WNS (WNS) AI Stock Analysis

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WNS

(NYSE:WNS)

Rating:75Outperform

Price Target:

$65.00

▲(13.68%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 Expansion

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

Guidance and Growth

Fiscal 2026 guidance is encouraging, with high-single-digit growth on an organic basis and a return to double-digit growth including acquisitions.

Valuation

WNS shares trade at an enterprise value of 8.7 times the next-12-months’ pro forma EBITDA estimate, a discount compared with peers.

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

Investors still question risks surrounding GenAI in BPM despite shares recovering from trough valuation levels.

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 (WNS) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$2.65B

Dividend YieldN/A

Average Volume (3M)724.53K

Price to Earnings (P/E)14.7

Beta (1Y)0.68

Revenue Growth-0.64%

EPS Growth30.96%

CountryUS

Employees64,505

SectorTechnology

Sector Strength77

IndustryInformation Technology Services

Share Statistics

EPS (TTM)1.45

Shares Outstanding46,416,690

10 Day Avg. Volume817,940

30 Day Avg. Volume724,534

Financial Highlights & Ratios

PEG Ratio0.47

Price to Book (P/B)0.00

Price to Sales (P/S)0.00

P/FCF Ratio10.92

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$72.20

Price Target Upside26.27% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering6

WNS Business Overview & Revenue Model

Company DescriptionWNS (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 MoneyWNS 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 Earnings Call Summary

Earnings Call Date:Apr 24, 2025

(Q3-2025)

% Change Since: -11.90%|

Next Earnings Date:Jul 17, 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.

Q3-2025 Updates

Positive Updates

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.

Negative Updates

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 Financial Statement Overview

Summary

WNS demonstrates strong profitability and cash flow generation, with consistent revenue growth. However, the absence of equity in the latest balance sheet presents a risk, signaling potential financial instability despite robust cash flows.

Income Statement

Positive

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.

Balance Sheet

Neutral

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.

Cash Flow

Very Positive

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.

TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Breakdown
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
-214.09M	-237.97M	63.03M	-127.12M	-117.76M	-111.73M

WNS Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price57.18

Price Trends

50DMA

61.13

Negative

100DMA

58.31

Negative

200DMA

55.25

Positive

Market Momentum

MACD

-1.23

Negative

RSI

45.97

Neutral

STOCH

81.93

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WNS, the sentiment is Neutral. The current price of 57.18 is above the 20-day moving average (MA) of 57.16, below the 50-day MA of 61.13, and above the 200-day MA of 55.25, indicating a neutral trend. The MACD of -1.23 indicates Negative momentum. The RSI at 45.97 is Neutral, neither overbought nor oversold. The STOCH value of 81.93 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 2 New Risks

Delays or failure to complete our transition to reporting on US domestic issuer forms and filing financial statements under US GAAP may affect expected benefits. Q1, 2024

We qualify as a foreign private issuer and, as a result, are not subject to U.S. proxy rules. Q1, 2024

WNS Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EXLS	78 Outperform	$7.57B	35.14	23.81%	―	14.18%	21.49%
G	76 Outperform	$7.69B	14.97	22.21%	1.44%	7.31%	-15.86%
CTSH	76 Outperform	$39.75B	16.98	16.61%	1.53%	4.09%	14.05%
WNS	75 Outperform	$2.65B	14.72	21.21%	―	-0.64%	30.96%
EPAM	74 Outperform	$10.01B	24.70	11.57%	―	4.72%	-3.06%
CNXC	74 Outperform	$3.68B	14.41	6.34%	2.33%	21.67%	-17.91%
Sector *	61 Neutral	$11.29B	10.17	-6.88%	2.97%	7.41%	-8.93%

* Technology Sector Average

Performance Comparison

WNS

57.18

6.37

12.54%

CTSH

Cognizant

80.64

15.51

23.81%

EPAM

Epam Systems

176.65

-1.78

-1.00%

EXLS

Exlservice Holdings

46.52

16.61

55.53%

Genpact

44.00

11.54

35.55%

CNXC

Concentrix

57.54

-1.68

-2.84%

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.