Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, insurance-industry software specialist Ebix (EBIX -13.46%) has earned a coveted five-star ranking.
With that in mind, let's take a closer look at Ebix and see what CAPS investors are saying about the stock right now.
Ebix facts
|
Headquarters (Founded) |
Atlanta (1976) |
|
Market Cap |
$611.4 million |
|
Industry |
Application software |
|
Trailing-12-Month Revenue |
$189.4 million |
|
Management |
Chairman/CEO Robert Raina |
|
Return on Equity (Average, Past 3 Years) |
27.1% |
|
Cash/Debt |
$31.0 million / $83.6 million |
|
Dividend Yield |
1.3% |
|
Competitors |
Applied Systems |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 97% of the 1,500 members who have rated Ebix believe the stock will outperform the S&P 500 going forward.
Just yesterday, one of those bulls, fellow Fool Thomas Engle (TMF1000), succinctly summed up the Ebix bull case for our community:
Their business isn't easy to predict or value due to their growth by acquisition business model. However, I believe, barring real accounting problems, they seem to be growing at a nice pace while keeping their balance sheet OK, reducing shares outstanding, keeping operating margins strong and generating ample cash flow. They are funding acquisitions mostly using cash flow. ...
At the present low price, I feel its worth the risk of not easily being able to follow value creation due to the many acquisitions. By checking cash flow growth, changes in the balance sheet, share reductions, we can get a basic idea that things are running reasonably well. ...
About 80% of their revenue is reoccurring. I like that they are buying small players in the industry, increasing their ability to produce more reoccurring revenue and expanding their markets while improving their technology.
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