WNS HOLDINGS LTD (WNS) Stock Fundamental Analysis
NYSE:WNS - JE00BQC4YW14 - Common Stock
75.51 USD
+0.13 (+0.17%)
75.51 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to WNS. WNS was compared to 83 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.
Each year in the past 5 years WNS had a positive operating cash flow.
1.2 Ratios
WNS has a better Return On Assets (10.99%) than 89.16% of its industry peers.
With an excellent Return On Equity value of 20.31%, WNS belongs to the best of the industry, outperforming 84.34% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 11.86%, WNS is in the better half of the industry, outperforming 78.31% of the companies in the same industry.
| 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 87.95% of its industry peers.
WNS's Profit Margin has been stable in the last couple of years.
With a decent Operating Margin value of 13.35%, WNS is doing good in the industry, outperforming 77.11% of the companies in the same industry.
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 48.19% 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
WNS has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is 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 5.50. This indicates that WNS is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of WNS (5.50) is better than 78.31% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 1.59, WNS is in the better half of the industry, outperforming 75.90% of the companies in the same industry.
A Debt/Equity ratio of 0.21 indicates that WNS is not too dependend on debt financing.
WNS's Debt to Equity ratio of 0.21 is in line compared to the rest of the industry. WNS outperforms 59.04% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 1.59 | ||
| Altman-Z | 5.5 |
ROIC/WACC1.14
WACC10.37%
2.3 Liquidity
WNS has a Current Ratio of 1.76. 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 1.76, WNS is in line with its industry, outperforming 53.01% of the companies in the same industry.
WNS has a Quick Ratio of 1.76. 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 (1.76) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.76 | ||
| Quick Ratio | 1.76 |
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.
Looking at the last year, WNS shows a small growth in Revenue. The Revenue has grown by 1.94% 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)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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
The Price/Earnings ratio is 16.27, which indicates a correct valuation of WNS.
73.49% of the companies in the same industry are more expensive than WNS, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.03. WNS is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 14.17, which indicates a correct valuation of WNS.
Based on the Price/Forward Earnings ratio, WNS is valued a bit cheaper than 74.70% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.63, WNS is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.27 | ||
| Fwd PE | 14.17 |
4.2 Price Multiples
WNS's Enterprise Value to EBITDA is on the same level as the industry average.
61.45% 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 | 23.1 | ||
| EV/EBITDA | 14.4 |
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)4.99
PEG (5Y)2.09
EPS Next 2Y8.22%
EPS Next 3Y9.37%
5. Dividend
5.1 Amount
No dividends for WNS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
75.51
+0.13 (+0.17%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners97.81%
Inst Owner Change0%
Ins Owners2.19%
Ins Owner Change0%
Market Cap3.53B
Analysts70
Price Target76.33 (1.09%)
Short Float %3.47%
Short Ratio0.65
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)0.45%
PT rev (3m)7.78%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.3%
EPS NY rev (1m)0.12%
EPS NY rev (3m)1.71%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.26%
Revenue NY rev (1m)0.43%
Revenue NY rev (3m)1.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.27 | ||
| Fwd PE | 14.17 | ||
| P/S | 2.69 | ||
| P/FCF | 23.1 | ||
| P/OCF | 17.06 | ||
| P/B | 4.22 | ||
| P/tB | 11.57 | ||
| EV/EBITDA | 14.4 |
EPS(TTM)4.64
EY6.14%
EPS(NY)5.33
Fwd EY7.06%
FCF(TTM)3.27
FCFY4.33%
OCF(TTM)4.43
OCFY5.86%
SpS28.09
BVpS17.9
TBVpS6.53
PEG (NY)4.99
PEG (5Y)2.09
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 | 5.5 |
F-Score7
WACC10.37%
ROIC/WACC1.14
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-1.11%
EBIT growth 3Y3.56%
EBIT growth 5Y3.58%
EBIT Next Year22.2%
EBIT Next 3Y12.68%
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%