Firstsource Solutions
Market Cap
₹26.5b
Last Updated
2020/07/07 12:40 UTC
Data Sources
Company Financials +
Executive Summary
Firstsource Solutions Limited provides customized business process management services in India, the United States, the United Kingdom, the Philippines, and internationally.
Rewards
Risk Analysis
Snowflake Analysis
Undervalued with excellent balance sheet and pays a dividend.
Similar Companies
Share Price & News
How has Firstsource Solutions's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: 532809's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
6.0%
532809
7.5%
IN IT
4.0%
IN Market
1 Year Return
-26.4%
532809
5.2%
IN IT
-5.3%
IN Market
Return vs Industry: 532809 underperformed the Indian IT industry which returned 2.4% over the past year.
Return vs Market: 532809 underperformed the Indian Market which returned -5.5% over the past year.
Shareholder returns
| 532809 | Industry | Market | |
|---|---|---|---|
| 7 Day | 6.0% | 7.5% | 4.0% |
| 30 Day | 0.8% | 9.1% | 6.6% |
| 90 Day | 28.0% | 29.0% | 22.9% |
| 1 Year | -18.9%-26.4% | 8.2%5.2% | -3.3%-5.3% |
| 3 Year | 21.3%7.9% | 68.8%59.2% | 2.3%-2.6% |
| 5 Year | 24.2%10.4% | 72.8%56.6% | 27.7%17.8% |
Price Volatility Vs. Market
How volatile is Firstsource Solutions's share price compared to the market and industry in the last 5 years?
Simply Wall St News
No news available
Valuation
Is Firstsource Solutions undervalued compared to its fair value and its price relative to the market?
32.6%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: 532809 (₹37.7) is trading below our estimate of fair value (₹55.9)
Significantly Below Fair Value: 532809 is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: 532809 is good value based on its PE Ratio (7.7x) compared to the IT industry average (11.5x).
PE vs Market: 532809 is good value based on its PE Ratio (7.7x) compared to the Indian market (12.6x).
Price to Earnings Growth Ratio
PEG Ratio: 532809 is poor value based on its PEG Ratio (1.8x)
Price to Book Ratio
PB vs Industry: 532809 is good value based on its PB Ratio (0.9x) compared to the IN IT industry average (1x).
Next Steps
Future Growth
How is Firstsource Solutions forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?
4.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 532809's forecast earnings growth (4.3% per year) is below the savings rate (7.2%).
Earnings vs Market: 532809's earnings (4.3% per year) are forecast to grow slower than the Indian market (18.8% per year).
High Growth Earnings: 532809's earnings are forecast to grow, but not significantly.
Revenue vs Market: 532809's revenue (7% per year) is forecast to grow slower than the Indian market (7.2% per year).
High Growth Revenue: 532809's revenue (7% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: 532809's Return on Equity is forecast to be low in 3 years time (11.9%).
Next Steps
Past Performance
How has Firstsource Solutions performed over the past 5 years?
9.5%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 532809 has high quality earnings.
Growing Profit Margin: 532809's current net profit margins (8.3%) are lower than last year (9.9%).
Past Earnings Growth Analysis
Earnings Trend: 532809's earnings have grown by 9.5% per year over the past 5 years.
Accelerating Growth: 532809's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: 532809 had negative earnings growth (-10.1%) over the past year, making it difficult to compare to the IT industry average (5.6%).
Return on Equity
High ROE: 532809's Return on Equity (12.3%) is considered low.
Next Steps
Financial Health
How is Firstsource Solutions's financial position?
Financial Position Analysis
Short Term Liabilities: 532809's short term assets (₹11.0B) do not cover its short term liabilities (₹13.3B).
Long Term Liabilities: 532809's short term assets (₹11.0B) exceed its long term liabilities (₹4.9B).
Debt to Equity History and Analysis
Debt Level: 532809's debt to equity ratio (31.1%) is considered satisfactory.
Reducing Debt: 532809's debt to equity ratio has reduced from 50.1% to 31.1% over the past 5 years.
Debt Coverage: 532809's debt is well covered by operating cash flow (47.7%).
Interest Coverage: 532809's interest payments on its debt are well covered by EBIT (7.8x coverage).
Balance Sheet
Next Steps
Dividend
What is Firstsource Solutions's current dividend yield, its reliability and sustainability?
6.63%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: 532809's dividend (6.63%) is higher than the bottom 25% of dividend payers in the Indian market (0.68%).
High Dividend: 532809's dividend (6.63%) is in the top 25% of dividend payers in the Indian market (2.78%)
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, 532809 has been paying a dividend for less than 10 years.
Growing Dividend: 532809's dividend payments have increased, but the company has only paid a dividend for 2 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (51%), 532809's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: 532809's dividends in 3 years are forecast to be well covered by earnings (47.1% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.5yrs
Average management tenure
CEO
Vipul Khanna
0.92
Tenure
₹10,411,811
Compensation
Mr. Vipul Khanna serves as Managing Director, Chief Executive Officer and Additional Director at Firstsource Solutions Limited since August 2, 2019. Mr. Khanna was Executive Vice President and Global Head ...
CEO Compensation Analysis
Compensation vs Market: Vipul's total compensation ($USD139.53K) is below average for companies of similar size in the Indian market ($USD365.08K).
Compensation vs Earnings: Insufficient data to compare Vipul's compensation with company performance.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| MD, CEO & Additional Director | 0.92yr | ₹10.41m | 0.015% ₹3.9m | |
| President & CFO | no data | ₹39.77m | no data | |
| Company Secretary & Compliance Officer | 3.5yrs | ₹2.91m | no data | |
| President & Chief Human Resources Officer | 2.5yrs | no data | no data | |
| President of Communications | 0.25yr | no data | no data | |
| Senior Vice President of Administration & Physical Security | no data | ₹7.03m | no data | |
| Head of IR & Corporate Planning (M&A) | no data | no data | no data | |
| Head of Marketing & Corporate Communications | 2.5yrs | no data | no data | |
| President of Healthcare Provider | 0.50yr | no data | 0.11% ₹29.6m | |
| Senior Vice President of Business Transformation | 6yrs | ₹10.18m | no data |
2.5yrs
Average Tenure
50yo
Average Age
Experienced Management: 532809's management team is considered experienced (2.5 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| MD, CEO & Additional Director | 0.92yr | ₹10.41m | 0.015% ₹3.9m | |
| Chairman | 7.58yrs | ₹300.00k | no data | |
| Independent Non-Executive Director | 7.58yrs | ₹1.00m | no data | |
| Non-Executive & Non Independent Director | 5.67yrs | ₹300.00k | no data | |
| Non Independent Non-Executive Director | 7.58yrs | ₹550.00k | no data | |
| Non Independent Non-Executive Director | 7.58yrs | ₹950.00k | no data | |
| Independent Non-Executive Director | 5.42yrs | ₹700.00k | no data | |
| Non-Executive Independent Director | 1.25yrs | ₹500.00k | no data | |
| Non-Executive Independent Director | 1.25yrs | ₹650.00k | no data | |
| Non-Executive Independent Director | 1.17yrs | ₹150.00k | no data |
5.5yrs
Average Tenure
64yo
Average Age
Experienced Board: 532809's board of directors are considered experienced (5.5 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Firstsource Solutions Limited's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Firstsource Solutions Limited
- Ticker: 532809
- Exchange: BSE
- Founded: 2001
- Industry: Data Processing and Outsourced Services
- Sector: Software
- Market Cap: ₹26.511b
- Shares outstanding: 694.01m
- Website: https://www.firstsource.com
Number of Employees
Location
- Firstsource Solutions Limited
- Paradigm ‘B’ Wing
- 5th Floor, Mindspace
- Mumbai
- Maharashtra
- 400064
- India
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| 532809 | BSE (Mumbai Stock Exchange) | Yes | Equity Shares | IN | INR | Feb 2007 |
| FSL | NSEI (National Stock Exchange of India) | Yes | Equity Shares | IN | INR | Feb 2007 |
Biography
Firstsource Solutions Limited provides customized business process management services in India, the United States, the United Kingdom, the Philippines, and internationally. The company offers various services across the customer lifecycle, Including acquisition, account servicing, collection, and retentions; sales ledger administration and collection, cash management and administration, payroll, VAT, and tax management services; credit and bank cards, private label retail cards, automotive and personal loans, overdraft accounts, and mortgage collection services; healthcare collection services; and default management, prevention, and recovery solutions. It also provides contact center and back-office processing services; claims processing and adjudication, digital mailroom and document, enterprise claim, Omni channel contact center, provider data management and credentialing, quality assurance, and telehealth support services, as well as member enrollment, billing, and eligibility services; and MedAssist, a revenue cycle product suite to enhance the revenue for hospitals and patient experience. In addition, the company manages claims handling transactions, including claims management, adjudication, remediation, and fulfillment; origination, home equity, routine and default servicing, title, and closing and escrow underwriting services; invoice factoring and discounting, payroll finance, debtor protection, deal management and pay-outs, cash allocation, sales ledger management, account servicing, complaints handling, credit control, and payment recovery; and business process consulting services. It serves the banking and financial services, healthcare, telecom and media, insurance, mortgage, and utilities sectors. The company was formerly known as ICICI Onesource Limited and changed its name to Firstsource Solutions Limited in 2006. The company was founded in 2001 and is based in Mumbai, India. Firstsource Solutions Limited is a subsidiary of CESC Ventures Limited.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/07/07 12:40 |
| End of Day Share Price | 2020/07/07 00:00 |
| Earnings | 2020/03/31 |
| Annual Earnings | 2020/03/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.