| Company name | Ebix Inc |
| Stock ticker | EBIX |
| Live stock price | [stckqut]EBIX[/stckqut] |
| P/E compared to competitors | Good |
MANAGEMENT EXECUTION
| Employee productivity | Poor |
| Sales growth | Good |
| EPS growth | Good |
| P/E growth | Fair |
| EBIT growth | Good |
ANALYSIS
| Confident Investor Rating | Good |
| Target stock price (TWCA growth scenario) | $30.43 |
| Target stock price (averages with growth) | $43.68 |
| Target stock price (averages with no growth) | $31.83 |
| Target stock price (manual assumptions) | $26.82 |
The following company description is from Google Finance: http://www.google.com/finance?q=ebix
Ebix, Inc. (Ebix) is an international supplier of software and e-commerce solutions to the insurance industry. Ebix provides a series of application software products for the insurance industry ranging from carrier systems, agency systems and exchanges to custom software development for all entities involved in the insurance and financial industries. As of December 31, 2011, approximately 77% of Ebix revenues came from on-demand insurance Exchanges. On February 7, 2011 Ebix merged with ADAM, Inc. (ADAM) with a wholly owned subsidiary of Ebix. On November 15, 2011, Ebix acquired Health Connect Systems, Inc. (Health Connect). On June 8, 2012, the Company acquired PlanetSoft, Inc. In June 2012, the Company acquired Fintechnix. In August 2012, the Company acquired TriSystems Ltd., a online insurance trading hub that facilitates commercial insurance and reinsurance transactions between London intermediaries and insurance companies.
Confident Investor comments: At this price and at this time, I think that a Confident Investor can confidently invest in this stock.
If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor.
Are you aware that Goldman Sachs has announced that they will be acquiring Ebix for $20 a share?
The only way Ebix is going to see $29 is if there is a competing bid, which seems unlikely given the cloud of accounting impropriety that caused Ebix share price to plummet in the first place.
Don’t get me wrong, I would love to see $29 (I bought way too few shares at $15.38 earlier this year) but I don’t think it’ll happen. Anyone getting in at this point is likely to just tie up his capital for the next month…
I should have made note of this potential merger when I wrote the article. My mistake. Yes, I was aware of the offer and I believe that the offer is undervalued and was the reason that I still put out the article with my rating on the company.