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Firstsource Solutions has the Financial Strength Rank of 5.
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:
1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.
A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
Firstsource Solutions's Interest Coverage for the quarter that ended in Jun. 2026 was 6.51.
Firstsource Solutions's debt to revenue ratio for the quarter that ended in Jun. 2026 was 0.00.
As of today, Firstsource Solutions's Altman Z-Score is 3.98.
The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
Firstsource Solutions has the Financial Strength Rank of 5.
Firstsource Solutions Financial Strength Related Terms
NSE:FSL vs IBM, ACN, CTSH: Financial Strength Comparison
For the Information Technology Services subindustry, Firstsource Solutions's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Firstsource Solutions Financial Strength vs Software Industry
For the Software industry and Technology sector, Firstsource Solutions's Financial Strength distribution charts can be found below:
* The bar in red indicates where Firstsource Solutions's Financial Strength falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
The zones of discrimination were as such:
When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.
Firstsource Solutions has a Z-score of 3.98, indicating it is in Safe Zones. This implies the Z-Score is strong.
Good Sign:
Altman Z-score of 3.98 is strong.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Firstsource Solutions (NSE:FSL) has a Financial Strength of 5 as of Jun. 2026. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Firstsource Solutions and its competitors. This is 17% below median its historical median of 6.00. Over the past decade, Firstsource Solutions' Financial Strength has ranged from 5.00 to 9.00.
Is Firstsource Solutions' Financial Strength too high?
Firstsource Solutions' current Financial Strength of 5 is 17% below median its 10-year median of 6.00. Over the past 10 years, this metric has ranged from a low of 5.00 to a high of 9.00. Overall, Firstsource Solutions has a GF Score™ of 94/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Firstsource Solutions' Financial Strength compare to IBM and ACN?
Firstsource Solutions' Financial Strength of 5 can be compared against companies in the Software industry. Historically, Firstsource Solutions' own Financial Strength has ranged from 5.00 to 9.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for a Software company?
A good Financial Strength depends on the Software industry context. However, Financial Strength should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Firstsource Solutions and its competitors. Firstsource Solutions's current Financial Strength is 5, which is 17% below median its own 10-year median of 6.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Firstsource Solutions stock overvalued right now?
Based on GuruFocus' analysis, Firstsource Solutions (NSE:FSL) is currently considered Significantly Undervalued. The stock's GF Value™ is ₹389.05, compared to a current price of ₹254.75 — trading 34.5% below its estimated fair value. The current Financial Strength is 5, which is 17% below median its 10-year median of 6.00. Firstsource Solutions' overall GF Score™ is 94/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For Firstsource Solutions (NSE:FSL), the current Financial Strength is 5 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Firstsource Solutions (NSE:FSL) Overvalued in 2026?
Based on GuruFocus' analysis, Firstsource Solutions stock appears to be undervalued.
The current stock price of ₹254.75 is trading 34.5% below its estimated GF Value™ of ₹389.05.
GuruFocus considers Firstsource Solutions to be Significantly Undervalued.
Key valuation signals for NSE:FSL:
Financial Strength: 5 (17% below median its 10-year median of 6.00)
GF Value™: ₹389.05 vs. price of ₹254.75 (34.5% below fair value)
No single metric tells the full story. See the NSE:FSL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Firstsource Solutions Ltd is engaged in the business of providing customer management services like contact centers, transaction processing, and debt collection services. The company's business segment includes Banking and Financial Services, Healthcare, Communication, Media and Technology, and Diverse Industries. It generates maximum revenue from the Banking and Financial Services segment. Geographically, it derives a majority of its revenue from the United States of America.
94GF Score
Get the complete analysis for NSE:FSL
Financial Strength is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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