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1. Company Snapshot

1.a. Company Description

Exela Technologies, Inc.provides transaction processing solutions, enterprise information management, document management, and digital business process services worldwide.The company operates through three segments: Information & Transaction Processing Solutions (ITPS), Healthcare Solutions (HS), and Legal & Loss Prevention Services (LLPS).


The ITPS segment provides lending solutions for mortgages and auto loans; banking solutions for clearing, anti-money laundering, sanctions, and interbank cross-border settlement; property and casualty insurance solutions for origination, enrollments, claims processing, and benefits administration communications; and public sector solutions for income tax processing, benefits administration, and records management.It also offers solutions for payment processing and reconciliation, integrated receivable and payables management, document logistics and location services, records management, and electronic storage of data/documents; and software, hardware, professional services, and maintenance related to information and transaction processing automation.The HS segment provides revenue cycle solutions, integrated accounts payable and accounts receivable, and information management for healthcare payer and provider markets.


The LLPS segment processes legal claims for class action and mass action settlement administrations, involving project management support, notification, and outreach to claimants; and collects, analyzes, and distributes settlement funds.It also offers data and analytical services in the areas of litigation consulting, economic and statistical analysis, expert witness services, and revenue recovery services for delinquent accounts receivable.The company is headquartered in Irving, Texas.

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1.b. Last Insights on XELA

Exela Technologies' recent performance was hindered by a lackluster Q4 2024 earnings release, which reported a significant decline in revenue and a substantial net loss. The company's struggles were further exacerbated by a recent earnings downgrade by a prominent research firm, which cited concerns over Exela's declining profitability and increasing debt burden. Furthermore, the absence of any notable acquisitions or partnerships in recent months has contributed to the company's stagnant growth trajectory.

1.c. Company Highlights

2. Transcript Summary

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3. NewsRoom

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Exela Technologies Announces Strategic Partnership with Michael Page

Jan -28

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Exela Technologies, Inc. Announces Intention to Delist its Securities from Nasdaq and to Deregister its Securities under the Securities Exchange Act

Jan -08

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Exela Technologies Recognized as a Strong Performer in Industry-Leading Task-Centric Automation Software Report

Dec -19

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Exela Technologies, Inc. (XELA) Q3 2024 Earnings Call Transcript

Nov -29

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Exela Technologies, Inc. to Host Third Quarter 2024 Financial Results Conference Call

Nov -26

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Reaktr.ai Launches AI-Powered SecAi Service on Oracle Cloud Infrastructure

Nov -11

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Exela Technologies, Inc. to Host Second Quarter 2024 Financial Results Conference Call

Aug -26

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Exela Technologies, Inc. Reports Second Quarter 2024 Results

Aug -15

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.40%)

6. Segments

Information and Transaction Processing Solutions

Expected Growth: 5%

Exela Technologies' Information and Transaction Processing Solutions segment growth is driven by increasing demand for digital transformation, automation, and outsourcing of business processes. The company's expertise in robotic process automation, artificial intelligence, and machine learning enables clients to streamline operations, reduce costs, and enhance customer experience, resulting in a 5% growth rate.

Healthcare Solutions

Expected Growth: 7%

Exela Technologies' Healthcare Solutions segment growth is driven by increasing demand for digital transformation in healthcare, rising adoption of revenue cycle management (RCM) services, and growing need for operational efficiency. Additionally, the shift towards value-based care, increasing healthcare expenditure, and strategic acquisitions are contributing to the 7% growth.

Legal & Loss Prevention Services

Expected Growth: 4%

Exela Technologies' Legal & Loss Prevention Services segment growth is driven by increasing demand for digital transformation in the legal industry, expansion of legal process outsourcing, and growing need for risk management and compliance services. Additionally, the company's strategic acquisitions and partnerships have enhanced its capabilities, contributing to the 4% growth rate.

7. Detailed Products

Information Management

Exela's Information Management solutions help organizations manage their data and documents efficiently, providing a secure and scalable platform for data storage and retrieval.

Digital Now

Digital Now is a suite of digital transformation solutions that enable organizations to automate and optimize their business processes, improving efficiency and reducing costs.

Payment Processing

Exela's Payment Processing solutions provide secure and efficient payment processing services, enabling organizations to manage their payment cycles effectively.

Customer Communications

Exela's Customer Communications solutions enable organizations to create and deliver personalized customer communications, improving customer engagement and loyalty.

Legal and Compliance

Exela's Legal and Compliance solutions provide organizations with secure and compliant document management and eDiscovery services, ensuring regulatory compliance and reducing legal risks.

8. Exela Technologies, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Exela Technologies, Inc. is medium due to the presence of alternative business process outsourcing companies.

Bargaining Power Of Customers

The bargaining power of customers for Exela Technologies, Inc. is high due to the concentration of large clients and the availability of alternative service providers.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Exela Technologies, Inc. is low due to the company's large scale of operations and its ability to negotiate favorable terms with suppliers.

Threat Of New Entrants

The threat of new entrants for Exela Technologies, Inc. is low due to the high barriers to entry in the business process outsourcing industry, including the need for significant capital investment and specialized expertise.

Intensity Of Rivalry

The intensity of rivalry for Exela Technologies, Inc. is high due to the presence of several established competitors in the business process outsourcing industry, leading to a highly competitive market.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 487.44%
Debt Cost 11.70%
Equity Weight -387.44%
Equity Cost 13.66%
WACC 4.08%
Leverage -125.81%

11. Quality Control: Exela Technologies, Inc. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Expensify

A-Score: 3.7/10

Value: 8.5

Growth: 2.7

Quality: 3.8

Yield: 0.0

Momentum: 5.0

Volatility: 2.3

1-Year Total Return ->

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Sprout Social

A-Score: 3.5/10

Value: 6.7

Growth: 6.0

Quality: 4.6

Yield: 0.0

Momentum: 0.0

Volatility: 3.7

1-Year Total Return ->

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Exela Technologies

A-Score: 3.3/10

Value: 10.0

Growth: 4.2

Quality: 5.3

Yield: 0.0

Momentum: 0.5

Volatility: 0.0

1-Year Total Return ->

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Presto Automation

A-Score: 3.2/10

Value: 10.0

Growth: 3.7

Quality: 5.0

Yield: 0.0

Momentum: 0.5

Volatility: 0.0

1-Year Total Return ->

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Smith Micro Software

A-Score: 3.1/10

Value: 9.4

Growth: 2.6

Quality: 4.5

Yield: 0.0

Momentum: 1.0

Volatility: 1.0

1-Year Total Return ->

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SeaChange International

A-Score: 2.9/10

Value: 9.3

Growth: 2.3

Quality: 3.8

Yield: 0.0

Momentum: 1.5

Volatility: 0.3

1-Year Total Return ->

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

0.06$

Current Price

0.06$

Potential

-0.00%

Expected Cash-Flows