EBIX  Ebix Inc

Exchange

NASDAQ

Sector

Technology

Industry

EDP Services

Market Cap.

1.94B

Vuru Grade

67.34/100

Current Price

$59.95
+0.08 (+0.13%)

Growth Price

$24.00
Overvalued by 59.96%

Stability Price

$13.21
Overvalued by 77.97%

Company Metrics

  • P/E 21.78
  • P/S 6.73
  • P/B 4.52
  • EPS 2.75
  • Cash ROIC 12.75%
  • Cash Ratio 1.15
  • Dividend 0.3 / 0.51%
  • Avg. Vol. 184,139.00
  • Shares 32.36M
  • Market Cap. 1.94B

Company Description

Ebix, Inc. provides on-demand software and e-commerce solutions to the insurance industry. The company operates data exchanges, which connects multiple entities within the insurance markets and enables the participant to carry and process data from one end to another in the areas of life insurance, annuities, employee health benefits, risk management, workers compensation, and property and casualt... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

Ebix, Inc. (EBIX) Ex-Dividend Date Scheduled for February 24, 2017
Nasdaq - Feb 23, 2017
Ebix, Inc. ( EBIX ) will begin trading ex-dividend on February 24, 2017. A cash dividend payment of $0.075 per share is scheduled to be paid on March 15, 2017.
The Gerstein Fisher Has $2206000 Stake in Ebix, Inc. (EBIX) - DailyQuint
Ebix, Inc. (EBIX) To Go Ex-Dividend on February 24th - The Cerbat Gem
EBIX Inc. - A Long-Term Winner
Forbes - May 27, 2016
About three years ago, the stocks of insurance software provider EBIX Inc. (NASDAQ:EBIX) was under attack by short sellers.
Ebix Inc.: Is This Total Return Opportunity Worth The Price?
Seeking Alpha - Aug 5, 2016
Ebix Inc. (NASDAQ:EBIX) provides insurance software development and outsourcing solutions. Over the last 10 years, EBIX has done a consistent job compounding capital for shareholders.
Why Ebix Inc. Stock Gained 18% in April
Motley Fool - May 13, 2016
In a 12-month joint operation with government-owned Internet service provider Bharat Sanchar Nigam Limited (BSNL), Ebix will set up online government services for some 1.2 billion Indian citizens.
Ebix: Growth/Upside In 2017
Seeking Alpha - Dec 6, 2016
Ebix, Inc. (NASDAQ: EBIX) has been able to consistently beat revenue and EPS estimates. The company has achieved a 3-year average growth rate of 8.20% per year compared to the industry median of 6.80%.
Ebix: A Growth Stock With Huge Opportunities Ahead
Seeking Alpha - Sep 16, 2016
Ebix, Inc. (NASDAQ:EBIX) is a well-run company that develops software solutions for the insurance, finance, and healthcare industries.
BRIEF-Ebix Inc announces new $150 million share repurchase plan
Reuters - Feb 6, 2017
FRANKFURT, Feb 6 The European Central Bank follows the same rules in every country where it buys bonds, its president said on Monday, responding to a question about reimbursing investors in Greek government debt.
Ebix: The Waiting Is The Hardest Part
Seeking Alpha - Feb 16, 2016
Ebix has already blown its chance to meet the wild expectations that it recently set for its most celebrated business deal.
Ebix Inc (EBIX) Coverage Initiated at Sidoti
The Cerbat Gem - Feb 24, 2017
Investment analysts at Sidoti initiated coverage on shares of Ebix Inc (NASDAQ:EBIX) in a research note issued on Thursday.
The Ebix, Inc. (EBIX) Declares $0.08 Quarterly Dividend - Petro Global News 24
Ebix, Inc. (EBIX) Set to Announce Earnings on Tuesday - Community Financial News
Ebix - Fairly Valued Or Set To Double?
Seeking Alpha - May 24, 2016
Share repurchases over the past two years have been effective in enhancing shareholder value, there is an additional $75mm available under the share repurchase plan.
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for EBIX to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate EBIX's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

$59.95 Current Price

$24.00 Growth Price (DCF)

Overvalued by 59.96%


Growth Rate Assumed by Market: 48.78%


Future Free Cash Flow Growth Rate: 15.0%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$13.21 Stability Price (EPV)

Overvalued by 77.97%


Discount Rate: 15.0%

$42.84 Book Price

Overvalued by 28.53%


Shrinking Cash Return on Invested Capital over the past 5 years

EBIX has less efficiently invested its financial resources in buildings, projects, and equipment, resulting in increasingly weaker returns. Look at its Annual Reports to determine whether this decrease has been caused by one-time events or a more general decrease in investment returns.

EBIX has created $12.75 of cash for every $100 invested.
Figures in USD. Fiscal year ends in December
20112012201320142015
Free Cash Flow 68.46M 70.33M 55.83M 42.23M 31.20M
divided by
Invested Capital 336.20M 422.84M 429.71M 511.94M 566.01M
Cash ROIC 20.36% 16.63% 12.99% 8.25% 5.51%

Excellent Return on Equity over the past 5 years

Over the past 5 years, EBIX has generated strong profits with money shareholders have invested. This is considered one of the best indicators of quality management. Beware of extremely high Return on Equity (> 50%) as this is often unsustainable.

EBIX has generated $18.11 of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in December
20112012201320142015
Net Income 71.38M 70.57M 59.27M 63.56M 79.53M
divided by
Stockholders' Equity 316.12M 362.16M 413.23M 432.22M 408.97M
Return on Equity 22.58% 19.49% 14.34% 14.70% 19.45%

Excellent Business Performance over the past 10 years

EBIX has been able to maintain profitability in good times and bad. This could mean EBIX has an extremely strong business or has the ability to scale down costs when needed. This should be a fairly resilient business, but double check for future sustainability by looking at its Risk Factors in the Annual Report.

EBIX has created positive free cash flow for 9 or more of the past 10 years.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Free Cash Flow 3.61M 12.72M 26.21M 30.75M 51.03M 68.46M 70.33M 55.83M 42.23M 31.20M

Strong Balance Sheet

EBIX is financially strong with Current Assets covering Total Liabilities. It's in a fairly liquid position and dependent on the amount and saleability of any inventory; it may have the financial security to survive an economic downturn.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Cash 5.01M 49.47M 11.01M 21.03M 29.70M 25.20M 37.42M 57.48M 52.58M 58.72M
Current Assets 13.90M 59.41M 25.52M 46.52M 60.78M 63.82M 81.67M 102.35M 103.86M 116.83M
Total Assets 47.35M 108.51M 141.17M 262.17M 303.30M 411.18M 516.95M 553.86M 634.31M 675.99M
Current Liabilities 20.01M 25.70M 53.85M 75.10M 39.09M 49.78M 56.69M 66.68M 69.79M 51.27M
Total Liabilities 21.19M 48.38M 71.03M 91.42M 72.03M 95.07M 154.79M 140.64M 202.09M 267.02M
Stockholder' Equity 26.17M 60.13M 70.14M 170.74M 231.27M 316.12M 362.16M 413.23M 432.22M 408.97M
Current Ratio 0.69 2.31 0.47 0.62 1.56 1.28 1.44 1.54 1.49 2.28
TL-to-TA 0.45 0.45 0.50 0.35 0.24 0.23 0.30 0.25 0.32 0.40

Consistent Reinvestment of Profits over the past 10 years

EBIX has consistently retained profits. This may put EBIX in a strong position to invest for the future, by buying new machinery, investing in R&D or a number of other options. By effectively using these earnings, EBIX can greatly improve their long-term economic picture.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Retained Earnings -69.72M -57.51M -30.20M 8.62M 67.64M 137.56M 201.09M 257.57M 309.73M 378.79M
Retained Earnings Growth - 17.51% 47.49% 128.55% 684.44% 103.36% 46.19% 28.09% 20.25% 22.30%

Competitive Advantage over the past 10 years

EBIX likely has a competitive advantage which prevents other companies from entering or competing in their industry. This could be strong branding, the ability to keep costs low, or some other characteristic that is hard to replicate. Look at future prospects to determine its sustainability.

$33.71 of every $100 of Revenue have been pure profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Net Income 5.97M 12.67M 27.31M 38.82M 59.02M 71.38M 70.57M 59.27M 63.56M 79.53M
divided by
Revenue 29.25M 42.84M 74.75M 97.69M 132.19M 168.97M 199.37M 204.71M 214.32M 265.48M
Net Profit Margin 20.39% 29.57% 36.54% 39.74% 44.65% 42.24% 35.40% 28.96% 29.66% 29.96%

Strong Pricing Power over the past 10 years

EBIX has maintained substantial gross margins, suggesting that they have been able to set prices without consideration of the cost of goods sold. This potentially leaves flexibility in inflationary environments to raise prices on consumers and maintain profitability.

$80.04 of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Gross Profit 23.34M 35.73M 60.59M 76.41M 102.59M 149.76M 161.24M 164.24M 166.93M 193.05M
divided by
Revenue 29.25M 42.84M 74.75M 97.69M 132.19M 168.97M 199.37M 204.71M 214.32M 265.48M
Gross Margin 79.78% 83.39% 81.06% 78.22% 77.61% 88.63% 80.87% 80.23% 77.89% 72.71%

Low Capital Intensity over the past 10 years

EBIX has consistently used a small portion of their Net Income buying new equipment or investing in new facilities. This indicates that EBIX may require minimal investment to stay competitive. This leaves them with extra money to spend on growing their business and potentially buying back stock.

9.25% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Capital Expenditure 537,000.00 1.75M 615,000.00 3.13M 1.75M 2.83M 1.97M 1.23M 16.28M 17.48M
divided by
Net Income 5.97M 12.67M 27.31M 38.82M 59.02M 71.38M 70.57M 59.27M 63.56M 79.53M
Capital Expenditure Ratio 9.00% 13.85% 2.25% 8.06% 2.97% 3.96% 2.78% 2.08% 25.61% 21.98%

No Dividend History over the past 10 years

EBIX has never distributed dividends or has recently suspended their dividend distribution.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Dividend Paid - - - - - - - - - -
divided by
Shares Outstanding 28.23M 31.61M 36.78M 38.01M 39.02M 40.89M 39.10M 38.64M 38.04M 34.90M
Dividend Paid Per Share - - - - - - - - - -
Price at Year End 3.09 7.84 7.62 16.69 23.85 22.07 15.79 14.89 17.04 33.49
Dividend Yield - - - - - - - - - -

History of Stock Buybacks over the past 10 years

EBIX has some history of delivering increased value for shareholders in the form of stock buybacks. These have helped improve financial metrics and increase each shareholders' relative ownership stake in the company, due to fewer shares outstanding and holding the same number of shares.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Shares Outstanding 28.23M 31.61M 36.78M 38.01M 39.02M 40.89M 39.10M 38.64M 38.04M 34.90M
Stock Bought Back - -10.68% -14.06% -3.25% -2.57% -4.58% 4.58% 1.19% 1.58% 8.99%
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Discussion
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3
Posted by gsanta111  (on April 18, 2012)
I bought this back in October when it was at $14.66
It was very under valued and I was lucky to run into it.

It has great metrics (ROE@ 26.08%), an acceptable current ratio (1.28), and a great Debt/Equity (0.15).

It has a nice dividend, so waiting for the price to approach Intrinsic value is not as painful.

I like it's business model. Being a facilitator for insurance and healthcare markets. Taking a fee from transactions.

It has been growing quickly through acquisitions, which could be difficult to maintain long term. It's expansion into foreign markets could be more uneven than their expansion into the north american market.

I'm keeping an eye on the growth price and trying to stay conservative. Keeping that MOS at least 66%
1
Posted by rogern  (on April 18, 2012)
Just came across this stock thanks to your comment. It's a gem! There's a great article on it on Seeking Alpha: http://seekingalpha.com/article/443261-ebix-an-investment-opportunity-excellent-roic-and-rapid-free-cash-flow-growth

I particularly like the recurring revenue. It's an extremely stable business.

But, how are you coming up with the 66% MOS? What assumptions are you using on the gorwth price?
1
Posted by gsanta111  (on May 18, 2012)
66% MOS is just something i picked up from Benjamin Graham and have adopted it as my own criteria
2
Posted by gsanta111  (on November 17, 2012)
I'm still holding since I got it so cheap, but I'd keep an eye out. They've been running into trouble with SEC lately, some of it rumors but its put doubts into my mind of how reliable their statements are
1
Posted by pbanik  (on November 21, 2012)
@gsanta111 MSN Money rates it 9 out of 10.
http://investing.money.msn.com/investments/stock-price?symbol=EBIX&ocid=qbes

Louis Navellier gives the stock a C grade.
http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=EBIX

Since the P/E ratio is under 10, and the income growth is over 20% according to MSN Money, this looks like you're getting the stock at a discount. I will have to put this stock on my watchlist.