WNS Holdings Operating Margin vs. Profit Margin

WNS Stock  USD 46.79  0.49  1.04%   
Based on WNS Holdings' profitability indicators, WNS Holdings may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in January. Profitability indicators assess WNS Holdings' ability to earn profits and add value for shareholders.
For WNS Holdings profitability analysis, we use financial ratios and fundamental drivers that measure the ability of WNS Holdings to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well WNS Holdings utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between WNS Holdings's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of WNS Holdings over time as well as its relative position and ranking within its peers.
  
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Is Business Services space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of WNS Holdings. If investors know WNS will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about WNS Holdings listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of WNS Holdings is measured differently than its book value, which is the value of WNS that is recorded on the company's balance sheet. Investors also form their own opinion of WNS Holdings' value that differs from its market value or its book value, called intrinsic value, which is WNS Holdings' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because WNS Holdings' market value can be influenced by many factors that don't directly affect WNS Holdings' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between WNS Holdings' value and its price as these two are different measures arrived at by different means. Investors typically determine if WNS Holdings is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, WNS Holdings' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

WNS Holdings Profit Margin vs. Operating Margin Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining WNS Holdings's current stock value. Our valuation model uses many indicators to compare WNS Holdings value to that of its competitors to determine the firm's financial worth.
WNS Holdings is rated first in operating margin category among its peers. It is rated first in profit margin category among its peers fabricating about  0.71  of Profit Margin per Operating Margin. The ratio of Operating Margin to Profit Margin for WNS Holdings is roughly  1.42 . Comparative valuation analysis is a catch-all technique that is used if you cannot value WNS Holdings by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

WNS Profit Margin vs. Operating Margin

Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.

WNS Holdings

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
0.13 %
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.

WNS Holdings

Profit Margin

 = 

Net Income

Revenue

X

100

 = 
0.09 %
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.

WNS Profit Margin Comparison

WNS Holdings is currently under evaluation in profit margin category among its peers.

WNS Holdings Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in WNS Holdings, profitability is also one of the essential criteria for including it into their portfolios because, without profit, WNS Holdings will eventually generate negative long term returns. The profitability progress is the general direction of WNS Holdings' change in net profit over the period of time. It can combine multiple indicators of WNS Holdings, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
WNS Limited, a business process management company, provides data, voice, analytical, and business transformation services worldwide. WNS Limited was founded in 1996 and is based in Mumbai, India. Wns operates under Information Technology Services classification in the United States and is traded on New York Stock Exchange. It employs 57503 people.

WNS Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on WNS Holdings. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of WNS Holdings position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the WNS Holdings' important profitability drivers and their relationship over time.

Use WNS Holdings in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if WNS Holdings position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in WNS Holdings will appreciate offsetting losses from the drop in the long position's value.

WNS Holdings Pair Trading

WNS Holdings Pair Trading Analysis

The ability to find closely correlated positions to WNS Holdings could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace WNS Holdings when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back WNS Holdings - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling WNS Holdings to buy it.
The correlation of WNS Holdings is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as WNS Holdings moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if WNS Holdings moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for WNS Holdings can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your WNS Holdings position

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Non-Metallic and Industrial Metal Mining
Non-Metallic and Industrial Metal Mining Theme
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Additional Tools for WNS Stock Analysis

When running WNS Holdings' price analysis, check to measure WNS Holdings' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy WNS Holdings is operating at the current time. Most of WNS Holdings' value examination focuses on studying past and present price action to predict the probability of WNS Holdings' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move WNS Holdings' price. Additionally, you may evaluate how the addition of WNS Holdings to your portfolios can decrease your overall portfolio volatility.