WNS HOLDINGS LTD (WNS)
JE00BQC4YW14 - Common Stock
We assign a fundamental rating of 5 out of 10 to WNS. WNS was compared to 84 industry peers in the IT Services industry. WNS scores excellent on profitability, but there are some minor concerns on its financial health. WNS has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
WNS had positive earnings in the past year.
Of the past 5 years WNS 4 years were profitable.
Of the past 5 years WNS 4 years had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 11.07%, WNS belongs to the top of the industry, outperforming 86.75% of the companies in the same industry.
Looking at the Return On Equity, with a value of 19.94%, WNS belongs to the top of the industry, outperforming 85.54% of the companies in the same industry.
With an excellent Return On Invested Capital value of 11.91%, WNS belongs to the best of the industry, outperforming 81.93% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for WNS is in line with the industry average of 12.42%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.07% | ||
| ROE | 19.94% | ||
| ROIC | 11.91% |
ROA(3y)9.92%
ROA(5y)10.94%
ROE(3y)16.55%
ROE(5y)17.73%
ROIC(3y)12.53%
ROIC(5y)13.54%
1.3 Margins
The Profit Margin of WNS (12.59%) is better than 87.95% of its industry peers.
In the last couple of years the Profit Margin of WNS has remained more or less at the same level.
WNS's Operating Margin of 13.49% is fine compared to the rest of the industry. WNS outperforms 77.11% of its industry peers.
In the last couple of years the Operating Margin of WNS has grown nicely.
Looking at the Gross Margin, with a value of 36.07%, WNS is in line with its industry, outperforming 57.83% 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 | 13.49% | ||
| PM (TTM) | 12.59% | ||
| GM | 36.07% |
OM growth 3Y-5.05%
OM growth 5Y5.2%
PM growth 3Y-3.76%
PM growth 5Y-0.32%
GM growth 3Y-2.36%
GM growth 5Y0.54%
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
An Altman-Z score of 4.71 indicates that WNS is not in any danger for bankruptcy at the moment.
WNS's Altman-Z score of 4.71 is fine compared to the rest of the industry. WNS outperforms 72.29% of its industry peers.
WNS has a Debt/Equity ratio of 0.38. This is a healthy value indicating a solid balance between debt and equity.
WNS's Debt to Equity ratio of 0.38 is in line compared to the rest of the industry. WNS outperforms 54.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 4.71 |
ROIC/WACC1.06
WACC11.19%
2.3 Liquidity
A Current Ratio of 1.82 indicates that WNS should not have too much problems paying its short term obligations.
WNS's Current ratio of 1.82 is in line compared to the rest of the industry. WNS outperforms 57.83% of its industry peers.
A Quick Ratio of 1.82 indicates that WNS should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.82, WNS perfoms like the industry average, outperforming 57.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.82 | ||
| Quick Ratio | 1.82 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 13.40% over the past year.
The Earnings Per Share has been growing by 10.26% on average over the past years. This is quite good.
EPS 1Y (TTM)13.4%
EPS 3Y17.25%
EPS 5Y10.26%
EPS growth Q2Q7.69%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Revenue growth Q2Q6.85%
3.2 Future
The Earnings Per Share is expected to grow by 10.33% on average over the next years. This is quite good.
Based on estimates for the next years, WNS will show a quite strong growth in Revenue. The Revenue will grow by 10.20% on average per year.
EPS Next Y4.92%
EPS Next 2Y9.08%
EPS Next 3Y10.33%
EPS Next 5YN/A
Revenue Next Year7.26%
Revenue Next 2Y9.33%
Revenue Next 3Y10.2%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
WNS is valuated reasonably with a Price/Earnings ratio of 11.82.
83.13% of the companies in the same industry are more expensive than WNS, based on the Price/Earnings ratio.
WNS is valuated cheaply when we compare the Price/Earnings ratio to 28.67, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 11.27, the valuation of WNS can be described as very reasonable.
WNS's Price/Forward Earnings ratio is rather cheap when compared to the industry. WNS is cheaper than 85.54% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of WNS to the average of the S&P500 Index (20.15), we can say WNS is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.82 | ||
| Fwd PE | 11.27 |
4.2 Price Multiples
74.70% of the companies in the same industry are more expensive than WNS, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.38 |
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)2.4
PEG (5Y)1.15
EPS Next 2Y9.08%
EPS Next 3Y10.33%
5. Dividend
5.1 Amount
WNS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
WNS HOLDINGS LTD
NYSE:WNS (5/20/2024, 6:00:00 PM)
After market: 52.02 0 (0%)52.02
+0.33 (+0.64%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap2.44B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.82 | ||
| Fwd PE | 11.27 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.4
PEG (5Y)1.15
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.07% | ||
| ROE | 19.94% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 13.49% | ||
| PM (TTM) | 12.59% | ||
| GM | 36.07% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.88
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.82 | ||
| Quick Ratio | 1.82 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)13.4%
EPS 3Y17.25%
EPS 5Y
EPS growth Q2Q
EPS Next Y4.92%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y