Firstsource Solutions Limited provides customized business process management services in India, the United States, the United Kingdom, the Philippines, and internationally. More Details
Excellent balance sheet second-rate dividend payer.
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: FSL's share price has been volatile over the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: FSL exceeded the Indian IT industry which returned 27% over the past year.
Return vs Market: FSL exceeded the Indian Market which returned -1.6% over the past year.
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
1 day ago | Simply Wall StDo Investors Have Good Reason To Be Wary Of Firstsource Solutions Limited's (NSE:FSL) 3.5% Dividend Yield?
1 week ago | Simply Wall StMarket Cool On Firstsource Solutions Limited's (NSE:FSL) Earnings
2 weeks ago | Simply Wall StDid Firstsource Solutions Limited (NSE:FSL) Insiders Sell Shares?
Is Firstsource Solutions undervalued compared to its fair value and its price relative to the market?
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: FSL (₹72.4) is trading above our estimate of fair value (₹45.75)
Significantly Below Fair Value: FSL is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: FSL is good value based on its PE Ratio (14.8x) compared to the IN IT industry average (16.8x).
PE vs Market: FSL is good value based on its PE Ratio (14.8x) compared to the Indian market (15.9x).
Price to Earnings Growth Ratio
PEG Ratio: FSL is poor value based on its PEG Ratio (1.2x)
Price to Book Ratio
PB vs Industry: FSL is overvalued based on its PB Ratio (1.8x) compared to the IN IT industry average (1.2x).
How is Firstsource Solutions forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: FSL's forecast earnings growth (12.3% per year) is above the savings rate (7.2%).
Earnings vs Market: FSL's earnings (12.3% per year) are forecast to grow slower than the Indian market (26.4% per year).
High Growth Earnings: FSL's earnings are forecast to grow, but not significantly.
Revenue vs Market: FSL's revenue (13.3% per year) is forecast to grow faster than the Indian market (11.8% per year).
High Growth Revenue: FSL's revenue (13.3% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Insufficient data to determine if FSL's Return on Equity is forecast to be high in 3 years time
How has Firstsource Solutions performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: FSL has high quality earnings.
Growing Profit Margin: FSL's current net profit margins (8.1%) are lower than last year (9.8%).
Past Earnings Growth Analysis
Earnings Trend: FSL's earnings have grown by 8.5% per year over the past 5 years.
Accelerating Growth: FSL's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: FSL had negative earnings growth (-11.3%) over the past year, making it difficult to compare to the IT industry average (-6%).
Return on Equity
High ROE: FSL's Return on Equity (12.2%) is considered low.
How is Firstsource Solutions's financial position?
Financial Position Analysis
Short Term Liabilities: FSL's short term assets (₹11.0B) do not cover its short term liabilities (₹13.3B).
Long Term Liabilities: FSL's short term assets (₹11.0B) exceed its long term liabilities (₹4.9B).
Debt to Equity History and Analysis
Debt Level: FSL's debt to equity ratio (31.1%) is considered satisfactory.
Reducing Debt: FSL's debt to equity ratio has reduced from 50.2% to 31.1% over the past 5 years.
Debt Coverage: FSL's debt is well covered by operating cash flow (47.7%).
Interest Coverage: FSL's interest payments on its debt are well covered by EBIT (7.7x coverage).
What is Firstsource Solutions's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: FSL's dividend (3.46%) is higher than the bottom 25% of dividend payers in the Indian market (0.58%).
High Dividend: FSL's dividend (3.46%) is in the top 25% of dividend payers in the Indian market (2.32%)
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, FSL has been paying a dividend for less than 10 years.
Growing Dividend: FSL'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 (51.3%), FSL's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
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 ($USD141.37K) is below average for companies of similar size in the Indian market ($USD388.45K).
Compensation vs Earnings: Insufficient data to compare Vipul's compensation with company performance.
|MD, CEO & Additional Director||1.08yrs||₹10.41m||0.015% |
|President & CFO||no data||₹39.77m||0.024% |
|Company Secretary & Compliance Officer||3.67yrs||₹2.91m||no data|
|President & Chief Human Resources Officer||2.67yrs||no data||no data|
|President & COO||0.67yr||no data||no data|
|President of Communications||0.42yr||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||2.67yrs||no data||no data|
|President of Healthcare Provider||0.67yr||no data||0.13% |
|Senior Vice President of Business Transformation||6.17yrs||₹10.18m||no data|
|Chief Revenue Officer of Customer Management||3.25yrs||no data||no data|
Experienced Management: FSL's management team is considered experienced (2.7 years average tenure).
|MD, CEO & Additional Director||1.08yrs||₹10.41m||0.015% |
|Independent Non-Executive Director||7.75yrs||₹1.00m||no data|
|Non-Executive & Non Independent Director||5.83yrs||₹300.00k||no data|
|Non Independent Non-Executive Director||7.75yrs||₹550.00k||no data|
|Non Independent Non-Executive Director||7.75yrs||₹950.00k||no data|
|Independent Non-Executive Director||5.58yrs||₹700.00k||no data|
|Non-Executive Independent Director||1.42yrs||₹500.00k||no data|
|Non-Executive Independent Director||1.42yrs||₹650.00k||no data|
|Non-Executive Independent Director||1.33yrs||₹150.00k||no data|
Experienced Board: FSL's board of directors are considered experienced (5.7 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: FSL insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Firstsource Solutions Limited's company bio, employee growth, exchange listings and data sources
- Name: Firstsource Solutions Limited
- Ticker: FSL
- Exchange: NSEI
- Founded: 2001
- Industry: Data Processing and Outsourced Services
- Sector: Software
- Market Cap: ₹50.226b
- Shares outstanding: 694.69m
- Website: https://www.firstsource.com
Number of Employees
- Firstsource Solutions Limited
- Paradigm ‘B’ Wing
- 5th Floor, Mindspace
|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|
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 serv ...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/09/27 19:24|
|End of Day Share Price||2020/09/25 00:00|
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.