WNS (Holdings) Limited
Find Ratings ReportsWNS (HOLDINGS) LTD -ADR's gross profit margin for the third quarter of its fiscal year 2023 is essentially unchanged when compared to the same period a year ago. The company has grown sales and net income during the past quarter when compared with the same quarter a year ago, however, it was unable to keep up with the growth of the average competitor within its subsector. WNS (HOLDINGS) LTD -ADR has strong liquidity. Currently, the Quick Ratio is 1.68 which shows the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.
During the same period, stockholders' equity ("net worth") has increased by 10.72% from the same quarter last year. The key liquidity measurements indicate that the company is unlikely to face financial difficulties in the near future.
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Income Statement | Q3 FY23 | Q3 FY22 |
---|---|---|
Net Sales ($mil) | 326.2 | 306.93 |
EBITDA ($mil) | 66.48 | 64.96 |
EBIT ($mil) | 43.77 | 46.17 |
Net Income ($mil) | 39.64 | 34.68 |
Balance Sheet | Q3 FY23 | Q3 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 260.12 | 175.55 |
Total Assets ($mil) | 1480.21 | 1406.84 |
Total Debt ($mil) | 374.86 | 363.88 |
Equity ($mil) | 821.98 | 742.39 |
Profitability | Q3 FY23 | Q3 FY22 |
---|---|---|
Gross Profit Margin | 40.15 | 39.35 |
EBITDA Margin | 20.37 | 21.16 |
Operating Margin | 13.42 | 15.04 |
Sales Turnover | 0.88 | 0.86 |
Return on Assets | 11.07 | 9.93 |
Return on Equity | 19.95 | 18.83 |
Debt | Q3 FY23 | Q3 FY22 |
---|---|---|
Current Ratio | 1.82 | 1.64 |
Debt/Capital | 0.31 | 0.33 |
Interest Expense | 7.11 | 4.77 |
Interest Coverage | 6.15 | 9.67 |
Share Data | Q3 FY23 | Q3 FY22 |
---|---|---|
Shares outstanding (mil) | 46.81 | 48.14 |
Div / share | 0.0 | 0.0 |
EPS | 0.81 | 0.69 |
Book value / share | 17.56 | 15.42 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 334864.0 | 293952.0 |
HOLD. WNS (HOLDINGS) LTD -ADR's P/E ratio indicates a significant discount compared to an average of 61.20 for the Comp Infrastructure, Data, Web Hosting, Related Se subsector and a significant discount compared to the S&P 500 average of 27.95. For additional comparison, its price-to-book ratio of 3.07 indicates a significant discount versus the S&P 500 average of 4.68 and a significant discount versus the subsector average of 9.55. The price-to-sales ratio is well below both the S&P 500 average and the subsector average, indicating a discount. Upon assessment of these and other key valuation criteria, WNS (HOLDINGS) LTD -ADR proves to trade at a discount to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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WNS 16.36 | Peers 61.20 | WNS 10.38 | Peers 28.25 | |||||||||||||||||||||
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. WNS is trading at a significant discount to its peers. |
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. WNS is trading at a significant discount to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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WNS 11.80 | Peers 18.10 | WNS 0.27 | Peers 0.46 | |||||||||||||||||||||
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations. WNS is trading at a significant discount to its peers. |
Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. WNS trades at a significant discount to its peers. |
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Price/Book |
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Earnings Growth |
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WNS 3.07 | Peers 9.55 | WNS 19.20 | Peers 211.27 | |||||||||||||||||||||
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. WNS is trading at a significant discount to its peers. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, WNS is expected to significantly trail its peers on the basis of its earnings growth rate. |
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Price/Sales |
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Sales Growth |
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WNS 1.94 | Peers 6.93 | WNS 7.72 | Peers 11.39 | |||||||||||||||||||||
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. WNS is trading at a significant discount to its subsector on this measurement. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. WNS significantly trails its peers on the basis of sales growth. |
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