Logo image of WNS

WNS HOLDINGS LTD (WNS) Stock Fundamental Analysis

NYSE:WNS - New York Stock Exchange, Inc. - JE00BQC4YW14 - Common Stock - Currency: USD

57.1  -0.27 (-0.47%)

Fundamental Rating

5

WNS gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals 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.


Dividend Valuation Growth Profitability Health

Quickly go to:

7

1. Profitability

1.1 Basic Checks

WNS had positive earnings in the past year.
WNS had a positive operating cash flow in the past year.
Each year in the past 5 years WNS has been profitable.
Each year in the past 5 years WNS had a positive operating cash flow.
WNS Yearly Net Income VS EBIT VS OCF VS FCFWNS Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M 200M

1.2 Ratios

WNS has a better Return On Assets (8.80%) than 78.21% of its industry peers.
WNS's Return On Equity of 17.89% is amongst the best of the industry. WNS outperforms 80.77% of its industry peers.
Looking at the Return On Invested Capital, with a value of 12.51%, WNS belongs to the top of the industry, outperforming 82.05% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for WNS is above the industry average of 10.27%.
Industry RankSector Rank
ROA 8.8%
ROE 17.89%
ROIC 12.51%
ROA(3y)10.13%
ROA(5y)10.24%
ROE(3y)17.65%
ROE(5y)17.57%
ROIC(3y)13.21%
ROIC(5y)13.57%
WNS Yearly ROA, ROE, ROICWNS Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15

1.3 Margins

Looking at the Profit Margin, with a value of 10.02%, WNS is in the better half of the industry, outperforming 75.64% of the companies in the same industry.
WNS's Profit Margin has declined in the last couple of years.
WNS has a better Operating Margin (13.48%) than 78.21% of its industry peers.
WNS's Operating Margin has been stable in the last couple of years.
The Gross Margin of WNS (35.54%) is comparable to the rest of the industry.
WNS's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 13.48%
PM (TTM) 10.02%
GM 35.54%
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%
WNS Yearly Profit, Operating, Gross MarginsWNS Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30

More info and screens

6

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.
The number of shares outstanding for WNS has been reduced compared to 1 year ago.
WNS has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, WNS has a worse debt to assets ratio.
WNS Yearly Shares OutstandingWNS Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10M 20M 30M 40M 50M
WNS Yearly Total Debt VS Total AssetsWNS Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B

2.2 Solvency

An Altman-Z score of 4.57 indicates that WNS is not in any danger for bankruptcy at the moment.
WNS has a Altman-Z score of 4.57. This is in the better half of the industry: WNS outperforms 70.51% of its industry peers.
WNS has a debt to FCF ratio of 1.72. This is a very positive value and a sign of high solvency as it would only need 1.72 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 1.72, WNS is doing good in the industry, outperforming 73.08% of the companies in the same industry.
A Debt/Equity ratio of 0.33 indicates that WNS is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.33, WNS is in line with its industry, outperforming 55.13% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.33
Debt/FCF 1.72
Altman-Z 4.57
ROIC/WACC1.06
WACC11.84%
WNS Yearly LT Debt VS Equity VS FCFWNS Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M

2.3 Liquidity

WNS has a Current Ratio of 1.60. This is a normal value and indicates that WNS is financially healthy and should not expect problems in meeting its short term obligations.
WNS has a Current ratio (1.60) which is comparable to the rest of the industry.
WNS has a Quick Ratio of 1.60. This is a normal value and indicates that WNS is financially healthy and should not expect problems in meeting its short term obligations.
WNS has a Quick ratio (1.60) which is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 1.6
Quick Ratio 1.6
WNS Yearly Current Assets VS Current LiabilitesWNS Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M 500M

More info and screens

4

3. Growth

3.1 Past

The earnings per share for WNS have decreased by -2.31% in the last year.
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.
WNS shows a small growth in Revenue. In the last year, the Revenue has grown by 1.07%.
The Revenue has been growing by 10.34% on average over the past years. This is quite good.
EPS 1Y (TTM)-2.31%
EPS 3Y17.25%
EPS 5Y10.26%
EPS Q2Q%-11.86%
Revenue 1Y (TTM)1.07%
Revenue growth 3Y13.19%
Revenue growth 5Y10.34%
Sales Q2Q%1.01%

3.2 Future

WNS is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.71% yearly.
Based on estimates for the next years, WNS will show a small growth in Revenue. The Revenue will grow by 5.07% on average per year.
EPS Next Y3.61%
EPS Next 2Y3.22%
EPS Next 3Y6.71%
EPS Next 5YN/A
Revenue Next Year-1.31%
Revenue Next 2Y2.74%
Revenue Next 3Y5.07%
Revenue Next 5YN/A

3.3 Evolution

The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
WNS Yearly Revenue VS EstimatesWNS Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 500M 1B 1.5B
WNS Yearly EPS VS EstimatesWNS Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 1 2 3 4 5

More info and screens

6

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 13.53 indicates a correct valuation of WNS.
WNS's Price/Earnings ratio is rather cheap when compared to the industry. WNS is cheaper than 85.90% of the companies in the same industry.
When comparing the Price/Earnings ratio of WNS to the average of the S&P500 Index (29.36), we can say WNS is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 12.18, the valuation of WNS can be described as correct.
Based on the Price/Forward Earnings ratio, WNS is valued cheaply inside the industry as 85.90% of the companies are valued more expensively.
WNS's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.65.
Industry RankSector Rank
PE 13.53
Fwd PE 12.18
WNS Price Earnings VS Forward Price EarningsWNS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

85.90% of the companies in the same industry are more expensive than WNS, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, WNS is valued cheaply inside the industry as 85.90% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 15.23
EV/EBITDA 8.97
WNS Per share dataWNS EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15 20 25

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates WNS does not grow enough to justify the current Price/Earnings ratio.
WNS has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)3.75
PEG (5Y)1.32
EPS Next 2Y3.22%
EPS Next 3Y6.71%

More info and screens

0

5. Dividend

5.1 Amount

No dividends for WNS!.
Industry RankSector Rank
Dividend Yield N/A

More info and screens

WNS HOLDINGS LTD

NYSE:WNS (2/27/2025, 3:34:46 PM)

57.1

-0.27 (-0.47%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)01-23 2025-01-23/bmo
Earnings (Next)07-16 2025-07-16/bmo
Inst Owners90.26%
Inst Owner Change-4.36%
Ins Owners1.83%
Ins Owner ChangeN/A
Market Cap2.67B
Analysts82.86
Price Target65.43 (14.59%)
Short Float %6.16%
Short Ratio4.84
Dividend
Industry RankSector 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)1
Avg EPS beat(2)6.27%
Min EPS beat(2)-0.85%
Max EPS beat(2)13.39%
EPS beat(4)3
Avg EPS beat(4)4.56%
Min EPS beat(4)-0.85%
Max EPS beat(4)13.39%
EPS beat(8)7
Avg EPS beat(8)6.17%
EPS beat(12)11
Avg EPS beat(12)6.61%
EPS beat(16)15
Avg EPS beat(16)6.79%
Revenue beat(2)0
Avg Revenue beat(2)-1.17%
Min Revenue beat(2)-2.27%
Max Revenue beat(2)-0.07%
Revenue beat(4)0
Avg Revenue beat(4)-0.76%
Min Revenue beat(4)-2.27%
Max Revenue beat(4)-0.07%
Revenue beat(8)2
Avg Revenue beat(8)0.07%
Revenue beat(12)6
Avg Revenue beat(12)2.63%
Revenue beat(16)10
Avg Revenue beat(16)4.27%
PT rev (1m)11.55%
PT rev (3m)12.09%
EPS NQ rev (1m)26.7%
EPS NQ rev (3m)9.85%
EPS NY rev (1m)6.83%
EPS NY rev (3m)6.71%
Revenue NQ rev (1m)-1.13%
Revenue NQ rev (3m)-7.27%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)-0.31%
Valuation
Industry RankSector Rank
PE 13.53
Fwd PE 12.18
P/S 2.03
P/FCF 15.23
P/OCF 12.07
P/B 3.63
P/tB 10.43
EV/EBITDA 8.97
EPS(TTM)4.22
EY7.39%
EPS(NY)4.69
Fwd EY8.21%
FCF(TTM)3.75
FCFY6.56%
OCF(TTM)4.73
OCFY8.28%
SpS28.1
BVpS15.74
TBVpS5.47
PEG (NY)3.75
PEG (5Y)1.32
Profitability
Industry RankSector Rank
ROA 8.8%
ROE 17.89%
ROCE 15.75%
ROIC 12.51%
ROICexc 16.7%
ROICexgc 35.93%
OM 13.48%
PM (TTM) 10.02%
GM 35.54%
FCFM 13.34%
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-Score6
Asset Turnover0.88
Health
Industry RankSector Rank
Debt/Equity 0.33
Debt/FCF 1.72
Debt/EBITDA 0.92
Cap/Depr 51.22%
Cap/Sales 3.49%
Interest Coverage 9.02
Cash Conversion 82.9%
Profit Quality 133.09%
Current Ratio 1.6
Quick Ratio 1.6
Altman-Z 4.57
F-Score6
WACC11.84%
ROIC/WACC1.06
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)-2.31%
EPS 3Y17.25%
EPS 5Y10.26%
EPS Q2Q%-11.86%
EPS Next Y3.61%
EPS Next 2Y3.22%
EPS Next 3Y6.71%
EPS Next 5YN/A
Revenue 1Y (TTM)1.07%
Revenue growth 3Y13.19%
Revenue growth 5Y10.34%
Sales Q2Q%1.01%
Revenue Next Year-1.31%
Revenue Next 2Y2.74%
Revenue Next 3Y5.07%
Revenue Next 5YN/A
EBIT growth 1Y4.59%
EBIT growth 3Y10.54%
EBIT growth 5Y9.74%
EBIT Next Year-6.07%
EBIT Next 3Y3.45%
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%