Taking everything into account, WNS scores 5 out of 10 in our fundamental rating. WNS was compared to 88 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.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year WNS was profitable.
WNS had a positive operating cash flow in the past year.
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.
The Return On Equity of WNS (20.42%) is better than 83.72% of its industry peers.
WNS has a better Return On Invested Capital (11.22%) 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

Looking at the Profit Margin, with a value of 12.11%, WNS belongs to the top of the industry, outperforming 87.21% of the companies in the same industry.
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.
WNS's Operating Margin has declined in the last couple of years.
WNS's Gross Margin of 34.81% is in line compared 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%

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ROA

ROE

ROIC

Operating and Profit Margin

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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 5.07 indicates that WNS is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 5.07, 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 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.
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	5.07

ROIC/WACC1.1

WACC10.23%

2.3 Liquidity

A Current Ratio of 1.47 indicates that WNS should not have too much problems paying its short term obligations.
WNS's Current ratio of 1.47 is on the low side compared to the rest of the industry. WNS is outperformed by 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.
Looking at the Quick ratio, with a value of 1.47, WNS is doing worse than 60.47% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	1.47
Quick Ratio	1.47

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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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.
WNS shows a small growth in Revenue. In the last year, the Revenue has grown by 1.94%.
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

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.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 16.48, which indicates a correct valuation of WNS.
WNS's Price/Earnings ratio is a bit cheaper when compared to the industry. WNS is cheaper than 74.42% of the companies in the same industry.
WNS is valuated rather cheaply when we compare the Price/Earnings ratio to 28.32, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 14.35, the valuation of WNS can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WNS indicates a somewhat cheap valuation: WNS is cheaper than 74.42% of the companies listed in the same industry.
WNS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.57, which is the current average of the S&P500 Index.

		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 60.47% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, WNS is valued a bit cheaper than the industry average as 62.79% of the companies are valued more expensively.

		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.
WNS has a very decent profitability rating, which may justify a higher PE ratio.