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Exlservice Holdings (EXLS)
NASDAQ:EXLS
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Exlservice Holdings
(NASDAQ:EXLS)
78Outperform
Positive Factors
AI and Technology Adoption
Strong momentum rolling out high-value AI solutions contributes to the bullish outlook.
Client Acquisition
The company added 10 new clients, contributing meaningfully to future revenue.
Revenue Performance
The company's revenue exceeded forecasts, with a notable increase of 15% year-over-year.
Negative Factors
Valuation Concerns
Maintaining a MARKET PERFORM investment rating due to valuation considerations.
Exlservice Holdings (EXLS) vs. S&P 500 (SPY)
Market Cap
$7.63B
Dividend YieldN/A
Average Volume (3M)1.52M
Price to Earnings (P/E)35.4
Beta (1Y)0.93
Revenue Growth14.18%
EPS Growth21.49%
CountryUS
Employees59,500
SectorTechnology
Sector Strength68
IndustryInformation Technology Services
Share Statistics
EPS (TTM)1.32
Shares Outstanding162,694,350
10 Day Avg. Volume1,970,751
30 Day Avg. Volume1,523,669
Financial Highlights & Ratios
PEG Ratio1.65
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.02
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit11.31
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$53.43Price Target Upside14.00% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering9
Exlservice Holdings Business Overview & Revenue Model
Company DescriptionExlservice Holdings, Inc. (EXLS) is a leading operations management and analytics company that designs and implements digital transformation solutions to enhance business efficiency and outcomes. Headquartered in New York, EXLS operates across various sectors including insurance, healthcare, banking, financial services, utilities, and travel. The company's core services include data-driven insights, operational management, and digital solutions to optimize client performance and accelerate growth.
How the Company Makes MoneyExlservice Holdings generates revenue primarily through long-term contracts with clients in diverse industries, offering solutions that integrate analytics, automation, and business process outsourcing (BPO). The company’s key revenue streams are derived from its analytics services, which provide data-driven insights to enhance decision-making, and its operations management services, which improve business processes and efficiency. EXLS also engages in strategic partnerships with technology providers and invests in innovative tools to expand its digital capabilities, thereby contributing to its financial growth.
Exlservice Holdings Financial Statement Overview
Summary
ExlService Holdings demonstrates strong financial performance with consistent revenue growth and solid profitability margins. The income statement shows efficient cost management and profitability with a gross profit margin of 37.2% and a net profit margin of 11.4%. The balance sheet is healthy, reflecting low financial leverage and a strong equity base. Cash flow analysis indicates effective cash management with a free cash flow growth rate of 10.55%.Income Statement
The income statement reflects strong financial performance with consistent revenue growth and solid profitability margins. The TTM (Trailing-Twelve-Months) data shows a Gross Profit Margin of 37.2% and a Net Profit Margin of 11.4%, both indicating efficient cost management and profitability. Revenue growth from 2024 to TTM is 3.51%, showing steady expansion. EBIT and EBITDA margins are robust at 14.7% and 18.4%, respectively, demonstrating operational efficiency.85
Very Positive
Balance Sheet
The balance sheet is healthy with a relatively low Debt-to-Equity Ratio of 0.08 in TTM, suggesting low financial leverage and reduced risk. The Equity Ratio is strong at 60.4%, indicating a solid equity base. Return on Equity (ROE) is 21.4%, reflecting effective use of equity to generate profits. Overall, the balance sheet indicates financial stability and prudent management of liabilities.80
Positive
Cash Flow
Cash flow analysis reveals positive trends with Free Cash Flow growth rate of 10.55% from 2024 to TTM, showcasing effective cash management. The Operating Cash Flow to Net Income Ratio stands at 1.36, indicating good cash generation relative to net income. The Free Cash Flow to Net Income Ratio is 1.14, reinforcing the company's ability to generate cash after capital expenditures.82
Very Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 1.84B | 1.63B | 1.41B | 1.12B | 958.43M | Gross Profit |
| 691.01M | 607.77M | 515.45M | 431.36M | 334.50M | EBIT |
| 263.62M | 238.75M | 192.16M | 155.88M | 110.02M | EBITDA |
| 297.20M | 305.72M | 262.32M | 208.15M | 180.03M | Net Income Common Stockholders |
| 198.30M | 184.56M | 142.97M | 114.76M | 89.48M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 340.58M | 290.83M | 297.70M | 313.88M | 402.82M | Total Assets |
| 1.62B | 1.44B | 1.35B | 1.28B | 1.25B | Total Debt |
| 364.83M | 271.76M | 313.13M | 347.01M | 330.73M | Net Debt |
| 211.47M | 134.81M | 194.46M | 211.67M | 112.20M | Total Liabilities |
| 688.54M | 552.53M | 587.94M | 589.75M | 528.68M | Stockholders Equity |
| 929.86M | 889.44M | 758.18M | 693.16M | 719.17M |
| Cash Flow | Free Cash Flow | |||
| 222.26M | 158.40M | 121.31M | 147.14M | 160.75M | Operating Cash Flow |
| 268.52M | 211.20M | 166.14M | 184.39M | 202.97M | Investing Cash Flow |
| -119.10M | -12.00M | -96.55M | -114.27M | -18.32M | Financing Cash Flow |
| -119.10M | -181.45M | -81.72M | -146.88M | -89.56M |
Exlservice Holdings Technical Analysis
Positive
46.87
Price Trends
46.16
Positive
46.94
Negative
42.86
Positive
Market Momentum
0.03
Negative
55.10
Neutral
72.36
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EXLS, the sentiment is Positive. The current price of 46.87 is above the 20-day moving average (MA) of 44.69, above the 50-day MA of 46.16, and above the 200-day MA of 42.86, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 55.10 is Neutral, neither overbought nor oversold. The STOCH value of 72.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EXLS.
Exlservice Holdings Risk Analysis
Exlservice Holdings disclosed 32 risk factors in its most recent earnings report. Exlservice Holdings reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Exlservice Holdings Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $7.63B | 35.40 | 23.81% | ― | 14.18% | 21.49% | |
78 Outperform | $8.69B | 17.46 | 22.15% | 1.26% | 6.46% | -16.94% | |
73 Outperform | $9.08B | 20.45 | 12.80% | ― | 0.80% | 10.05% | |
72 Outperform | $2.76B | 15.37 | 21.21% | ― | -0.64% | 30.96% | |
60 Neutral | $10.94B | 10.58 | -7.08% | 2.98% | 7.52% | -12.04% | |
52 Neutral | $7.71B | 59.33 | 12.09% | ― | -8.20% | ― | |
46 Neutral | $2.91B | 267.98 | -2.46% | ― | -5.65% | 78.20% |
* Technology Sector Average
Performance Comparison
EXLS
Exlservice Holdings
46.87
16.95
56.65%
EPAM
Epam Systems
160.36
-86.03
-34.92%
G
Genpact
49.71
17.91
56.32%
WNS
WNS
59.69
10.95
22.47%
DXC
DXC Technology
16.07
-3.64
-18.47%
KD
Kyndryl Holdings Incorporation
33.15
12.26
58.69%
Exlservice Holdings Earnings Call Summary
Earnings Call Date:Apr 29, 2025
(Q1-2025)
| % Change Since: 4.20%|
Next Earnings Date:Jul 24, 2025
Earnings Call Sentiment Positive
The earnings call reflected a strong start to the fiscal year with robust revenue growth and a promising outlook for the company's AI initiatives. However, there are concerns about economic volatility and slower growth in the insurance segment. Despite this, the company's increased revenue guidance and strong sales pipeline suggest a positive outlook.Q1-2025 Updates
Positive Updates
Strong Revenue Growth
EXL generated revenue of $501 million, an increase of 15% year-over-year. Adjusted EPS grew by 27% to $0.48 per share.
Segment Performance
New segments introduced: insurance, healthcare and life sciences, banking, capital markets and diversified industries, and international growth markets. Healthcare and Life Sciences segment reported revenue growth of 24.8% year-over-year.
Data and AI-Led Revenue
Data and AI-led revenue grew 16% year-over-year, representing 53% of total revenue.
Launch of Excelerate.ai
Introduced excelerate.ai, an Agentic AI platform, enabling faster deployment of AI at significantly lower costs.
Strong Sales Pipeline
The sales pipeline remains strong, growing both year-over-year and sequentially in the first quarter.
Financial Strength
Cash including short and long-term investments was $346 million, and the company maintained a net cash position of $39 million.
Raised Revenue Guidance
Increased revenue guidance for 2025 to the range of $2.035 billion to $2.065 billion, representing 11% to 13% growth on a constant currency basis.
Negative Updates
Insurance Segment Slowdown
Insurance segment, including international growth markets, grew only 9.7% year-over-year, compared to previous mid-teens growth.
Potential Economic Volatility
Acknowledged potential challenges due to macroeconomic uncertainty and the need to remain cautious.
Increased Investment Needs
Anticipate increased investments in data and AI capabilities, which might affect margins in the short term.
SG&A Expenses
SG&A expenses as a percentage of revenue declined only marginally by 20 basis points year-over-year to 20.2%.
Company Guidance
During the Q1 2025 earnings call for ExlService Holdings, several key metrics and guidance updates were provided. The company reported a notable revenue increase of 15% year-over-year, reaching $501 million, while adjusted EPS grew by 27% to $0.48 per share. The business is now segmented into four categories: insurance, healthcare and life sciences, banking, capital markets and diversified industries, and international growth markets. The insurance segment accounted for over one-third of revenue, while healthcare and life sciences represented about one-quarter, each showing strong growth. International growth markets contributed over 17% of total revenue. Data and AI-led revenue grew by 16% year-over-year, now constituting 53% of total revenue. The company raised its 2025 revenue guidance to $2.035 billion to $2.065 billion, with expected year-over-year growth of 11% to 12% on a reported basis, and adjusted EPS projected to increase by 11% to 14%. The company continues to focus on expanding its data and AI capabilities, with recent initiatives like the launch of the excelerate.ai platform.Exlservice Holdings Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Exlservice Holdings Director Jaynie Studenmund Resigns
Neutral
Mar 18, 2025
On March 12, 2025, Jaynie Studenmund, a member of the Board of Directors at ExlService Holdings, announced her decision not to stand for re-election at the company’s 2025 annual meeting, marking her resignation from the board and its committees by June 2025. Her departure is not due to any disagreements with the company, and during her tenure, she significantly contributed to EXL’s transformation into a leading data and AI company, enhancing stockholder value by over 350%. Her leadership was particularly impactful in the Audit and Compensation and Talent Management Committees.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.