WNS HOLDINGS LTD (WNS) Stock Fundamental Analysis
NYSE:WNS - New York Stock Exchange, Inc. - JE00BQC4YW14 - Common Stock - Currency: USD
Overall WNS gets a fundamental rating of 5 out of 10. We evaluated WNS against 82 industry peers in the IT Services industry. While WNS has a great profitability rating, there are some minor concerns on its financial health. WNS has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year WNS was profitable.
WNS had positive earnings in each of the past 5 years.
Each year in the past 5 years WNS had a positive operating cash flow.
1.2 Ratios
WNS has a Return On Assets of 9.38%. This is amongst the best in the industry. WNS outperforms 81.01% of its industry peers.
WNS has a Return On Equity of 19.07%. This is amongst the best in the industry. WNS outperforms 81.01% of its industry peers.
WNS has a Return On Invested Capital of 12.70%. This is amongst the best in the industry. WNS outperforms 82.28% of its industry peers.
The Average Return On Invested Capital over the past 3 years for WNS is above the industry average of 9.86%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.38% | ||
| ROE | 19.07% | ||
| ROIC | 12.7% |
ROA(3y)10.13%
ROA(5y)10.24%
ROE(3y)17.65%
ROE(5y)17.57%
ROIC(3y)13.21%
ROIC(5y)13.57%
1.3 Margins
WNS has a better Profit Margin (10.65%) than 78.48% of its industry peers.
WNS's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 13.65%, WNS is in the better half of the industry, outperforming 78.48% of the companies in the same industry.
In the last couple of years the Operating Margin of WNS has remained more or less at the same level.
Looking at the Gross Margin, with a value of 35.87%, WNS is in line with its industry, outperforming 54.43% of the companies in the same industry.
WNS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.65% | ||
| PM (TTM) | 10.65% | ||
| GM | 35.87% |
OM growth 3Y-2.34%
OM growth 5Y-0.55%
PM growth 3Y-1.98%
PM growth 5Y-4.06%
GM growth 3Y0.46%
GM growth 5Y0.11%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so WNS is still creating some value.
Compared to 1 year ago, WNS has less shares outstanding
WNS has less shares outstanding than it did 5 years ago.
WNS has a worse debt/assets ratio than last year.
2.2 Solvency
WNS has an Altman-Z score of 4.76. This indicates that WNS is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.76, WNS is in the better half of the industry, outperforming 70.89% of the companies in the same industry.
A Debt/Equity ratio of 0.33 indicates that WNS is not too dependend on debt financing.
WNS has a Debt to Equity ratio (0.33) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 4.76 |
ROIC/WACC1.09
WACC11.7%
2.3 Liquidity
A Current Ratio of 1.60 indicates that WNS should not have too much problems paying its short term obligations.
WNS's Current ratio of 1.60 is in line compared to the rest of the industry. WNS outperforms 54.43% of its industry peers.
A Quick Ratio of 1.60 indicates that WNS should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.60, WNS perfoms like the industry average, outperforming 55.70% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.6 | ||
| Quick Ratio | 1.6 |
3. Growth
3.1 Past
WNS shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.06%.
Measured over the past years, WNS shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.26% on average per year.
Looking at the last year, WNS shows a small growth in Revenue. The Revenue has grown by 2.07% in the last year.
The Revenue has been growing by 10.34% on average over the past years. This is quite good.
EPS 1Y (TTM)5.06%
EPS 3Y17.25%
EPS 5Y10.26%
EPS Q2Q%3.67%
Revenue 1Y (TTM)2.07%
Revenue growth 3Y13.19%
Revenue growth 5Y10.34%
Sales Q2Q%-4.4%
3.2 Future
WNS is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.60% yearly.
The Revenue is expected to grow by 5.81% on average over the next years.
EPS Next Y-3.01%
EPS Next 2Y4.11%
EPS Next 3Y7.6%
EPS Next 5YN/A
Revenue Next Year-1.24%
Revenue Next 2Y3.15%
Revenue Next 3Y5.81%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
WNS is valuated correctly with a Price/Earnings ratio of 14.31.
WNS's Price/Earnings ratio is rather cheap when compared to the industry. WNS is cheaper than 87.34% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.58. WNS is valued slightly cheaper when compared to this.
WNS is valuated correctly with a Price/Forward Earnings ratio of 13.09.
87.34% of the companies in the same industry are more expensive than WNS, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.47, WNS is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.31 | ||
| Fwd PE | 13.09 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WNS is valued cheaper than 84.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.75 |
4.3 Compensation for Growth
WNS has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.4
EPS Next 2Y4.11%
EPS Next 3Y7.6%
5. Dividend
5.1 Amount
WNS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
WNS HOLDINGS LTD
NYSE:WNS (1/24/2025, 8:15:40 PM)
After market: 62.41 0 (0%)62.41
+1.71 (+2.82%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners88.15%
Inst Owner Change0%
Ins Owners1.8%
Ins Owner ChangeN/A
Market Cap2.92B
Analysts82.86
Price Target58.65 (-6.02%)
Short Float %5.8%
Short Ratio4.57
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.84%
Min EPS beat(2)1.35%
Max EPS beat(2)4.33%
EPS beat(4)4
Avg EPS beat(4)6.9%
Min EPS beat(4)1.35%
Max EPS beat(4)17.32%
EPS beat(8)8
Avg EPS beat(8)5.58%
EPS beat(12)12
Avg EPS beat(12)6.92%
EPS beat(16)16
Avg EPS beat(16)10.22%
Revenue beat(2)0
Avg Revenue beat(2)-0.34%
Min Revenue beat(2)-0.36%
Max Revenue beat(2)-0.32%
Revenue beat(4)0
Avg Revenue beat(4)-0.5%
Min Revenue beat(4)-1.06%
Max Revenue beat(4)-0.24%
Revenue beat(8)4
Avg Revenue beat(8)1.98%
Revenue beat(12)8
Avg Revenue beat(12)4.6%
Revenue beat(16)12
Avg Revenue beat(16)5.56%
PT rev (1m)0.49%
PT rev (3m)-0.86%
EPS NQ rev (1m)0.06%
EPS NQ rev (3m)0.06%
EPS NY rev (1m)0%
EPS NY rev (3m)-6.32%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-0.16%
Revenue NY rev (3m)-3.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.31 | ||
| Fwd PE | 13.09 | ||
| P/S | 2.21 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 3.96 | ||
| P/tB | 11.4 | ||
| EV/EBITDA | 9.75 |
EPS(TTM)4.36
EY6.99%
EPS(NY)4.77
Fwd EY7.64%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS28.2
BVpS15.74
TBVpS5.47
PEG (NY)N/A
PEG (5Y)1.4
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.38% | ||
| ROE | 19.07% | ||
| ROCE | 15.99% | ||
| ROIC | 12.7% | ||
| ROICexc | 16.96% | ||
| ROICexgc | 36.49% | ||
| OM | 13.65% | ||
| PM (TTM) | 10.65% | ||
| GM | 35.87% | ||
| FCFM | N/A |
ROA(3y)10.13%
ROA(5y)10.24%
ROE(3y)17.65%
ROE(5y)17.57%
ROIC(3y)13.21%
ROIC(5y)13.57%
ROICexc(3y)17.84%
ROICexc(5y)18.87%
ROICexgc(3y)33.57%
ROICexgc(5y)32.23%
ROCE(3y)15.81%
ROCE(5y)16.16%
ROICexcg growth 3Y9.06%
ROICexcg growth 5Y-0.2%
ROICexc growth 3Y-3.92%
ROICexc growth 5Y-3.57%
OM growth 3Y-2.34%
OM growth 5Y-0.55%
PM growth 3Y-1.98%
PM growth 5Y-4.06%
GM growth 3Y0.46%
GM growth 5Y0.11%
F-ScoreN/A
Asset Turnover0.88
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 0.91 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.6 | ||
| Quick Ratio | 1.6 | ||
| Altman-Z | 4.76 |
F-ScoreN/A
WACC11.7%
ROIC/WACC1.09
Cap/Depr(3y)55.82%
Cap/Depr(5y)50.83%
Cap/Sales(3y)3.44%
Cap/Sales(5y)3.25%
Profit Quality(3y)120.61%
Profit Quality(5y)143.24%
High Growth Momentum
Growth
EPS 1Y (TTM)5.06%
EPS 3Y17.25%
EPS 5Y10.26%
EPS Q2Q%3.67%
EPS Next Y-3.01%
EPS Next 2Y4.11%
EPS Next 3Y7.6%
EPS Next 5YN/A
Revenue 1Y (TTM)2.07%
Revenue growth 3Y13.19%
Revenue growth 5Y10.34%
Sales Q2Q%-4.4%
Revenue Next Year-1.24%
Revenue Next 2Y3.15%
Revenue Next 3Y5.81%
Revenue Next 5YN/A
EBIT growth 1Y9.92%
EBIT growth 3Y10.54%
EBIT growth 5Y9.74%
EBIT Next Year-6.04%
EBIT Next 3Y4.06%
EBIT Next 5YN/A
FCF growth 1Y9.34%
FCF growth 3Y-2.23%
FCF growth 5Y8.31%
OCF growth 1Y11.84%
OCF growth 3Y2.36%
OCF growth 5Y8.9%