Exlservice Holdings (EXLS) AI Stock Analysis

• Market Cap: $6.46B
• Dividend Yield: N/A
• Average Volume (3M): 1.35M
• Price to Earnings (P/E): 27.6
• Beta (1Y): 0.75
• Revenue Growth: 14.43%
• EPS Growth: 29.86%
• Country: US
• Employees: 59,500
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 0.48
• Shares Outstanding: 158,700,880
• 10 Day Avg. Volume: 888,256
• 30 Day Avg. Volume: 1,353,994
• PEG Ratio: 3.67
• Price to Book (P/B): 7.77
• Price to Sales (P/S): 3.93
• P/FCF Ratio: 32.49
• Enterprise Value/Market Cap: 1.11
• Enterprise Value/Revenue: 3.53
• Enterprise Value/Gross Profit: 9.23
• Enterprise Value/Ebitda: 17.12
• 1Y Price Target: $52.50
• Price Target Upside: 28.93% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): 1.92
• Revenue Forecast (FY): $2.08B

• Rating: 79 Outperform
• Price Target: $47.00 ▲(15.42% Upside)

Exlservice Holdings demonstrates strong financial performance and positive earnings call sentiment, driven by robust revenue growth and strategic focus on data and AI. Technical indicators suggest moderate bullish momentum, although valuation concerns persist due to a high P/E ratio. The recent board appointment is a strategic positive, enhancing the company's growth potential.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective execution of business strategies, enhancing long-term financial stability.

AI-Driven Solutions

Strong growth in AI-driven solutions positions the company as a leader in the sector, capitalizing on the increasing demand for AI integration.

High Client Retention

High client retention and recurring revenue ensure a stable income stream, reducing volatility and supporting long-term planning.

Negative Factors

Increased SG&A Expenses

Rising SG&A expenses can pressure margins, potentially impacting profitability if not offset by revenue growth.

Decline in Operating Margin

A decline in operating margin suggests increased costs or pricing pressures, which could affect long-term profitability if not managed.

Valuation Concerns

High valuation can limit upside potential and attract scrutiny, potentially impacting investor sentiment and future capital raising.

Exlservice Holdings Business Overview & Revenue Model

Company Description

ExlService Holdings, Inc. operates as a data analytics, and digital operations and solutions company in the United States and internationally. It operates through Insurance, Healthcare, Analytics, and Emerging Business segments. The company provides digital operations and solutions and analytics-driven services across the insurance industry in areas, such as claims processing, premium and benefit administration, agency management, account reconciliation, policy research, underwriting support, new business acquisition, policy servicing, premium audit, surveys, billing and collection, commercial and residential survey, and customer service using digital technology, artificial intelligence, machine learning, and advanced automation; digital customer acquisition services using a software-as-a-service delivery model through LifePRO and LISS platforms; subrogation services; and Subrosource software platform, an end-to-end subrogation platform. It also offers CareRadius, an integrated care management offering; and health care services related to care management, utilization management, disease management, payment integrity, revenue optimization and customer engagement to healthcare payers, providers, pharmacy benefit managers, and life sciences organizations. Further, it offers predictive and prescriptive analytics in the areas of customer acquisition and lifecycle management, risk underwriting and pricing, operational effectiveness, credit and operational risk monitoring and governance, payment integrity and care management, and data management. The company was founded in 1999 and is headquartered in New York, New York.

How the Company Makes Money

Exlservice Holdings generates revenue primarily through its Business Process Management and analytics services. The company's revenue model is based on a combination of fixed-price contracts and time-and-materials arrangements. Key revenue streams include fees for operational and outsourcing services, consulting engagements, and analytics solutions tailored to client needs. Exl has established significant partnerships with various technology companies, which enhance its service offerings and capabilities. Additionally, the company's ability to leverage data and technology to deliver customized solutions contributes to its competitive advantage and revenue growth.

Exlservice Holdings Financial Statement Overview

Summary

Exlservice Holdings presents a strong financial profile with consistent revenue and profit growth, effective leverage management, and strong cash flow generation. The income statement, balance sheet, and cash flow statements collectively indicate robust financial health and growth potential.

Income Statement

Exlservice Holdings has demonstrated strong revenue growth with a consistent upward trajectory over the years, highlighted by a TTM revenue growth rate of 2.92%. The company maintains healthy profitability margins, with a TTM gross profit margin of 38.05% and a net profit margin of 12.00%. The EBIT and EBITDA margins have also shown improvement, indicating efficient operational management. Overall, the income statement reflects robust financial health and growth potential.

Balance Sheet

The balance sheet of Exlservice Holdings shows a stable financial position with a manageable debt-to-equity ratio of 0.32 in the TTM period, indicating prudent leverage management. The return on equity is strong at 24.17%, reflecting effective use of shareholder funds. The equity ratio of 54.94% suggests a solid equity base relative to total assets. While the company has reduced its debt levels over time, maintaining this trend will be crucial for sustaining financial stability.

Cash Flow

Exlservice Holdings exhibits strong cash flow performance, with a TTM free cash flow growth rate of 3.27% and a free cash flow to net income ratio of 0.85, indicating efficient cash generation relative to profits. The operating cash flow to net income ratio of 1.20 suggests robust cash flow from operations, supporting the company's ability to fund growth and meet obligations. Continued focus on cash flow management will be key to maintaining this positive trajectory.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.03B	1.84B	1.63B	1.41B	1.12B	958.43M
Gross Profit	774.84M	691.01M	607.77M	515.45M	431.36M	334.50M
EBITDA	417.71M	357.59M	321.59M	276.24M	229.58M	204.18M
Net Income	241.44M	198.30M	184.56M	142.97M	114.76M	89.48M
Balance Sheet
Total Assets	1.73B	1.62B	1.44B	1.35B	1.28B	1.25B
Cash, Cash Equivalents and Short-Term Investments	401.46M	350.55M	294.90M	302.59M	320.05M	407.51M
Total Debt	434.46M	366.61M	271.76M	313.65M	347.38M	331.24M
Total Liabilities	781.24M	688.54M	552.53M	587.94M	589.75M	528.68M
Stockholders Equity	952.39M	929.86M	889.44M	758.18M	693.16M	719.17M
Cash Flow
Free Cash Flow	286.88M	222.26M	158.40M	121.31M	147.14M	160.75M
Operating Cash Flow	338.68M	268.52M	211.20M	166.14M	184.39M	202.97M
Investing Cash Flow	-107.23M	-119.10M	-12.00M	-96.55M	-114.27M	-18.32M
Financing Cash Flow	-214.86M	-119.10M	-181.45M	-81.72M	-146.88M	-89.56M

Exlservice Holdings Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 40.72
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 40.72 is above the 20-day moving average (MA) of 39.61, above the 50-day MA of 40.61, and below the 200-day MA of 43.88, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 56.73 is Neutral, neither overbought nor oversold. The STOCH value of 85.32 is Negative, 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
EXLS	79 Outperform	$6.46B	27.58	25.96%	―	14.43%	29.86%
CACI	78 Outperform	$13.15B	26.30	13.14%	―	12.61%	11.85%
G	78 Outperform	$7.99B	14.94	22.32%	1.43%	7.40%	-14.45%
WNS	77 Outperform	―	―	21.23%	―	1.94%	26.15%
EPAM	73 Outperform	$11.25B	31.07	10.21%	―	14.26%	-15.49%
CNXC	69 Neutral	$2.34B	7.95	7.08%	3.61%	3.40%	53.13%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Exlservice Holdings Corporate Events

ExlService Holdings Appoints Patrick Geraghty to Board

On October 15, 2025, ExlService Holdings announced the election of Patrick Geraghty to its Board of Directors, effective immediately. Geraghty, a seasoned executive with extensive experience in the healthcare industry, will also join the board’s audit and nominating and governance committees. His appointment is expected to bring valuable insights and support EXL’s strategy of growth in data and AI, leveraging his background in leading significant transformations through technology and AI investments.