NasdaqGS:EBIX

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

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


Market Performance


7 Day Return

-1.4%

EBIX

0.5%

US Software

2.3%

US Market


1 Year Return

-38.4%

EBIX

19.6%

US Software

5.6%

US Market

Return vs Industry: EBIX underperformed the US Software industry which returned 19.6% over the past year.

Return vs Market: EBIX underperformed the US Market which returned 5.6% over the past year.


Shareholder returns

EBIXIndustryMarket
7 Day-1.4%0.5%2.3%
30 Day-15.1%0.05%-1.0%
90 Day-13.0%-3.8%-0.7%
1 Year-38.0%-38.4%21.3%19.6%7.9%5.6%
3 Year-32.4%-33.4%120.2%111.6%45.6%36.3%
5 Year196.2%186.1%177.4%157.4%65.8%47.6%

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?

43.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: EBIX ($38.77) is trading below our estimate of fair value ($68.43)

Significantly Undervalued: 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 (13x) compared to the Software industry average (47.5x).

PE vs Market: EBIX is good value based on its PE Ratio (13x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: EBIX is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: EBIX is good value based on its PB Ratio (2.2x) compared to the US Software industry average (5.4x).


Next Steps

Future Growth

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

29.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EBIX's forecast earnings growth (29.5% per year) is above the savings rate (2.7%).

Earnings vs Market: EBIX's earnings (29.5% per year) are forecast to grow faster than the US market (14.5% per year).

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

Revenue vs Market: EBIX's revenue (23.2% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: EBIX's revenue (23.2% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High 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?

10.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: EBIX's earnings have grown by 10% 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 (-13%) over the past year, making it difficult to compare to the Software industry average (19.1%).


Return on Equity

High ROE: EBIX's Return on Equity (15.5%) is considered low.


Return on Assets

ROA vs Industry: EBIX has a higher Return on Assets than the Software industry average last year.


Return on Capital Employed

ROCE Improving: EBIX's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Ebix's financial position?


Financial Position Analysis

Short Term Liabilities: EBIX's short term assets ($370.2M) exceeds its short term liabilities ($272.4M)

Long Term Liabilities: EBIX's short term assets (370.2M) do not cover its long term liabilities (762.5M)


Debt to Equity History and Analysis

Debt Level: EBIX's debt to equity ratio (133.2%) is considered high

Reducing Debt: EBIX's debt to equity ratio has increased from 8.4% to 133.2% over the past 5 years.

Debt Coverage: EBIX's debt is not well covered by operating cash flow (11.3%).

Interest Coverage: EBIX's interest payments on its debt are well covered by EBIT (4.2x 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?

0.77%

Current Dividend Yield


Dividend Yield vs Market

company0.8%marketbottom25%1.5%markettop25%3.8%industryaverage1.5%forecastin3Years0.8%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: EBIX's dividend (0.77%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: EBIX's dividend (0.77%) is low compared to the top 25% of dividend payers in the US market (3.76%).

Stable Dividend: EBIX is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: EBIX is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: EBIX is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of EBIX's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Ebix's salary, the management and board of directors tenure and is there insider trading?

5.1yrs

Average management tenure


CEO

Robin Raina (53yo)

20.1yrs

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 ($USD4.41M) is about average for companies of similar size in the US market ($USD2.69M).

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


Management Age and Tenure

5.1yrs

Average Tenure

61yo

Average Age

Experienced Management: EBIX's management team is seasoned and experienced (5.1 years average tenure).


Board Age and Tenure

13.8yrs

Average Tenure

56yo

Average Age

Experienced Board: EBIX's board of directors are seasoned and experienced ( 13.8 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$10,721,52622 Aug 19
Rennes Foundation, Endowment Arm
EntityCompany
Shares300,000
Max PriceUS$38.04
SellUS$716,20011 Apr 19
Leon d’Apice
EntityIndividual
Role
Senior Key Executive
Corporate Executive Vice President and Managing Director of Ebix Australia Group
Shares13,000
Max PriceUS$57.70
BuyUS$99,27521 Dec 18
Robin Raina
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares2,500
Max PriceUS$39.71
SellUS$460,03214 Dec 18
Rennes Foundation, Endowment Arm
EntityCompany
Shares10,000
Max PriceUS$46.00
SellUS$8,800,00014 Dec 18
Rennes Foundation, Endowment Arm
EntityCompany
Shares200,000
Max PriceUS$44.00
SellUS$99,16006 Dec 18
Leon d’Apice
EntityIndividual
Role
Senior Key Executive
Corporate Executive Vice President and Managing Director of Ebix Australia Group
Shares2,000
Max PriceUS$49.58
BuyUS$52,45013 Nov 18
Robin Raina
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares1,000
Max PriceUS$52.45

Ownership Breakdown


Management Team

  • Robin Raina (53yo)

    Chairman

    • Tenure: 20.1yrs
    • Compensation: US$4.41m
  • Jim Senge (59yo)

    Senior Vice President of EbixHealth

    • Tenure: 0yrs
    • Compensation: US$228.08k
  • Bob Kerris (65yo)

    Chief Financial Officer

    • Tenure: 0.08yrs
    • Compensation: US$25.96k
  • John Graham Prior (63yo)

    Corporate Executive VP of International Business & Intellectual Property

    • Tenure: 0yrs
    • Compensation: US$161.69k
  • Leon d’Apice (63yo)

    Corporate Executive Vice President and Managing Director of Ebix Australia Group

    • Tenure: 5.5yrs
    • Compensation: US$245.19k
  • Tony Wisniewski

    Managing Director of Ebix New Zealand

    • Tenure: 0yrs
  • Darren Joseph

    Corporate Vice President of Finance & Human Resources

    • Tenure: 0yrs
  • Ash Sawhney

    President – Insurance Solutions of North America

    • Tenure: 4.8yrs
  • Sean Donaghy (53yo)

    Senior VP of Finance

    • Tenure: 0yrs
    • Compensation: US$214.42k
  • Chris Eddy

    Investor Relations Contact

    • Tenure: 0yrs

Board Members

  • Robin Raina (53yo)

    Chairman

    • Tenure: 20.1yrs
    • Compensation: US$4.41m
  • Neil Eckert (57yo)

    Independent Director

    • Tenure: 14.8yrs
    • Compensation: US$95.82k
  • Geordie Hebard (46yo)

    Independent Director

    • Tenure: 4.6yrs
    • Compensation: US$95.82k
  • Pavan Bhalla (56yo)

    Independent Director

    • Tenure: 15.3yrs
    • Compensation: US$127.82k
  • Hans Keller (66yo)

    Lead Independent Director

    • Tenure: 4.7yrs
    • Compensation: US$119.82k
  • Rolf Herter (56yo)

    Independent Director

    • Tenure: 13.8yrs
    • Compensation: US$95.82k
  • Hans Benz (73yo)

    Independent Director

    • Tenure: 13.8yrs
    • Compensation: US$111.82k

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$1.182b
  • Shares outstanding: 30.49m
  • 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 entitie ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/16 23:33
End of Day Share Price2019/10/16 00:00
Earnings2019/06/30
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.