EBIX INC (EBIX) Stock Fundamental Analysis

USA • Nasdaq • NASDAQ:EBIX • US2787152063

1.16 USD
-0.55 (-32.16%)
At close: Dec 27, 2023
1.1603 USD
+0 (+0.03%)
After Hours: 12/27/2023, 8:25:48 PM
Fundamental Rating

3

We assign a fundamental rating of 3 out of 10 to EBIX. EBIX was compared to 278 industry peers in the Software industry. While EBIX is still in line with the averages on profitability rating, there are concerns on its financial health. EBIX is valued quite cheap, but it does not seem to be growing.


Dividend Valuation Growth Profitability Health

4

1. Profitability

1.1 Basic Checks

  • In the past year EBIX was profitable.
  • In the past year EBIX had a positive cash flow from operations.
EBIX Yearly Net Income VS EBIT VS OCF VS FCFEBIX Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 50M 100M 150M

1.2 Ratios

  • EBIX has a better Return On Assets (0.32%) than 71.94% of its industry peers.
  • The Return On Equity of EBIX (0.82%) is better than 73.74% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 13.72%, EBIX belongs to the top of the industry, outperforming 94.24% of the companies in the same industry.
  • The Average Return On Invested Capital over the past 3 years for EBIX is in line with the industry average of 10.73%.
  • The last Return On Invested Capital (13.72%) for EBIX is above the 3 year average (10.38%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 0.32%
ROE 0.82%
ROIC 13.72%
ROA(3y)4.81%
ROA(5y)5.26%
ROE(3y)11.98%
ROE(5y)14.6%
ROIC(3y)10.38%
ROIC(5y)10.3%
EBIX Yearly ROA, ROE, ROICEBIX Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 5 10 15 20

1.3 Margins

  • The Profit Margin of EBIX (0.68%) is better than 72.30% of its industry peers.
  • EBIX's Profit Margin has declined in the last couple of years.
  • The Operating Margin of EBIX (14.94%) is better than 86.69% of its industry peers.
  • In the last couple of years the Operating Margin of EBIX has declined.
  • The Gross Margin of EBIX (47.00%) is worse than 69.06% of its industry peers.
  • In the last couple of years the Gross Margin of EBIX has declined.
Industry RankSector Rank
OM 14.94%
PM (TTM) 0.68%
GM 47%
OM growth 3Y-24.69%
OM growth 5Y-18.1%
PM growth 3Y-28.25%
PM growth 5Y-25.95%
GM growth 3Y-21.49%
GM growth 5Y-13.45%
EBIX Yearly Profit, Operating, Gross MarginsEBIX Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 20 40 60

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2

2. Health

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so EBIX is creating value.
  • Compared to 1 year ago, EBIX has more shares outstanding
  • Compared to 1 year ago, EBIX has a worse debt to assets ratio.
EBIX Yearly Shares OutstandingEBIX Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 10M 20M 30M
EBIX Yearly Total Debt VS Total AssetsEBIX Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 500M 1B 1.5B

2.2 Solvency

  • EBIX has an Altman-Z score of 1.06. This is a bad value and indicates that EBIX is not financially healthy and even has some risk of bankruptcy.
  • The Altman-Z score of EBIX (1.06) is worse than 61.87% of its industry peers.
  • The Debt to FCF ratio of EBIX is 30.67, which is on the high side as it means it would take EBIX, 30.67 years of fcf income to pay off all of its debts.
  • EBIX has a Debt to FCF ratio (30.67) which is in line with its industry peers.
  • A Debt/Equity ratio of 0.03 indicates that EBIX is not too dependend on debt financing.
  • With a decent Debt to Equity ratio value of 0.03, EBIX is doing good in the industry, outperforming 61.15% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.03
Debt/FCF 30.67
Altman-Z 1.06
ROIC/WACC2.69
WACC5.1%
EBIX Yearly LT Debt VS Equity VS FCFEBIX Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 200M 400M 600M

2.3 Liquidity

  • EBIX has a Current Ratio of 0.41. This is a bad value and indicates that EBIX is not financially healthy enough and could expect problems in meeting its short term obligations.
  • EBIX's Current ratio of 0.41 is on the low side compared to the rest of the industry. EBIX is outperformed by 95.32% of its industry peers.
  • EBIX has a Quick Ratio of 0.41. This is a bad value and indicates that EBIX is not financially healthy enough and could expect problems in meeting its short term obligations.
  • The Quick ratio of EBIX (0.41) is worse than 95.32% of its industry peers.
Industry RankSector Rank
Current Ratio 0.41
Quick Ratio 0.41
EBIX Yearly Current Assets VS Current LiabilitesEBIX Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 200M 400M 600M 800M

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2

3. Growth

3.1 Past

  • The earnings per share for EBIX have decreased strongly by -92.74% in the last year.
  • The Earnings Per Share has been decreasing by -7.91% on average over the past years.
  • EBIX shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -30.72%.
  • Measured over the past years, EBIX shows a very strong growth in Revenue. The Revenue has been growing by 23.60% on average per year.
EPS 1Y (TTM)-92.74%
EPS 3Y-14.5%
EPS 5Y-7.91%
EPS Q2Q%-155.93%
Revenue 1Y (TTM)-30.72%
Revenue growth 3Y21.84%
Revenue growth 5Y23.6%
Sales Q2Q%-53.78%

3.2 Future

  • EBIX is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -17.98% yearly.
  • EBIX is expected to show a very negative growth in Revenue. In the coming years, the Revenue will decrease by -31.80% yearly.
EPS Next Y-87.37%
EPS Next 2Y-17.98%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-42.79%
Revenue Next 2Y-31.8%
Revenue Next 3YN/A
Revenue Next 5YN/A

3.3 Evolution

  • The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
EBIX Yearly Revenue VS EstimatesEBIX Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B
EBIX Yearly EPS VS EstimatesEBIX Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1 2 3

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7

4. Valuation

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 6.82, the valuation of EBIX can be described as very cheap.
  • Based on the Price/Earnings ratio, EBIX is valued cheaply inside the industry as 96.76% of the companies are valued more expensively.
  • Compared to an average S&P500 Price/Earnings ratio of 28.32, EBIX is valued rather cheaply.
  • EBIX is valuated cheaply with a Price/Forward Earnings ratio of 0.82.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of EBIX indicates a rather cheap valuation: EBIX is cheaper than 100.00% of the companies listed in the same industry.
  • EBIX's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.57.
Industry RankSector Rank
PE 6.82
Fwd PE 0.82
EBIX Price Earnings VS Forward Price EarningsEBIX Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • 97.84% of the companies in the same industry are more expensive than EBIX, based on the Enterprise Value to EBITDA ratio.
  • Based on the Price/Free Cash Flow ratio, EBIX is valued cheaper than 99.64% of the companies in the same industry.
Industry RankSector Rank
P/FCF 1.74
EV/EBITDA 4.14
EBIX Per share dataEBIX EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 -10 20

4.3 Compensation for Growth

  • EBIX's earnings are expected to decrease with -17.98% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-17.98%
EPS Next 3YN/A

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0

5. Dividend

5.1 Amount

  • EBIX does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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EBIX INC / EBIX FAQ

What is the fundamental rating for EBIX stock?

ChartMill assigns a fundamental rating of 4 / 10 to EBIX.


Can you provide the valuation status for EBIX INC?

ChartMill assigns a valuation rating of 8 / 10 to EBIX INC (EBIX). This can be considered as Undervalued.


What is the profitability of EBIX stock?

EBIX INC (EBIX) has a profitability rating of 6 / 10.


Can you provide the expected EPS growth for EBIX stock?

The Earnings per Share (EPS) of EBIX INC (EBIX) is expected to decline by -87.37% in the next year.


How sustainable is the dividend of EBIX INC (EBIX) stock?

The dividend rating of EBIX INC (EBIX) is 0 / 10 and the dividend payout ratio is 46%.