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
Overall EBIX gets a fundamental rating of 3 out of 10. We evaluated EBIX against 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 cheap, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
- In the past year EBIX was profitable.
- EBIX had a positive operating cash flow in the past year.
1.2 Ratios
- The Return On Assets of EBIX (0.32%) is better than 71.94% of its industry peers.
- EBIX's Return On Equity of 0.82% is fine compared to the rest of the industry. EBIX outperforms 73.74% of its industry peers.
- EBIX's Return On Invested Capital of 13.72% is amongst the best of the industry. EBIX outperforms 94.24% of its industry peers.
- EBIX had an Average Return On Invested Capital over the past 3 years of 10.38%. This 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 Rank | Sector 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%
1.3 Margins
- EBIX's Profit Margin of 0.68% is fine compared to the rest of the industry. EBIX outperforms 72.30% of its industry peers.
- In the last couple of years the Profit Margin of EBIX has declined.
- 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.
- EBIX's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), EBIX is creating value.
- The number of shares outstanding for EBIX has been increased compared to 1 year ago.
- The debt/assets ratio for EBIX is higher compared to a year ago.
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.
- Looking at the Altman-Z score, with a value of 1.06, EBIX is doing worse than 61.87% of the companies in the same industry.
- EBIX has a debt to FCF ratio of 30.67. This is a negative value and a sign of low solvency as EBIX would need 30.67 years to pay back of all of its debts.
- EBIX has a Debt to FCF ratio of 30.67. This is comparable to the rest of the industry: EBIX outperforms 49.64% of its industry peers.
- EBIX has a Debt/Equity ratio of 0.03. This is a healthy value indicating a solid balance between debt and equity.
- EBIX's Debt to Equity ratio of 0.03 is fine compared to the rest of the industry. EBIX outperforms 61.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 30.67 | ||
| Altman-Z | 1.06 |
ROIC/WACC2.69
WACC5.1%
2.3 Liquidity
- A Current Ratio of 0.41 indicates that EBIX may have some problems paying its short term obligations.
- With a Current ratio value of 0.41, EBIX is not doing good in the industry: 95.32% of the companies in the same industry are doing better.
- 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.
- EBIX's Quick 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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.41 | ||
| Quick Ratio | 0.41 |
3. Growth
3.1 Past
- The earnings per share for EBIX have decreased strongly by -92.74% in the last year.
- EBIX shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -7.91% yearly.
- The Revenue for EBIX has decreased by -30.72% in the past year. This is quite bad
- EBIX shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 23.60% yearly.
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
- Based on estimates for the next years, EBIX will show a very negative growth in Earnings Per Share. The EPS will decrease by -17.98% on average per year.
- 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.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 6.82, which indicates a rather cheap valuation of EBIX.
- Based on the Price/Earnings ratio, EBIX is valued cheaply inside the industry as 96.76% of the companies are valued more expensively.
- EBIX is valuated cheaply when we compare the Price/Earnings ratio to 28.30, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 0.82, the valuation of EBIX can be described as very cheap.
- Based on the Price/Forward Earnings ratio, EBIX is valued cheaper than 100.00% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of EBIX to the average of the S&P500 Index (25.57), we can say EBIX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.82 | ||
| Fwd PE | 0.82 |
4.2 Price Multiples
- EBIX's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. EBIX is cheaper than 97.84% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, EBIX is valued cheaper than 99.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.74 | ||
| EV/EBITDA | 4.14 |
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
5. Dividend
5.1 Amount
- No dividends for EBIX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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%.