Exlservice Holdings (NASDAQ: EXLS) is rated at BUY with a grade of A. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, growth in earnings per share, compelling growth in net income and good cash flow from operations. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.
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Highlights from the ratings report include:
- Net operating cash flow has significantly increased by 74.06% to $23.90 million when compared to the same quarter last year. In addition, EXLSERVICE HOLDINGS INC has also vastly surpassed the industry average cash flow growth rate of -5.77%.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the IT Services industry. The net income increased by 39.5% when compared to the same quarter one year prior, rising from $8.39 million to $11.70 million
- EXLSERVICE HOLDINGS INC has improved earnings per share by 29.6% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, EXLSERVICE HOLDINGS INC increased its bottom line by earning $1.10 versus $0.88 in the prior year. This year, the market expects an improvement in earnings ($1.56 versus $1.10).
- EXLS's debt-to-equity ratio is very low at 0.01 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 3.03, which clearly demonstrates the ability to cover short-term cash needs.
Exlservice Holdings, Inc., together with its subsidiaries, provides outsourcing and transformation services primarily in the United States and the United Kingdom.You can view the full Exlservice Holdings Ratings Report or get investment ideas from our investment research center.