Exlservice Holdings (EXLS) AI Stock Analysis

• Market Cap: $7.00B
• Dividend Yield: N/A
• Average Volume (3M): 1.51M
• Price to Earnings (P/E): 30.2
• Beta (1Y): 0.85
• Revenue Growth: 15.15%
• EPS Growth: 34.33%
• Country: US
• Employees: 59,500
• Sector: Technology
• Sector Strength: 86
• Industry: Information Technology Services
• EPS (TTM): 0.49
• Shares Outstanding: 161,513,150
• 10 Day Avg. Volume: 1,023,919
• 30 Day Avg. Volume: 1,507,506
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.02
• Enterprise Value/Revenue: 3.64
• Enterprise Value/Gross Profit: 9.57
• Enterprise Value/Ebitda: 18.35
• 1Y Price Target: $53.50
• Price Target Upside: 22.65% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 77 Outperform
• Price Target: $50.00 ▲(14.63% Upside)

Exlservice Holdings demonstrates strong financial performance and positive corporate actions, such as the share repurchase program, which bolster investor confidence. However, the high valuation and neutral technical indicators suggest limited immediate upside potential. The company's strategic focus on data and AI, along with raised guidance, supports a positive outlook.

Positive Factors

Earnings

ExlService reported second-quarter results that beat consensus estimates on the top and bottom lines.

Revenue Growth

Total revenue increased 15% YOY and 3% sequentially on a reported basis.

Share Repurchase

ExlService announced an accelerated share repurchase agreement to buy back $125 million from common stockholders, signaling management’s confidence in the company’s ability to sustain double-digit growth.

Negative Factors

Margin Pressure

Adjusted operating margin was down 20 basis points year-over-year and 50 basis points sequentially, indicating some margin pressure.

Margins

Margins are expected to be down year-over-year in the second half as the company reinvests.

Market Sentiment

Backdrop of IT/analytics/BPO firms is tricky, as the group has fallen a bit out of favor.

Exlservice Holdings Business Overview & Revenue Model

Company Description

Exlservice Holdings, Inc. (EXLS) is a leading provider of data analytics, business process management, and digital transformation services. The company operates primarily in the insurance, healthcare, financial services, and travel industries, offering a range of core services that include analytics, operations management, and technology solutions. By leveraging advanced technologies and domain expertise, Exl helps organizations enhance their operational efficiency, improve decision-making, and drive better customer experiences.

How the Company Makes Money

Exlservice generates revenue primarily through its business process management (BPM) services and analytics solutions. The company charges clients on a fee-for-service basis, which can include fixed-price contracts, time-and-materials contracts, and performance-based pricing models. Key revenue streams come from long-term contracts with large enterprises in various sectors, including insurance, healthcare, and financial services. Exl also benefits from strategic partnerships and alliances with technology providers, which enhance its service offerings and expand its market reach. Additionally, the company's focus on digital transformation and automation has positioned it well to capture growth in the evolving business landscape, contributing to its overall earnings.

Exlservice Holdings Financial Statement Overview

Summary

Exlservice Holdings exhibits a robust financial position with strong revenue and profit growth. The company has low leverage and efficient cash flow management, positioning it well for future growth. Continued monitoring of liabilities and maintaining strong margins will be crucial to sustain its financial health.

Income Statement

Exlservice Holdings has shown strong revenue growth, with a consistent increase over the years, reaching $1.97 billion in TTM. Gross Profit Margin stands at 38.0%, and Net Profit Margin is robust at 12.0% for TTM, indicating solid profitability. EBIT and EBITDA Margins are also healthy at 15.3% and 19.3% respectively. The revenue growth rate from 2024 to TTM is 7.1%, reflecting strong market demand and business expansion.

Balance Sheet

The company maintains a solid balance sheet with a Debt-to-Equity Ratio of 0.08 in TTM, indicating low leverage. Return on Equity (ROE) is strong at 22.3%, reflecting efficient management of shareholder funds. The Equity Ratio stands at 62.1%, suggesting a stable financial structure. However, the increase in total liabilities requires monitoring for future leverage risks.

Cash Flow

Exlservice Holdings demonstrates strong cash flow management. The Free Cash Flow has grown by 25.0% from 2024 to TTM. The Operating Cash Flow to Net Income Ratio is 1.39, indicating effective cash generation from operations. The Free Cash Flow to Net Income Ratio is 1.18, showing strong capability to cover net income with free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.97B	1.84B	1.63B	1.41B	1.12B	958.43M
Gross Profit	749.17M	691.01M	607.77M	515.45M	431.36M	334.50M
EBITDA	390.52M	297.20M	305.72M	262.32M	208.15M	180.03M
Net Income	236.32M	198.30M	184.56M	142.97M	114.76M	89.48M
Balance Sheet
Total Assets	1.71B	1.62B	1.44B	1.35B	1.28B	1.25B
Cash, Cash Equivalents and Short-Term Investments	353.29M	340.58M	290.83M	297.70M	313.88M	402.82M
Total Debt	85.66M	364.83M	271.76M	313.13M	347.01M	330.73M
Total Liabilities	647.55M	688.54M	552.53M	587.94M	589.75M	528.68M
Stockholders Equity	1.06B	929.86M	889.44M	758.18M	693.16M	719.17M
Cash Flow
Free Cash Flow	277.81M	222.26M	158.40M	121.31M	147.14M	160.75M
Operating Cash Flow	328.11M	268.52M	211.20M	166.14M	184.39M	202.97M
Investing Cash Flow	-112.14M	-119.10M	-12.00M	-96.55M	-114.27M	-18.32M
Financing Cash Flow	-176.35M	-119.10M	-181.45M	-81.72M	-146.88M	-89.56M

Exlservice Holdings Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 43.62
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EXLS, the sentiment is Neutral. The current price of 43.62 is above the 20-day moving average (MA) of 43.16, above the 50-day MA of 43.27, and below the 200-day MA of 45.84, indicating a neutral trend. The MACD of 0.15 indicates Negative momentum. The RSI at 52.58 is Neutral, neither overbought nor oversold. The STOCH value of 44.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for EXLS.

Exlservice Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
G	79 Outperform	$7.82B	14.89	21.86%	1.43%	7.37%	-14.64%
EPAM	78 Outperform	$9.73B	24.82	11.36%	―	9.73%	-0.29%
EXLS	77 Outperform	$7.00B	30.19	24.70%	―	15.15%	34.33%
WNS	76 Outperform	$3.24B	20.09	21.23%	―	1.94%	26.15%
CACI	76 Outperform	$10.62B	21.01	13.49%	―	12.64%	19.79%
CNXC	71 Outperform	$3.26B	14.20	5.59%	2.56%	11.31%	-16.02%
Sector *	61 Neutral	$35.09B	8.26	-10.58%	1.90%	8.56%	-9.51%

Exlservice Holdings Corporate Events

ExlService Holdings Announces $125M Share Repurchase Agreement

On July 29, 2025, ExlService Holdings announced a $125 million accelerated share repurchase agreement with Citibank as part of its $500 million stock repurchase program, funded through cash and credit facilities. This move is expected to influence the company’s stock value based on daily volume-weighted average prices. Additionally, ExlService reported a strong financial performance for Q2 2025 with a 14.7% revenue increase year-over-year, driven by its competitive positioning in the data and AI industry. The company raised its revenue and EPS guidance for 2025, reflecting confidence in its growth strategy and ongoing investments in AI.

Exlservice Holdings Approves 2025 Omnibus Incentive Plan

On June 17, 2025, ExlService Holdings, Inc. held its Annual Meeting of Stockholders where the 2025 Omnibus Incentive Plan was approved, reserving 6,800,000 shares for various awards and setting annual limits on grants. Additionally, the stockholders voted on four proposals, including the election of seven board members, ratification of Deloitte & Touche LLP as the accounting firm, approval of executive compensation, and the Omnibus Incentive Plan, all of which were approved.