Education
About Us
Working with TipRanks
Follow Us
Exlservice Holdings (EXLS)
NASDAQ:EXLS
Top Page
Exlservice Holdings
(NASDAQ:EXLS)
Rating:73Outperform
Price Target:
$50.00
▲(16.66%Upside)
Positive Factors
AI Capabilities
EXLS' expanding capabilities in AI-led solutions position it to benefit as AI adoption among customers grows, especially in industries such as insurance, healthcare, and banking and capital markets.
Earnings Performance
The company's revenue exceeded forecasts, with a notable increase of 15% year-over-year.
Revenue Growth
Revenue growth is durable with AI adoption as a potential accelerator, with EXLS focused on scaling its AI solutions across workflows and industries.
Negative Factors
Valuation
Maintaining a MARKET PERFORM investment rating due to valuation considerations.
Exlservice Holdings (EXLS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.90B
Dividend YieldN/A
Average Volume (3M)2.89M
Price to Earnings (P/E)32.0
Beta (1Y)0.85
Revenue Growth14.18%
EPS Growth21.49%
CountryUS
Employees59,500
SectorTechnology
Sector Strength90
IndustryInformation Technology Services
Share Statistics
EPS (TTM)0.48
Shares Outstanding162,694,350
10 Day Avg. Volume1,940,656
30 Day Avg. Volume2,885,889
Financial Highlights & Ratios
PEG Ratio3.59
Price to Book (P/B)6.91
Price to Sales (P/S)0.00
P/FCF Ratio28.49
Enterprise Value/Market Cap1.05
Enterprise Value/Revenue1.00
Enterprise Value/Gross Profit10.24
Enterprise Value/Ebitda5.50
Forecast
1Y Price Target
$54.00Price Target Upside25.99% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
Exlservice Holdings Business Overview & Revenue Model
Company DescriptionExlservice Holdings, Inc. (EXLS) is a leading operations management and analytics company that designs and implements transformative digital solutions for its clients. The company primarily operates in sectors such as insurance, healthcare, banking and financial services, utilities, and travel. EXLS offers a broad range of services including data analytics, business process management, and digital transformation services, helping organizations optimize their business operations and enhance customer experiences.
How the Company Makes MoneyExlservice Holdings generates revenue through a diversified model primarily focused on providing outsourcing and analytics solutions. Key revenue streams include business process management services, which involve taking over and optimizing business operations for clients, and analytics services, which help clients derive actionable insights from data to drive strategic decisions. The company also earns revenue from its digital transformation solutions, which involve implementing new technologies to improve operational efficiency. Strategic partnerships with technology providers and long-term contracts with clients across various industries are significant contributors to EXLS's earnings, ensuring a stable and recurring revenue base.
Exlservice Holdings Earnings Call Summary
Earnings Call Date:Apr 29, 2025
(Q1-2025)
| % Change Since: -4.71%|
Next Earnings Date:Jul 29, 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 Financial Statement Overview
Summary
ExlService Holdings exhibits strong financial performance with consistent revenue growth and solid profitability margins. The company's low debt and effective cash management highlight financial stability and potential for continued growth.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 | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.90B | 1.84B | 1.63B | 1.41B | 1.12B | 958.43M |
| Gross Profit | 707.60M | 691.01M | 607.77M | 515.45M | 431.36M | 334.50M |
| EBITDA | 360.62M | 297.20M | 305.72M | 262.32M | 208.15M | 180.03M |
| Net Income | 216.09M | 198.30M | 184.56M | 142.97M | 114.76M | 89.48M |
Balance Sheet | ||||||
| Total Assets | 1.68B | 1.62B | 1.44B | 1.35B | 1.28B | 1.25B |
| Cash, Cash Equivalents and Short-Term Investments | 331.42M | 340.58M | 290.83M | 297.70M | 313.88M | 402.82M |
| Total Debt | 386.10M | 364.83M | 271.76M | 313.13M | 347.01M | 330.73M |
| Total Liabilities | 664.53M | 688.54M | 552.53M | 587.94M | 589.75M | 528.68M |
| Stockholders Equity | 1.01B | 929.86M | 889.44M | 758.18M | 693.16M | 719.17M |
Cash Flow | ||||||
| Free Cash Flow | 245.71M | 222.26M | 158.40M | 121.31M | 147.14M | 160.75M |
| Operating Cash Flow | 293.64M | 268.52M | 211.20M | 166.14M | 184.39M | 202.97M |
| Investing Cash Flow | -146.06M | -119.10M | -12.00M | -96.55M | -114.27M | -18.32M |
| Financing Cash Flow | -105.92M | -119.10M | -181.45M | -81.72M | -146.88M | -89.56M |
Exlservice Holdings Technical Analysis
Negative
42.86
Price Trends
45.14
Negative
45.51
Negative
45.59
Negative
Market Momentum
-0.76
Negative
43.59
Neutral
57.00
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EXLS, the sentiment is Negative. The current price of 42.86 is below the 20-day moving average (MA) of 43.55, below the 50-day MA of 45.14, and below the 200-day MA of 45.59, indicating a bearish trend. The MACD of -0.76 indicates Negative momentum. The RSI at 43.59 is Neutral, neither overbought nor oversold. The STOCH value of 57.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $3.21B | 19.25 | 21.24% | ― | 1.94% | 26.19% | |
77 Outperform | $7.88B | 15.62 | 22.21% | 1.42% | 7.31% | -15.86% | |
74 Outperform | $9.57B | 23.62 | 11.57% | ― | 4.72% | -3.06% | |
73 Outperform | $6.90B | 32.02 | 23.81% | ― | 14.18% | 21.49% | |
67 Neutral | $2.65B | 6.92 | 12.88% | ― | -5.82% | 469.88% | |
63 Neutral | $34.70B | 5.15 | -11.38% | 1.67% | 5.54% | -17.15% | |
52 Neutral | $8.87B | 36.99 | 22.47% | ― | -8.20% | ― |
* Technology Sector Average
Performance Comparison
EXLS
Exlservice Holdings
42.86
8.36
24.23%
EPAM
Epam Systems
170.74
-39.30
-18.71%
G
Genpact
45.51
11.33
33.15%
WNS
WNS
74.72
17.52
30.63%
DXC
DXC Technology
14.30
-5.84
-29.00%
KD
Kyndryl Holdings Incorporation
39.12
11.76
42.98%
Exlservice Holdings Corporate Events
Executive/Board ChangesShareholder Meetings
Exlservice Holdings Approves 2025 Omnibus Incentive Plan
Neutral
Jun 17, 2025
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.
The most recent analyst rating on (EXLS) stock is a Buy with a $42.00 price target. To see the full list of analyst forecasts on Exlservice Holdings stock, see the EXLS Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.