Ebix Stock Analysis, Valuation (NASDAQ:EBIX)

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$73.95 $0.7 (0.96%) EBIX stock closing price May 23, 2018 (Closing)
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Ebix
Updated on : May 23, 2018
previous close
EBIX 74 (0%)
NASDAQ 7426 (0%)
Closing Price On: May 23, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Computer Services
Sector :
Computer and Technology
5 Quarter Revenue
Revenue Growth
2018-Q1
$million
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
13.6%
Operating Profit
Operating Margin:
30.9%
Sector Average:
5.4%
5 Quarter Net Profit
Net Margins
2018-Q1
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
423.9M
Debt/Equity Ratio:
 0.78
Compared to the industry
Cash Flow
Operating cash flow:
$25.5M
Net Income:
$26.2M
Dividend Yield
EBIX dividend yield:
0.43%
PROS      CONS
Recent Growth
Long Term Growth
Operating Margins
Net Margins
ROIC
ROE
High Debt Burden
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
EBIX PS :
5.9
Industry PS :
2.9
Sector:   Computer and Technology.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
15.3%
Return on Equity:
20.2%
Free Cash Flow Margin:
22.5%
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Ebix Stock Analysis

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Investors can watch the Amigobulls Ebix stock analysis video here. This video puts forward our latest analysis highlighting the pros and cons for EBIX stock.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Ebix Inc Stock Rating 3.6/5

We at Amigobulls use various financial measures including profit margins, revenue growth and dividends for EBIX stock analysis. We compare Ebix valuation with its sector peers to gauge relative attractiveness of EBIX stock. Our Ebix stock rating is based on company's fundamentals like balance sheet risk and cash flow position.

Should you buy EBIX stock?

  • Ebix's revenue growth came in at 36.8% in 2018 Q1.
  • The company saw a significant growth in revenue with a 5 year CAGR of 13.6%.
  • Ebix had a healthy average operating margin of 30.9% over the last 4 quarters.
  • Net margins came in at average 25.5% for Ebix over the last twelve months.
  • Ebix has an attractive ROIC (Return on Invested Capital) of 15.3%
  • Return On Equity (ROE) which is a measure of the company's profitability, looks great for Ebix at 20.2%.
  • Ebix has a healthy FCF (Free Cash Flow) margin of 22.5%.

Should you sell EBIX stock?

  • Ebix is debt laden and has a high debt/equity ratio of  0.78.
  • The company is trading at a price to sales multiple of 5.9, which is overvalued in comparison to the Computer Services industry average multiple of 2.9.

Comments on this video and Ebix stock

Amigobulls Ebix stock analysis helps investors in understanding how the company's fundamentals have performed in the last few quarters. Fundamentals of a company give detailed information which helps in making invesment decisions.

While doing a study of the company financials, Ebix revenue growth and profit or net income are two main metrics which help in identifying whether EBIX stock is overvalued or undervalued. One can also combine technical analysis and fundamental analysis to get a holistic picture about EBIX stock.