WNS (WNS) AI Stock Analysis

• Market Cap: $3.47B
• Dividend Yield: N/A
• Average Volume (3M): 1.41M
• Price to Earnings (P/E): 19.2
• Beta (1Y): 0.74
• Revenue Growth: -0.64%
• EPS Growth: 30.96%
• Country: US
• Employees: 64,505
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 1.45
• Shares Outstanding: 46,416,690
• 10 Day Avg. Volume: 3,035,265
• 30 Day Avg. Volume: 1,414,200
• PEG Ratio: 5.89
• Price to Book (P/B): 5.61
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 28.10
• Enterprise Value/Market Cap: 1.37
• Enterprise Value/Revenue: 0.90
• Enterprise Value/Gross Profit: 10.18
• Enterprise Value/Ebitda: 5.06
• 1Y Price Target: $76.75
• Price Target Upside: 2.69% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 7

• Rating: 78 Outperform
• Price Target: $85.00 ▲(13.73%Upside)

The most significant factor influencing WNS's stock score is its solid financial performance, indicating strong revenue growth and profitability. The recent acquisition by Capgemini is also a positive development, expected to enhance operational capabilities and financial performance. While technical indicators suggest strong momentum, the valuation is moderate, lacking a dividend yield which may deter some investors.

Positive Factors

Acquisition Benefits

Capgemini announced it will pay a 17% premium to acquire WNS, indicating a favorable valuation for the company.

Financial Performance

The acquisition is expected to be immediately accretive to revenue, suggesting potential financial improvement for WNS.

Market Position

The acquisition will create a global leader in agentic AI-powered intelligent operations, with domain expertise and a combined €1.9 billion in business process services (BPS) revenue in 2024.

Negative Factors

Geographical Risk

Higher geographical and client concentration poses a risk, as North America and the UK represent a large portion of total revenue, and the top 20 customers contribute significantly to revenue.

Stock Valuation

The stock is downgraded to Neutral as it has rallied to near the acquisition price, limiting further upside potential.

WNS Business Overview & Revenue Model

Company Description

WNS (WNS) is a leading global business process management (BPM) company that delivers a broad spectrum of transformative business solutions and services across various industries. With a strong focus on driving operational efficiency and enhancing customer experiences, WNS offers services in areas such as finance and accounting, customer interaction services, human resources, research and analytics, and industry-specific processes. The company leverages its deep domain expertise, advanced analytics capabilities, and digital transformation solutions to help clients optimize their business processes and achieve their strategic goals.

How the Company Makes Money

WNS makes money primarily through its business process management services, which include a variety of outsourced solutions tailored to meet the specific needs of different industries. The company generates revenue by entering into long-term contracts with clients who seek to improve their operational performance and reduce costs through outsourcing. Key revenue streams include fees for services rendered, which are often based on the volume of work processed, the complexity of tasks, or the achievement of specific performance metrics. WNS has significant partnerships with clients across industries like insurance, banking, healthcare, travel, and manufacturing, contributing to its revenue growth. The company's ability to provide value-added services, such as analytics and digital transformation, further enhances its earning potential by offering additional services that clients may integrate into their operations.

WNS Financial Statement Overview

Summary

WNS presents a solid financial profile with strong revenue growth, profitability, and cash flow generation. The company demonstrates effective management of its financial resources, though attention to leverage and cash conversion efficiency could further strengthen its financial standing.

Income Statement

WNS shows a strong and consistent revenue growth trajectory over the years, with healthy gross and net profit margins. The company exhibits robust EBIT and EBITDA margins, indicating efficient operations and strong profitability. However, slight fluctuations in net income growth suggest potential volatility in some operational areas.

Balance Sheet

The balance sheet reflects a stable financial position with a reasonable debt-to-equity ratio, showing controlled leverage. Solid return on equity indicates effective use of shareholder funds. However, the equity ratio suggests a slightly higher reliance on liabilities compared to equity, which could pose risks if not managed carefully.

Cash Flow

The cash flow analysis reveals steady free cash flow over the years with adequate growth. The operating cash flow to net income ratio is strong, demonstrating the company's ability to generate cash from its operations. However, the free cash flow to net income ratio highlights the need for improvement in converting profits into free cash flow.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	1.31B	1.32B	1.22B	1.11B	912.64M
Gross Profit	465.50M	466.56M	399.09M	374.63M	325.44M
EBITDA	175.40M	236.10M	215.91M	219.73M	209.70M
Net Income	170.10M	140.15M	137.31M	132.10M	102.62M
Balance Sheet
Total Assets	1.55B	1.41B	1.50B	1.16B	1.11B
Cash, Cash Equivalents and Short-Term Investments	263.81M	243.96M	228.99M	319.55M	309.31M
Total Debt	437.93M	369.35M	372.39M	166.99M	208.66M
Total Liabilities	709.78M	647.03M	703.31M	410.49M	422.06M
Stockholders Equity	837.72M	765.73M	801.14M	754.00M	684.09M
Cash Flow
Free Cash Flow	153.04M	174.95M	160.01M	159.13M	187.20M
Operating Cash Flow	207.16M	229.24M	204.96M	187.45M	213.73M
Investing Cash Flow	-92.74M	-26.49M	-233.24M	-48.80M	-92.78M
Financing Cash Flow	-89.77M	-237.97M	63.03M	-127.12M	-117.76M

WNS Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 74.74
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 74.74 is above the 20-day moving average (MA) of 61.72, above the 50-day MA of 59.21, and above the 200-day MA of 55.61, indicating a bullish trend. The MACD of 3.08 indicates Negative momentum. The RSI at 81.78 is Negative, neither overbought nor oversold. The STOCH value of 95.05 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WNS.

WNS Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WNS	78 Outperform	$3.47B	19.24	21.21%	―	-0.64%	30.96%
CTSH	78 Outperform	$39.66B	16.94	16.61%	1.54%	4.09%	14.05%
G	76 Outperform	$8.05B	15.67	22.21%	1.48%	7.31%	-15.86%
CNXC	76 Outperform	$3.57B	15.56	5.59%	2.35%	11.31%	-16.02%
EXLS	72 Outperform	$7.35B	34.13	23.81%	―	14.18%	21.49%
EPAM	71 Outperform	$10.20B	25.16	11.57%	―	4.72%	-3.06%
Sector *	63 Neutral	$33.76B	6.14	-11.84%	1.84%	5.29%	-18.23%

WNS Corporate Events

WNS Acquired by Capgemini in $3.3 Billion Deal

On July 6, 2025, WNS entered into a Transaction Agreement with Capgemini, under which Capgemini will acquire all outstanding shares of WNS for $76.50 per share, amounting to a total cash consideration of $3.3 billion. This acquisition, expected to close by the end of 2025, will position Capgemini as a leader in Intelligent Operations, leveraging Agentic AI to transform business processes. The transaction is anticipated to be accretive to Capgemini’s revenue growth and operating margin, with expected EPS accretion of 4% in 2026 and 7% in 2027. The deal has been unanimously approved by both companies’ boards and aims to enhance Capgemini’s capabilities in AI-powered business process transformation.

The most recent analyst rating on (WNS) stock is a Buy with a $67.00 price target. To see the full list of analyst forecasts on WNS stock, see the WNS Stock Forecast page.