EXLS - Embedded Expectations Analysis - 2019 10 21
ExlService Holdings, Inc. (EXLS:USA) currently trades near corporate averages relative to UAFRS-based (Uniform) Earnings, with a 21.2x Uniform P/E. At these levels, the market has bearish expectations for the firm, but management is confident about the value of their acquisitions, EBITDA growth, and their Analytics businessSpecifically, management is confident that their SCIO acquisition has allowed them to integrate their capabilities to develop technology-based healthcare solutions, and they are confident that their Analytics segment grew 6.4% year-over-year. Furthermore, they are confident that their EBITDA improved 9% year-over-year and that they are raising their full year revenue guidance based on their first half performance and increased visibility in the remainder of the year. Finally, they are confident that their Analytics group gross margin improved in Q2 and that their recently expanded relationship with a Fortune 50 insurer significantly grows their engagements and long-term value generation potential
ExlService Holdings is a holding company. Through its subsidiaries, the company is an operations management and analytics company. The company's operations management services involve the transfer to the company's business operations of a client such as claims processing, clinical operations, or financial transaction processing, after which the company administers and manages those operations for its client on an ongoing basis, or in case of consulting, consulting services related to transformation services, including digital transformation services. The company's Analytics services focus on driving business outcomes for its customers by generating data-driven insights across various parts of its customers' business.
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- GAAP and IFRS have failed to provide rules for reliable financial statement reporting
- Stock analyst recommendations are not grounded in disciplined financial analysis
- Credit agencies have been set up to grossly fail in their responsibilities to investors and the public markets
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