Xchanging Solutions Analysis

dividend

Pros

Cons

• Unable to evaluate Xchanging Solutions's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
• Unable to evaluate Xchanging Solutions's dividend against the top 25% market benchmark as the company has not reported any payouts.

health

Pros

• Xchanging Solutions is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
• Xchanging Solutions is profitable, therefore cash runway is not a concern.
• Xchanging Solutions is profitable, therefore cash runway is not a concern.
• Xchanging Solutions has no debt, it does not need to be covered by operating cash flow.
• Xchanging Solutions has no debt, it does not need to be covered by short term assets.
• Xchanging Solutions's cash and other short term assets cover its long term commitments.
• Xchanging Solutions has no debt compared to 5 years ago when it was 0.6%.
• Xchanging Solutions has no debt, therefore coverage of interest payments is not a concern.
• Xchanging Solutions has no debt.
• Low level of unsold assets.

Cons

management

Pros

Cons

• The average tenure for the Xchanging Solutions board of directors is less than 3 years, this suggests a new board.
• The average tenure for the Xchanging Solutions management team is less than 2 years, this suggests a new team.

misc

Pros

Cons

• Xchanging Solutions is not covered by any analysts.
• Xchanging Solutions has significant price volatility in the past 3 months.

past

Pros

• Xchanging Solutions has delivered over 20% year on year earnings growth in the past 5 years.
• Xchanging Solutions used its assets more efficiently than the IN IT industry average last year based on Return on Assets.
• Xchanging Solutions has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
• Xchanging Solutions's earnings growth has exceeded the IN IT industry average in the past year (17% vs 6%).

Cons

• Xchanging Solutions's 1-year earnings growth is less than its 5-year average (17% vs 21.8%)
• Xchanging Solutions has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).

value

Pros

• Xchanging Solutions is good value based on earnings compared to the India market.
• XCHANGING outperformed the IT industry which returned -10.1% over the past year.
• XCHANGING outperformed the Market in India which returned -14.5% over the past year.
• NSEI:XCHANGING is up 27.6% outperforming the IT industry which returned 8.5% over the past month.
• NSEI:XCHANGING is up 27.6% outperforming the market in India which returned 8% over the past month.

Cons

• Xchanging Solutions's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
• Xchanging Solutions's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
• Xchanging Solutions is overvalued based on assets compared to the IN IT industry average.
• Xchanging Solutions is overvalued based on earnings compared to the IN IT industry average.