Based on the aggregated intelligence of 140,000-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's business and see what CAPS investors are saying about the stock right now.

Ebix facts

Headquarters (Founded)

Atlanta, Ga. (1976)

Market Cap

$558.5 million


Application software

Trailing-12-Month Revenue

$83.4 million


CEO Robin Raina (since 1999)
CFO Robert Kerris (since 2007)

Return on Equity (Average, Past 3 Years)



$15 million/$45.9 million

Other Software Stock Alternatives

Microsoft (NASDAQ:MSFT)

CAPS Members Bullish on EBIX Also Bullish on

Johnson & Johnson (NYSE:JNJ)

CAPS Members Bearish on EBIX Also Bearish on


Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 98% of the 514 members who have rated Ebix believe the stock will outperform the S&P 500 going forward. These bulls include All-Star MJKpayday, who is ranked in the top 1% of our community, and KevinMih.

About a month ago, MJKpayday noted that Ebix "provides software to insurance companies." Our CAPS All-Star concludes: "It has a record of solid growth, even through this 'great recession' the valuations of price over potential earnings and current book value are reasonable, and management has ownership."

In a pitch from two days earlier, KevinMih echoes that line of thinking. Here's an excerpt:

The company has had continued quarter over quarter EPS increases for almost 9 years. It appears that EPS growth is accelerating in the last year. The operating margin is also increasing and due to the nature of the business higher sales should equate to increased operating margins. The P/E is extremely low considering the growth.

The company has a 99% customer retention and practically no competition. Their services are innovative and years ahead of competition. They are positioning themselves well in high growth areas such as health care benefit exchanges.

What do you think about Ebix, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. The CAPS community is waiting to hear your opinions. CAPS is 100% free, so get started!  

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Ebix is a Motley Fool Rule Breakers recommendation. Microsoft and Wal-Mart are Inside Value picks, Apple and Amazon are selections of Stock Advisor, and Johnson & Johnson is a choice of Income Investor. The Fool's disclosure policy always gets a perfect score.