EXLSERVICE HOLDINGS INC (EXLS)
US3020811044 - Common Stock
We assign a fundamental rating of 7 out of 10 to EXLS. EXLS was compared to 84 industry peers in the IT Services industry. EXLS scores excellent points on both the profitability and health parts. This is a solid base for a good stock. EXLS has a correct valuation and a medium growth rate. With these ratings, EXLS could be worth investigating further 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.
Each year in the past 5 years EXLS had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 11.67%, EXLS belongs to the top of the industry, outperforming 90.24% of the companies in the same industry.
Looking at the Return On Equity, with a value of 20.70%, EXLS belongs to the top of the industry, outperforming 82.93% of the companies in the same industry.
EXLS's Return On Invested Capital of 13.87% is amongst the best of the industry. EXLS outperforms 90.24% of its industry peers.
EXLS had an Average Return On Invested Capital over the past 3 years of 15.07%. This is significantly above the industry average of 9.59%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.67% | ||
| ROE | 20.7% | ||
| ROIC | 13.87% |
ROA(3y)10.79%
ROA(5y)9.05%
ROE(3y)18.72%
ROE(5y)15.74%
ROIC(3y)15.07%
ROIC(5y)12.04%
1.3 Margins
With a decent Profit Margin value of 10.61%, EXLS is doing good in the industry, outperforming 76.83% of the companies in the same industry.
EXLS's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 13.93%, EXLS belongs to the best of the industry, outperforming 80.49% of the companies in the same industry.
EXLS's Operating Margin has improved in the last couple of years.
The Gross Margin of EXLS (37.24%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of EXLS has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.93% | ||
| PM (TTM) | 10.61% | ||
| GM | 37.24% |
OM growth 3Y8.45%
OM growth 5Y13.09%
PM growth 3Y6.62%
PM growth 5Y12.01%
GM growth 3Y2.21%
GM growth 5Y1.99%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so EXLS is still creating some value.
The number of shares outstanding for EXLS has been reduced compared to 1 year ago.
The number of shares outstanding for EXLS has been reduced compared to 5 years ago.
EXLS has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 9.16 indicates that EXLS is not in any danger for bankruptcy at the moment.
The Altman-Z score of EXLS (9.16) is better than 86.59% of its industry peers.
EXLS has a debt to FCF ratio of 1.77. This is a very positive value and a sign of high solvency as it would only need 1.77 years to pay back of all of its debts.
EXLS has a better Debt to FCF ratio (1.77) than 74.39% of its industry peers.
EXLS has a Debt/Equity ratio of 0.37. This is a healthy value indicating a solid balance between debt and equity.
EXLS has a Debt to Equity ratio (0.37) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 1.77 | ||
| Altman-Z | 9.16 |
ROIC/WACC1.29
WACC10.78%
2.3 Liquidity
EXLS has a Current Ratio of 3.02. This indicates that EXLS is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of EXLS (3.02) is better than 84.15% of its industry peers.
A Quick Ratio of 3.01 indicates that EXLS has no problem at all paying its short term obligations.
EXLS has a Quick ratio of 3.01. This is amongst the best in the industry. EXLS outperforms 82.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.02 | ||
| Quick Ratio | 3.01 |
3. Growth
3.1 Past
EXLS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.63%, which is quite good.
EXLS shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -12.30% yearly.
Looking at the last year, EXLS shows a quite strong growth in Revenue. The Revenue has grown by 11.29% in the last year.
The Revenue has been growing by 13.05% on average over the past years. This is quite good.
EPS 1Y (TTM)12.63%
EPS 3Y-25.9%
EPS 5Y-12.3%
EPS Q2Q%18.92%
Revenue 1Y (TTM)11.29%
Revenue growth 3Y19.38%
Revenue growth 5Y13.05%
Sales Q2Q%14.87%
3.2 Future
Based on estimates for the next years, EXLS will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.32% on average per year.
EXLS is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.26% yearly.
EPS Next Y16.26%
EPS Next 2Y16.18%
EPS Next 3Y15.32%
EPS Next 5YN/A
Revenue Next Year12.72%
Revenue Next 2Y12.59%
Revenue Next 3Y12.26%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 29.08, EXLS can be considered very expensive at the moment.
The rest of the industry has a similar Price/Earnings ratio as EXLS.
EXLS is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.96, which is the current average of the S&P500 Index.
EXLS is valuated rather expensively with a Price/Forward Earnings ratio of 23.62.
Compared to the rest of the industry, the Price/Forward Earnings ratio of EXLS indicates a somewhat cheap valuation: EXLS is cheaper than 62.20% of the companies listed in the same industry.
EXLS's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.08 | ||
| Fwd PE | 23.62 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of EXLS is on the same level as its industry peers.
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 | 37.81 | ||
| EV/EBITDA | 23.43 |
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 15.32% in the coming years.
PEG (NY)1.79
PEG (5Y)N/A
EPS Next 2Y16.18%
EPS Next 3Y15.32%
5. Dividend
5.1 Amount
EXLS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
EXLSERVICE HOLDINGS INC
NASDAQ:EXLS (11/21/2024, 4:30:02 PM)
After market: 45.66 0 (0%)45.66
+1.28 (+2.88%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap7.35B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
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Div Incr Years
Div Non Decr Years
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Surprises & Revisions
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EPS NQ rev (1m)
EPS NQ rev (3m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.08 | ||
| Fwd PE | 23.62 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.79
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.67% | ||
| ROE | 20.7% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 13.93% | ||
| PM (TTM) | 10.61% | ||
| GM | 37.24% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.02 | ||
| Quick Ratio | 3.01 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)12.63%
EPS 3Y-25.9%
EPS 5Y
EPS Q2Q%
EPS Next Y16.26%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)11.29%
Revenue growth 3Y19.38%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y