WNS Holdings Limited (WNS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WNS - JE00BQC4YW14 - Common Stock
76.48 USD
+0.08 (+0.1%)
75.8 USD
-0.68 (-0.89%)
WNS gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 86 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 is not valued too expensively and it also shows a decent 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.
Each year in the past 5 years WNS has been profitable.
WNS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
WNS's Return On Assets of 10.39% is amongst the best of the industry. WNS outperforms 88.37% of its industry peers.
With an excellent Return On Equity value of 20.42%, WNS belongs to the best of the industry, outperforming 83.72% of the companies in the same industry.
WNS has a Return On Invested Capital of 11.22%. This is in the better half of the industry: WNS outperforms 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 Profit Margin of 12.11%. This is amongst the best in the industry. WNS outperforms 87.21% of its industry peers.
WNS's Profit Margin has been stable in the last couple of years.
WNS has a better Operating Margin (12.44%) than 74.42% of its industry peers.
In the last couple of years the Operating Margin of WNS has declined.
The Gross Margin of WNS (34.81%) is comparable to the rest of the industry.
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
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 5.07. This indicates that WNS is financially healthy and has little risk of bankruptcy at the moment.
WNS has a Altman-Z score of 5.07. This is in the better half of the industry: WNS outperforms 70.93% of its industry peers.
WNS has a debt to FCF ratio of 1.70. This is a very positive value and a sign of high solvency as it would only need 1.70 years to pay back of 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 73.26% 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.
With a Debt to Equity ratio value of 0.25, WNS perfoms like the industry average, outperforming 55.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 1.7 | ||
| Altman-Z | 5.07 |
ROIC/WACC1.1
WACC10.23%
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.
Looking at the Current ratio, with a value of 1.47, WNS is doing worse than 60.47% of the companies in the same industry.
WNS has a Quick 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.
With a Quick ratio value of 1.47, WNS is not doing good in the industry: 60.47% of the companies in the same industry are doing better.
| 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%.
WNS shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.77% yearly.
The Revenue has been growing slightly by 1.94% in the past year.
WNS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.21% yearly.
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
WNS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.37% yearly.
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
Based on the Price/Earnings ratio of 16.48, the valuation of WNS can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of WNS indicates a somewhat cheap valuation: WNS is cheaper than 74.42% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of WNS to the average of the S&P500 Index (26.31), we can say WNS is valued slightly cheaper.
With a Price/Forward Earnings ratio of 14.35, WNS is valued correctly.
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.
WNS's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.48 | ||
| Fwd PE | 14.35 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WNS is valued a bit cheaper than the industry average as 60.47% of the companies are valued more expensively.
WNS's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. WNS is cheaper than 62.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.8 | ||
| EV/EBITDA | 15.26 |
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.
The decent profitability rating of WNS may justify a higher PE ratio.
PEG (NY)5.05
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 |
76.48
+0.08 (+0.1%)
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 Cap3.58B
Revenue(TTM)1.35B
Net Income(TTM)162.94M
Analysts70
Price Target76.33 (-0.2%)
Short Float %N/A
Short RatioN/A
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)0.45%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.01%
EPS NY rev (1m)0%
EPS NY rev (3m)0.12%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.32%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.48 | ||
| Fwd PE | 14.35 | ||
| P/S | 2.66 | ||
| P/FCF | 22.8 | ||
| P/OCF | 16.63 | ||
| P/B | 4.49 | ||
| P/tB | 13.64 | ||
| EV/EBITDA | 15.26 |
EPS(TTM)4.64
EY6.07%
EPS(NY)5.33
Fwd EY6.97%
FCF(TTM)3.35
FCFY4.39%
OCF(TTM)4.6
OCFY6.01%
SpS28.75
BVpS17.04
TBVpS5.61
PEG (NY)5.05
PEG (5Y)2.12
Graham Number42.18
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
ROICexgc growth 3YN/A
ROICexgc 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 | 5.07 |
F-Score6
WACC10.23%
ROIC/WACC1.1
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%
WNS Holdings Limited / WNS FAQ
Can you provide the ChartMill fundamental rating for WNS Holdings Limited?
ChartMill assigns a fundamental rating of 5 / 10 to WNS.
What is the valuation status for WNS stock?
ChartMill assigns a valuation rating of 5 / 10 to WNS Holdings Limited (WNS). This can be considered as Fairly Valued.
Can you provide the profitability details for WNS Holdings Limited?
WNS Holdings Limited (WNS) has a profitability rating of 6 / 10.
What is the financial health of WNS Holdings Limited (WNS) stock?
The financial health rating of WNS Holdings Limited (WNS) is 5 / 10.
Can you provide the dividend sustainability for WNS stock?
The dividend rating of WNS Holdings Limited (WNS) is 0 / 10 and the dividend payout ratio is 0%.