Does ExlService Holdings Inc’s (NASDAQ:EXLS) Recent Track Record Look Strong?
Assessing ExlService Holdings Inc’s (NASDAQ:EXLS) past track record of performance is a valuable exercise for investors. It enables us to reflect on whether the company has met or exceed expectations, which is a great indicator for future performance. Today I will assess EXLS’s recent performance announced on 30 September 2017 and evaluate these figures to its longer term trend and industry movements. View our latest analysis for ExlService Holdings
Commentary On EXLS’s Past Performance
I prefer to use the ‘latest twelve-month’ data, which either annualizes the most recent 6-month earnings update, or in some cases, the most recent annual report is already the latest available financial data. This blend allows me to analyze different stocks in a uniform manner using the most relevant data points. For ExlService Holdings, its latest earnings (trailing twelve month) is US$73.73M, which, in comparison to last year’s level, has risen by 20.86%. Given that these figures are relatively nearsighted, I’ve determined an annualized five-year value for ExlService Holdings’s net income, which stands at US$45.90M This shows that, generally, ExlService Holdings has been able to consistently improve its earnings over the past couple of years as well.
What’s enabled this growth? Well, let’s take a look at if it is only attributable to an industry uplift, or if ExlService Holdings has experienced some company-specific growth. The rise in earnings seems to be supported by a robust top-line increase beating its growth rate of expenses. Though this has led to a margin contraction, it has made ExlService Holdings more profitable. Inspecting growth from a sector-level, the US it industry has been growing, albeit, at a subdued single-digit rate of 4.31% in the prior twelve months, and a substantial 12.74% over the past five years. This suggests that whatever recent headwind the industry is experiencing, ExlService Holdings is relatively better-cushioned than its peers.
What does this mean?
While past data is useful, it doesn’t tell the whole story. While ExlService Holdings has a good historical track record with positive growth and profitability, there’s no certainty that this will extrapolate into the future. I recommend you continue to research ExlService Holdings to get a more holistic view of the stock by looking at the areas below. Just a heads up – to access some parts of the Simply Wall St research tool you might be asked to create a free account, but it takes just one click and the information they provide is definitely worth it in my opinion.
1. Future Outlook: What are well-informed industry analysts predicting for EXLS’s future growth? Take a look at this free research report of analyst consensus for EXLS’s outlook.
2. Financial Health: Is EXLS’s operations financially sustainable? Balance sheets can be hard to analyze, which is why Simply Wall St does it for you. Check out important financial health checks here.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore a free list of these great stocks here.
NB: Figures in this article are calculated using data from the trailing twelve months from 30 September 2017. This may not be consistent with full year annual report figures.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
