EXL’s stock price has taken a beating over the past six months, shedding 28.1% of its value and falling to $30.97 per share. This might have investors contemplating their next move.
Following the drawdown, is now a good time to buy EXLS? Find out in our full research report, it’s free.
Why Is EXL a Good Business?
Originally founded as an outsourcing company in 1999 before evolving into a technology-focused enterprise, EXL (NASDAQ: EXLS) provides data analytics and AI-powered digital operations solutions that help businesses transform their operations and make better decisions.
1. Skyrocketing Revenue Shows Strong Momentum
A company’s long-term sales performance can indicate its overall quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Luckily, EXL’s sales grew at an incredible 16.8% compounded annual growth rate over the last five years. Its growth surpassed the average business services company and shows its offerings resonate with customers.
2. Outstanding Long-Term EPS Growth
We track the long-term change in earnings per share (EPS) because it highlights whether a company’s growth is profitable.
EXL’s EPS grew at 22.6% compounded annual growth rate over the last five years, higher than its 16.8% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded.
3. Stellar ROIC Showcases Lucrative Growth Opportunities
Growth gives us insight into a company’s long-term potential, but how capital-efficient was that growth? A company’s ROIC explains this by showing how much operating profit it makes compared to the money it has raised (debt and equity).
EXL’s five-year average ROIC was 21.3%, beating other business services companies by a wide margin. This illustrates its management team’s ability to invest in attractive growth opportunities and produce tangible results for shareholders.
Final Judgment
These are just a few reasons why EXL is one of the best business services companies out there. After the recent drawdown, the stock trades at 13.9× forward P/E (or $30.97 per share). Is now a good time to buy? See for yourself in our full research report, it’s free.
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