Almost entirely positive fundi’s for WIT(Wipro) or misleading garbage? via /r/wallstreetbets #stocks #wallstreetbets #investing
Almost entirely positive fundi’s for WIT(Wipro) or misleading garbage?
I've spent a shit ton of weeks searching for my perfect portfolio and right now, one stock has consistently had my interest. WIT, or Wipro Limited. It's in the technology sector, is listed on the NIFTY 50 on India's NSE(I'm investing via the NYSE, FYI), has a pretty large amount of social media following, media attention (mainly in India) and recently replaced it's CEO with Frenchman, Thierry Delaporte – the first non-indian take the CEO spot in it's 75 year history.
It's fundimentals are as follows, good first then bad:
- Somewhat preditcable earnings & revenue
- Operating & Net Margin is well above industry average
- Equity/Asset and Debt/EBITDA is better than industry average
- ROE, ROC AND ROI are both well above industry average
- Beneish M-Score is -2.48
- Altman Z-Score is 7
- Piotroski F-score is 6
- They have excellent capital utilization based off the last 4 quarters
- Again, low debt
- Positive CF and FCF
- Their earnings, revenue, revenue/share growth over the last 5 years have been excellent compared to sector average
- They pay dividends
- It barely passes Warren Buffet's supposed criteria with a C minus.
- It's invested in by Ken Fisher, Cliff Asness and O'Shaughnessy
The bad or possibly bad, is that….
- They MIGHT be overpriced
- It's still not seen as successful as their competitor, INFY, another company that peaked my interest but didn't have as many positives as WIT.
- Their Gross and Operating Margin have been slowly declining for a while but inconsistently as it flirts with flatlining to a slow decline, rinse and repeat.
- Their PB, while not excessively high, is still reaching a 5 year high for the company.
- Morning Star thinks it's dog shit.
So is the company worth putting a lot of money into then forgetting about the investment for a while?
Submitted November 25, 2020 at 05:55AM by Akemi_Tachibana
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