ExlService Holdings Inc. Common Stock (EXLS)

FairStock Score: 72/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

At the close on 2026-10-13, EXLS traded at $37.20, with FairStock calculations showing a P/E of 23.54 and P/B of 6.51. FairStock's Graham Number is $14.25, leaving a margin of safety of -161.05%; that tells me the price is far above what Graham-style asset and earnings tests would call conservative. The business itself is not junk. FairStock reports ROE of 25.94%, ROCE of 12.01%, debt/equity of 0.57, Altman Z-Score of 5.82, and Piotroski F-Score of 6/9. It generated $275.0M of free cash flow, a 4.8% FCF yield, and trades at an EV/EBITDA of 13.88. Filed results show FY2025 ended 2025-12-31 revenue of $2.1B, net income of $251.0M, and diluted EPS of $1.54, up from FY2024 revenue of $1.8B, net income of $198.3M, and diluted EPS of $1.21. That is real growth. But the latest picture is mixed: in fiscal Q1 2026 ended 2026-03-31, revenue was $570.4M, net income was $67.1M, and diluted EPS was $0.43, versus fiscal Q1 2025 ended 2025-03-31 revenue of $501.0M, net income of $66.6M, and diluted EPS of $0.40. Revenue rose, but profit barely moved. FairStock shows trailing revenue growth of 15.61% and profit growth of -2.33%. The Peter Lynch category is FAST GROWER, based on five-year profit growth of 22.9% and revenue growth of 16.8%. I see a decent, cash-generative data and AI services firm with possible switching costs in regulated industries, but at 23.54 times earnings and over six times book, the price already assumes the fast-growth story continues. I want evidence that margins and profit growth are durable before calling it a bargain.

In plain English: ExlService helps big companies with data, AI and outsourced operations, mainly in insurance, healthcare and banking. The company makes money and turns some of it into cash, but profit growth has been uneven even while sales have grown. At the recent price, the stock looks expensive compared with the company's earnings and accounting value, so it is not an obvious bargain on the numbers shown.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · fiscal Q1 2025 10-Q (period ended 2025-03-31) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer