ExlService Holdings' (NASDAQ:EXLS) five-year earnings growth trails the stellar shareholder returns

The most you can lose on any stock (assuming you don't use leverage) is 100% of your money. But on the bright side, if you buy shares in a high quality company at the right price, you can gain well over 100%. Long term ExlService Holdings, Inc. (NASDAQ:EXLS) shareholders would be well aware of this, since the stock is up 128% in five years. It's even up 3.1% in the last week.

The past week has proven to be lucrative for ExlService Holdings investors, so let's see if fundamentals drove the company's five-year performance.

See our latest analysis for ExlService Holdings

While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.

Over half a decade, ExlService Holdings managed to grow its earnings per share at 32% a year. The EPS growth is more impressive than the yearly share price gain of 18% over the same period. So one could conclude that the broader market has become more cautious towards the stock.

The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers).

We know that ExlService Holdings has improved its bottom line lately, but is it going to grow revenue? Check if analysts think ExlService Holdings will grow revenue in the future.

A Different Perspective

ExlService Holdings provided a TSR of 2.3% over the last twelve months. But that was short of the market average. If we look back over five years, the returns are even better, coming in at 18% per year for five years. Maybe the share price is just taking a breather while the business executes on its growth strategy. It's always interesting to track share price performance over the longer term. But to understand ExlService Holdings better, we need to consider many other factors. Take risks, for example - ExlService Holdings has 1 warning sign we think you should be aware of.

For those who like to find winning investments this free list of undervalued companies with recent insider purchasing, could be just the ticket.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American exchanges.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com