Capitalcube gives Ebix, Inc. a score of 63.
Our analysis is based on comparing Ebix, Inc. with the following peers – Guidewire Software, Inc., Ultimate Software Group, Inc., Majesco, Benefitfocus, Inc., DXC Technology Co., John Wiley & Sons, Inc. Class A, Thomson Reuters Corporation, Prism Technologies Group, Inc. and salesforce.com, inc. (GWRE-US, ULTI-US, MJCO-US, BNFT-US, DXC-US, JW.A-US, TRI-US, PRZM-US and CRM-US).
Ebix, Inc. has a fundamental score of 63 and has a relative valuation of UNDERVALUED.
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- With respect to peers, relative outperformance over the last year is in contrast to the more recent underperformance.
- It’s current Price/Book of 4.40 is about median in its peer group.
- We classify EBIX-US as Harvesting because of the market’s relatively low growth expectations despite its relatively high returns.
- EBIX-US‘s relatively high profit margins are burdened by relative asset inefficiency.
- Changes in annual revenues are in line with its chosen peers but lags in terms of earnings suggesting that the company is less cost conscious and may be spending for growth.
- EBIX-US‘s return on assets currently and over the past five years suggest that its relatively high operating returns are sustainable.
- The company’s relatively high pre-tax margin suggests tight control on operating costs versus peers.
- While EBIX-US‘s revenues growth in recent years has been around the peer median, the stock’s below peer median P/E ratio suggests that the market likely sees the company’s long-term growth prospects to be fading.
- The company’s level of capital investment suggests it might be under-investing in a business with above median returns.
- EBIX-US has the financial and operating capacity to borrow quickly.
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Leverage & Liquidity
EBIX-US has the financial and operating capacity to borrow quickly.
- With debt at a relatively low 13.75% of its enterprise value compared to an overall benchmark of 25% (Note: The peer median is currently 12.20%), and a well-cushioned interest coverage level of 13.41x, EBIX-US can probably borrow quickly. We classify the company as Quick & Able in terms of its capacity to raise additional debt.
- Of the 9 chosen peers for the company, only 8 of the stocks have an outstanding debt balance. Companies with no debt include GWRE-US.
EBIX-US has maintained its Quick & Able profile from the prior year-end.
- EBIX-US‘s interest coverage is its lowest over the last four years and compares to a high of 57.87x in 2013.
- Though its interest coverage decreased to 13.41x from 20.22x (in 2015), its peer median remained relatively stable during this period at 3.06x.
- Interest coverage fell 6.49 points relative to peers.
- EBIX-US‘s debt-EV continues to trend downward and is below (but within one standard deviation of) its four-year average debt-EV of 14.34%.
- While its debt-EV decreased to 13.75% from 16.65% (in 2015), its peer median increased during this period to 12.20% from 11.46%.
- Relative to peers, debt-EV fell 3.65 percentage points.
Access the detailed analysis for Ebix, Inc.
Key Liquidity Items
|Company||Debt/Enterprise Value (%)||Current Ratio||Interest Coverage (x)||Cash Flow To Total Debt (%)|
|Guidewire Software, Inc.||0||5.22||No interest exp||999|
|Ultimate Software Group, Inc.||0.17||1.1||58.14||2107.43|
|DXC Technology Co.||27.9||1.15||2.13||28.7|
|John Wiley & Sons, Inc. Class A||24.44||1.11||12.67||43.94|
|Thomson Reuters Corporation||19.77||1.02||3.98||36.75|
|Prism Technologies Group, Inc.||61.86||0.27||-17.35||-150.88|
|Best In Class||0.17||5.22||No interest exp||2107.43|
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Ebix, Inc. is a supplier of software and e-commerce solutions to the insurance industry. It provides a series of application software products for the insurance industry ranging from carrier systems, agency systems and exchanges to custom software development for all entities involved in the insurance and financial industries. The company was founded in 1976 and is headquartered in Atlanta, GA.
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