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WNS, WNS Holdings

Commercial Services & Supplies diversified

A diversified business; where the profit really comes from, and whether it is earned or bought, is what the segment detail settles.

Latest annual: FY2025 10-K

WNS · WNS Holdings

The business

What it sells, where the money comes from, the kind of company it is.

Revenue · FY2025

$1.3B

−0.6% YoY

Vital signs · TTM, with 3-yr average

Revenue $1.3B 3-yr avg $1.3B

Gross margin 35% 3-yr avg 35%

Operating margin 12.6% 3-yr avg 12.2%

ROIC 15% 3-yr avg 16%

Owner-earnings margin 12% 3-yr avg 11%

Free cash flow margin 12% 3-yr avg 11%

The business in brief

What this business is and what moves its needle, from its own SEC filings.

What moves the needle: Gross margin has run about 35% and operating margin about 13% through the cycle, a solid spread between what it charges and what the product costs to make. That margin has held in a narrow 11%–13% band over the years, so steadiness itself is the evidence — the lever is unit growth and cost discipline, not a moving line.
Is it a good business?: Return on capital has run in the teens (median 15%, above 15% in 3 of 3 years). Owner earnings agree: roughly 11% of revenue reaches owners as cash, consistently. Returns like these are solid but short of clear franchise economics; whether they hold is what the 10-K settles, not the multiple.

Every line is arithmetic on the company's filings, shown in full in the sections below.

The record

Ten years of arithmetic, read across the cycle.

The record, 2023–2025

realized figures from each filing · older years to the left

2023’23	2024’24	2025’25	TTMTTMJun 2025
				Income statement
$1.2B	$1.3B	$1.3B	$1.3B	RevenueRevenue
34%	35%	35%	35%	Gross marginGross mgn
14%	14%	14%	14%	SG&A / revenueSG&A/rev
$156M	$141M	$175M	$170M	Operating incomeOp. inc.
12.8%	10.6%	13.3%	12.6%	Operating marginOp. mgn
$138M	$147M	$170M	$163M	Net incomeNet inc.
16%	11%	18%	19%	Effective tax rateTax rate
				Cash flow & returns
$176M	$201M	$207M	$215M	Operating cash flowOp. cash
$45M	$58M	$57M	$59M	DepreciationDeprec.
($57M)	($56M)	($57M)	($44M)	Working capital & otherWC & other
$45M	$54M	$54M	$58M	CapexCapex
3.7%	4.1%	4.1%	4.3%	Capex / revenueCapex/rev
$131M	$147M	$153M	$157M	Owner earningsOwner earn.
10.7%	11.1%	11.6%	11.7%	Owner earnings marginOE mgn
$131M	$147M	$153M	$157M	Free cash flowFCF
10.7%	11.1%	11.6%	11.7%	Free cash flow marginFCF mgn
19%	15%	15%	15%	ROICROIC
17%	19%	20%	20%	Return on equityROE
17%	19%	20%	20%	Retained to equityRetained/eq
				Balance sheet
$137M	$244M	$264M	$222M	Cash & investmentsCash+inv
—	$232M	$238M	$260M	ReceivablesReceiv.
—	$25M	$29M	$26M	Accounts payablePayables
—	$207M	$209M	$234M	Operating working capitalOper. WC
—	$530M	$565M	$548M	Current assetsCur. assets
—	$312M	$321M	$374M	Current liabilitiesCur. liab.
—	1.7×	1.8×	1.5×	Current ratioCurr. ratio
—	$356M	$410M	$418M	GoodwillGoodwill
—	$1.4B	$1.5B	$1.6B	Total assetsAssets
—	$139M	$228M	$211M	Total debtDebt
—	($105M)	($35M)	($11M)	Net debt / (cash)Net debt
23.7×	9.2×	9.5×	9.2×	Interest coverageInt. cov.
$812M	$787M	$838M	$798M	Shareholders’ equityEquity
4.1%	3.9%	2.9%	2.8%	Stock comp / revenueSBC/rev
				Per share
50.5M	49.3M	45.9M	45.2M	Shares out (diluted)Shares
$24.23	$26.84	$28.65	$29.75	Revenue / shareRev/sh
$2.74	$2.99	$3.71	$3.60	EPS (diluted)EPS
$2.59	$2.97	$3.33	$3.47	Owner earnings / shareOE/sh
$2.59	$2.97	$3.33	$3.47	Free cash flow / shareFCF/sh
$0.89	$1.10	$1.18	$1.29	Cap. spending / shareCapex/sh
$16.07	$15.97	$18.25	$17.63	Book value / shareBVPS

The record, charted

FY2023–2025

Each measure over its full record; the current point and the worst year marked.

Share count

46Mpeak FY2023

ROIC

15%low FY2025

Gross margin

35%low FY2023

Owner earnings vs. net income

Owner earningsNet income

The accountant's number, and the cash an owner can take; the gap is the tell.

$153Mowner earningsvs.$170Mnet incomelow FY2023

Where the cash went

ReinvestBuybacksDividendsAcquisitionsRetained

Each year's operating cash, by what management did with it: the mix, and how it drifts.

FY2023FY2025

Owner-earnings bridge

FY2023–FY2025cash-flow statement, SEC EDGAR →

Net income is the accountant's number; owner earnings is the cash an owner could take out. The walk between them, off the cash-flow statement, and whether the gap is widening or holding.

In fiscal 2025 the business reported $170M of profit but $153M of owner earnings: $17M less than the profit line, taken out by capital spending and the timing of cash.

Reported net income$170M

Owner earnings$153M · 12% of revenue

	FY2025	FY2024	FY2023
Reported net income	$170M	$147M	$138M
Depreciation & amortizationnon-cash charge added back	+$57M	+$58M	+$45M
Stock-based compensationreal costnon-cash, but a real cost	+$38M	+$52M	+$50M
Working capital & othertiming of cash in and out, other non-cash items	−$57M	−$56M	−$57M
Cash from operations	$207M	$201M	$176M
Capital expenditurecash put back in to keep running and to grow	−$54M	−$54M	−$45M
Owner earnings	$153M	$147M	$131M
Owner-earnings marginowner earnings ÷ revenue	12%	11%	11%

Owner earnings is the cash an owner could pull out without starving the business: operating cash less the capital it must spend to hold its position . The cash-flow statement also adds stock comp back as non-cash, but it is a real cost paid in shares; counted as the expense it is (less $38M), owner earnings is nearer $116M.

Maintenance capex is estimated as depreciation where a growing business invests above it; free cash flow is the figure the scorecard's free-cash margin reads.

III

Quality & stewardship

Returns, the balance sheet, capital allocation, and pay.

Owner’s Scorecard

FY2025 10-K · source on SEC EDGAR →

Will it survive?

Can it pay its interest? 9.5×

Comfortable

Operating income $175M ÷ interest expense $19M

What this means
Operating profit covers interest with the kind of margin Graham wanted for a defensive holding. Necessary, not sufficient, it says solvent, not cheap.
How heavy is the debt, net of cash? +$35M

Net cash

Cash $107M + ST investments $157M − debt $228M

What this means
Cash and short-term investments exceed every dollar of debt by $35M, on net the company owes nothing, and can act from strength when others can't. Net debt is the leverage figure that matters: the cash is already set against the debt. Strategic or illiquid investments aren't counted here.
How long is cash tied up? 53d

Tight

DSO 66 + DIO 0 − DPO 13 days

What this means
Days cash is tied up between paying suppliers and collecting from customers. Lower is better; a long cycle means growth itself eats cash. (Little or no inventory, a services / asset-light model, so the inventory leg is ~0.)

Is it a good business?

Return on invested capital 15%

High through the cycle

3-yr median, range 15%–19%; 15% latest = NOPAT $144M ÷ invested capital $959M

Industry peers: median 3%

What this means
The rate the business earns on the money tied up in it, Buffett's north star, because over time a stock tracks the ROIC beneath it. Above ~15% sustained hints at a moat; a return below the cost of capital (~8%) erodes value as a business grows rather than building it — the test Buffett weighs most. The headline is the median of the last 3 years (it ran 15% most recently), so one peak or trough year doesn't set the verdict. Asset-light businesses (R&D expensed, little capital) read artificially high, pair this with Owner Earnings.
Owner-earnings margin 11%

Solid through the cycle

3-yr median margin, range 11%–12%; latest $153M = operating cash $207M − maintenance capex $54M

Industry peers: median 7%

What this means
What an owner could take out without starving the business: operating cash less the maintenance capital it must spend to hold its position — Buffett's owner earnings. That's 12% of revenue this year, a 11% median across 3 years. Treating stock comp as the real expense it is (less $38M of SBC) leaves $116M.
Are earnings backed by cash? 1.22×

Cash-backed

Cash from ops $207M ÷ net income $170M

What this means
How much of reported profit showed up as operating cash. Above 1× is reassuring; well below suggests earnings lean on accruals. One year is noisy, growth and working-capital swings distort it, and this is operating cash, not free cash. Watch the multi-year trend.

How is the cash used?

Where do the earnings go? —

Not enough data

What this means
The filing data didn't include the inputs for this check.
Investing or harvesting? 0.96×

Maintaining

Capex $54M ÷ depreciation $57M

What this means
Descriptive, not a grade. Above ~1× means investing faster than assets wear out (growth, or, sustained for years, today's earnings carrying less depreciation than tomorrow's will). Below means spending less than it's wearing out (efficiency, or a melting asset base). The ratio won't tell you which; the filings will.

Graham’s defensive tests · 1 of 3 met

Graham’s numerical criteria for the defensive investor (The Intelligent Investor, ch. 14), run on the filings. A floor of safety, not a buy signal; many fine modern businesses fail his strictest liquidity rules by design.

Adequate size Near

Revenue ≥ $2B · $1.3B

What this means
Big enough to weather a storm. Graham's 1972 floor was ~$100M of sales (≈ $700M today); we use a $2B revenue line as a conservative modern stand-in.
Strong liquidity Near

Current ratio ≥ 2× · 1.76×

What this means
Current assets at least twice current liabilities, near-term bills covered without touching the business. Strict by design: many cash-rich modern firms run leaner and miss it, holding their cushion in longer-dated securities.
Conservative debt Pass

Debt ≤ working capital · $228M vs $244M WC

What this means
Graham's rule that borrowings not exceed net current assets. Capital-heavy and buyback-heavy firms routinely fail it, read it next to interest coverage, not alone.
Moderate price —

P/E ≤ 15 and P/E × P/B ≤ 22.5 · decided by the price

What this means
Graham's valuation gate, the wall he kept between a sound business and a sound investment. Three-year average earnings are $3.54/share (latest year $3.97), the averaged base the calculator's gate runs on, and book value is $19.53/share. Enter a price in “What the price implies” just below for the P/E, P/B, and whether it clears. But this is the rule Buffett outgrew: there's no hard P/E law, and a wonderful business can deserve a far richer multiple if the thesis holds, treat it as the bargain-hunter's floor, not a verdict on the price.

Does AI threaten the moat?

Elevated contestability

The product is software or information, the very thing capable AI now produces more cheaply, so the moat is more contestable than the record alone implies.

The product is the kind capable AI most directly contests: when a substitute can be built cheaply, the incumbent's pricing power is the first thing at risk. The record cannot say whether the moat outlasts that; past durability is a starting point, not a promise.

Read from the filing's own risk factors, paired with the industry's structure under its SIC code; the durability is read above, the price below.

All figures as filed; the source filing is linked above.

Current Position

as of the latest quarter, Jun 30, 2025

Can the business pay what it owes this year, off the freshest balance sheet: the quality of the assets, the debt actually coming due, and what a low ratio means here.

Current assets$548M

Cash & short-term investments$222M
Receivables$260M
Other current assets$66M

Current liabilities$374M

Debt due within a year$70M
Accounts payable$26M
Other current liabilities$278M

Current ratio1.47×all current assets ÷ what's due · Graham looked for 2×

Quick ratio1.47×stricter: inventory excluded

Cash ratio0.59×strictest: cash alone against what's due

Working capital$175Mthe cushion left after near-term bills

Debt due this year vs. cash$70M due · $222M cash covered by cash on hand, no refinancing forced · both figures from the Jun 30, 2025 balance sheet

Revenue, latest quarter vs. a year ago+9.5%the freshest read on whether the business is still growing

Current ratio, recent quarters1.7× → 1.5×

Deeper floors

Tangible book value$262Mequity stripped of goodwill & intangibles

Net current asset value($223M)Graham's net-net: current assets less all liabilities

Debt incl. operating leases$429M$217M of it operating leases

Deferred revenue$37Mcustomer cash collected before delivery; operating float

From the company's latest filing.

Acquisitions & goodwill

from the balance sheet & the 3-year cash-flow record

Goodwill grows only when a company acquires and falls only when it concedes it overpaid. The size of that bet, the cash put into buying rather than building, and how much has already been written off.

Goodwill & intangibles$532M34% of all assets; the premium carried on the balance sheet for businesses acquired

Against book equity49%goodwill is this share of book equity; the rest is the company’s own retained and paid-in capital

Cash spent acquiring$0over 3 years buying other businesses, against $153M of capital spent building

None written down over the record; the goodwill is still carried at full cost. That is the deals holding their value on the books so far; whether they keep doing so is the test an owner watches, since the write-down, when it comes, is the admission the price was too high.

Goodwill, acquired intangibles and equity from the latest balance sheet; acquisition spend and write-downs summed across the 3-year record, from the company's own filings.

Management, ownership & pay

From the proxy: how much of the business the people running it own, and how they are paid.

Stock-based compensation$38M
The slice of the business handed to employees in shares this year, 3% of revenue, equal to 21% of operating profit. Buffett's oldest accounting fight: this is compensation, compensation is an expense, real whether or not the headline earnings admit it. One trap: the cash-flow statement adds SBC back, so the operating cash, and the owner earnings drawn from it, are flattered by exactly this amount; counted as the cost it is, what an owner keeps is lower.

Peers, Commercial Services & Supplies

The same industry, side by side on owner economics. Each figure is a through-cycle median, so a peak or trough year can’t distort it; the group median at the foot is the line to read each against.

Company	Revenue	Gross margin	Op. margin	ROIC	Owner earn. margin
WEXWEX Inc.	$1.8B	45%	29.9%	7%	25%
RELYRemitly Global Inc.	$1.6B	—	-11.4%	-27%	5%
TICTIC Solutions Inc.	$1.5B	29%	-1.1%	-0%	4%
WNSWNS Holdings	$1.3B	35%	12.8%	15%	11%
PAYPaymentus Holdings Inc.	$1.2B	30%	5.1%	13%	7%
MAXMediaAlpha Inc.	$1.1B	16%	2.7%	-12%	6%
ANDGAndersen Group Inc.	$839M	—	17.7%	—	20%
PAYOPayoneer	$813M	—	1.2%	27%	13%
Group median	—	30%	3.9%	7%	9%

The price

What a price has to assume.

What the price implies

reverse-DCF

Type today's close and see the owner-earnings growth you'd have to believe to justify it, beside what WNS Holdings has delivered.

Today’s price $

Base Normalize · through-cycle ($144M) Net of stock comp (−$38M)

—

The assumptions Required return 9% Years of high growth 10 Terminal growth 2.5%

9.0% = the 4.55% 10-year Treasury (Jul 15, 2026) + 4.45 points of equity premium. The rate you require is yours to set.

Enter a price above to run it.

Implied by the price—

Owner-earnings growth · since FY2023+8%/yr

Owner-earnings yield—

P/E (3-yr earnings ’23–’25)—

P/B—

Graham’s price gate—

Graham capped the multiple at 15×; Buffett and Munger let that rule go: a wonderful business can deserve 50× if the thesis holds. The gate marks the bargain-hunter's floor.

Against a high-grade bond: Graham’s yardstick bond yield%

Prefilled with the 10-year Treasury (4.55%, as of Jul 15, 2026). Edit it for today’s exact figure, or a AAA corporate yield.

Graham measured a stock against the bond you could own instead, the heart of his margin of safety. Enter a price above to weigh the owner-earnings yield against this bond.

Owner earnings $157M on 43M shares outstanding, per the 10-Q cover, as of 2025-06-30; net cash $11M. The if-converted diluted count is 45M, 5% above the shares outstanding: the dilution overhang (convertibles, options) a buyer inherits. The base is the latest year by default; Normalize values it on the through-cycle median owner-earnings margin (to avoid paying on a peak year). Net of stock comp treats option pay as the expense it is. The dials set the multiple a growth belief justifies; the price, and every dollar on this page, is yours.

Weigh WNS against another business →

Cite: Owner Scorecard, "WNS Holdings (WNS), the owner's record," https://ownerscorecard.com/c/WNS, data as of 2026-07-09.

Manual order: ← WNC its page in the Manual WOLF →

Industry order: ← WEX the Commercial Services & Supplies chapter WSE →