With a Market Cap of $20.39 Billion, Wipro Ltd. (NYSE:$WIT) has fallen -3.33% to a share price of $10.45 in recent trading sessions. The stock trades -1.53% to its SMA20 (20 day Simple Moving Average), but boasts a 2.38% and 6.27% premium on its SMA50 and SMA200 respectively. The average trading volume of the company is 695.22 Million, however last trading session reached volumes of just over $2.07 billion.

The Piotroski Score

Based on nine criteria, the Piotroski score is a discrete score ranging from 0-9 that implies the strength of a company’s financial position. With 9 being the highest score possible, a company is given one point for each criteria that is met, and none at all if not. The scores are then compared between companies to determine the stock that holds the greatest value.

Wipro has averaged a Piotroski F-Score of 6 in the past 7 years.

The Altman Z-Score

Dependant on 5 financial ratios that can be calculated from a firm’s annual 10K report, the Altman Z-score is a statistical tool that serves as a credit – strength test. The Altman Z-score uses measures of profitability, leverage, liquidity, solvency, and activity in order to predict the likelihood that a firm will go bankrupt. Although scores above a 3 typically mean that the firm is safe, firms with a lower score than 1.8 are perceived to be headed towards bankruptcy.

Wipro has averaged an Altman Score of 5.39 in the past 7 years.

Free Cash Flow Growth

Measured as the difference between operating cash flow and capital expenditures, a company’s free cash flow is a key indicator of their financial performance. It shows the additional cash that a company has generated after spending on operations and asset growth. This extra cash on hand allows firms to pursue new initiatives that seek to increase shareholder value.

Wipro Ltd.’s average Free Cash Flow per Share Growth Rate was 12 percent year-to-date.

Book Value Growth

The Book Value Growth is depicted as the NAV (Net Asset Value) of the company. Calculated as total assets minus intangible assets and liabilities, the Book value of a company paints an intrinsic value of what the firm could be worth if its assets were liquidated, and its liabilities paid back.

The average Book Value per Share Growth Rate for Wipro Ltd. was 14.3 percent year-to-date.

Profitability and Growth Analysis

Wipro has been operating well, with Return on Asset (ROA), Return on Equity (ROE), and Return on Investment (ROI) percentages of 11.0%, 17.0%, and 10.4% respectively. Additionally, the company has a relative strength index of 46.82.

Analyst Recommendations Analysis

According to Financial Times, amongst the 48 investment analysts that are covering Wipro Ltd., there was a consensus to “Hold” with 19 recommendations, and even a pessimistic outlook with the second most (16) recommendations coming from “Underperform”. For the rest of the recommendations, 5 analysts gave a “Buy” rating, 4 gave an “Outperform”, while the last 4 recommended a “Sell” on the technology stock.

Quarterly Profit Outlook Analysis

Analysts also offered their sentiment on Wipro Ltd.’s Estimated Earnings for the current quarter. Based on 2 Analyst forecasts, there was a consensus Earnings Per Share (EPS) forecast of $0.12. The projected EPS of $0.12 would mirror that of the EPS recorded in the same quarter last year at $0.12.

Quarterly Revenue Outlook Analysis

Additionally, the Average Revenue Estimate on Wipro Ltd. is $2.11 Billion, with high estimates of $2.17 Billion, and low estimates of $2.05 Billion. This represents approximately a 4% decrease from the $2.2 Billion brought in by Wipro Ltd. last year.

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