Growth For The Year Ended 2019-12-31
The company shows a huge 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 substantial R&D expenses growth, which money managers will appreciate. It means that Ebix Inc is in the process of creating new products. Hence, money managers 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 stunning EBITDA growth. In spite of that, the company’s EBITDA ratio is equal to 29%. I do appreciate it. The EBITDA growth is negative because the sales expenditure increased a 21%. Administrative expenses increased a 26%, which reduces EBIX’s EBITDA. Besides, operating income is another beneficial 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.
I feel that Ebix Inc shows a large amount of goodwill. It is equal to $938 million. It is difficult to know the real value of intangibles and goodwill. 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. Summarising, Ebix Inc receives money in advance of it being earned. Besides, Ebix Inc has positive working capital, which money managers 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 experience, 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. EBIX trades at 45x EBITDA, which may not seem cheap. In spite of that, with the company’s EBITDA margin of 29% the EV/EBITDA ratio makes sense. null
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%. Besides, EBIX’s R&D expenses were equal to $8. 775 million, with selling and marketing expenses of $2. 0888 million. Furthermore, EBIX is profitable, which is helpful. Ebix Inc released positive quarterly EBITDA of $37. 501 million. Taking this into account, many traders will most likely have a look at EBIX. EBIX also released positive net income of $24. 682 million. Taking this into account, many money managers will most likely have a look at EBIX.
I assume sales of $580 million. So, EBIX trades at 2. 9572091661427966x forward sales. In my view, it can be justified due to the fact that Ebix Inc has decent margins. Institutional money managers EVERENCE CAPITAL MANAGEMENT, State of Alaska, Department of Revenue, and Prairiewood Capital, LLC are Ebix Inc investors. The company shows a beta of 2. 08029. It is more large than 1, which means that the stock price can show stunning volatility. EBIX’s stock price volatility is larger than that of the market. In summary, if you are not a volatility expert don’t trade Ebix Inc.
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.
+In 2020-12-17, director Keller Hans Ueli acquired stock of EBIX.
+In 2020-12-17, director Bhalla Pavan acquired 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. It develops and deploys insurance and reinsurance exchanges; provides Software-as-a-Service (SaaS) enterprise solutions in the area of customer relationship management, and front-end and back-end systems; and offers outsourced administrative and risk compliance solutions.