WIT : NYSE : Technology
$9.265 -0.005 | -0.054%
Today's Range: 9.26 - 9.37
Avg. Daily Volume: 820300.0
12/06/16 - 11:18 AM ET

Financial Analysis


WIPRO LTD's gross profit margin for the second quarter of its fiscal year 2016 has decreased when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line. WIPRO LTD is extremely liquid. Currently, the Quick Ratio is 2.00 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 9.75% 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.

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 Q2 FY16 Q2 FY15
Net Sales ($mil)2095.681854.34
EBITDA ($mil)403.58398.64
EBIT ($mil)330.3351.69
Net Income ($mil)314.73332.07


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)4711.114329.05
Total Assets ($mil)11095.579985.07
Total Debt ($mil)1871.491516.2
Equity ($mil)7259.346613.99


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin32.0233.97
EBITDA Margin19.2521.49
Operating Margin15.7618.97
Sales Turnover0.730.76
Return on Assets11.5813.91
Return on Equity17.721.0
Debt Q2 FY16 Q2 FY15
Current Ratio2.392.57
Debt/Capital0.210.19
Interest Expense8.244.82
Interest Coverage40.0873.01


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)2416.752453.25
Div / share0.020.11
EPS0.130.14
Book value / share3.02.7
Institutional Own % n/a n/a
Avg Daily Volume819640.0512782.0

Valuation


HOLD. This stock's P/E ratio indicates a discount compared to an average of 27.05 for the IT Services industry and a discount compared to the S&P 500 average of 25.16. Conducting a second comparison, its price-to-book ratio of 3.09 indicates a premium versus the S&P 500 average of 2.79 and a significant discount versus the industry average of 7.90. 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 17.51 Peers 27.05   WIT 18.44 Peers 19.72

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.

 

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.

WIT is trading at a valuation on par to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
WIT 16.28 Peers 20.95   WIT NM Peers 1.58

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

WIT is trading at a discount to 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 3.09 Peers 7.90   WIT -5.36 Peers 12.58

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 2.78 Peers 5.20   WIT 5.72 Peers 16.45

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

 

 

Latest Stock Upgrades/Downgrades