Brief Commentary On WNS (Holdings) Limited’s (NYSE:WNS) Fundamentals

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As an investor, I look for investments which does not compromise one fundamental factor for another. By this I mean, I look at stocks holistically, from their financial health to their future outlook. In the case of WNS (Holdings) Limited (NYSE:WNS), it is a company with great financial health as well as a an impressive track record of performance. Below is a brief commentary on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, take a look at the report on WNS (Holdings) here.

Outstanding track record with flawless balance sheet

Over the past few years, WNS has more than doubled its earnings, with its most recent figure exceeding its annual average over the past five years. The strong earnings growth is reflected in impressive double-digit 22% return to shareholders, which is an optimistic signal for the future. WNS is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This implies that WNS manages its cash and cost levels well, which is a crucial insight into the health of the company. WNS seems to have put its debt to good use, generating operating cash levels of 1.64x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows.

NYSE:WNS Income Statement Export November 6th 18
NYSE:WNS Income Statement Export November 6th 18

Next Steps:

For WNS (Holdings), I’ve compiled three pertinent factors you should further research:

  1. Future Outlook: What are well-informed industry analysts predicting for WNS’s future growth? Take a look at our free research report of analyst consensus for WNS’s outlook.

  2. Valuation: What is WNS worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether WNS is currently mispriced by the market.

  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of WNS? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.

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