Why Ebix Is Ready to Rebound

Updated

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 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.

If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong five-star rating, Ebix may not be your top choice.

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The article Why Ebix Is Ready to Rebound originally appeared on Fool.com.

Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool recommends Ebix. The Motley Fool owns shares of Ebix. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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