EXLSERVICE HOLDINGS INC (NASDAQ:EXLS) can be considered a quality stock. Here's why.

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if EXLSERVICE HOLDINGS INC (NASDAQ:EXLS) is suited for quality investing. Investors should of course do their own research, but we spotted EXLSERVICE HOLDINGS INC showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

Some of the quality metrics of NASDAQ:EXLS highlighted

• EXLSERVICE HOLDINGS INC has shown strong performance in revenue growth over the past 5 years, with a 13.05% increase. This indicates the company's ability to generate consistent revenue growth and reflects its potential for long-term success.
• The ROIC excluding cash and goodwill of EXLSERVICE HOLDINGS INC stands at 34.13%, reflecting the company's strong financial management and profitability. This metric underscores its ability to generate favorable returns on the capital invested in its core operations.
• EXLSERVICE HOLDINGS INC maintains a healthy Debt/Free Cash Flow Ratio of 1.77, indicating a strong financial position and prudent debt management. This ratio suggests the company has sufficient free cash flow to cover its debt obligations and highlights its ability to generate cash from operations.
• With a robust Profit Quality (5-year) ratio of 134.0%, EXLSERVICE HOLDINGS INC highlights its ability to consistently generate high-quality profits. This metric reflects the company's effective management and operational excellence in delivering reliable earnings over the long term.
• EXLSERVICE HOLDINGS INC has experienced impressive EBIT growth over the past 5 years, with 27.85% increase. This reflects the company's effective operational performance and highlights its potential for long-term financial success.
• With EBIT 5-year growth outpacing its Revenue 5-year growth, EXLSERVICE HOLDINGS INC showcases its effective cost management and enhanced operational performance. This suggests the company's ability to generate higher earnings from its revenue streams.

A complete fundamental analysis of NASDAQ:EXLS

ChartMill assigns a proprietary Fundamental Rating to each stock. The score is computed daily by evaluating various fundamental indicators and properties. The score ranges from 0 to 10.

We assign a fundamental rating of 7 out of 10 to EXLS. EXLS was compared to 83 industry peers in the IT Services industry. Both the health and profitability get an excellent rating, making EXLS a very profitable company, without any liquidiy or solvency issues. EXLS has a correct valuation and a medium growth rate. These ratings could make EXLS a good candidate for quality investing.

Our latest full fundamental report of EXLS contains the most current fundamental analsysis.

Our Caviar Cruise screen will find you more ideas suited for quality investing.

Disclaimer

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.