Is ExlService Holdings Inc. (NASDAQ:EXLS) Still Worth A Bite?

ExlService Holdings Inc. (NASDAQ:EXLS) Relative Strength Index (RSI) is 49.82, with weekly volatility at 3.59% and ATR at 2.49. The EXLS stock’s 52-week price range has touched low of $40.61 and a $79.78 high. Intraday shares traded counted 0.19 million, which was 23.39% higher than its 30-day average trading volume of 247.42K. Its shares traded lower over the last trading session, losing -1.62% on 07/01/20. The shares fell to a low of $62.17 before closing at $62.37. EXLS’s previous close was $63.40 while the outstanding shares total 34.40M. The firm has a beta of 1.17, a 12-month trailing P/E ratio of 28.69, and a growth ratio of 3.96.

Investors have identified the Information Technology Services company ExlService Holdings Inc. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $2.25 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.

ExlService Holdings Inc. (EXLS) Fundamentals that are to be considered.

When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For EXLS, the company has in raw cash 231.24 million on their books with 118.9 million currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on an incline. In terms of their assets, the company currently has 604892000 million total, with 258364000 million as their total liabilities.

EXLS were able to record -25.83 million as free cash flow during the third quarter of the year, this saw their quarterly net cash flow reduce by 106.49 million. In cash movements, the company had a total of -13.55 million as operating cash flow.

Potential earnings growth for ExlService Holdings Inc. (EXLS)

In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the third quarter of the year, ExlService Holdings Inc. recorded a total of 245.99 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 2.61% coming in sequential stages and their sales for the third quarter reducing by -4.42%.

What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 162.66 million trying to sell their products during the last quarter, with the result yielding a gross income of 83.33 million. This allows shareholders to hold on to 34.40M with the revenue now reading 0.65 cents per share. This is a figure that is close to analyst’s prediction for their fourth quarter (0.59 cents a share).

Having a look at the company’s valuation, the company is expected to record 2.43 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on EXLS sounds very interesting.

Is the stock of EXLS attractive?

In related news, SVP & Gen Counsel/Corp. Sec’y., AYYAPPAN AJAY sold 1,204 shares of the company’s stock in a transaction that recorded on Feb 25. The sale was performed at an average price of 75.45, for a total value of 90,842. As the sale deal closes, the EVP and Chief HR Officer, Miglani Nalin Kumar now sold 953 shares of the company’s stock, valued at 74,525. Also, EVP and Chief HR Officer, Miglani Nalin Kumar sold 5,006 shares of the company’s stock in a deal that was recorded on Jan 28. The shares were price at an average price of 74.13 per share, with a total market value of 371,094. Following this completion of acquisition, the CEO & Vice Chairman, Kapoor Rohit now holds 10,831 shares of the company’s stock, valued at 789,688. In the last 6 months, insiders have changed their ownership in shares of company stock by 1.20%.

2 out of 11 analysts covering the stock have rated it a Buy, while 8 have maintained a Hold recommendation on ExlService Holdings Inc.. 0 analysts has assigned a Sell rating on the EXLS stock. The 12-month mean consensus price target for the company’s shares has been set at $65.29.