NYSE:WNS

Stock Analysis Report

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Market Cap

US$3.9b

Last Updated

2021/08/05 22:59 UTC

Data Sources

Company Financials +

Executive Summary

WNS (Holdings) Limited, a business process management (BPM) company, provides data, voice, analytical, and business transformation services worldwide. More Details

Rewards

Earnings are forecast to grow 9.66% per year

Earnings have grown 17.2% per year over the past 5 years

Risk Analysis

No risks detected for WNS from our risk checks.


Snowflake Analysis

Excellent balance sheet with acceptable track record.


Similar Companies

Share Price & News

How has WNS (Holdings)'s share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: WNS is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: WNS's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

-1.3%

WNS

-2.7%

US IT

0.02%

US Market


1 Year Return

25.8%

WNS

24.2%

US IT

33.2%

US Market

Return vs Industry: WNS exceeded the US IT industry which returned 24.2% over the past year.

Return vs Market: WNS underperformed the US Market which returned 33.2% over the past year.


Shareholder returns

WNSIndustryMarket
7 Day-1.3%-2.7%0.02%
30 Day-2.1%-0.2%-0.1%
90 Day13.6%5.6%4.1%
1 Year25.8%25.8%25.3%24.2%35.3%33.2%
3 Year60.1%60.1%94.7%88.3%61.4%51.3%
5 Year174.8%174.8%215.4%193.6%122.2%97.7%

Long-Term Price Volatility Vs. Market

How volatile is WNS (Holdings)'s share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is WNS (Holdings) undervalued compared to its fair value and its price relative to the market?

35.13x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: WNS ($81.08) is trading above our estimate of fair value ($64.53)

Significantly Below Fair Value: WNS is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: WNS is poor value based on its PE Ratio (35.1x) compared to the US IT industry average (34.8x).

PE vs Market: WNS is poor value based on its PE Ratio (35.1x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: WNS is poor value based on its PEG Ratio (3.6x)


Price to Book Ratio

PB vs Industry: WNS is overvalued based on its PB Ratio (6.2x) compared to the US IT industry average (5x).


Future Growth

How is WNS (Holdings) forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

9.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WNS's forecast earnings growth (9.7% per year) is above the savings rate (2%).

Earnings vs Market: WNS's earnings (9.7% per year) are forecast to grow slower than the US market (14.9% per year).

High Growth Earnings: WNS's earnings are forecast to grow, but not significantly.

Revenue vs Market: WNS's revenue (9.1% per year) is forecast to grow slower than the US market (9.1% per year).

High Growth Revenue: WNS's revenue (9.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: WNS's Return on Equity is forecast to be high in 3 years time (21.5%)


Past Performance

How has WNS (Holdings) performed over the past 5 years?

17.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WNS has high quality earnings.

Growing Profit Margin: WNS's current net profit margins (12%) are higher than last year (11.3%).


Past Earnings Growth Analysis

Earnings Trend: WNS's earnings have grown by 17.2% per year over the past 5 years.

Accelerating Growth: WNS's earnings growth over the past year (10.2%) is below its 5-year average (17.2% per year).

Earnings vs Industry: WNS earnings growth over the past year (10.2%) underperformed the IT industry 23.4%.


Return on Equity

High ROE: WNS's Return on Equity (18%) is considered low.


Financial Health

How is WNS (Holdings)'s financial position?


Financial Position Analysis

Short Term Liabilities: WNS's short term assets ($433.5M) exceed its short term liabilities ($188.1M).

Long Term Liabilities: WNS's short term assets ($433.5M) exceed its long term liabilities ($202.2M).


Debt to Equity History and Analysis

Debt Level: WNS's debt to equity ratio (2.6%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if WNS's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: WNS's debt is well covered by operating cash flow (1216.2%).

Interest Coverage: WNS's interest payments on its debt are well covered by EBIT (14.4x coverage).


Balance Sheet


Dividend

What is WNS (Holdings) current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate WNS's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate WNS's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if WNS's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if WNS's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of WNS's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

7.9yrs

Average management tenure


CEO

Keshav Murugesh (57 yo)

11.5yrs

Tenure

US$3,413,553

Compensation

Mr. Keshav R. Murugesh has been Group Chief Executive Officer of WNS (Holdings) Ltd., since February 10, 2010. Mr. Murugesh serves as Chief Executive Officer of WNS Global Services Private Limited. He serv...


CEO Compensation Analysis

Compensation vs Market: Keshav's total compensation ($USD3.41M) is below average for companies of similar size in the US market ($USD5.37M).

Compensation vs Earnings: Keshav's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: WNS's management team is seasoned and experienced (7.9 years average tenure).


Board Members

Experienced Board: WNS's board of directors are considered experienced (6.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

WNS (Holdings) Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: WNS (Holdings) Limited
  • Ticker: WNS
  • Exchange: NYSE
  • Founded: 1996
  • Industry: Data Processing and Outsourced Services
  • Sector: Software
  • Market Cap: US$3.942b
  • Shares outstanding: 48.62m
  • Website: https://www.wns.com

Number of Employees


Location

  • WNS (Holdings) Limited
  • Godrej & Boyce Complex
  • Gate 4
  • Mumbai
  • Maharashtra
  • 400079
  • India

Listings


Biography

WNS (Holdings) Limited, a business process management (BPM) company, provides data, voice, analytical, and business transformation services worldwide. The company operates through two segments, WNS Global ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/08/05 22:59
End of Day Share Price2021/08/05 00:00
Earnings2021/06/30
Annual Earnings2021/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.