Ebix Stock Analysis, Valuation (NASDAQ:EBIX)
Ebix Stock Analysis
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.
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.