ExlService Holdings, Inc.
ExlService Holdings, Inc. Fundamental Analysis
ExlService Holdings, Inc. (EXLS) shows strong financial fundamentals with a PE ratio of 18.92, profit margin of 12.02%, and ROE of 25.50%. The company generates $2.1B in annual revenue with strong year-over-year growth of 12.74%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 70.1/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze EXLS's fundamental strength across five key dimensions:
Efficiency Score
ExcellentEXLS demonstrates superior asset utilization.
Valuation Score
ModerateEXLS shows balanced valuation metrics.
Growth Score
ModerateEXLS shows steady but slowing expansion.
Financial Health Score
ExcellentEXLS maintains a strong and stable balance sheet.
Profitability Score
ModerateEXLS maintains healthy but balanced margins.
Key Financial Metrics
Is EXLS Expensive or Cheap?
P/E Ratio
EXLS trades at 18.92 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, EXLS's PEG of 4.03 indicates potential overvaluation.
Price to Book
The market values ExlService Holdings, Inc. at 5.20 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 10.20 times EBITDA. This signals the market has high growth expectations.
How Well Does EXLS Make Money?
Net Profit Margin
For every $100 in sales, ExlService Holdings, Inc. keeps $12.02 as profit after all expenses.
Operating Margin
Core operations generate 15.03 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $25.50 in profit for every $100 of shareholder equity.
ROA
ExlService Holdings, Inc. generates $14.75 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
ExlService Holdings, Inc. produces operating cash flow of $345.65M, showing steady but balanced cash generation.
Free Cash Flow
ExlService Holdings, Inc. generates strong free cash flow of $293.81M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.85 in free cash annually.
FCF Yield
EXLS converts 6.36% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
18.92
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
4.03
vs 25 benchmark
P/B Ratio
Price to book value ratio
5.20
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.24
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.44
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.56
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.25
vs 25 benchmark
ROA
Return on assets percentage
0.15
vs 25 benchmark
ROCE
Return on capital employed
0.23
vs 25 benchmark
How EXLS Stacks Against Its Sector Peers
| Metric | EXLS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 18.92 | 34.43 | Better (Cheaper) |
| ROE | 25.50% | 1135.00% | Weak |
| Net Margin | 12.02% | -134808.00% (disorted) | Strong |
| Debt/Equity | 0.44 | 7.92 | Strong (Low Leverage) |
| Current Ratio | 2.56 | 5.77 | Strong Liquidity |
| ROA | 14.75% | -310795.00% (disorted) | Strong |
EXLS outperforms its industry in 5 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews ExlService Holdings, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
95.74%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
209.35%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
68.29%
Industry Style: Growth, Innovation, High Beta
High Growth