WNS HOLDINGS LTD (WNS) Stock Fundamental Analysis
NYSE:WNS - New York Stock Exchange, Inc. - JE00BQC4YW14 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to WNS. WNS was compared to 82 industry peers in the IT Services industry. Both the profitability and the financial health of WNS get a neutral evaluation. Nothing too spectacular is happening here. WNS has a correct valuation and a medium growth rate.
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.
WNS had positive earnings in each of the past 5 years.
WNS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 10.99%, WNS belongs to the best of the industry, outperforming 87.80% of the companies in the same industry.
WNS's Return On Equity of 20.31% is amongst the best of the industry. WNS outperforms 81.71% of its industry peers.
The Return On Invested Capital of WNS (11.86%) is better than 76.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.99% | ||
| ROE | 20.31% | ||
| ROIC | 11.86% |
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 (12.94%) than 87.80% of its industry peers.
WNS's Profit Margin has been stable in the last couple of years.
WNS's Operating Margin of 13.35% is fine compared to the rest of the industry. WNS outperforms 75.61% of its industry peers.
In the last couple of years the Operating Margin of WNS has declined.
Looking at the Gross Margin, with a value of 35.40%, WNS is in line with its industry, outperforming 48.78% 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 | 13.35% | ||
| PM (TTM) | 12.94% | ||
| GM | 35.4% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so WNS is still creating some value.
WNS has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
WNS has an Altman-Z score of 5.46. This indicates that WNS is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 5.46, WNS is doing good in the industry, outperforming 76.83% of the companies in the same industry.
WNS has a debt to FCF ratio of 1.59. This is a very positive value and a sign of high solvency as it would only need 1.59 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 1.59, WNS is doing good in the industry, outperforming 74.39% of the companies in the same industry.
WNS has a Debt/Equity ratio of 0.21. This is a healthy value indicating a solid balance between debt and equity.
WNS has a Debt to Equity ratio (0.21) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 1.59 | ||
| Altman-Z | 5.46 |
ROIC/WACC1.17
WACC10.11%
2.3 Liquidity
A Current Ratio of 1.76 indicates that WNS should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.76, WNS is in line with its industry, outperforming 57.32% of the companies in the same industry.
A Quick Ratio of 1.76 indicates that WNS should not have too much problems paying its short term obligations.
WNS has a Quick ratio of 1.76. This is comparable to the rest of the industry: WNS outperforms 59.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.76 | ||
| Quick Ratio | 1.76 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.41% over the past year.
Measured over the past 5 years, WNS shows a small growth in Earnings Per Share. The EPS has been growing by 7.77% on average per year.
Looking at the last year, WNS shows a decrease in Revenue. The Revenue has decreased by -0.64% in the last year.
Measured over the past years, WNS shows a small growth in Revenue. The Revenue has been growing by 7.21% on average per year.
EPS 1Y (TTM)3.41%
EPS 3Y9.66%
EPS 5Y7.77%
EPS Q2Q%29.46%
Revenue 1Y (TTM)-0.64%
Revenue growth 3Y5.82%
Revenue growth 5Y7.21%
Sales Q2Q%-0.8%
3.2 Future
WNS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.20% yearly.
The Revenue is expected to grow by 9.59% on average over the next years. This is quite good.
EPS Next Y3.14%
EPS Next 2Y8.01%
EPS Next 3Y9.2%
EPS Next 5YN/A
Revenue Next Year9.86%
Revenue Next 2Y9.56%
Revenue Next 3Y9.59%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 16.42, the valuation of WNS can be described as correct.
Based on the Price/Earnings ratio, WNS is valued a bit cheaper than the industry average as 71.95% of the companies are valued more expensively.
WNS's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.41.
WNS is valuated correctly with a Price/Forward Earnings ratio of 15.92.
WNS's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. WNS is cheaper than 70.73% of the companies in the same industry.
WNS's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 35.19.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.42 | ||
| Fwd PE | 15.92 |
4.2 Price Multiples
WNS's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. WNS is cheaper than 64.63% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as WNS.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.85 | ||
| EV/EBITDA | 14.23 |
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)5.23
PEG (5Y)2.11
EPS Next 2Y8.01%
EPS Next 3Y9.2%
5. Dividend
5.1 Amount
No dividends for WNS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
74.7
-0.14 (-0.19%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners86.03%
Inst Owner Change0%
Ins Owners2.03%
Ins Owner Change0%
Market Cap3.50B
Analysts84.62
Price Target73.44 (-1.69%)
Short Float %5.77%
Short Ratio3.21
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)0.4%
Min EPS beat(2)-0.85%
Max EPS beat(2)1.64%
EPS beat(4)3
Avg EPS beat(4)3.88%
Min EPS beat(4)-0.85%
Max EPS beat(4)13.39%
EPS beat(8)7
Avg EPS beat(8)6.21%
EPS beat(12)11
Avg EPS beat(12)6.1%
EPS beat(16)15
Avg EPS beat(16)6.77%
Revenue beat(2)0
Avg Revenue beat(2)-0.54%
Min Revenue beat(2)-1.01%
Max Revenue beat(2)-0.07%
Revenue beat(4)0
Avg Revenue beat(4)-0.92%
Min Revenue beat(4)-2.27%
Max Revenue beat(4)-0.07%
Revenue beat(8)1
Avg Revenue beat(8)-0.26%
Revenue beat(12)5
Avg Revenue beat(12)1.59%
Revenue beat(16)9
Avg Revenue beat(16)3.82%
PT rev (1m)0%
PT rev (3m)8.15%
EPS NQ rev (1m)2.26%
EPS NQ rev (3m)-8.47%
EPS NY rev (1m)1.59%
EPS NY rev (3m)-0.11%
Revenue NQ rev (1m)1.35%
Revenue NQ rev (3m)1.4%
Revenue NY rev (1m)1.15%
Revenue NY rev (3m)1.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.42 | ||
| Fwd PE | 15.92 | ||
| P/S | 2.66 | ||
| P/FCF | 22.85 | ||
| P/OCF | 16.88 | ||
| P/B | 4.17 | ||
| P/tB | 11.45 | ||
| EV/EBITDA | 14.23 |
EPS(TTM)4.55
EY6.09%
EPS(NY)4.69
Fwd EY6.28%
FCF(TTM)3.27
FCFY4.38%
OCF(TTM)4.43
OCFY5.92%
SpS28.09
BVpS17.9
TBVpS6.53
PEG (NY)5.23
PEG (5Y)2.11
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.99% | ||
| ROE | 20.31% | ||
| ROCE | 14.32% | ||
| ROIC | 11.86% | ||
| ROICexc | 15.06% | ||
| ROICexgc | 33.05% | ||
| OM | 13.35% | ||
| PM (TTM) | 12.94% | ||
| GM | 35.4% | ||
| FCFM | 11.64% |
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-Score7
Asset Turnover0.85
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 1.59 | ||
| Debt/EBITDA | 0.75 | ||
| Cap/Depr | 95.63% | ||
| Cap/Sales | 4.12% | ||
| Interest Coverage | 11.16 | ||
| Cash Conversion | 89.22% | ||
| Profit Quality | 89.97% | ||
| Current Ratio | 1.76 | ||
| Quick Ratio | 1.76 | ||
| Altman-Z | 5.46 |
F-Score7
WACC10.11%
ROIC/WACC1.17
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)3.41%
EPS 3Y9.66%
EPS 5Y7.77%
EPS Q2Q%29.46%
EPS Next Y3.14%
EPS Next 2Y8.01%
EPS Next 3Y9.2%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.64%
Revenue growth 3Y5.82%
Revenue growth 5Y7.21%
Sales Q2Q%-0.8%
Revenue Next Year9.86%
Revenue Next 2Y9.56%
Revenue Next 3Y9.59%
Revenue Next 5YN/A
EBIT growth 1Y-1.11%
EBIT growth 3Y3.56%
EBIT growth 5Y3.58%
EBIT Next Year23.7%
EBIT Next 3Y10.84%
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%