WNS HOLDINGS LTD (WNS) Stock Fundamental Analysis
USA - NYSE:WNS - JE00BQC4YW14 - Common Stock
76.29 USD
-0.02 (-0.03%)
76.29 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to WNS. WNS was compared to 86 industry peers in the IT Services industry. WNS has only an average score on both its financial health and profitability. WNS has a decent growth rate and is not valued too expensively.
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.
In the past 5 years WNS has always been profitable.
WNS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
WNS has a better Return On Assets (10.39%) than 88.37% of its industry peers.
WNS's Return On Equity of 20.42% is amongst the best of the industry. WNS outperforms 83.72% of its industry peers.
The Return On Invested Capital of WNS (11.22%) is better than 77.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.39% | ||
| ROE | 20.42% | ||
| ROIC | 11.22% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
WNS has a better Profit Margin (12.11%) than 87.21% of its industry peers.
In the last couple of years the Profit Margin of WNS has remained more or less at the same level.
With a decent Operating Margin value of 12.44%, WNS is doing good in the industry, outperforming 74.42% of the companies in the same industry.
In the last couple of years the Operating Margin of WNS has declined.
WNS has a Gross Margin of 34.81%. This is comparable to the rest of the industry: WNS outperforms 47.67% of 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 | 12.44% | ||
| PM (TTM) | 12.11% | ||
| GM | 34.81% |
OM growth 3Y-2.13%
OM growth 5Y-3.39%
PM growth 3Y2.82%
PM growth 5Y0.56%
GM growth 3Y1.6%
GM growth 5Y-0.93%
2. Health
2.1 Basic Checks
WNS has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it 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 5.06 indicates that WNS is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 5.06, WNS is doing good in the industry, outperforming 70.93% of the companies in the same industry.
The Debt to FCF ratio of WNS is 1.70, which is an excellent value as it means it would take WNS, only 1.70 years of fcf income to pay off all of its debts.
WNS has a Debt to FCF ratio of 1.70. This is in the better half of the industry: WNS outperforms 74.42% of its industry peers.
WNS has a Debt/Equity ratio of 0.25. This is a healthy value indicating a solid balance between debt and equity.
WNS has a Debt to Equity ratio (0.25) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 1.7 | ||
| Altman-Z | 5.06 |
ROIC/WACC1.16
WACC9.66%
2.3 Liquidity
WNS has a Current Ratio of 1.47. 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 worse Current ratio (1.47) than 60.47% of its industry peers.
A Quick Ratio of 1.47 indicates that WNS should not have too much problems paying its short term obligations.
WNS has a Quick ratio of 1.47. This is in the lower half of the industry: WNS underperforms 60.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.47 | ||
| Quick Ratio | 1.47 |
3. Growth
3.1 Past
WNS shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.41%.
The Earnings Per Share has been growing slightly by 7.77% on average over the past years.
The Revenue has been growing slightly by 1.94% in the past year.
The Revenue has been growing slightly by 7.21% on average over the past years.
EPS 1Y (TTM)7.41%
EPS 3Y9.66%
EPS 5Y7.77%
EPS Q2Q%9.68%
Revenue 1Y (TTM)1.94%
Revenue growth 3Y5.82%
Revenue growth 5Y7.21%
Sales Q2Q%8.8%
3.2 Future
Based on estimates for the next years, WNS will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.37% on average per year.
The Revenue is expected to grow by 10.47% on average over the next years. This is quite good.
EPS Next Y3.26%
EPS Next 2Y8.22%
EPS Next 3Y9.37%
EPS Next 5YN/A
Revenue Next Year10.33%
Revenue Next 2Y9.81%
Revenue Next 3Y10.47%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
WNS is valuated correctly with a Price/Earnings ratio of 16.44.
Based on the Price/Earnings ratio, WNS is valued a bit cheaper than the industry average as 74.42% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.76. WNS is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 14.32, which indicates a correct valuation of WNS.
Based on the Price/Forward Earnings ratio, WNS is valued a bit cheaper than the industry average as 74.42% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 23.21. WNS is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.44 | ||
| Fwd PE | 14.32 |
4.2 Price Multiples
WNS's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. WNS is cheaper than 61.63% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, WNS is valued a bit cheaper than 63.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.74 | ||
| EV/EBITDA | 15.22 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of WNS may justify a higher PE ratio.
PEG (NY)5.04
PEG (5Y)2.12
EPS Next 2Y8.22%
EPS Next 3Y9.37%
5. Dividend
5.1 Amount
WNS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
76.29
-0.02 (-0.03%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners89.65%
Inst Owner Change0%
Ins Owners2.19%
Ins Owner Change0%
Market Cap3.57B
Analysts70
Price Target76.33 (0.05%)
Short Float %4.92%
Short Ratio2
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)4.03%
Min EPS beat(2)1.64%
Max EPS beat(2)6.42%
EPS beat(4)3
Avg EPS beat(4)5.15%
Min EPS beat(4)-0.85%
Max EPS beat(4)13.39%
EPS beat(8)7
Avg EPS beat(8)6.03%
EPS beat(12)11
Avg EPS beat(12)5.43%
EPS beat(16)15
Avg EPS beat(16)6.48%
Revenue beat(2)1
Avg Revenue beat(2)0.78%
Min Revenue beat(2)-1.01%
Max Revenue beat(2)2.56%
Revenue beat(4)1
Avg Revenue beat(4)-0.2%
Min Revenue beat(4)-2.27%
Max Revenue beat(4)2.56%
Revenue beat(8)1
Avg Revenue beat(8)-0.35%
Revenue beat(12)5
Avg Revenue beat(12)1.25%
Revenue beat(16)9
Avg Revenue beat(16)3.4%
PT rev (1m)0%
PT rev (3m)3.94%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.8%
EPS NY rev (1m)0%
EPS NY rev (3m)1.71%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.6%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.44 | ||
| Fwd PE | 14.32 | ||
| P/S | 2.65 | ||
| P/FCF | 22.74 | ||
| P/OCF | 16.59 | ||
| P/B | 4.48 | ||
| P/tB | 13.6 | ||
| EV/EBITDA | 15.22 |
EPS(TTM)4.64
EY6.08%
EPS(NY)5.33
Fwd EY6.98%
FCF(TTM)3.35
FCFY4.4%
OCF(TTM)4.6
OCFY6.03%
SpS28.75
BVpS17.04
TBVpS5.61
PEG (NY)5.04
PEG (5Y)2.12
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.39% | ||
| ROE | 20.42% | ||
| ROCE | 14% | ||
| ROIC | 11.22% | ||
| ROICexc | 13.65% | ||
| ROICexgc | 28.48% | ||
| OM | 12.44% | ||
| PM (TTM) | 12.11% | ||
| GM | 34.81% | ||
| FCFM | 11.67% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y-2.13%
OM growth 5Y-3.39%
PM growth 3Y2.82%
PM growth 5Y0.56%
GM growth 3Y1.6%
GM growth 5Y-0.93%
F-Score6
Asset Turnover0.86
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 1.7 | ||
| Debt/EBITDA | 0.87 | ||
| Cap/Depr | 99.4% | ||
| Cap/Sales | 4.33% | ||
| Interest Coverage | 10.28 | ||
| Cash Conversion | 95.26% | ||
| Profit Quality | 96.37% | ||
| Current Ratio | 1.47 | ||
| Quick Ratio | 1.47 | ||
| Altman-Z | 5.06 |
F-Score6
WACC9.66%
ROIC/WACC1.16
Cap/Depr(3y)72.36%
Cap/Depr(5y)61.09%
Cap/Sales(3y)3.96%
Cap/Sales(5y)3.47%
Profit Quality(3y)110.45%
Profit Quality(5y)126.84%
High Growth Momentum
Growth
EPS 1Y (TTM)7.41%
EPS 3Y9.66%
EPS 5Y7.77%
EPS Q2Q%9.68%
EPS Next Y3.26%
EPS Next 2Y8.22%
EPS Next 3Y9.37%
EPS Next 5YN/A
Revenue 1Y (TTM)1.94%
Revenue growth 3Y5.82%
Revenue growth 5Y7.21%
Sales Q2Q%8.8%
Revenue Next Year10.33%
Revenue Next 2Y9.81%
Revenue Next 3Y10.47%
Revenue Next 5YN/A
EBIT growth 1Y-7.09%
EBIT growth 3Y3.56%
EBIT growth 5Y3.58%
EBIT Next Year28.85%
EBIT Next 3Y15.28%
EBIT Next 5YN/A
FCF growth 1Y-12.52%
FCF growth 3Y-1.29%
FCF growth 5Y-5.28%
OCF growth 1Y-9.63%
OCF growth 3Y3.39%
OCF growth 5Y-1.95%