$ExlService (EXLS.US)$In the analysis on 3/23/2023, it was e...

A USA company listed in 2006, mainly engaged in digital operation and analysis business, with the main market in the USA, with a current price of 31.02.

In the past 5 years, revenue has grown for 4 years except for a slight contraction in 2020, with an average growth rate of 13%, average operating profit growth rate of 28%, and average net income growth rate of 26.5%. In 2023, interest expenses can be ignored, indicating a light interest burden. Gross margin has increased from 33.9% to 37.3% in the past 5 years, net margin has increased from 6.8% to 11.3%, and return on net assets has increased from 10.5% to 22.4%.

Revenue in Q1 2024 increased by 9%, but operating profit only increased by 3.5% due to a significant increase in expenses, and net income shrank by 5% due to fluctuations in income tax.

In the past 5 years, the asset-liability ratio has decreased from 43.4% to 38.3%, with significant increases in total assets and net assets. The proportion and growth rate of accounts receivable are normal. Goodwill and other intangible assets amount to 453 million, accounting for 56.4% of the 803 million net assets. Long-term borrowings amount to 280 million, which is 1.5 times the annual profit, indicating a not high leverage ratio. Treasury stock has reached 702 million.

Currently, cash is 250 million, with both current ratio and quick ratio being very healthy.

In the past 5 years, operating cash flow has consistently exceeded investment cash flow, resulting in a higher proportion of shareholder earnings.

Currently, the PE ratio is 28.2, and the TTM PE ratio is 28.5. Considering the long-term growth performance, caution is advised (⭐️).