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EBIX

Ebix NasdaqGS:EBIX Stock Report

Last Price

US$18.97

Market Cap

US$586.3m

7D

-3.5%

1Y

-32.3%

Updated

01 Oct, 2022

Data

Company Financials +
EBIX fundamental analysis
Snowflake Score
Valuation3/6
Future Growth3/6
Past Performance1/6
Financial Health1/6
Dividends3/6

EBIX Stock Overview

Ebix, Inc., together with its subsidiaries, provides on-demand infrastructure software exchanges and e-commerce services to the insurance, financial, travel, and healthcare industries in the United States and internationally.

Ebix Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Ebix
Historical stock prices
Current Share PriceUS$18.97
52 Week HighUS$44.42
52 Week LowUS$12.50
Beta2.62
1 Month Change-25.43%
3 Month Change12.85%
1 Year Change-32.25%
3 Year Change-53.06%
5 Year Change-70.79%
Change since IPO-35.57%

Recent News & Updates

Sep 27

Ebix: Affordable Bet On The Fast-Growing Fintech Industry

Summary The massive -44.80% 6-month price performance of EBIX has made it very affordable. It touts a TTM P/E of 8.7x. The average TTM P/E of EBIX’s sector peers is 20.59x. EBIX’s net income margin is 57% higher than its peers. EBIX is still small but worthy investment in the fast-growing, 20.3% CAGR fintech industry. EbixCash is big in India. India’s fintech market is predicted to generate $200 billion revenue by 2030. Ebix's handicap is that it has numerous business channels. This could be the reason why it has lower gross margins than its peers. If you want to profit from the rapidly growing $160 billion fintech industry, consider going long on Ebix, Inc.(EBIX). The -44.80% price decline has made EBIX very affordable. It is now trading less than $20 – far below its 52-week high of $44.42. Seeking Alpha The market cap of Ebix is now less than $610 million. A little over four years ago, EBIX's market cap was greater than $2.7 billion. Ebix is a fallen angel, it could be a future takeover target of bigger fintech companies. Yes, EBIX could be a falling knife along with many tickers. The Dow chart below illustrates that Ebix’s business performance might not be the problem. Emotional investors are pulling down the stock market in general. Even the biggest fintech company, Visa (V), has -18.21% six-month price return. CNBC.com Don’t Be Intimidated By Big Dips Thanks to the universal stock market fear and panic, EBIX could be purchased at just 7.12x forward P/E. The opportunity here can be gleamed by carefully studying the chart below. Seeking Alpha Premium EBIX is a perfect value play because its forward valuation is 65% lower than its sector peers' average. The TTM Price/Sales valuation of software solutions provider Ebix is only 0.61, 77% lower than its peers’ average. I think the significant undervaluation of EBIX is unjust. This company's net income margin is 6.97%, 66.7% higher than its sector peers. Ebix Inc. is consistently profitable since 2010. Consistent profitability in a very competitive and crowded industry should be rewarded. Seeking Alpha Premium The negativity over EBIX might be because its 5-year net income margin used to be 16.84%. My takeaway is that stiff competition is forcing it into a pricing war to gain more customers. Lower fees for its fintech software solutions is emphasized by Ebix’s 31% TTM gross profit margin. This is again notably lower than its 5-year average of 54.27%. These dips in margins are forgivable. Sacrificing gross/net margins to gain or protect market share is a valid business tactic in my opinion. Ebix is a small fish competing against giants like Visa or PayPal (PYPL). Lower pricing is an easy way for Ebix to attract customers away from its much larger competitors. Further, growth-focused investors likely know that smaller companies possess greater growth potential than firms like Visa. Consequently, Ebix outperforming the growth rates of its bigger rivals should attract more bulls. Too Many Business Segments Is Not Ideal The extremely diversified software solutions of Ebix is confusing. A small company that is dipping into so many pies is probably not very attractive to defensive investors. However, I think the varied services and partners of this company means its growth is all but assured. ebix.com Ebix could probably go back to posting a revenue CAGR greater than 15% if only management starts focusing on its most promising channels. My decades of being a freelance multimedia artist has taught me that focusing on 2 or 3 markets is the best way to make money. EBIX boasts a median 5-year revenue CAGR of 25.39%. Unfortunately, it is now only 9.07% – lower than Visa’s 24% and PayPal’s 10.66%. The fault in EBIX’s star could be an over diversified product lineup. This company was founded in 1976 and yet it never became a $5 billion company. We can blame it partly on too many business segments in my opinion. ebix.com The R&D and marketing costs of so many services/solutions could also be the reason for its lowly 31% gross margin. A laser focus on insurance and finance channels is desirable. There's no urgent need for that travel solution and education channels. I think they should be sold to fortify the insurance, finance, and consulting channels. On the other hand, having so many business segments could also be why it continues to survive. My takeaway is that a streamlined product portfolio could boost Ebix's market share in the fintech business. The 20.3% CAGR of this particular business could keep attracting big firms and startups. Allied Market Research EbixCash Is Very Promising My favorite reason to endorse this stock is EbixCash. Low fees of digital transactions/remittances eventually add up to substantial amount. EbixCash only needs to attract enough of a number of customers. EbixCash is big in India. This is very important because India is experiencing exponential growth in fintech services. It is estimated that India’s fintech technology services market will generate revenues of $200 billion and $1 Trillion AUM (assets under management by 2030). ebixcash.com Those 650k retail outlets in India make EbixCash a very important player in India’s local and cross border remittances and digital payments. India persists as the world’s no.1 country in terms of international remittances received. It received 89 billion in inflow money transfers.

Aug 23
Ebix (NASDAQ:EBIX) Has Announced A Dividend Of $0.075

Ebix (NASDAQ:EBIX) Has Announced A Dividend Of $0.075

Ebix, Inc.'s ( NASDAQ:EBIX ) investors are due to receive a payment of $0.075 per share on 15th of September. This...

Aug 19

Ebix declares $0.075 dividend

Ebix (NASDAQ:EBIX) declares $0.075/share quarterly dividend, in line with previous. Forward yield 1.21% Payable Sept. 15; for shareholders of record Sept. 1; ex-div Aug. 31. See EBIX Dividend Scorecard, Yield Chart, & Dividend Growth.

Shareholder Returns

EBIXUS SoftwareUS Market
7D-3.5%-1.3%-2.5%
1Y-32.3%-33.2%-23.2%

Return vs Industry: EBIX matched the US Software industry which returned -33.2% over the past year.

Return vs Market: EBIX underperformed the US Market which returned -23.2% over the past year.

Price Volatility

Is EBIX's price volatile compared to industry and market?
EBIX volatility
EBIX Average Weekly Movement9.6%
Software Industry Average Movement8.9%
Market Average Movement6.9%
10% most volatile stocks in US Market15.6%
10% least volatile stocks in US Market2.8%

Stable Share Price: EBIX is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 10% a week.

Volatility Over Time: EBIX's weekly volatility (10%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
197610,030Robin Rainahttps://www.ebix.com

Ebix, Inc., together with its subsidiaries, provides on-demand infrastructure software exchanges and e-commerce services to the insurance, financial, travel, and healthcare industries in the United States and internationally. It develops and deploys insurance and reinsurance exchanges; provides software-as-a-service (SaaS) enterprise solutions in the areas of customer relationship management, and front-end and back-end systems; and offers outsourced administrative and risk compliance solutions. The company operates P&C exchanges primarily in Australia, New Zealand, the United Kingdom, and the United States, which facilitates the exchange of insurance data between brokers and insurance carriers with a focus on the areas of personal and commercial lines.

Ebix Fundamentals Summary

How do Ebix's earnings and revenue compare to its market cap?
EBIX fundamental statistics
Market CapUS$586.29m
Earnings (TTM)US$69.41m
Revenue (TTM)US$995.60m

8.4x

P/E Ratio

0.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
EBIX income statement (TTM)
RevenueUS$995.60m
Cost of RevenueUS$687.00m
Gross ProfitUS$308.60m
Other ExpensesUS$239.19m
EarningsUS$69.41m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)2.25
Gross Margin31.00%
Net Profit Margin6.97%
Debt/Equity Ratio94.2%

How did EBIX perform over the long term?

See historical performance and comparison

Dividends

1.6%

Current Dividend Yield

13%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is EBIX undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for EBIX?

Other financial metrics that can be useful for relative valuation.

EBIX key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.2x
Enterprise Value/EBITDA8.7x
PEG Ratio0.3x

Price to Earnings Ratio vs Peers

How does EBIX's PE Ratio compare to its peers?

EBIX PE Ratio vs Peers
The above table shows the PE ratio for EBIX vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average39.1x
MGIC Magic Software Enterprises
27.7x33.3%US$763.9m
ECOM ChannelAdvisor
16x13.8%US$655.2m
MITK Mitek Systems
67.9x93.5%US$406.7m
MTLS Materialise
44.6x30.5%US$632.6m
EBIX Ebix
8.4x27.4%US$586.3m

Price-To-Earnings vs Peers: EBIX is good value based on its Price-To-Earnings Ratio (8.4x) compared to the peer average (39.1x).


Price to Earnings Ratio vs Industry

How does EBIX's PE Ratio compare vs other companies in the US Software Industry?

Price-To-Earnings vs Industry: EBIX is good value based on its Price-To-Earnings Ratio (8.4x) compared to the US Software industry average (39.2x)


Price to Earnings Ratio vs Fair Ratio

What is EBIX's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

EBIX PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio8.4x
Fair PE Ratio35.8x

Price-To-Earnings vs Fair Ratio: EBIX is good value based on its Price-To-Earnings Ratio (8.4x) compared to the estimated Fair Price-To-Earnings Ratio (35.8x).


Share Price vs Fair Value

What is the Fair Price of EBIX when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: EBIX ($18.97) is trading above our estimate of fair value ($12.02)

Significantly Below Fair Value: EBIX is trading above our estimate of fair value.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.


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Future Growth

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

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


27.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EBIX's forecast earnings growth (27.4% per year) is above the savings rate (1.9%).

Earnings vs Market: EBIX's earnings (27.4% per year) are forecast to grow faster than the US market (14.8% per year).

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

Revenue vs Market: EBIX's revenue is expected to decline over the next 3 years (-1.7% per year).

High Growth Revenue: EBIX's revenue is forecast to decline over the next 3 years (-1.7% 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


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Past Performance

How has Ebix performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-7.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: EBIX has high quality earnings.

Growing Profit Margin: EBIX's current net profit margins (7%) are lower than last year (8.9%).


Past Earnings Growth Analysis

Earnings Trend: EBIX's earnings have declined by 7.4% 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 (-14.8%) over the past year, making it difficult to compare to the Software industry average (13.4%).


Return on Equity

High ROE: EBIX's Return on Equity (10%) is considered low.


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Financial Health

How is Ebix's financial position?

Financial Health Score

1/6

Financial Health Score 1/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: EBIX's short term assets ($354.6M) do not cover its short term liabilities ($827.7M).

Long Term Liabilities: EBIX's short term assets ($354.6M) exceed its long term liabilities ($40.4M).


Debt to Equity History and Analysis

Debt Level: EBIX's net debt to equity ratio (81.4%) is considered high.

Reducing Debt: EBIX's debt to equity ratio has increased from 68.1% to 94.2% over the past 5 years.

Debt Coverage: EBIX's debt is not well covered by operating cash flow (10.8%).

Interest Coverage: EBIX's interest payments on its debt are not well covered by EBIT (2.7x coverage).


Balance Sheet


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Dividend

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

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


1.58%

Current Dividend Yield

Dividend Yield vs Market

Ebix Dividend Yield vs Market
How does Ebix dividend yield compare to the market?
SegmentDividend Yield
Company (Ebix)1.6%
Market Bottom 25% (US)1.7%
Market Top 25% (US)4.7%
Industry Average (Software)1.1%
Analyst forecast in 3 Years (Ebix)n/a

Notable Dividend: EBIX's dividend (1.58%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.67%).

High Dividend: EBIX's dividend (1.58%) is low compared to the top 25% of dividend payers in the US market (4.73%).


Stability and Growth of Payments

Stable Dividend: EBIX's dividend payments have been volatile in the past 10 years.

Growing Dividend: EBIX's dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (13.3%), EBIX's dividend payments are thoroughly covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (19.7%), EBIX's dividend payments are well covered by cash flows.


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Management

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

9.2yrs

Average management tenure


CEO

Robin Raina (56 yo)

22.58yrs

Tenure

US$3,604,350

Compensation

Mr. Robin Raina is Non-Executive Chairman of EbixCash Limited (formerly Ebix Software India Private Limited) and has been its Non-Executive Director from March 24, 2002. Mr. Raina serves as the Chief Execu...


CEO Compensation Analysis

Robin Raina's Compensation vs Ebix Earnings
How has Robin Raina's remuneration changed compared to Ebix's earnings?
DateTotal Comp.SalaryCompany Earnings
Jun 30 2022n/an/a

US$69m

Mar 31 2022n/an/a

US$66m

Dec 31 2021US$4mn/a

US$68m

Sep 30 2021n/an/a

US$72m

Jun 30 2021n/an/a

US$81m

Mar 31 2021n/an/a

US$89m

Dec 31 2020US$8mn/a

US$92m

Sep 30 2020n/an/a

US$95m

Jun 30 2020n/an/a

US$90m

Mar 31 2020n/an/a

US$96m

Dec 31 2019US$6mn/a

US$97m

Sep 30 2019n/an/a

US$84m

Jun 30 2019n/an/a

US$92m

Mar 31 2019n/an/a

US$93m

Dec 31 2018US$4mUS$2m

US$93m

Sep 30 2018n/an/a

US$111m

Jun 30 2018n/an/a

US$106m

Mar 31 2018n/an/a

US$100m

Dec 31 2017US$6mUS$2m

US$101m

Sep 30 2017n/an/a

US$99m

Jun 30 2017n/an/a

US$99m

Mar 31 2017n/an/a

US$98m

Dec 31 2016US$3mUS$2m

US$94m

Sep 30 2016n/an/a

US$91m

Jun 30 2016n/an/a

US$87m

Mar 31 2016n/an/a

US$83m

Dec 31 2015US$6mUS$1m

US$80m

Compensation vs Market: Robin's total compensation ($USD3.60M) is about average for companies of similar size in the US market ($USD2.94M).

Compensation vs Earnings: Robin's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: EBIX's management team is seasoned and experienced (9.2 years average tenure).


Board Members

Experienced Board: EBIX's board of directors are seasoned and experienced ( 17.2 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.


Ownership Breakdown

What is the ownership structure of EBIX?
Owner TypeNumber of SharesOwnership Percentage
Private Companies21,2500.07%
General Public3,290,32010.6%
Individual Insiders6,424,00120.8%
Institutions21,170,45268.5%

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


Top Shareholders

Top 25 shareholders own 73.88% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
13.24%
Robin Raina
4,092,140$77.6m0%no data
12.84%
BlackRock, Inc.
3,967,077$75.3m1.15%no data
9.02%
The Vanguard Group, Inc.
2,787,940$52.9m0.63%no data
5.39%
Deborah Lebowitz
1,664,471$31.6m0%no data
4.67%
St. Denis J. Villere & Co., LLC
1,444,582$27.4m-0.42%2.16%
4.09%
Wasatch Advisors Inc
1,263,884$24.0m-0.05%0.12%
3.52%
Dimensional Fund Advisors LP
1,088,324$20.6m26.94%0.01%
3.31%
State Street Global Advisors, Inc.
1,022,848$19.4m1.11%no data
2.99%
Millennium Management LLC
922,556$17.5m0%0.02%
1.7%
Fred Alger Management, LLC
523,876$9.9m50.6%0.05%
1.46%
Geode Capital Management, LLC
450,643$8.5m2.96%no data
1.42%
Citadel Advisors LLC
437,654$8.3m203.3%0.01%
1.19%
Northern Trust Global Investments
369,114$7.0m-3.04%no data
1.18%
LSV Asset Management
365,373$6.9m-13.14%0.01%
1.09%
Invesco Capital Management LLC
337,906$6.4m87.07%0.01%
1.05%
Charles Schwab Investment Management, Inc.
323,303$6.1m2.69%no data
0.89%
BNY Mellon Asset Management
276,182$5.2m-5.89%no data
0.71%
Norges Bank Investment Management
218,140$4.1m0%no data
0.7%
Robin Raina Foundation, Inc., Endowment Arm
217,064$4.1m0%no data
0.7%
D. E. Shaw & Co., L.P.
215,145$4.1m45.86%0.01%
0.65%
Hotchkis and Wiley Capital Management, LLC
200,470$3.8m15.93%0.01%
0.64%
Taylor Frigon Capital Management LLC
198,250$3.8m-5.54%1.96%
0.51%
Principal Global Investors, LLC
157,031$3.0m-10.18%no data
0.47%
Jane Street Group, LLC, Asset Management Arm
144,851$2.7m540.34%0.01%
0.46%
Columbia Management Investment Advisers, LLC
143,037$2.7m-0.88%no data

Company Information

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


Key Information

  • Name: Ebix, Inc.
  • Ticker: EBIX
  • Exchange: NasdaqGS
  • Founded: 1976
  • Industry: Application Software
  • Sector: Software
  • Implied Market Cap: US$586.287m
  • 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

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/10/01 00:00
End of Day Share Price2022/09/30 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.