NSEI:EXPLEOSOL

Stock Analysis Report

Executive Summary

Expleo Solutions Limited, together with its subsidiaries, primarily provides software validation and verification services worldwide.

Snowflake

Fundamentals

Flawless balance sheet and good value.

Share Price & News

How has Expleo Solutions's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-5.0%

EXPLEOSOL

-0.4%

IN IT

1.6%

IN Market


1 Year Return

-31.9%

EXPLEOSOL

4.0%

IN IT

0.8%

IN Market

Return vs Industry: EXPLEOSOL underperformed the Indian IT industry which returned 4% over the past year.

Return vs Market: EXPLEOSOL underperformed the Indian Market which returned 0.8% over the past year.


Shareholder returns

EXPLEOSOLIndustryMarket
7 Day-5.0%-0.4%1.6%
30 Day-5.7%-4.2%1.5%
90 Day-26.5%-2.2%-3.3%
1 Year-31.9%-31.9%5.8%4.0%2.7%0.8%
3 Year-66.7%-69.6%64.8%56.2%22.0%16.0%
5 Year-45.2%-52.9%68.6%54.7%42.3%29.3%

Price Volatility Vs. Market

How volatile is Expleo Solutions's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Expleo Solutions undervalued compared to its fair value and its price relative to the market?

41.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: EXPLEOSOL (₹277.25) is trading below our estimate of fair value (₹475.76)

Significantly Undervalued: EXPLEOSOL is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: EXPLEOSOL is good value based on its PE Ratio (8.6x) compared to the IT industry average (11.5x).

PE vs Market: EXPLEOSOL is good value based on its PE Ratio (8.6x) compared to the Indian market (13.1x).


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate EXPLEOSOL's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: EXPLEOSOL is overvalued based on its PB Ratio (2.1x) compared to the IN IT industry average (0.9x).


Next Steps

Future Growth

How is Expleo Solutions forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

-10.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EXPLEOSOL's earnings are forecast to decline over the next 3 years (-10.4% per year).

Earnings vs Market: EXPLEOSOL's earnings are forecast to decline over the next 3 years (-10.4% per year).

High Growth Earnings: EXPLEOSOL's earnings are forecast to decline over the next 3 years.

Revenue vs Market: Insufficient data to determine if EXPLEOSOL's revenue is forecast to grow faster than the Indian market.

High Growth Revenue: Insufficient data to determine if EXPLEOSOL's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if EXPLEOSOL's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Expleo Solutions performed over the past 5 years?

7.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: EXPLEOSOL's earnings have grown by 7.5% per year over the past 5 years.

Accelerating Growth: EXPLEOSOL's earnings growth over the past year (9.9%) exceeds its 5-year average (7.5% per year).

Earnings vs Industry: EXPLEOSOL earnings growth over the past year (9.9%) underperformed the IT industry 13.5%.


Return on Equity

High ROE: EXPLEOSOL's Return on Equity (24.8%) is considered high.


Return on Assets

ROA vs Industry: EXPLEOSOL has a higher Return on Assets than the IT industry average last year.


Return on Capital Employed

ROCE Improving: EXPLEOSOL's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Expleo Solutions's financial position?


Financial Position Analysis

Short Term Liabilities: EXPLEOSOL's short term assets (₹1.7B) exceeds its short term liabilities (₹535.9M)

Long Term Liabilities: EXPLEOSOL's short term assets (1.7B) exceeds its long term liabilities (7.6M)


Debt to Equity History and Analysis

Debt Level: EXPLEOSOL is debt free.

Reducing Debt: EXPLEOSOL has no debt compared to 5 years ago when its debt to equity ratio was 11%.

Debt Coverage: EXPLEOSOL has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: EXPLEOSOL has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: EXPLEOSOL has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if EXPLEOSOL's debt is covered by short term assets.


Next Steps

Dividend

What is Expleo Solutions's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%0.6%markettop25%2.5%industryaverage1.7%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate EXPLEOSOL's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate EXPLEOSOL's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if EXPLEOSOL's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if EXPLEOSOL's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: EXPLEOSOL is not paying a notable dividend for .


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of EXPLEOSOL's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

What is the CEO of Expleo Solutions's salary, the management and board of directors tenure and is there insider trading?

2.3yrs

Average management tenure


CEO

Balaji Viswanathan 0

1.1yrs

Tenure

₹15,066,520

Compensation

Mr. Balaji Viswanathan serves as Managing Director and Chief Executive Officer at SQS India BFSI Limited since September 1, 2018. He was as Senior Director in charge of Global Delivery for BFSI services at ...


CEO Compensation Analysis

Compensation vs. Market: Balaji has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the Indian market.

Compensation vs Earnings: Insufficient data to compare Balaji's compensation with company performance.


Management Age and Tenure

2.3yrs

Average Tenure

49.5yo

Average Age

Experienced Management: EXPLEOSOL's management team is considered experienced (2.3 years average tenure).


Board Age and Tenure

2.2yrs

Average Tenure

53yo

Average Age

Experienced Board: EXPLEOSOL's board of directors are not considered experienced ( 2.2 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Siripurapu Seshadri Kumar (60yo)

    Company Secretary & Compliance Officer

    • Tenure: 3.5yrs
    • Compensation: ₹3.07m
  • R. Srinivasan (50yo)

    Global Head of BFSI

    • Tenure: 0yrs
    • Compensation: ₹14.45m
  • Desikan Narayanan

    Chief Financial Officer

    • Tenure: 1.1yrs
    • Compensation: ₹6.72m
  • P. Srinath (45yo)

    Senior VP of Technology & Infrastructure

    • Tenure: 0yrs
  • Meera Krishnan (55yo)

    Vice President

    • Tenure: 7.3yrs
  • P. Murali (57yo)

    Vice President of Finance

    • Tenure: 0yrs
    • Compensation: ₹6.60m
  • Phani Tangirala (48yo)

    Senior Director of Global Insurance Vertical

    • Tenure: 0yrs
  • Ram Gudur (45yo)

    Country Sales Manager of Singapore

    • Tenure: 0yrs
    • Compensation: ₹6.85m
  • Sanjay Balarama (49yo)

    Senior Sales Manager

    • Tenure: 0yrs
  • Balaji Viswanathan

    MD & CEO

    • Tenure: 1.1yrs
    • Compensation: ₹15.07m

Board Members

  • Olivier Aldrin (53yo)

    Non-Executive Director

    • Tenure: 0.8yrs
  • Kothandaraman Kumar (62yo)

    Deputy Chairman

    • Tenure: 3.2yrs
    • Compensation: ₹1.39m
  • Rajiv Kuchhal (53yo)

    Independent Director

    • Tenure: 8.1yrs
    • Compensation: ₹1.25m
  • René Wolfgang Gawron (58yo)

    Non-Executive Chairman of the Board

    • Tenure: 0.8yrs
  • S. Rajagopalan (63yo)

    Independent Director

    • Tenure: 11.1yrs
    • Compensation: ₹1.41m
  • Ulrich Bäumer

    Independent Director

    • Tenure: 0yrs
    • Compensation: ₹1.01m
  • Ralph Gillessen (50yo)

    Non-Executive Director

    • Tenure: 1.2yrs
  • Lilian Paul (49yo)

    Independent Director

    • Tenure: 5yrs
    • Compensation: ₹820.00k
  • Balaji Viswanathan

    MD & CEO

    • Tenure: 1.1yrs
    • Compensation: ₹15.07m

Company Information

Expleo Solutions Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Expleo Solutions Limited
  • Ticker: EXPLEOSOL
  • Exchange: NSEI
  • Founded: 1993
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: ₹2.887b
  • Shares outstanding: 10.25m
  • Website: https://www.sqs-bfsi.com

Number of Employees


Location

  • Expleo Solutions Limited
  • 6A, Prince Infocity II
  • Sixth Floor
  • Chennai
  • Tamil Nadu
  • 600096
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EXPLEOSOLNSEI (National Stock Exchange of India)YesEquity SharesININROct 2009
533121BSE (Mumbai Stock Exchange)YesEquity SharesININROct 2009

Biography

Expleo Solutions Limited, together with its subsidiaries, primarily provides software validation and verification services worldwide. The company offers consultancy services, such as business agility, digi ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/15 12:50
End of Day Share Price2019/10/15 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


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.