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WNS Limited (WNS)
NYSE:WNS
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WNS
(NYSE:WNS)
72Outperform
Positive Factors
Acquisition
The acquisition of Kipi.ai enhances WNS's AI capabilities, aligning with the growing client demand for data and AI-based services.
Financial Performance
The acquisition is expected to contribute approximately 2% to revenue, showing potential for financial growth.
Negative Factors
Geographical Risk
Higher geographical and client concentration is a key risk as North America and the UK collectively represent ~75% of total revenue and the top 20 customers contribute over 44% of the revenue.
WNS (WNS) vs. S&P 500 (SPY)
Market Cap
$2.73B
Dividend YieldN/A
Average Volume (3M)451.66K
Price to Earnings (P/E)19.6
Beta (1Y)1.13
Revenue Growth1.07%
EPS Growth-13.39%
CountryUS
Employees60,125
SectorTechnology
Sector Strength54
IndustrySoftware
Share Statistics
EPS (TTM)2.99
Shares Outstanding46,232,624
10 Day Avg. Volume446,486
30 Day Avg. Volume451,656
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)2.08
Price to Cash Flow (P/CF)7.70
P/FCF Ratio7.40
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$62.75Price Target Upside5.89% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering9
WNS Business Overview & Revenue Model
Company DescriptionWNS (Holdings) Ltd. is a global business process management company. It offers comprehensive data, voice, analytical and business transformation services with a blended onshore, nearshore and offshore delivery model. The company operates through two segments: WNS Global BPM and WNS Auto Claims BPM. The WNS Global BPM is delivered out of its delivery centers in China Costa Rica, India, the Philippines, Poland, Romania, South Africa, Sri Lanka, the United Kingdom and the U.S., as well as its subcontractors delivery center in China. This segment includes all of the company's business activities with the exception of WNS Auto Claims BPM. The WNS Auto Claims BPM segment is automobile claims management business which is primarily based in the United Kingdom and is part of its insurance business unit. WNS (Holdings) was founded by Alan Stephen Dunning, David Charles Tibble and Neeraj Bhargava on February 18, 2002 and is headquartered in Mumbai, India.
How the Company Makes MoneyWNS generates revenue primarily through long-term contracts with its clients, offering a range of business process management solutions tailored to specific industry needs. The company charges fees for its services, which can be structured as fixed-price contracts, transaction-based pricing, or outcome-based models. Key revenue streams include customer interaction services, finance and accounting outsourcing, and industry-specific solutions. WNS also benefits from strategic partnerships and collaborations that expand its service offerings and market reach, contributing to its earnings.
WNS Financial Statement Overview
Summary
WNS exhibits strong profitability and cash flow generation with consistent revenue growth. However, the balance sheet's weaknesses, particularly the absence of equity in the latest period, pose a risk. Monitoring leverage and equity levels is crucial.Income Statement
The company shows strong gross profit and net profit margins, with a consistent revenue growth trajectory. EBIT and EBITDA margins are healthy, indicating effective cost management. However, there is a slight decline in revenue in the latest TTM period compared to the previous annual report.78
Positive
Balance Sheet
The balance sheet reflects a high leverage with the absence of reported stockholders' equity in the latest TTM period. Historically, the debt-to-equity ratio has been manageable, but the current lack of equity raises concerns about financial stability. The equity ratio has been declining, indicating increasing liabilities relative to assets.55
Neutral
Cash Flow
The cash flow statement highlights robust operating cash flow and positive free cash flow trends. The company effectively converts net income to operating cash flow, indicating strong cash generation abilities. Free cash flow growth is significant, though recent capital expenditures are minimal, potentially impacting long-term investments.82
Very Positive
| Breakdown | |||||
| TTM | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 1.32B | 1.32B | 1.22B | 1.11B | 912.64M | 928.26M | Gross Profit |
| 453.63M | 478.44M | 422.74M | 374.63M | 325.44M | 344.34M | EBIT |
| 177.20M | 153.26M | 167.32M | 164.06M | 135.05M | 146.59M | EBITDA |
| 225.61M | 282.38M | 257.10M | 219.73M | 198.45M | 210.16M | Net Income Common Stockholders |
| 131.85M | 140.15M | 137.31M | 132.10M | 102.62M | 116.77M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 231.15M | 243.96M | 228.99M | 319.55M | 309.31M | 222.57M | Total Assets |
| 1.41B | 1.41B | 1.50B | 1.16B | 1.11B | 1.01B | Total Debt |
| 381.48M | 369.35M | 372.39M | 166.99M | 208.66M | 212.31M | Net Debt |
| 279.85M | 281.92M | 244.49M | 58.84M | 103.02M | 115.39M | Total Liabilities |
| 646.66M | 647.03M | 703.31M | 410.49M | 422.06M | 425.22M | Stockholders Equity |
| 763.11M | 765.73M | 801.14M | 754.00M | 684.09M | 587.11M |
| Cash Flow | Free Cash Flow | ||||
| 218.46M | 174.95M | 160.01M | 159.13M | 187.20M | 200.76M | Operating Cash Flow |
| 221.40M | 229.24M | 204.96M | 187.45M | 213.73M | 228.62M | Investing Cash Flow |
| -2.25M | -26.49M | -233.24M | -48.80M | -92.78M | -96.99M | Financing Cash Flow |
| -207.22M | -237.97M | 63.03M | -127.12M | -117.76M | -111.73M |
WNS Technical Analysis
Positive
59.26
Price Trends
55.17
Positive
52.35
Positive
53.42
Positive
Market Momentum
0.71
Negative
58.10
Neutral
65.35
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WNS, the sentiment is Positive. The current price of 59.26 is above the 20-day moving average (MA) of 57.74, above the 50-day MA of 55.17, and above the 200-day MA of 53.42, indicating a bullish trend. The MACD of 0.71 indicates Negative momentum. The RSI at 58.10 is Neutral, neither overbought nor oversold. The STOCH value of 65.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WNS.
WNS Risk Analysis
WNS disclosed 55 risk factors in its most recent earnings report. WNS reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
WNS Peers Comparison
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $8.63B | 17.25 | 22.15% | 1.24% | 6.46% | -16.94% | |
79 Outperform | $7.49B | 37.47 | 21.80% | ― | 12.74% | 9.92% | |
72 Outperform | $2.73B | 19.63 | 16.64% | ― | 1.07% | -13.39% | |
71 Outperform | $2.85B | 11.92 | 5.89% | 2.87% | 35.20% | -35.86% | |
69 Neutral | $17.13B | 14.49 | 29.12% | 1.15% | 7.93% | 541.97% | |
58 Neutral | $21.67B | 10.04 | -18.58% | 2.39% | 5.01% | -23.17% | |
45 Neutral | $161.42M | ― | -75.62% | 17.16% | -10.32% | -3860.81% |
* Technology Sector Average
Performance Comparison
WNS
WNS
59.26
5.43
10.09%
EXLS
Exlservice Holdings
45.41
14.68
47.77%
G
Genpact
49.35
16.47
50.09%
TTEC
TTEC Holdings
3.12
-7.22
-69.83%
LDOS
Leidos Holdings
132.86
6.05
4.77%
CNXC
Concentrix
43.32
-17.66
-28.96%
WNS Earnings Call Summary
Earnings Call Date: Jan 23, 2025 | % Change Since: 19.72% | Next Earnings Date: Apr 24, 2025
Earnings Call Sentiment Neutral
WNS showed promising signs of sequential growth and a strong pipeline, especially in Gen AI solutions and large deals. However, year-over-year revenue growth was stagnant, and margins faced pressure. Despite high attrition and reduced adjusted net income, the strong cash flow and business expansions provide a positive outlook.Highlights
Sequential Revenue Growth and Expansion
WNS achieved a sequential revenue growth of 2.7% on a reported basis and 3.2% on a constant currency basis in Q3 2025, driven by broad-based demand for digitally led business transformation.
Strong New Business Momentum
In Q3 2025, WNS added 7 new logos and expanded 52 existing relationships, indicating a strong pipeline and stable demand for process management deals.
Gen AI Solutions Progress
WNS has developed over 30 Gen AI use cases and 13 digital assets, with 13 clients already in production and another 20 committed or underway.
Healthy Cash Flow
WNS generated $88.7 million in cash from operating activities in Q3 2025, maintaining a strong cash position of $231.5 million.
Large Deal Pipeline
The large deal pipeline remains robust and healthy, with several opportunities that could accelerate company growth.
Lowlights
Flat Year-over-Year Revenue Growth
Net revenue for Q3 2025 showed only a 1% increase from the previous year and was flat on a constant currency basis.
Operating Margin Pressure
Adjusted operating margin decreased to 19.3% in Q3 2025 from 19.7% last year, mainly due to lower employee utilization and increased infrastructure investments.
High Attrition Rates
Attrition rate remains high at 32%, up from 29% in the same quarter last year, potentially impacting talent retention.
Lower Adjusted Net Income
Adjusted net income for Q3 2025 fell to $47 million from $58.5 million in the same quarter last year.
Company Guidance
During the WNS fiscal Q3 2025 earnings call, management provided guidance and insights into the company's performance and future outlook. WNS reported net revenue of $319.1 million for Q3, marking a year-over-year increase of 1% on a reported basis and a sequential increase of 2.7%. The adjusted operating margin was 19.3%, a slight decrease from the previous year but an improvement from the last quarter. Looking forward, WNS expects high single to low double-digit revenue growth in fiscal 2026, driven by stable demand for digital transformation and process management services. The company continues to advance its large deal pipeline, which remains robust and is expected to contribute to future growth. WNS's fiscal 2025 guidance anticipates net revenue between $1.255 billion and $1.271 billion and an adjusted net income range of $205 million to $209 million, with a projected capital expenditure of up to $60 million. Additionally, the firm is investing heavily in AI and Gen AI capabilities, having developed over 30 Gen AI use cases and trained over 22,000 employees to enhance their digital expertise.WNS Corporate Events
Executive/Board Changes
WNS Appoints Sylvie Ouziel to Board of Directors
Positive
Mar 12, 2025
WNS announced the appointment of Sylvie Ouziel to its Board of Directors, effective April 1, 2025, where she will also join the Audit Committee. Sylvie brings over 30 years of experience in technology-led global services and software companies, having held significant leadership roles at organizations like Publicis Groupe, Envision Digital, and Allianz SE. Her expertise in digital transformation and AI is expected to enhance WNS’s value creation for clients, further strengthening the company’s position in the industry.
M&A TransactionsBusiness Operations and Strategy
WNS Acquires Kipi.ai to Boost Data Capabilities
Positive
Mar 11, 2025
On March 11, 2025, WNS announced the acquisition of Kipi.ai, a company specializing in data modernization and democratization services on the Snowflake platform. This acquisition is aimed at enhancing WNS’s capabilities in data, analytics, and AI, and is expected to contribute approximately 2% to WNS’s revenue in fiscal 2026, while being neutral to adjusted diluted earnings per share.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.