WNS (WNS) AI Stock Analysis

• Market Cap: $2.76B
• Dividend Yield: N/A
• Average Volume (3M): 651.28K
• Price to Earnings (P/E): 15.3
• Beta (1Y): 0.69
• Revenue Growth: -0.64%
• EPS Growth: 30.96%
• Country: US
• Employees: 64,505
• Sector: Technology
• Sector Strength: 84
• Industry: Information Technology Services
• EPS (TTM): 1.45
• Shares Outstanding: 46,416,690
• 10 Day Avg. Volume: 515,768
• 30 Day Avg. Volume: 651,281
• 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: 1.72
• Enterprise Value/Revenue: 0.90
• Enterprise Value/Gross Profit: 10.18
• Enterprise Value/Ebitda: 5.06
• 1Y Price Target: $72.20
• Price Target Upside: 21.61% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 75 Outperform
• Price Target: $65.00 ▲(9.48%Upside)

WNS's overall stock score is driven by strong financial performance and valuation, suggesting it is a stable investment with room for growth. Technical analysis indicates mixed momentum signals, while corporate events reflect strategic enhancements that could bolster future performance.

Positive Factors

Client Acquisition and Trust

WNS added 9 new clients and expanded 50 existing relationships, demonstrating growth and client trust.

Market Potential

The company is targeting the strategic business-process management (BPM) market, which is a large, growing, and under-penetrated market.

Revenue Growth

The company’s sales pipeline is healthy and demand is broad-based across verticals and services, which should drive solid net revenue growth in fiscal 2026.

Negative Factors

Geographical and Client Concentration 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.

Investor Concerns

Shares have recovered from trough valuation levels below 10x FY2 P/E and sub-7x EBITDA, but investors still question risks surrounding GenAI in BPM.

Revenue Headwinds

Revenue growth from new clients and the expansion of existing relationships was offset by revenue headwinds from the loss of a large healthcare client and lower volumes in the online travel segment.

WNS Business Overview & Revenue Model

Company Description

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 BPM and WNS Auto Claims BPM. It offers industry-specific services to clients primarily in insurance; diversified businesses, including manufacturing, retail, consumer packaged goods, media and entertainment, and telecommunication; travel and leisure; healthcare; utilities; shipping and logistics; consulting and professional services; and banking and financial services. It also provides a range of services, such as finance and accounting, customer experience, research and analytics, technology, legal, and human resources outsourcing services. In addition, the company offers transformation services designed to allow its clients to enhance productivity, manage changes in the business environment, and leverage business knowledge to increase market competitiveness. Further, it provides claims handling and repair management services for automobile repairs through a network of third-party repair centers; and a suite of accident management services comprising credit hire and repair. WNS (Holdings) Limited was founded in 1996 and is based in Mumbai, India.

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
	EBIT
175.44M	153.26M	167.32M	164.06M	135.05M
	EBITDA
175.40M	236.10M	215.91M	219.73M	209.70M
	Net Income Common Stockholders
170.10M	140.15M	137.31M	132.10M	102.62M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
263.81M	243.96M	228.99M	319.55M	309.31M
	Total Assets
1.55B	1.41B	1.50B	1.16B	1.11B
	Total Debt
437.93M	369.35M	372.39M	166.99M	208.66M
	Net Debt
331.02M	281.92M	244.49M	58.84M	103.02M
	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: 59.37
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 59.37 is above the 20-day moving average (MA) of 58.40, below the 50-day MA of 59.68, and above the 200-day MA of 55.24, indicating a neutral trend. The MACD of 0.37 indicates Negative momentum. The RSI at 53.30 is Neutral, neither overbought nor oversold. The STOCH value of 61.68 is Neutral, 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
EXLS	77 Outperform	$7.84B	36.30	23.81%	―	14.18%	21.49%
CTSH	76 Outperform	$39.51B	16.87	16.61%	1.55%	4.09%	14.05%
CNXC	76 Outperform	$3.70B	14.49	6.34%	2.30%	21.67%	-17.91%
WNS	75 Outperform	$2.76B	15.29	21.21%	―	-0.64%	30.96%
EPAM	75 Outperform	$9.78B	23.57	11.57%	―	4.72%	-3.06%
G	75 Outperform	$7.70B	14.99	22.21%	1.54%	7.31%	-15.86%
Sector *	62 Neutral	$11.96B	10.09	-7.50%	3.10%	7.33%	-8.11%

WNS Corporate Events

WNS Appoints Sylvie Ouziel to Board of Directors

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.