EXLSERVICE HOLDINGS INC (EXLS) Stock Fundamental Analysis
NASDAQ:EXLS - Nasdaq - US3020811044 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to EXLS. EXLS was compared to 82 industry peers in the IT Services industry. EXLS has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. EXLS has a decent growth rate and is not valued too expensively. This makes EXLS very considerable for quality investing!
1. Profitability
1.1 Basic Checks
In the past year EXLS was profitable.
In the past year EXLS had a positive cash flow from operations.
In the past 5 years EXLS has always been profitable.
EXLS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of EXLS (12.89%) is better than 93.90% of its industry peers.
EXLS has a Return On Equity of 21.36%. This is amongst the best in the industry. EXLS outperforms 85.37% of its industry peers.
EXLS has a better Return On Invested Capital (15.02%) than 86.59% of its industry peers.
The Average Return On Invested Capital over the past 3 years for EXLS is significantly below the industry average of 21.64%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.89% | ||
| ROE | 21.36% | ||
| ROIC | 15.02% |
ROA(3y)11.89%
ROA(5y)10.36%
ROE(3y)20.31%
ROE(5y)17.99%
ROIC(3y)15.15%
ROIC(5y)13.79%
1.3 Margins
EXLS has a better Profit Margin (11.36%) than 81.71% of its industry peers.
EXLS's Profit Margin has improved in the last couple of years.
EXLS's Operating Margin of 14.74% is fine compared to the rest of the industry. EXLS outperforms 79.27% of its industry peers.
In the last couple of years the Operating Margin of EXLS has grown nicely.
Looking at the Gross Margin, with a value of 37.90%, EXLS is in line with its industry, outperforming 56.10% of the companies in the same industry.
EXLS's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.74% | ||
| PM (TTM) | 11.36% | ||
| GM | 37.9% |
OM growth 3Y0.91%
OM growth 5Y10.78%
PM growth 3Y1.78%
PM growth 5Y9.57%
GM growth 3Y-0.74%
GM growth 5Y2.1%
2. Health
2.1 Basic Checks
EXLS has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for EXLS has been reduced compared to 1 year ago.
Compared to 5 years ago, EXLS has less shares outstanding
Compared to 1 year ago, EXLS has a worse debt to assets ratio.
2.2 Solvency
EXLS has an Altman-Z score of 9.86. This indicates that EXLS is financially healthy and has little risk of bankruptcy at the moment.
EXLS's Altman-Z score of 9.86 is amongst the best of the industry. EXLS outperforms 90.24% of its industry peers.
EXLS has a debt to FCF ratio of 1.25. This is a very positive value and a sign of high solvency as it would only need 1.25 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 1.25, EXLS is doing good in the industry, outperforming 76.83% of the companies in the same industry.
A Debt/Equity ratio of 0.30 indicates that EXLS is not too dependend on debt financing.
EXLS's Debt to Equity ratio of 0.30 is in line compared to the rest of the industry. EXLS outperforms 54.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 1.25 | ||
| Altman-Z | 9.86 |
ROIC/WACC1.57
WACC9.58%
2.3 Liquidity
EXLS has a Current Ratio of 3.41. This indicates that EXLS is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 3.41, EXLS belongs to the best of the industry, outperforming 86.59% of the companies in the same industry.
A Quick Ratio of 3.41 indicates that EXLS has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 3.41, EXLS belongs to the best of the industry, outperforming 86.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.41 | ||
| Quick Ratio | 3.41 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 20.22% over the past year.
The earnings per share for EXLS have been decreasing by -11.63% on average. This is quite bad
The Revenue has grown by 14.18% in the past year. This is quite good.
Measured over the past years, EXLS shows a quite strong growth in Revenue. The Revenue has been growing by 13.15% on average per year.
EPS 1Y (TTM)20.22%
EPS 3Y-29.95%
EPS 5Y-11.63%
EPS Q2Q%26.32%
Revenue 1Y (TTM)14.18%
Revenue growth 3Y17.88%
Revenue growth 5Y13.15%
Sales Q2Q%14.78%
3.2 Future
EXLS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.19% yearly.
Based on estimates for the next years, EXLS will show a quite strong growth in Revenue. The Revenue will grow by 12.08% on average per year.
EPS Next Y15.25%
EPS Next 2Y14.7%
EPS Next 3Y14.19%
EPS Next 5YN/A
Revenue Next Year12.25%
Revenue Next 2Y11.89%
Revenue Next 3Y12.08%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 24.03, the valuation of EXLS can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of EXLS is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 27.30. EXLS is around the same levels.
The Price/Forward Earnings ratio is 19.36, which indicates a rather expensive current valuation of EXLS.
EXLS's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. EXLS is cheaper than 64.63% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.76. EXLS is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.03 | ||
| Fwd PE | 19.36 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as EXLS.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of EXLS is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28 | ||
| EV/EBITDA | 21.16 |
4.3 Compensation for Growth
EXLS's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of EXLS may justify a higher PE ratio.
A more expensive valuation may be justified as EXLS's earnings are expected to grow with 14.19% in the coming years.
PEG (NY)1.58
PEG (5Y)N/A
EPS Next 2Y14.7%
EPS Next 3Y14.19%
5. Dividend
5.1 Amount
EXLS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
42.29
-2.85 (-6.31%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners99%
Inst Owner Change0%
Ins Owners0.45%
Ins Owner Change29.78%
Market Cap6.88B
Analysts83.75
Price Target55.66 (31.62%)
Short Float %4.62%
Short Ratio3.39
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.34%
Min EPS beat(2)4.04%
Max EPS beat(2)6.65%
EPS beat(4)4
Avg EPS beat(4)4.31%
Min EPS beat(4)1.41%
Max EPS beat(4)6.65%
EPS beat(8)8
Avg EPS beat(8)4.34%
EPS beat(12)12
Avg EPS beat(12)5.17%
EPS beat(16)16
Avg EPS beat(16)6.44%
Revenue beat(2)1
Avg Revenue beat(2)-0.31%
Min Revenue beat(2)-0.79%
Max Revenue beat(2)0.18%
Revenue beat(4)2
Avg Revenue beat(4)-0.41%
Min Revenue beat(4)-1.15%
Max Revenue beat(4)0.18%
Revenue beat(8)3
Avg Revenue beat(8)-0.42%
Revenue beat(12)7
Avg Revenue beat(12)0.73%
Revenue beat(16)10
Avg Revenue beat(16)1.24%
PT rev (1m)0.06%
PT rev (3m)-1.68%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.04%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.14%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.41%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.03 | ||
| Fwd PE | 19.36 | ||
| P/S | 3.62 | ||
| P/FCF | 28 | ||
| P/OCF | 23.43 | ||
| P/B | 6.8 | ||
| P/tB | 12.62 | ||
| EV/EBITDA | 21.16 |
EPS(TTM)1.76
EY4.16%
EPS(NY)2.18
Fwd EY5.16%
FCF(TTM)1.51
FCFY3.57%
OCF(TTM)1.8
OCFY4.27%
SpS11.7
BVpS6.22
TBVpS3.35
PEG (NY)1.58
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.89% | ||
| ROE | 21.36% | ||
| ROCE | 19.58% | ||
| ROIC | 15.02% | ||
| ROICexc | 19.54% | ||
| ROICexgc | 33.9% | ||
| OM | 14.74% | ||
| PM (TTM) | 11.36% | ||
| GM | 37.9% | ||
| FCFM | 12.91% |
ROA(3y)11.89%
ROA(5y)10.36%
ROE(3y)20.31%
ROE(5y)17.99%
ROIC(3y)15.15%
ROIC(5y)13.79%
ROICexc(3y)20.61%
ROICexc(5y)20.14%
ROICexgc(3y)45.95%
ROICexgc(5y)N/A
ROCE(3y)19.75%
ROCE(5y)17.97%
ROICexcg growth 3YN/A
ROICexcg growth 5Y4.53%
ROICexc growth 3Y-6.9%
ROICexc growth 5Y14.65%
OM growth 3Y0.91%
OM growth 5Y10.78%
PM growth 3Y1.78%
PM growth 5Y9.57%
GM growth 3Y-0.74%
GM growth 5Y2.1%
F-Score8
Asset Turnover1.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 1.25 | ||
| Debt/EBITDA | 0.9 | ||
| Cap/Depr | 84.95% | ||
| Cap/Sales | 2.52% | ||
| Interest Coverage | 13.74 | ||
| Cash Conversion | 87.15% | ||
| Profit Quality | 113.7% | ||
| Current Ratio | 3.41 | ||
| Quick Ratio | 3.41 | ||
| Altman-Z | 9.86 |
F-Score8
WACC9.58%
ROIC/WACC1.57
Cap/Depr(3y)89.55%
Cap/Depr(5y)85.41%
Cap/Sales(3y)2.98%
Cap/Sales(5y)3.33%
Profit Quality(3y)94.25%
Profit Quality(5y)118.13%
High Growth Momentum
Growth
EPS 1Y (TTM)20.22%
EPS 3Y-29.95%
EPS 5Y-11.63%
EPS Q2Q%26.32%
EPS Next Y15.25%
EPS Next 2Y14.7%
EPS Next 3Y14.19%
EPS Next 5YN/A
Revenue 1Y (TTM)14.18%
Revenue growth 3Y17.88%
Revenue growth 5Y13.15%
Sales Q2Q%14.78%
Revenue Next Year12.25%
Revenue Next 2Y11.89%
Revenue Next 3Y12.08%
Revenue Next 5YN/A
EBIT growth 1Y16.5%
EBIT growth 3Y18.96%
EBIT growth 5Y25.35%
EBIT Next Year31.69%
EBIT Next 3Y17.96%
EBIT Next 5YN/A
FCF growth 1Y46.43%
FCF growth 3Y14.72%
FCF growth 5Y11.62%
OCF growth 1Y40.5%
OCF growth 3Y13.35%
OCF growth 5Y9.78%