Great company and one that has executed quite well over the last while. More companies are looking to reduce costs and offload non-core operations. Margins have been boosted by more serviced based revenue, and the larger that portion continues to grow I'd imagine the more the margin profile continues to improve.
I'm actually surprised by the company's success in this macro environment, it's pretty impressive. Businesses overall are slowing down in regards to spending but Element keeps turning out higher revenues.
My issue here now is valuation. I'd view the company as priced to perfection. This was a company that struggled to even maintain positive free cash flow pre-pandemic, had some huge pandemic related tailwinds, and is now starting to slow down a bit again. I worry that the current environment could cause some subpar results and if it does it will be felt in the share price, as it is trading well above historical levels.