Growth For The Year Ended 2019-12-31
The company shows a large amount of sales growth of 17% y/y with a gross margin of 64%. Last year, annual sales were equal to $580. 615 million. EBIX reports significant R&D expenses growth, which traders will appreciate. It means that Ebix Inc is in the process of creating new products. In summary, traders will most likely expect sales in the near future. R&D expenses are equal to $45. 302 million. The company reports marketing expenses growth of 11%, which will most likely lead to revenue growth in the coming years. Ebix Inc released $3. 375 million in selling and marketing expenses.
EBIX does not report substantial EBITDA growth. But, the company’s EBITDA ratio is equal to 29%. The numbers seem good. The EBITDA growth is negative because the sales expenditure increased a 21%. Administrative expenses increased a 26%, which reduces EBIX’s EBITDA. In addition, operating income is another favorable feature of EBIX. The operating income grows at 2% y/y. I do appreciate that net income grew a 3%.
Balance Sheet Statement As Of 2019-12-31
With an A/L ratio of more than 1x, EBIX’s balance sheet looks stable. In Q3, the total amount of assets was equal to $1550 million, with total liabilities of $919 million.
As for me, I think that Ebix Inc shows a large amount of goodwill. It is equal to $938 million. In short, there is a potential goodwill impairment risk. Ebix Inc could review and impair intangible assets, which will most likely lead to a decline in the share price. The balance sheet shows deferred revenue of $53 million, which I like. Deferred revenue represents a prepayment by EBIX’s clients that have yet to be delivered. In short, Ebix Inc receives money in advance of it being earned. Moreover, Ebix Inc has positive working capital, which market participants will like. It means that EBIX can cover its short-term liabilities when they come due.
EBIX’s short term debt is less significant than the company’s cash. In my opinion, Ebix Inc may not have to worry about any liquidity risk. EBIX’s debt to equity ratio is below 2x. In short, the debt level appears to be under control. Note that Ebix Inc reports cash and cash equivalents of $88 million, and net debt of $620 million.
Quarterly Figures For The Quarter Ended 2020-09-30
In Q3 EBIX reported quarterly sales of $154 million, and gross profit of $68 million. The gross profit margin was equal to 44%. In addition, EBIX’s R&D expenses were equal to $8. 775 million, with selling and marketing expenses of $2. 0888 million. Besides, EBIX is profitable, which is positive. Ebix Inc released positive quarterly EBITDA of $37. 501 million. Taking this into account, many readers will most likely have a look at EBIX. EBIX also released positive net income of $24. 682 million.
Assessment of Investors Activity
I assume sales of $580 million. So, EBIX trades at 2x forward sales. In my view, it can be justified due to the fact that Ebix Inc has decent margins. Institutional market participants State of Alaska, Department of Revenue, TEACHERS RETIREMENT SYSTEM OF THE STATE OF KENTUCKY, and B. Metzler seel. Sohn & Co. Holding AG are Ebix Inc investors.
The following EBIX’s insiders acquired or sold equity recently.EBIX’s traders will most likely study this information:
+In 2020-12-31, director, 10 percent owner, officer: Chairman & CEO RAINA ROBIN sold equity of EBIX.
About Ebix Inc
Ebix, Inc. provides on-demand software and e-commerce services and solutions to insurance, financial, healthcare, and e-learning industries in the United States and internationally.