NasdaqGS:EXLS

Stock Analysis Report

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Executive Summary

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

Rewards

Earnings are forecast to grow 8.76% per year

Earnings grew by 53.5% over the past year

Risk Analysis

EXLS passed our risk checks.


Snowflake Analysis

Excellent balance sheet with solid track record.


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

Stable Share Price: EXLS has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.4%

EXLS

-2.7%

US IT

-1.3%

US Market


1 Year Return

14.8%

EXLS

31.6%

US IT

18.5%

US Market

Return vs Industry: EXLS underperformed the US IT industry which returned 31.6% over the past year.

Return vs Market: EXLS underperformed the US Market which returned 18.5% over the past year.


Shareholder returns

EXLSIndustryMarket
7 Day2.4%-2.7%-1.3%
30 Day13.5%4.3%5.3%
90 Day14.5%5.2%7.5%
1 Year14.8%14.8%33.0%31.6%21.3%18.5%
3 Year21.8%21.8%92.4%84.9%42.4%32.9%
5 Year82.1%82.1%150.9%130.8%84.2%63.5%

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?

35.58x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: EXLS ($73.76) is trading above our estimate of fair value ($45.6)

Significantly Below Fair Value: EXLS is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: EXLS is poor value based on its PE Ratio (35.6x) compared to the US IT industry average (32.7x).

PE vs Market: EXLS is poor value based on its PE Ratio (35.6x) compared to the US market (19x).


Price to Earnings Growth Ratio

PEG Ratio: EXLS is poor value based on its PEG Ratio (4.1x)


Price to Book Ratio

PB vs Industry: EXLS's PB Ratio (3.7x) is in line with the US IT industry average.


Next Steps

Future Growth

How is ExlService Holdings forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

8.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EXLS's forecast earnings growth (8.8% per year) is above the savings rate (2.2%).

Earnings vs Market: EXLS's earnings (8.8% per year) are forecast to grow slower than the US market (22.2% per year).

High Growth Earnings: EXLS's earnings are forecast to grow, but not significantly.

Revenue vs Market: EXLS's revenue (7.2% per year) is forecast to grow slower than the US market (10.1% per year).

High Growth Revenue: EXLS's revenue (7.2% 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 (14.2%).


Next Steps

Past Performance

How has ExlService Holdings performed over the past 5 years?

4.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EXLS has high quality earnings.

Growing Profit Margin: EXLS's current net profit margins (7.3%) are higher than last year (4.9%).


Past Earnings Growth Analysis

Earnings Trend: EXLS's earnings have grown by 4.1% per year over the past 5 years.

Accelerating Growth: EXLS's earnings growth over the past year (53.5%) exceeds its 5-year average (4.1% per year).

Earnings vs Industry: EXLS earnings growth over the past year (53.5%) exceeded the IT industry 8.1%.


Return on Equity

High ROE: EXLS's Return on Equity (10.5%) is considered low.


Next Steps

Financial Health

How is ExlService Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: EXLS's short term assets ($536.5M) exceed its short term liabilities ($184.2M).

Long Term Liabilities: EXLS's short term assets ($536.5M) exceed its long term liabilities ($328.5M).


Debt to Equity History and Analysis

Debt Level: EXLS's debt to equity ratio (34.7%) is considered satisfactory.

Reducing Debt: EXLS's debt to equity ratio has increased from 15.7% to 34.7% over the past 5 years.

Debt Coverage: EXLS's debt is well covered by operating cash flow (76%).

Interest Coverage: EXLS's interest payments on its debt are well covered by EBIT (8.4x coverage).


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

  • Explore strong dividend paying companies in the Software industry.

Management

How experienced are the management team and are they aligned to shareholders interests?

4.3yrs

Average management tenure


CEO

Rohit Kapoor (55 yo)

12.42yrs

Tenure

US$6,195,217

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 ($USD6.20M) is about average for companies of similar size in the US market ($USD5.63M).

Compensation vs Earnings: Rohit's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Rohit Kapoor
Co-Founder12.42yrsUS$6.20m2.62%
$ 66.3m
Pavan Bagai
President & COO8.5yrsUS$2.25m0.13%
$ 3.2m
Nalin Miglani
Executive VP & Chief Human Resource Officer5.83yrsUS$1.75mno data
Vikas Bhalla
Executive VP & Business Head of Insurance6.75yrsUS$1.57m0.018%
$ 453.4k
Samuel Meckey
Executive VP & Business Head of Healthcare1.92yrsUS$1.56m0.0069%
$ 173.4k
Maurizio Nicolelli
Executive VP & CFO0.67yrno data0.0044%
$ 110.6k
Mike Toma
CTO & Senior VP4.25yrsno datano data
Baljinder Singh
Senior VP2.42yrsno datano data
Steven N. Barlow
Vice President of Investor Relations6.75yrsno datano data
Ajay Ayyappan
Senior VP1.83yrsno data0.00070%
$ 17.7k
Sonila Pokharia
Chief Compliance & Ethics Officer1.42yrsno datano data
Shailendra Singh
Vice President of Corporate Communicationsno datano datano data

4.3yrs

Average Tenure

52yo

Average Age

Experienced Management: EXLS's management team is considered experienced (4.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Rohit Kapoor
Co-Founder12.42yrsUS$6.20m2.62%
$ 66.3m
David Kelso
Independent Director14.25yrsUS$202.50k0.016%
$ 406.3k
Clyde Ostler
Independent Director12.83yrsUS$205.00k0.057%
$ 1.4m
Vikram Pandit
Independent Director2yrsUS$182.50k0%
$ 0
Jaynie Studenmund
Independent Director2.08yrsUS$192.50k0.0065%
$ 163.8k
Garen Staglin
Independent Chairman of the Board2yrsUS$392.12k0.065%
$ 1.7m
Som Mittal
Independent Director6.83yrsUS$213.89k0.016%
$ 417.2k
Anne Minto
Independent Director7.58yrsUS$228.77k0%
$ 0
Nitin Sahney
Independent Director4.75yrsUS$192.50k0%
$ 0
Deborah Kerr
Independent Director5.75yrsUS$190.00k0%
$ 0

6.3yrs

Average Tenure

66.5yo

Average Age

Experienced Board: EXLS's board of directors are considered experienced (6.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: EXLS insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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$2.531b
  • Shares outstanding: 34.32m
  • 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 Analysis2020/10/20 23:48
End of Day Share Price2020/10/20 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.