Firstsource Solutions Limited
Firstsource Solutions Limited Fundamental Analysis
Firstsource Solutions Limited (FSL.NS) shows moderate financial fundamentals with a PE ratio of 23.71, profit margin of 6.90%, and ROE of 14.71%. The company generates $91.7B in annual revenue with strong year-over-year growth of 25.95%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 72.0/100 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 FSL.NS's fundamental strength across five key dimensions:
Efficiency Score
WeakFSL.NS struggles to generate sufficient returns from assets.
Valuation Score
ExcellentFSL.NS trades at attractive valuation levels.
Growth Score
ExcellentFSL.NS delivers strong and consistent growth momentum.
Financial Health Score
ModerateFSL.NS shows balanced financial health with some risks.
Profitability Score
WeakFSL.NS struggles to sustain strong margins.
Key Financial Metrics
Is FSL.NS Expensive or Cheap?
P/E Ratio
FSL.NS trades at 23.71 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, FSL.NS's PEG of -3.98 indicates potential undervaluation.
Price to Book
The market values Firstsource Solutions Limited at 3.32 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 8.82 times EBITDA. This is generally considered low.
How Well Does FSL.NS Make Money?
Net Profit Margin
For every $100 in sales, Firstsource Solutions Limited keeps $6.90 as profit after all expenses.
Operating Margin
Core operations generate 17.71 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $14.71 in profit for every $100 of shareholder equity.
ROA
Firstsource Solutions Limited generates $7.16 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Firstsource Solutions Limited produces operating cash flow of $11.83B, showing steady but balanced cash generation.
Free Cash Flow
Firstsource Solutions Limited generates strong free cash flow of $10.07B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $14.56 in free cash annually.
FCF Yield
FSL.NS converts 6.68% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
23.71
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-3.98
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.32
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.64
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.74
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.90
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.15
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.28
vs 25 benchmark
How FSL.NS Stacks Against Its Sector Peers
| Metric | FSL.NS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 23.71 | 34.49 | Better (Cheaper) |
| ROE | 14.71% | 1124.00% | Weak |
| Net Margin | 6.90% | -133673.00% (disorted) | Weak |
| Debt/Equity | 0.74 | 7.86 | Strong (Low Leverage) |
| Current Ratio | 0.90 | 5.81 | Weak Liquidity |
| ROA | 7.16% | -308769.00% (disorted) | Weak |
FSL.NS outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Firstsource Solutions Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
93.37%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
71.74%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
67.65%
Industry Style: Growth, Innovation, High Beta
High Growth