Why Ellie Mae Is Poised to Pop
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, mortgage industry software specialist Ellie Mae has earned a coveted five-star ranking.
With that in mind, let's take a closer look at Ellie Mae and see what CAPS investors are saying about the stock right now.
Ellie Mae facts
Headquarters (founded) | Pleasanton, Calif. (1997) |
Market Cap | $604.2 million |
Industry | Application software |
Trailing-12-Month Revenue | $101.9 million |
Management | Co-Founder/Chairman/CEO Sigmund Anderman President/COO Jonathan Corr |
Return on Equity (average, past 3 years) | 7.7% |
Cash/Debt | $60.4 million / $0 |
Competitors | Fiserv |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 99% of the 151 members who have rated Ellie Mae believe the stock will outperform the S&P 500 going forward.
Earlier today, one of those Fools, TMFInnovator, succinctly summed up the Ellie Mae bull case for our community:
- Rapidly growing user base (+40% yr/yr) that is adopting the Encompass software solution.
-As users become more comfortable/familiar with Encompass, switching costs rise and # of transactions/user increases (revenues to ELLI).
-Asset-light business model that is easily scalable.
-Huge addressable market that is in flux due to increased regulations. Increased regulation is good for ELLI business.
-Network Effect: The Ellie Mae Network becomes more valuable as more users subscribe.
If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong five-star rating, Ellie Mae may not be your top choice.
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The article Why Ellie Mae Is Poised to Pop originally appeared on Fool.com.
Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool recommends Ellie Mae. 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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