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Is XELA a Good Investment? – Spaxton School













Is XELA a Good Investment?

The following factors suggest XELA stock be a good investment:

  • Company’s focus on Automation and Digital Transformation: Exela is investing heavily in automation and digital transformation, which are key trends in the business process outsourcing (BPO) industry. These investments are expected to improve the company’s efficiency and profitability and make it more competitive.
  • Strong Customer Relationships: Exela has a long history of providing BPO services to a wide range of customers, including Fortune 500 companies. These relationships give the company a strong competitive advantage, as it can leverage its existing relationships to win new business.
  • Growth potential: The BPO industry is expected to grow at a compound annual growth rate (CAGR) of 7.5% from 2022 to 2027. Exela is well-positioned to benefit from this growth, as it is a leading provider of BPO services.

Latest XELA Stock Price

UTC: Feb 23rd, 2024 12:19 AM

Overall Outlook Neutral
1. Market’s Wisdom Partially Bullish
1a. Market Data Neutral
1b. Technical Recommendation Buy
2. Crowd’s Wisdom Neutral
2a. Social Media Buzz Steady
2b. Social Media Sentiment Steady

Exela Stock, Buy or Sell, Crowd Poll

  • June 26thBuy: 68.0%, Sell: 16.0%, Net: 52.0%
  • July 6thBuy: 63.3%, Sell: 13.3%, Net: 50%
  • August 1stBuy: 65.7%, Sell: 11.4%, Net: 54.3%
  • September 4thBuy: 68.3%, Sell: 12.2%, Net: 56.1%

Exela Stock Forecast: 12-Month Target

Average Exela Price Target, 12 Months $2
B. Riley Securities $2
Cantor Fitzgerald $2

Exela Technologies Quarterly Result

Second Quarter, 2023

  • In Q2 2023, revenue reached $272.9 million, up by $6.2 million compared to the previous year but slightly lower by $0.7 million sequentially. On a constant currency basis, it increased by $6.6 million, or 2.5%, year-over-year (YOY).
  • Gross profits stood at $60.9 million, reflecting a significant year-over-year increase of $11.4 million and a sequential increase of $3.7 million. Gross margins improved to 22.3%, marking a 3.8% YOY increase and a 1.4% sequential increase. This represents the highest level in the last 7 quarters.
  • Q2 2023 saw an adjusted EBITDA of $40.9 million, up by $4.4 million YoY and $6.2 million sequentially. This reflects a 12.1% YOY increase and a 17.8% sequential increase. The adjusted EBITDA margin was 15.0%, marking the highest level achieved in the last seven quarters.
  • Total Full-Time Equivalent (FTE) headcount increased to 15,549, primarily in the Asia-Pacific (APAC) region, compared to 15,108 in the previous quarter. However, it decreased from 17,036 year-over-year, indicating a shift in staffing dynamics.

Summary of the Last Four Quarters

(USD) June 2023 Mar 2023 Dec 2022 Sep 2022
Revenue 272.9M 273.62M 266.95M 264.04M
Net income -30.89M -45.44M -194.14M -85.28M
Diluted EPS -5.19 -0.05 -1.4
Net profit margin -11.3 -16.61% -72.73% -32.30%
Operating income 11.2M -6.9M -10.06M -18.39M
Net change in cash $8.4M 5.75M 264K -48.37M
Cost of revenue 212M 216.47M 218.85M 217.84M

Risks Involved in Investing in XELA Stock

  • Financial Problems: Exela has a history of financial problems, including a bankruptcy filing in 2019. The company has since emerged from bankruptcy, but it is still working to improve its financial performance.
  • Company’s exposure to the Global Economy: Exela’s business is exposed to the global economy, which could be a risk if there is a recession or other economic downturn.
  • Competition: Exela faces competition from other BPO providers, both domestic and international. This competition could make it difficult for the company to grow its business.

XELA Stock Performance

  • Last 1 Month: -24.6%
  • Last 6 Months: -69.3%
  • Last 1 Year: -97.6%

YTD: -74.4%

Will Tesla reach $1000?

Exela Price Prediction: Macros

BPA uses machine learning (ML) to analyze data continuously in order to forecast the future and offer data-driven suggestions for improving operational performance. By giving BPA the ability to digitalize, formalize, optimize, and automate a wide range of processes now carried out by qualified human professionals, AI technology makes BPA smarter.

With a CAGR of 12.2% over the forecast period, the worldwide business process automation market size is predicted to expand from USD 9.8 billion in 2020 to USD 19.6 billion by 2026. The BPA market will continue to grow post-COVID-19 as more organizations throughout the globe intend to shift their IT infrastructure to the cloud, increase business continuity, and improvise business operations. The global market for business process management (BPM) software presently accounts for about 35% of sales revenue.

Note:  collates Predictions and data from all over the net and has no in-house view on the likely trends in the Index or Individual Stocks. Please consult a registered investment advisor to guide you on your financial decisions. 

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