NSEI:FSL

Stock Analysis Report

Firstsource Solutions

Executive Summary

Firstsource Solutions Limited provides customized business process management services in India, the United States, the United Kingdom, the Philippines, and internationally.

Snowflake

Fundamentals

Excellent balance sheet and fair value.


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


Market Performance


7 Day Return

11.0%

NSEI:FSL

-2.1%

IN IT

1.5%

IN Market


1 Year Return

-26.5%

NSEI:FSL

2.0%

IN IT

-11.2%

IN Market

FSL underperformed the IT industry which returned 2% over the past year.

FSL underperformed the Market in India which returned -11.2% over the past year.


Share holder returns

FSLIndustryMarket
7 Day11.0%-2.1%1.5%
30 Day10.2%0.02%1.1%
90 Day7.3%-3.1%-6.7%
1 Year-23.4%-26.5%3.8%2.0%-9.5%-11.2%
3 Year29.7%22.0%70.0%61.2%19.7%13.7%
5 Year33.4%25.4%62.9%49.5%34.6%21.9%

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

Valuation

Is Firstsource Solutions undervalued based on future cash flows and its price relative to the stock market?

22%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Firstsource Solutions's share price is below the future cash flow value, and at a moderate discount (> 20%).

Firstsource Solutions's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Firstsource Solutions is good value based on earnings compared to the IN IT industry average.

Firstsource Solutions is good value based on earnings compared to the India market.


Price Based on Expected Growth

Firstsource Solutions is poor value based on expected growth next year.


Price Based on Value of Assets

Firstsource Solutions is overvalued based on assets compared to the IN IT industry average.


Next Steps

Future Growth

How is Firstsource Solutions expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

9.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Firstsource Solutions's revenue is expected to grow by 7.7% yearly, however this is not considered high growth (20% yearly).

Firstsource Solutions's earnings are expected to grow by 9.1% yearly, however this is not considered high growth (20% yearly).

Firstsource Solutions's revenue growth is positive but not above the India market average.

Firstsource Solutions's earnings growth is positive but not above the India market average.

Firstsource Solutions's earnings growth is expected to exceed the low risk savings rate of 7.6%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Firstsource Solutions will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Firstsource Solutions performed over the past 5 years?

11.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Firstsource Solutions's year on year earnings growth rate has been positive over the past 5 years.

Firstsource Solutions's 1-year earnings growth is less than its 5-year average (8.8% vs 11.8%)

Firstsource Solutions's earnings growth has not exceeded the IN IT industry average in the past year (8.8% vs 15.1%).


Return on Equity

Firstsource Solutions has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Firstsource Solutions used its assets more efficiently than the IN IT industry average last year based on Return on Assets.


Return on Capital Employed

Firstsource Solutions has improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Firstsource Solutions's financial position?


Financial Position Analysis

Firstsource Solutions's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Firstsource Solutions's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Firstsource Solutions's level of debt (20.8%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (57.7% vs 20.8% today).

Debt is well covered by operating cash flow (68.1%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 14.1x coverage).


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 1.5x debt.


Next Steps

Dividend

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

4.20%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Firstsource Solutions's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.57%).

Firstsource Solutions's dividend is above the markets top 25% of dividend payers in India (2.35%).

It is too early to tell whether Firstsource Solutions has stable dividend payments.

Firstsource Solutions only just started paying a dividend, it is too early to tell if payments are increasing.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2.8x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

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

1.7yrs

Average management tenure


CEO

Vipul Khanna 0

0.08yrs

Tenure

0

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  ...


Management Age and Tenure

1.7yrs

Average Tenure

47yo

Average Age

The average tenure for the Firstsource Solutions management team is less than 2 years, this suggests a new team.


Board Age and Tenure

4.8yrs

Average Tenure

66yo

Average Age

The tenure for the Firstsource Solutions board of directors is about average.


Insider Trading

Firstsource Solutions individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Sell₹1,212,49909 Sep 19
Vedagiri Vijayakumar
EntityIndividual
Shares25,000
Max Price₹48.50
Sell₹1,250,00021 Jun 19
Dinesh Jain
EntityIndividual
Role
President
President & CFO
Shares25,000
Max Price₹50.00
Sell₹8,585,24020 Jun 19
Rajesh Subramaniam
EntityIndividual
Shares171,541
Max Price₹50.05
Sell₹6,529,99818 Jun 19
Rajesh Subramaniam
EntityIndividual
Shares130,117
Max Price₹50.19
Sell₹5,433,55214 Jun 19
Rajesh Subramaniam
EntityIndividual
Shares104,592
Max Price₹51.95
Sell₹1,771,87312 Jun 19
Dinesh Jain
EntityIndividual
Role
President
President & CFO
Shares33,750
Max Price₹52.50
Sell₹13,008,04710 Jun 19
Rajesh Subramaniam
EntityIndividual
Shares249,921
Max Price₹52.14
Sell₹16,288,70705 Jun 19
Rajesh Subramaniam
EntityIndividual
Shares303,432
Max Price₹54.01
Sell₹8,028,24005 Jun 19
Vedagiri Vijayakumar
EntityIndividual
Shares150,000
Max Price₹53.52
Sell₹3,122,99403 Jun 19
Dinesh Jain
EntityIndividual
Role
President
President & CFO
Shares83,750
Max Price₹37.29
Sell₹2,860,00030 May 19
Rajesh Subramaniam
EntityIndividual
Shares50,000
Max Price₹57.20
Sell₹5,399,99928 May 19
Rajesh Subramaniam
EntityIndividual
Shares100,000
Max Price₹54.00
Sell₹8,925,12822 May 19
Rajesh Subramaniam
EntityIndividual
Shares171,720
Max Price₹51.97
Sell₹4,026,22220 May 19
Rajesh Subramaniam
EntityIndividual
Shares78,280
Max Price₹51.43
Sell₹5,356,04421 Dec 18
K. Venkataraman
EntityIndividual
Shares104,001
Max Price₹51.50

Ownership Breakdown


Management Team

  • Sean Canning

    President & Chief Operating Officer of the Customer Management

    • Tenure: 1.2yrs
  • Ankur Maheshwari

    Head of IR & Corporate Planning (M&A)

    • Tenure: 0yrs
  • Dinesh Jain (51yo)

    President & CFO

    • Tenure: 0yrs
    • Compensation: ₹48.46m
  • Vipul Khanna

    MD, CEO & Additional Director

    • Tenure: 0.08yrs
  • Manjunath Srivatsa (47yo)

    Senior Vice President of Administration & Physical Security

    • Tenure: 0yrs
    • Compensation: ₹7.03m
  • Deep Babur (42yo)

    Executive Vice President of Finance

    • Tenure: 0yrs
    • Compensation: ₹10.39m
  • Raji Raghavan

    Head of Marketing & Corporate Communications

    • Tenure: 1.7yrs
  • M. Satish (47yo)

    Executive Vice President of Human Resources

    • Tenure: 6.6yrs
    • Compensation: ₹12.68m
  • Soma Pandey

    President & Chief Human Resources Officer

    • Tenure: 1.7yrs
  • Pooja Nambiar

    Company Secretary & Compliance Officer

    • Tenure: 2.7yrs
    • Compensation: ₹2.68m

Board Members

  • Sanjiv Goenka (58yo)

    Chairman

    • Tenure: 6.8yrs
    • Compensation: ₹300.00k
  • Pradip Roy (71yo)

    Independent Non-Executive Director

    • Tenure: 6.8yrs
    • Compensation: ₹750.00k
  • Pinto Khaitan (78yo)

    Non-Executive & Non Independent Director

    • Tenure: 4.8yrs
    • Compensation: ₹250.00k
  • Vipul Khanna

    MD, CEO & Additional Director

    • Tenure: 0.08yrs
  • Shashwat Goenka (29yo)

    Non Independent Non-Executive Director

    • Tenure: 6.8yrs
    • Compensation: ₹450.00k
  • Subrata Talukdar (60yo)

    Non Independent Non-Executive Director

    • Tenure: 6.8yrs
    • Compensation: ₹900.00k
  • V. Sharma (66yo)

    Independent Non-Executive Director

    • Tenure: 4.8yrs
    • Compensation: ₹250.00k
  • Grace Koshie (66yo)

    Independent Non-Executive Director

    • Tenure: 4.6yrs
    • Compensation: ₹650.00k
  • Pratip Chaudhuri

    Non-Executive Independent Director

    • Tenure: 0.4yrs
  • Sunil Mitra

    Non-Executive Independent Director

    • Tenure: 0.4yrs

Company Information

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


Key Information

  • Name: Firstsource Solutions Limited
  • Ticker: FSL
  • Exchange: NSEI
  • Founded: 2001
  • Industry: Data Processing and Outsourced Services
  • Sector: Software
  • Market Cap: ₹37.118b
  • Shares outstanding: 693.14m
  • Website: https://www.firstsource.com

Number of Employees


Location

  • Firstsource Solutions Limited
  • Paradigm ‘B’ Wing
  • 5th Floor, Mindspace
  • Mumbai
  • Maharashtra
  • 400064
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
532809BSE (Mumbai Stock Exchange)YesEquity SharesININRFeb 2007
FSLNSEI (National Stock Exchange of India)YesEquity SharesININRFeb 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 customer lif ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/15 12:50
End of Day Share Price2019/09/13 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.