Yahoo Finance WNS (Holdings)'s (NYSE:WNS) investors will be pleased with their solid 218% return over the last five years
When you buy shares in a company, it's worth keeping in mind the possibility that it could fail, and you could lose your money. But on the bright side, you can make far more than 100% on a really good stock. One great example is WNS (Holdings) Limited (NYSE:WNS) which saw its share price drive 218% higher over five years. It's down 1.9% in the last seven days.
So let's assess the underlying fundamentals over the last 5 years and see if they've moved in lock-step with shareholder returns.
Check out our latest analysis for WNS (Holdings)
In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.
Over half a decade, WNS (Holdings) managed to grow its earnings per share at 17% a year. This EPS growth is lower than the 26% average annual increase in the share price. So it's fair to assume the market has a higher opinion of the business than it did five years ago. And that's hardly shocking given the track record of growth.
The image below shows how EPS has tracked over time (if you click on the image you can see greater detail).
We know that WNS (Holdings) has improved its bottom line lately, but is it going to grow revenue? Check if analysts think WNS (Holdings) will grow revenue in the future.
A Different Perspective
WNS (Holdings) provided a TSR of 21% over the year. That's fairly close to the broader market return. We should note here that the five-year TSR is more impressive, at 26% per year. Although the share price growth has slowed, the longer term story points to a business well worth watching. Before deciding if you like the current share price, check how WNS (Holdings) scores on these 3 valuation metrics.
If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
