Why Ebix Is Ready to Rebound

Market-trouncing returns could be written in this 5-Star.

Brian D. Pacampara, CFA
Brian D. Pacampara, CFA
Feb 15, 2013 at 10:37AM
Technology and Telecom

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 (NASDAQ:EBIX) 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

$675.5 million

Industry

Application software

Trailing-12-Month Revenue

$189.4 million

Management

Chairman/CEO Robert Raina

CFO Robert Kerris

Return on Equity (average, past 3 years)

27.1%

Cash/Debt

$31.0 million / $83.6 million

Dividend Yield

1.6%

Competitors

Applied Systems

BenefitMall

Vertafore

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 98% of the 1,549 members who have rated Ebix believe the stock will outperform the S&P 500 going forward.

Earlier this week, one of those Fools, All-Star mikeinmadrid, listed several of Ebix's positives for our community:

(1) Diversified customer base, no customer represents more than a few percent of sales.
(2) Low cost provider, due to software centre in India.
(3) Characterful CEO who is a demon on driving down costs and owns 9% of the stock.
(4) Growing sales and earnings during the recession (a horrible period for their customers, the insurance industry).
(5) Proven ability in successful acquisitions and quick integration.
(6) Large open ended opportunity as insurance industry moves away from paper.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.