NasdaqGS:EBIX

Stock Analysis Report

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Executive Summary

Ebix, Inc. provides on-demand software and e-commerce services and solutions to insurance, financial, healthcare, and e-learning industries in the United States and internationally. More Details


Snowflake Analysis

Very undervalued with reasonable growth potential.


Similar Companies

Share Price & News

How has Ebix's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: EBIX's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-9.5%

EBIX

-2.5%

US Software

-1.3%

US Market


1 Year Return

-53.2%

EBIX

64.0%

US Software

18.5%

US Market

Return vs Industry: EBIX underperformed the US Software industry which returned 64% over the past year.

Return vs Market: EBIX underperformed the US Market which returned 18.5% over the past year.


Shareholder returns

EBIXIndustryMarket
7 Day-9.5%-2.5%-1.3%
30 Day-1.8%8.4%5.3%
90 Day-15.5%10.2%7.5%
1 Year-52.7%-53.2%65.1%64.0%21.3%18.5%
3 Year-70.2%-70.9%147.7%139.5%42.4%32.9%
5 Year-29.1%-31.5%254.0%233.3%84.2%63.5%

Price Volatility Vs. Market

How volatile is Ebix's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Ebix undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: EBIX ($19.15) is trading below our estimate of fair value ($73.37)

Significantly Below Fair Value: EBIX is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: EBIX is good value based on its PE Ratio (6.5x) compared to the US Software industry average (63.2x).

PE vs Market: EBIX is good value based on its PE Ratio (6.5x) compared to the US market (19x).


Price to Earnings Growth Ratio

PEG Ratio: EBIX is good value based on its PEG Ratio (0.2x)


Price to Book Ratio

PB vs Industry: EBIX is good value based on its PB Ratio (1.1x) compared to the US Software industry average (7.4x).


Next Steps

Future Growth

How is Ebix forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

29.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EBIX's forecast earnings growth (29.4% per year) is above the savings rate (2.2%).

Earnings vs Market: EBIX's earnings (29.4% per year) are forecast to grow faster than the US market (22.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: EBIX's revenue (15.1% per year) is forecast to grow faster than the US market (10.1% per year).

High Growth Revenue: EBIX's revenue (15.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if EBIX's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Ebix performed over the past 5 years?

3.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EBIX has high quality earnings.

Growing Profit Margin: EBIX's current net profit margins (16.7%) are lower than last year (16.7%).


Past Earnings Growth Analysis

Earnings Trend: EBIX's earnings have grown by 3.4% per year over the past 5 years.

Accelerating Growth: EBIX's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: EBIX had negative earnings growth (-2%) over the past year, making it difficult to compare to the Software industry average (12.8%).


Return on Equity

High ROE: EBIX's Return on Equity (14.4%) is considered low.


Next Steps

Financial Health

How is Ebix's financial position?


Financial Position Analysis

Short Term Liabilities: EBIX's short term assets ($327.9M) exceed its short term liabilities ($198.0M).

Long Term Liabilities: EBIX's short term assets ($327.9M) do not cover its long term liabilities ($728.5M).


Debt to Equity History and Analysis

Debt Level: EBIX's debt to equity ratio (121.1%) is considered high.

Reducing Debt: EBIX's debt to equity ratio has increased from 35.7% to 121.1% over the past 5 years.

Debt Coverage: EBIX's debt is not well covered by operating cash flow (14.8%).

Interest Coverage: EBIX's interest payments on its debt are well covered by EBIT (3.4x coverage).


Balance Sheet


Next Steps

Dividend

What is Ebix current dividend yield, its reliability and sustainability?

1.57%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: EBIX's dividend (1.57%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.64%).

High Dividend: EBIX's dividend (1.57%) is low compared to the top 25% of dividend payers in the US market (4.68%).


Stability and Growth of Payments

Stable Dividend: EBIX has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: EBIX's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (10.1%), EBIX's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: EBIX's dividends in 3 years are forecast to be thoroughly covered by earnings (5.5% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.8yrs

Average management tenure


CEO

Robin Raina (54 yo)

21.08yrs

Tenure

US$6,207,584

Compensation

Mr. Robin Raina serves as the Chief Executive Officer and President of Ebix Consulting. Mr. Raina has been the Chairman of Ebix Latin America, LLC and Ebix Inc. since May 31, 2002 and has been its Chief Ex ...


CEO Compensation Analysis

Compensation vs Market: Robin's total compensation ($USD6.21M) is above average for companies of similar size in the US market ($USD1.93M).

Compensation vs Earnings: Robin's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Robin Raina
Chairman21.08yrsUS$6.21m13.46%
$ 79.7m
John Graham Prior
Corporate Executive VP of International Business & Intellectual Propertyno dataUS$159.86k0.054%
$ 321.4k
Leon d'Apice
Executive VP & MD of Ebix Australia Group6.5yrsUS$234.36k0.16%
$ 973.3k
James Senge
Senior Vice President of EbixHealthno dataUS$227.34k0.042%
$ 246.9k
Steven Hamil
Executive VP & Global Chief Financial Officer0.50yrno data0.098%
$ 582.8k
Chris Eddy
Investor Relations Contactno datano datano data
Charles Harrell
Compliance Officerno datano datano data
Darren Joseph
Corporate Vice President of Finance & Human Resourcesno datano datano data
Tony Wisniewski
Managing Director of Ebix New Zealandno datano datano data
Ash Sawhney
President – Insurance Solutions of North America5.75yrsno datano data
Venu Garneni
Head of Consulting Operations1.83yrsno datano data

5.8yrs

Average Tenure

60yo

Average Age

Experienced Management: EBIX's management team is seasoned and experienced (5.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Robin Raina
Chairman21.08yrsUS$6.21m13.46%
$ 79.7m
Neil Eckert
Independent Director15.75yrsUS$179.00k0.24%
$ 1.4m
George Hebard
Independent Director5.58yrsUS$92.14k0.13%
$ 782.8k
Pavan Bhalla
Independent Director16.33yrsUS$211.00k0.20%
$ 1.2m
Hans Keller
Lead Independent Director5.67yrsUS$203.00k0.056%
$ 333.8k
Rolf Herter
Independent Director14.83yrsUS$179.00k0.24%
$ 1.4m
Hans Benz
Independent Director14.83yrsUS$195.00k0.0093%
$ 55.0k

14.8yrs

Average Tenure

57yo

Average Age

Experienced Board: EBIX's board of directors are seasoned and experienced ( 14.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Ebix, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Ebix, Inc.
  • Ticker: EBIX
  • Exchange: NasdaqGS
  • Founded: 1976
  • Industry: Application Software
  • Sector: Software
  • Market Cap: US$591.976m
  • Shares outstanding: 30.91m
  • Website: https://www.ebix.com

Number of Employees


Location

  • Ebix, Inc.
  • 1 Ebix Way
  • Johns Creek
  • Georgia
  • 30097
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EBIXNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJul 1987
EWZDB (Deutsche Boerse AG)YesCommon StockDEEURJul 1987

Biography

Ebix, Inc. provides on-demand software and e-commerce services and solutions to insurance, financial, healthcare, and e-learning industries in the United States and internationally. It develops and deploys ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/21 00:19
End of Day Share Price2020/10/20 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.