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Exela Technologies Inc (XELA)
OTHER OTC:XELA
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Exela Technologies
(OTC:XELA)
Rating:29Underperform
Price Target:―
Exela Technologies (XELA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$55.50K
Dividend YieldN/A
Average Volume (3M)3.96K
Price to Earnings (P/E)―
Beta (1Y)1.03
Revenue Growth-2.68%
EPS Growth94.28%
CountryUS
Employees12,600
SectorTechnology
Sector Strength93
IndustrySoftware - Application
Share Statistics
EPS (TTM)-0.14
Shares Outstanding27,751,057
10 Day Avg. Volume1,881
30 Day Avg. Volume3,961
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)>-0.01
Price to Sales (P/S)0.00
P/FCF Ratio<0.01
Enterprise Value/Market Cap20.20K
Enterprise Value/Revenue0.27
Enterprise Value/Gross Profit5.64
Enterprise Value/Ebitda4.12
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Exela Technologies Business Overview & Revenue Model
Company DescriptionExela Technologies (XELA) is a global business process automation (BPA) company operating primarily across the United States and Europe. It provides digital transformation solutions for a wide array of industries, including banking, healthcare, insurance, and legal. The company's core services include information management, workflow automation, and integrated communication services, which help organizations improve efficiency and reduce operational costs.
How the Company Makes MoneyExela Technologies generates revenue through a combination of software-as-a-service (SaaS) offerings, business process outsourcing (BPO), and transaction-based services. Its key revenue streams include subscription fees for its software platforms, fees for managed services, and charges for transaction processing and document management services. Exela often forms strategic partnerships with large enterprises to provide customized automation solutions, contributing significantly to its earnings. These partnerships allow for long-term contracts that ensure a steady flow of income. Additionally, the company benefits from cross-selling opportunities across its product portfolio, leveraging its extensive client base to promote complementary services.
Exela Technologies Earnings Call Summary
Earnings Call Date:May 08, 2025
(Q3-2024)
| % Change Since: -93.10%|
Next Earnings Date:Aug 12, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of positive revenue growth and operational efficiencies with significant challenges in margin decline, net loss, and NASDAQ delisting. While there are promising growth opportunities and improvements, the financial struggles and delisting weigh heavily.Q3-2024 Updates
Positive Updates
Revenue Growth
Third quarter revenues were $269.2 million, up 6.3% year-over-year. Information and Transaction Processing Solutions increased by 11.5% year-over-year.
Sequential Improvements
Sequentially, Q3 was up 22.4% in ITPS, primarily driven by a large project from an existing customer. Adjusted EBITDA improved by 6.7% sequentially.
Operational Efficiency
SG&A was down about 1% year-over-year and 16% sequentially due to reductions in legal and professional fees and employee-related costs. The company is shifting from CapEx to OpEx by moving data center infrastructure to the cloud.
New Business Achievements
The company renewed over $113 million of TCV in the quarter, won approximately $40 million of new ACV, and added 81 new logos.
Improved Cash Flow
Cash flow from operations improved with $5 million of positive cash flow in Q3.
Negative Updates
Gross Margin Decline
Q3 gross margins were 20.2%, down 330 basis points sequentially and 140 basis points year-over-year due to higher postage costs.
Segment Performance Decline
Healthcare Solutions and Legal and Loss Prevention Services declined by 5.3% and 2.4% year-over-year, respectively. LLPS was down 28.8% sequentially due to project fluctuations.
Net Loss
The company reported a net loss of $24.9 million, although it was an improvement of $2 million sequentially.
NASDAQ Delisting
Exela was delisted from NASDAQ due to failure to meet the Exchange's $35 million market cap minimum requirement for 30 consecutive business days.
Company Guidance
During the Exela Third Quarter 2024 Earnings Call, interim CFO Matt Brown provided detailed financial guidance, highlighting a 6.3% year-over-year increase in revenues, reaching $269.2 million. Information and Transaction Processing Solutions (ITPS) grew by 11.5% year-over-year and 22.4% sequentially, driven by a large project from an existing customer, while Healthcare Solutions and Legal and Loss Prevention Services (LLPS) saw declines of 5.3% and 2.4% year-over-year, respectively. Gross margins dropped by 330 basis points sequentially and 140 basis points year-over-year, primarily due to increased postage costs. Exela achieved a net loss of $24.9 million, a $2 million improvement sequentially, with adjusted EBITDA at $14.6 million and a 6.7% sequential improvement. The company renewed over $113 million in Total Contract Value (TCV) and added approximately $40 million in Annual Contract Value (ACV) with 81 new logos. Despite being delisted from NASDAQ, Exela remains focused on growing revenue, improving gross margins, and enhancing profitability and liquidity.Exela Technologies Financial Statement Overview
Summary
Exela Technologies exhibits severe financial challenges, with declining revenues, high leverage, and negative equity. The company struggles with profitability and operational efficiency. Although there are minor improvements in cash flow, the overall financial health remains precarious.Income Statement
Exela Technologies shows a severe decline in revenue over recent years, with a negative revenue growth rate from the previous annual period to the TTM. Gross profit margin and net profit margin are significantly low, reflecting operational inefficiencies and persistent net losses. Despite some improvement in EBITDA, the company remains unprofitable, with negative EBIT and net income margins.25
Negative
Balance Sheet
The balance sheet reveals a highly leveraged position with a negative equity, indicating financial instability and potential insolvency risks. The debt-to-equity ratio is not calculable due to negative equity, but the significant liabilities overshadow the assets. Return on equity is negative, further highlighting the company's financial struggles.15
Very Negative
Cash Flow
The cash flow statement indicates a modest improvement in operating cash flow in the TTM, but free cash flow remains low. There is a slight positive free cash flow growth rate compared to the previous year, yet the overall cash flow health remains weak due to consistent negative net income impacting the operating cash flow to net income ratio.30
Negative
| Breakdown | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.06B | 1.08B | 1.17B | 1.29B | 1.56B |
| Gross Profit | 230.70M | 199.68M | 277.51M | 269.02M | 337.60M |
| EBITDA | 84.63M | -174.68M | 114.46M | 102.89M | -237.12M |
| Net Income | -125.16M | -415.58M | -142.39M | -178.53M | -509.12M |
Balance Sheet | |||||
| Total Assets | 636.34M | 721.91M | 1.04B | 1.16B | 1.26B |
| Cash, Cash Equivalents and Short-Term Investments | 25.28M | 15.07M | 20.77M | 68.22M | 6.20M |
| Total Debt | 1.11B | 1.15B | 1.32B | 1.64B | 1.57B |
| Total Liabilities | 1.50B | 1.53B | 1.70B | 2.08B | 2.00B |
| Stockholders Equity | -855.50M | -807.59M | -666.77M | -926.53M | -743.04M |
Cash Flow | |||||
| Free Cash Flow | -8.34M | -109.13M | -128.06M | -45.27M | -84.39M |
| Operating Cash Flow | 3.56M | -87.16M | -111.53M | -29.78M | -63.85M |
| Investing Cash Flow | 17.92M | -21.77M | -9.26M | 21.44M | -25.18M |
| Financing Cash Flow | 624.00K | 106.64M | 98.65M | 63.36M | 59.14M |
Exela Technologies Technical Analysis
Neutral
0.02
Price Trends
0.16
Negative
0.33
Negative
0.87
Negative
Market Momentum
-0.04
Negative
38.83
Neutral
2.83
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For XELA, the sentiment is Neutral. The current price of 0.02 is above the 20-day moving average (MA) of 0.01, below the 50-day MA of 0.16, and below the 200-day MA of 0.87, indicating a neutral trend. The MACD of -0.04 indicates Negative momentum. The RSI at 38.83 is Neutral, neither overbought nor oversold. The STOCH value of 2.83 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for XELA.
Exela Technologies Risk Analysis
Exela Technologies disclosed 42 risk factors in its most recent earnings report. Exela Technologies 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
Exela Technologies Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $7.71B | 15.00 | 22.21% | 1.51% | 7.31% | -15.86% | |
70 Outperform | $9.92B | 18.69 | 15.45% | 2.36% | -4.37% | 7.18% | |
68 Neutral | $41.35B | 49.23 | 5.25% | 2.02% | -9.12% | ― | |
67 Neutral | $2.60B | 6.91 | 12.88% | ― | -5.82% | 469.88% | |
66 Neutral | $414.29M | 1.88 | 30.92% | ― | -14.38% | ― | |
63 Neutral | $34.26B | 5.42 | -11.67% | 1.85% | 5.30% | -18.55% | |
29 Underperform | $55.50K | ― | 11.21% | ― | -2.68% | 94.28% |
* Technology Sector Average
Performance Comparison
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-99.19%
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38.64%
CNDT
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-32.74%
DXC
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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.