WNS HOLDINGS LTD (WNS) Stock Fundamental Analysis
NYSE:WNS - New York Stock Exchange, Inc. - JE00BQC4YW14 - Common Stock - Currency: USD
Taking everything into account, WNS scores 5 out of 10 in our fundamental rating. WNS was compared to 81 industry peers in the IT Services industry. WNS has only an average score on both its financial health and profitability. WNS has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
WNS had positive earnings in the past year.
In the past year WNS had a positive cash flow from operations.
Of the past 5 years WNS 4 years were profitable.
WNS had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
The Return On Assets of WNS (8.80%) is better than 77.78% of its industry peers.
WNS has a Return On Equity of 17.89%. This is amongst the best in the industry. WNS outperforms 82.72% of its industry peers.
WNS's Return On Invested Capital of 12.51% is amongst the best of the industry. WNS outperforms 80.25% of its industry peers.
WNS had an Average Return On Invested Capital over the past 3 years of 13.21%. This is above the industry average of 10.68%.
| Industry Rank | Sector 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%
1.3 Margins
With a decent Profit Margin value of 10.02%, WNS is doing good in the industry, outperforming 77.78% of the companies in the same industry.
WNS's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 13.48%, WNS is doing good in the industry, outperforming 79.01% 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.
WNS has a Gross Margin (35.54%) which is in line with its industry peers.
In the last couple of years the Gross Margin of WNS has remained more or less at the same level.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), WNS is creating some value.
There is no outstanding debt for WNS. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
An Altman-Z score of 4.66 indicates that WNS is not in any danger for bankruptcy at the moment.
WNS has a Altman-Z score of 4.66. This is in the better half of the industry: WNS outperforms 70.37% of its industry peers.
The Debt to FCF ratio of WNS is 1.72, which is an excellent value as it means it would take WNS, only 1.72 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 1.72, WNS is doing good in the industry, outperforming 74.07% of the companies in the same industry.
WNS has a Debt/Equity ratio of 0.33. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of WNS (0.33) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 1.72 | ||
| Altman-Z | 4.66 |
ROIC/WACC1.24
WACC10.08%
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 53.09% of its industry peers.
A Quick Ratio of 1.60 indicates that WNS should not have too much problems paying its short term obligations.
WNS has a Quick ratio (1.60) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.6 | ||
| Quick Ratio | 1.6 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.41% over the past year.
The Earnings Per Share has been growing slightly by 7.77% on average over the past years.
EPS 1Y (TTM)3.41%
EPS 3Y9.66%
EPS 5Y7.77%
EPS Q2Q%29.46%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-0.8%
3.2 Future
Based on estimates for the next years, WNS will show a small growth in Earnings Per Share. The EPS will grow by 7.79% on average per year.
WNS is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.70% yearly.
EPS Next Y3.05%
EPS Next 2Y7.79%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year8.06%
Revenue Next 2Y8.7%
Revenue Next 3YN/A
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 13.18 indicates a correct valuation of WNS.
WNS's Price/Earnings ratio is rather cheap when compared to the industry. WNS is cheaper than 83.95% of the companies in the same industry.
WNS's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.92.
With a Price/Forward Earnings ratio of 12.79, WNS is valued correctly.
Based on the Price/Forward Earnings ratio, WNS is valued cheaper than 82.72% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.65. WNS is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.18 | ||
| Fwd PE | 12.79 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WNS is valued cheaper than 81.48% of the companies in the same industry.
81.48% of the companies in the same industry are more expensive than WNS, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16 | ||
| EV/EBITDA | 9.42 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
WNS has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)4.32
PEG (5Y)1.7
EPS Next 2Y7.79%
EPS Next 3YN/A
5. Dividend
5.1 Amount
WNS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
59.96
-4.94 (-7.61%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners90.26%
Inst Owner Change0%
Ins Owners1.83%
Ins Owner ChangeN/A
Market Cap2.81B
Analysts82.86
Price Target71.11 (18.6%)
Short Float %5.05%
Short Ratio4.03
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)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)3.79%
PT rev (3m)15.78%
EPS NQ rev (1m)0.08%
EPS NQ rev (3m)26.8%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)6.82%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)-1.17%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.18 | ||
| Fwd PE | 12.79 | ||
| P/S | 2.13 | ||
| P/FCF | 16 | ||
| P/OCF | 12.68 | ||
| P/B | 3.81 | ||
| P/tB | 10.96 | ||
| EV/EBITDA | 9.42 |
EPS(TTM)4.55
EY7.59%
EPS(NY)4.69
Fwd EY7.82%
FCF(TTM)3.75
FCFY6.25%
OCF(TTM)4.73
OCFY7.89%
SpS28.1
BVpS15.74
TBVpS5.47
PEG (NY)4.32
PEG (5Y)1.7
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 4.66 |
F-Score6
WACC10.08%
ROIC/WACC1.24
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)3.41%
EPS 3Y9.66%
EPS 5Y7.77%
EPS Q2Q%29.46%
EPS Next Y3.05%
EPS Next 2Y7.79%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-0.8%
Revenue Next Year8.06%
Revenue Next 2Y8.7%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y4.59%
EBIT growth 3Y10.54%
EBIT growth 5Y9.74%
EBIT Next Year-1.49%
EBIT Next 3Y5.57%
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%