WNS Holdings Stock Analysis, Valuation (NYSE:WNS)

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$48.47 $0.08 (0.16%) WNS stock closing price May 21, 2018 (Closing)
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WNS Holdings
Updated on : May 21, 2018
previous close
WNS 48.5 (0%)
S&P 500 2733 (0%)
Closing Price On: May 21, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Business Services
Sector :
Business Services
5 Quarter Revenue
Revenue Growth
2018-Q4
$million
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
10.5%
Operating Profit
Operating Margin:
12.5%
Sector Average:
8.4%
5 Quarter Net Profit
Net Margins
2018-Q4
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
89.1M
Debt/Equity Ratio:
 0.18
Compared to the industry
PROS      CONS
Recent Growth
Long Term Growth
Operating Margins
Net Margins
Low Debt Burden
ROIC
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
WNS PS :
3.3
Industry PS :
1.6
Sector:   Business Services.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
20.9%
Return on Equity:
19.2%
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WNS Holdings Stock Analysis

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Investors can watch the Amigobulls WNS Holdings stock analysis video here. This video puts forward our latest analysis highlighting the pros and cons for WNS stock.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

WNS (Holdings) Limited (ADR) Stock Rating 3.1/5

Amigobulls WNS stock analysis relies on business fundamentals such as WNS Holdings revenue growth, profits and return on equity measures from the latest quarter 2018 Q4 earnings. WNS Holdings valuation analysis is based on relative valuation multiples like PE ratio and price to sales ratio. Our WNS Holdings stock rating is based on company's fundamentals like balance sheet risk and cash flow position.

Should you buy WNS stock?

  • WNS Holdings's revenue growth came in at 27.2% in 2018 Q4.
  • Long term revenue growth has been strong with a 5 year compounded annual growth of 10.5%.
  • WNS Holdings had a healthy average operating margin of 12.5% over the last 4 quarters.
  • Net margins stood at a healthy 11.4% (average) for WNS Holdings in the Trailing Twelve Months.
  • With its debt/equity ratio of  0.18, WNS Holdings has a lower debt burden when compared to the Business Services average.
  • WNS Holdings's return on invested capital of 20.9% is good.
  • Return On Equity (ROE) which is a measure of the company's profitability, looks great for WNS Holdings at 19.2%.

Should you sell WNS stock?

  • The company is trading at a price to sales multiple of 3.3, which is overvalued in comparison to the Business Services industry average multiple of 1.6.

Comments on this video and WNS Holdings stock

Amigobulls WNS Holdings stock analysis helps investors in understanding how the company's fundamentals have performed in the last few quarters. Fundamentals of a company give detailed information which helps in making invesment decisions.

While doing a study of the company financials, WNS Holdings revenue growth and profit or net income are two main metrics which help in identifying whether WNS stock is overvalued or undervalued. Technical analysis comes in handy to check whether the market sentiment is in line with the fundamental picture of the company.