NasdaqGS:EBIX

Stock Analysis Report

Executive Summary

Ebix, Inc. provides software and e-commerce solutions to insurance, finance, healthcare, and e-learning industries.


Snowflake Analysis

Very undervalued with high 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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-12.7%

EBIX

-2.7%

US Software

-1.1%

US Market


1 Year Return

-44.5%

EBIX

35.1%

US Software

17.8%

US Market

Return vs Industry: EBIX underperformed the US Software industry which returned 35.1% over the past year.

Return vs Market: EBIX underperformed the US Market which returned 17.8% over the past year.


Shareholder returns

EBIXIndustryMarket
7 Day-12.7%-2.7%-1.1%
30 Day-5.4%5.5%1.5%
90 Day-1.0%12.6%6.6%
1 Year-44.1%-44.5%36.5%35.1%20.2%17.8%
3 Year-42.9%-43.8%145.5%135.2%47.5%38.1%
5 Year31.5%27.7%212.4%190.0%71.2%52.4%

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 ($33.71) is trading below our estimate of fair value ($96.18)

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 (12.4x) compared to the Software industry average (49.4x).

PE vs Market: EBIX is good value based on its PE Ratio (12.4x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: EBIX is good value based on its PEG Ratio (0.3x)


Price to Book Ratio

PB vs Industry: EBIX is good value based on its PB Ratio (1.9x) compared to the US Software industry average (5.9x).


Next Steps

Future Growth

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

35.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EBIX's forecast earnings growth (35.4% per year) is above the savings rate (1.7%).

Earnings vs Market: EBIX's earnings (35.4% per year) are forecast to grow faster than the US market (14.1% per year).

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

Revenue vs Market: EBIX's revenue (22.3% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: EBIX's revenue (22.3% per year) is forecast to grow faster 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?

7.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EBIX has high quality earnings.

Growing Profit Margin: EBIX's current net profit margins (14.6%) are lower than last year (23.9%).


Past Earnings Growth Analysis

Earnings Trend: EBIX's earnings have grown by 7.7% 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 (-24.8%) over the past year, making it difficult to compare to the Software industry average (18.4%).


Return on Equity

High ROE: EBIX's Return on Equity (13.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Ebix's financial position?


Financial Position Analysis

Short Term Liabilities: EBIX's short term assets ($380.5M) exceed its short term liabilities ($253.8M).

Long Term Liabilities: EBIX's short term assets ($380.5M) do not cover its long term liabilities ($768.2M).


Debt to Equity History and Analysis

Debt Level: EBIX's debt to equity ratio (129.4%) is considered high.

Reducing Debt: EBIX's debt to equity ratio has increased from 15% to 129.4% over the past 5 years.

Debt Coverage: EBIX's debt is not well covered by operating cash flow (12.6%).

Interest Coverage: EBIX's interest payments on its debt are well covered by EBIT (3.5x coverage).


Balance Sheet

Inventory Level: EBIX has a low level of unsold assets or inventory.

Debt Coverage by Assets: EBIX's debt is not covered by short term assets (assets are 0.5x debt).


Next Steps

Dividend

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

0.89%

Current Dividend Yield


Upcoming Dividend Payment

TodayFeb 24 2020Ex Dividend DateFeb 28 2020Dividend Pay DateMar 16 202017 days from Ex DividendBuy in the next 3 days to receive upcoming dividend

Dividend Yield vs Market

Notable Dividend: EBIX's dividend (0.89%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: EBIX's dividend (0.89%) is low compared to the top 25% of dividend payers in the US market (3.73%).


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 8 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (11%), 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?

5.5yrs

Average management tenure


CEO

Robin Raina (53yo)

20.4yrs

Tenure

US$4,409,751

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 ($USD4.41M) is above average for companies of similar size in the US market ($USD2.51M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Robin Raina
Chairman20.4yrsUS$4.41m12.32% $126.7m
Sean Donaghy
Senior VP of Finance0yrsUS$214.42k0.022% $221.5k
John Graham Prior
Corporate Executive VP of International Business & Intellectual Property0yrsUS$161.69k0.061% $623.8k
Leon d'Apice
Corporate Executive Vice President and Managing Director of Ebix Australia Group5.8yrsUS$245.19k0.17% $1.7m
James Senge
Senior Vice President of EbixHealth0yrsUS$228.08k0.042% $434.6k
Robert Kerris
Chief Financial Officer0.4yrsUS$25.96k0.000010% $102.8
Chris Eddy
Investor Relations Contact0yrsno datano data
Darren Joseph
Corporate Vice President of Finance & Human Resources0yrsno datano data
Tony Wisniewski
Managing Director of Ebix New Zealand0yrsno datano data
Ash Sawhney
President – Insurance Solutions of North America5.1yrsno datano data

5.5yrs

Average Tenure

61yo

Average Age

Experienced Management: EBIX's management team is seasoned and experienced (5.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Robin Raina
Chairman20.4yrsUS$4.41m12.32% $126.7m
Neil Eckert
Independent Director15.1yrsUS$95.82k0.28% $2.9m
George Hebard
Independent Director4.9yrsUS$95.82k0.13% $1.4m
Pavan Bhalla
Independent Director15.7yrsUS$127.82k0.18% $1.9m
Hans Keller
Lead Independent Director5yrsUS$119.82k0.061% $624.3k
Rolf Herter
Independent Director14.2yrsUS$95.82k0.25% $2.5m
Hans Benz
Independent Director14.2yrsUS$111.82k0.016% $168.6k

14.2yrs

Average Tenure

56yo

Average Age

Experienced Board: EBIX's board of directors are seasoned and experienced ( 14.2 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: EBIX insiders have only sold shares 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$1.028b
  • Shares outstanding: 30.50m
  • 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 software and e-commerce solutions to insurance, finance, healthcare, and e-learning industries. It offers software development, customization, and consulting services to various entities in the insurance industry, including carriers, brokers, exchanges, and standard making bodies. The company operates data exchanges in the areas of finance, travel, life insurance, annuities, employee health benefits, risk management, workers compensation, insurance underwriting, and property and casualty (P&C) insurance. It also focuses on designing and deploying back-end systems, such as eGlobal, which targets multinational P&C insurance brokers; WinBeat that targets P&C brokers in the Australian and New Zealand markets; and EbixASP, a system for the P&C insurance brokers in the United States. In addition, the company offers business process outsourcing services that include providing domain intensive project management, time, and material based consulting engagements to clients; creation and tracking of certificates of insurance issued in the United States and Australian markets; and the provision of claims adjudication and settlement, call center, and back office support, as well as a software-based service for the issuance of certificates of insurance and a service to track certificates of insurance for corporate clients in the United States and Australia. Further, the company offers carrier systems, which pertains to the designing and deploying on-demand back-end systems for P&C insurance companies. The company was formerly known as Delphi Systems, Inc. and changed its name to Ebix, Inc. in December 2003. Ebix, Inc. was founded in 1976 and is headquartered in Johns Creek, Georgia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/24 00:22
End of Day Share Price2020/02/21 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.