 25.05. Conducting a second comparison, its price-to-book ratio of 3.84 indicates a premium versus the S&P 500 average of 2.81 and a significant discount versus the industry average of 8.25. 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 20.98||Peers 27.40||WIT 26.29||Peers 20.12|
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 19.20||Peers 21.67||WIT NA||Peers 2.70|
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.
Ratio not available.
|WIT 3.84||Peers 8.25||WIT -1.82||Peers 23.94|
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.
|WIT 3.56||Peers 5.30||WIT 2.87||Peers 22.71|
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 significantly trails its peers on the basis of sales growth