NasdaqGS:EXLS

Stock Analysis Report

Executive Summary

ExlService Holdings, Inc. provides operations management and analytics services in the United States, the United Kingdom, and internationally.

Snowflake

Fundamentals

Excellent balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

How has ExlService Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-2.9%

EXLS

-4.1%

US IT

0.4%

US Market


1 Year Return

3.9%

EXLS

20.6%

US IT

11.4%

US Market

Return vs Industry: EXLS underperformed the US IT industry which returned 20.6% over the past year.

Return vs Market: EXLS underperformed the US Market which returned 11.4% over the past year.


Shareholder returns

EXLSIndustryMarket
7 Day-2.9%-4.1%0.4%
30 Day-2.5%-3.2%0.3%
90 Day-3.2%-8.0%-1.2%
1 Year3.9%3.9%21.9%20.6%13.9%11.4%
3 Year36.1%36.1%88.8%81.1%47.2%37.6%
5 Year131.0%131.0%134.9%113.5%62.4%44.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is ExlService Holdings undervalued compared to its fair value and its price relative to the market?

6.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: EXLS ($63.72) is trading below our estimate of fair value ($67.91)

Significantly Below Fair Value: EXLS is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: EXLS is poor value based on its PE Ratio (47.3x) compared to the IT industry average (36.5x).

PE vs Market: EXLS is poor value based on its PE Ratio (47.3x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

PEG Ratio: EXLS is poor value based on its PEG Ratio (2.2x)


Price to Book Ratio

PB vs Industry: EXLS is good value based on its PB Ratio (3.4x) compared to the US IT industry average (4.2x).


Next Steps

  • Explore potentially undervalued companies in the Software industry.

Future Growth

How is ExlService Holdings forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

21.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EXLS's forecast earnings growth (21.9% per year) is above the savings rate (2.7%).

Earnings vs Market: EXLS's earnings (21.9% per year) are forecast to grow faster than the US market (14.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: EXLS's revenue (7.5% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: EXLS's revenue (7.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: EXLS's Return on Equity is forecast to be low in 3 years time (15.7%).


Next Steps

Past Performance

How has ExlService Holdings performed over the past 5 years?

5.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: EXLS's earnings have grown by 5.4% per year over the past 5 years.

Accelerating Growth: EXLS's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: EXLS had negative earnings growth (-6%) over the past year, making it difficult to compare to the IT industry average (9.8%).


Return on Equity

High ROE: EXLS's Return on Equity (7.2%) is considered low.


Return on Assets

ROA vs Industry: EXLS's Return on Assets is below or equal to the IT industry average last year.


Return on Capital Employed

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


Next Steps

Financial Health

How is ExlService Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: EXLS's short term assets ($489.1M) exceeds its short term liabilities ($168.2M)

Long Term Liabilities: EXLS's short term assets (489.1M) exceeds its long term liabilities (327.9M)


Debt to Equity History and Analysis

Debt Level: EXLS's debt to equity ratio (39.3%) is considered satisfactory

Reducing Debt: EXLS's debt to equity ratio has increased from 0% to 39.3% over the past 5 years.

Debt Coverage: EXLS's debt is well covered by operating cash flow (50.1%).

Interest Coverage: EXLS's interest payments on its debt are well covered by EBIT (7.1x coverage).


Balance Sheet

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

Debt Coverage by Assets: EXLS's debt is covered by short term assets (assets are 1.9x debt).


Next Steps

Dividend

What is ExlService Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.3%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

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

High Dividend: Unable to evaluate EXLS'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 EXLS's dividends per share have been stable in the past.

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


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

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


Next Steps

Management

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

4.0yrs

Average management tenure


CEO

Rohit Kapoor (54yo)

11.4yrs

Tenure

US$5,105,509

Compensation

Mr. Rohit Kapoor serves as co-Founder at Exlservice Holdings, Inc. in April 1999. Mr. Kapoor has been the Chief Executive Officer of Exlservice Holdings, Inc. since May 2008 and served as its Co-Chairman s ...


CEO Compensation Analysis

Compensation vs. Market: Rohit's total compensation ($USD5.11M) is about average for companies of similar size in the US market ($USD4.05M).

Compensation vs Earnings: Rohit's compensation has been consistent with company performance over the past year.


Management Age and Tenure

4.0yrs

Average Tenure

52yo

Average Age

Experienced Management: EXLS's management team is considered experienced (4 years average tenure).


Board Age and Tenure

5.3yrs

Average Tenure

65.5yo

Average Age

Experienced Board: EXLS's board of directors are considered experienced (5.3 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$233,60419 Mar 19
Nagaraja Srivatsan
EntityIndividual
Role
Senior Key Executive
Chief Growth Officer & Executive VP
Shares3,896
Max PriceUS$59.96
SellUS$125,95218 Mar 19
Nagaraja Srivatsan
EntityIndividual
Role
Senior Key Executive
Chief Growth Officer & Executive VP
Shares2,102
Max PriceUS$59.92
BuyUS$123,54317 Dec 18
Jaynie Studenmund
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,220
Max PriceUS$55.65
BuyUS$103,17514 Dec 18
Garen Staglin
EntityIndividual
Role
Chairman of the Board
Independent Chairman of the Board
Shares1,854
Max PriceUS$55.65
SellUS$103,17514 Dec 18
Garen Staglin
EntityIndividual
Role
Chairman of the Board
Independent Chairman of the Board
Shares1,854
Max PriceUS$55.65

Ownership Breakdown


Management Team

  • Narasimha Kini (50yo)

    Senior VP and Business Head of Finance & Accounting

    • Tenure: 1.4yrs
    • Compensation: US$409.17k
  • Rohit Kapoor (54yo)

    Co-Founder

    • Tenure: 11.4yrs
    • Compensation: US$5.11m
  • Pavan Bagai (57yo)

    President & COO

    • Tenure: 7.5yrs
    • Compensation: US$1.85m
  • Baljinder Singh

    Senior VP

    • Tenure: 1.4yrs
  • Vishal Chhibbar (51yo)

    Executive VP & CFO

    • Tenure: 10.3yrs
    • Compensation: US$1.55m
  • Nalin Miglani (58yo)

    Executive VP & Chief Human Resource Officer

    • Tenure: 4.8yrs
    • Compensation: US$1.42m
  • Steven N. Barlow

    Vice President of Investor Relations

    • Tenure: 5.8yrs
  • Mike Toma

    CTO & Senior VP

    • Tenure: 3.3yrs
  • Nagaraja Srivatsan (52yo)

    Chief Growth Officer & Executive VP

    • Tenure: 2.8yrs
    • Compensation: US$1.38m
  • Ajay Ayyappan (41yo)

    Senior VP

    • Tenure: 0.8yrs

Board Members

  • David Kelso (67yo)

    Independent Director

    • Tenure: 13.3yrs
    • Compensation: US$202.50k
  • Clyde Ostler (72yo)

    Independent Director

    • Tenure: 11.8yrs
    • Compensation: US$205.00k
  • Vikram Pandit (62yo)

    Independent Director

    • Tenure: 1yrs
    • Compensation: US$95.72k
  • Jaynie Studenmund (65yo)

    Independent Director

    • Tenure: 1.1yrs
    • Compensation: US$121.01k
  • Garen Staglin (74yo)

    Independent Chairman of the Board

    • Tenure: 1yrs
    • Compensation: US$379.73k
  • Som Mittal (67yo)

    Independent Director

    • Tenure: 5.8yrs
    • Compensation: US$218.32k
  • Anne Minto (66yo)

    Independent Director

    • Tenure: 6.6yrs
    • Compensation: US$231.60k
  • Rohit Kapoor (54yo)

    Co-Founder

    • Tenure: 11.4yrs
    • Compensation: US$5.11m
  • Nitin Sahney (56yo)

    Independent Director

    • Tenure: 3.8yrs
    • Compensation: US$192.50k
  • Deborah Kerr (47yo)

    Independent Director

    • Tenure: 4.8yrs
    • Compensation: US$191.88k

Company Information

ExlService Holdings, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: ExlService Holdings, Inc.
  • Ticker: EXLS
  • Exchange: NasdaqGS
  • Founded: 1999
  • Industry: Data Processing and Outsourced Services
  • Sector: Software
  • Market Cap: US$2.178b
  • Shares outstanding: 34.17m
  • Website: https://www.exlservice.com

Number of Employees


Location

  • ExlService Holdings, Inc.
  • 320 Park Avenue
  • 29th Floor
  • New York
  • New York
  • 10022
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EXLSNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDOct 2006

Biography

ExlService Holdings, Inc. provides operations management and analytics services in the United States, the United Kingdom, and internationally. The company offers business process management (BPM) services  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 23:57
End of Day Share Price2019/10/23 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.