39.975 USD
-0.52 (-1.27%)
We assign a fundamental rating of 7 out of 10 to EXLS. EXLS was compared to 88 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 is growing strongly while it is still valued neutral. This is a good combination! These ratings could make EXLS a good candidate for growth and quality investing.
1. Profitability
1.1 Basic Checks
- EXLS had positive earnings in the past year.
- In the past year EXLS had a positive cash flow from operations.
- EXLS had positive earnings in each of the past 5 years.
- Each year in the past 5 years EXLS had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of EXLS (13.93%) is better than 92.05% of its industry peers.
- With an excellent Return On Equity value of 25.35%, EXLS belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
- The Return On Invested Capital of EXLS (16.51%) is better than 90.91% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for EXLS is significantly below the industry average of 29.06%.
- The 3 year average ROIC (15.15%) for EXLS is below the current ROIC(16.51%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.93% | ||
| ROE | 25.35% | ||
| ROIC | 16.51% |
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's Profit Margin of 11.91% is amongst the best of the industry. EXLS outperforms 82.95% of its industry peers.
- In the last couple of years the Profit Margin of EXLS has grown nicely.
- Looking at the Operating Margin, with a value of 15.15%, EXLS belongs to the top of the industry, outperforming 80.68% of the companies in the same industry.
- EXLS's Operating Margin has improved in the last couple of years.
- EXLS has a better Gross Margin (38.24%) than 60.23% of its industry peers.
- EXLS's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.15% | ||
| PM (TTM) | 11.91% | ||
| GM | 38.24% |
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.
- EXLS has less shares outstanding than it did 1 year ago.
- EXLS has less shares outstanding than it did 5 years ago.
- The debt/assets ratio for EXLS is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 8.28 indicates that EXLS is not in any danger for bankruptcy at the moment.
- EXLS has a better Altman-Z score (8.28) than 87.50% of its industry peers.
- EXLS has a debt to FCF ratio of 1.24. This is a very positive value and a sign of high solvency as it would only need 1.24 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 1.24, EXLS is in the better half of the industry, outperforming 78.41% of the companies in the same industry.
- 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 | 1.24 | ||
| Altman-Z | 8.28 |
ROIC/WACC1.79
WACC9.21%
2.3 Liquidity
- A Current Ratio of 2.91 indicates that EXLS has no problem at all paying its short term obligations.
- EXLS has a better Current ratio (2.91) than 77.27% of its industry peers.
- EXLS has a Quick Ratio of 2.91. This indicates that EXLS is financially healthy and has no problem in meeting its short term obligations.
- With a decent Quick ratio value of 2.91, EXLS is doing good in the industry, outperforming 77.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.91 | ||
| Quick Ratio | 2.91 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 20.38% over the past year.
- Measured over the past years, EXLS shows a very strong growth in Earnings Per Share. The EPS has been growing by 21.93% on average per year.
- Looking at the last year, EXLS shows a quite strong growth in Revenue. The Revenue has grown by 14.43% in the last year.
- The Revenue has been growing by 13.15% on average over the past years. This is quite good.
EPS 1Y (TTM)20.38%
EPS 3Y19.78%
EPS 5Y21.93%
EPS Q2Q%9.09%
Revenue 1Y (TTM)14.43%
Revenue growth 3Y17.88%
Revenue growth 5Y13.15%
Sales Q2Q%12.18%
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 15.23% yearly.
- The Revenue is expected to grow by 11.93% on average over the next years. This is quite good.
EPS Next Y17.75%
EPS Next 2Y16.03%
EPS Next 3Y15.23%
EPS Next 5YN/A
Revenue Next Year13.37%
Revenue Next 2Y12.36%
Revenue Next 3Y11.93%
Revenue Next 5YN/A
3.3 Evolution
- The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
- 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
- The Price/Earnings ratio is 21.15, which indicates a rather expensive current valuation of EXLS.
- Compared to the rest of the industry, the Price/Earnings ratio of EXLS indicates a somewhat cheap valuation: EXLS is cheaper than 63.64% of the companies listed in the same industry.
- When comparing the Price/Earnings ratio of EXLS to the average of the S&P500 Index (28.82), we can say EXLS is valued slightly cheaper.
- A Price/Forward Earnings ratio of 17.89 indicates a rather expensive valuation of EXLS.
- Based on the Price/Forward Earnings ratio, EXLS is valued a bit cheaper than the industry average as 64.77% of the companies are valued more expensively.
- The average S&P500 Price/Forward Earnings ratio is at 25.95. EXLS is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.15 | ||
| Fwd PE | 17.89 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of EXLS indicates a somewhat cheap valuation: EXLS is cheaper than 64.77% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, EXLS is valued a bit cheaper than the industry average as 60.23% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.11 | ||
| EV/EBITDA | 16.83 |
4.3 Compensation for Growth
- The 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.
- EXLS's earnings are expected to grow with 15.23% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.19
PEG (5Y)0.96
EPS Next 2Y16.03%
EPS Next 3Y15.23%
5. Dividend
5.1 Amount
- EXLS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
EXLSERVICE HOLDINGS INC / EXLS FAQ
What is the ChartMill fundamental rating of EXLSERVICE HOLDINGS INC (EXLS) stock?
ChartMill assigns a fundamental rating of 7 / 10 to EXLS.
What is the valuation status for EXLS stock?
ChartMill assigns a valuation rating of 5 / 10 to EXLSERVICE HOLDINGS INC (EXLS). This can be considered as Fairly Valued.
What is the profitability of EXLS stock?
EXLSERVICE HOLDINGS INC (EXLS) has a profitability rating of 9 / 10.
What is the expected EPS growth for EXLSERVICE HOLDINGS INC (EXLS) stock?
The Earnings per Share (EPS) of EXLSERVICE HOLDINGS INC (EXLS) is expected to grow by 17.75% in the next year.