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Last night I watched “Family Guy” reruns. Even though I knew they were reruns, and that I had watched them before, I still watched them and enjoyed them. So I figured, what the heck, how about a $$$MR. MARKET$$$ rerun? So today I bought a stock that I had bought before as a $$$MR. MARKET$$$ stock back in May of 2009. I liked it then, and I like it now.
Today I bought EBIX at 23.53. I will sell it in 4 – 6 weeks at 27.13. Here is why I like EBIX:
First of all, I love the chart. The stock is up 65% in the last 12 months and its PE is still modestly priced at around 16.7. When you reflect on the fact that this is a software company that grows its revenues year after year after year after year then you have to consider that this PE is really cheap and, as a result, the stock has room to run.
What the heck is an EBIX anyway? Ebix, Inc., together with its subsidiaries, provides software and e-commerce solutions to the insurance industry primarily in North America, Australia, New Zealand, India, and Singapore. The company operates data exchanges, which provide connectivity between consumers, agents, carriers, and third party providers, as well as enables the participants to carry and process data in the areas of life insurance, annuities, employee health benefits, and property and casualty (P&C) insurance.
EBIX is in the Unique position of being the only Insurance software services player
that attempts to address end-to-end needs of the industry globally. Permit me to put heavy emphasis on the word “only”. When someone is the only person that can do something, doesn’t that mean that the person is valuable? For example, if there was only one barber in town, or one dentist in town, or one saloon in town, don’t you think that it would be good to be in one of these businesses? You feelin me bro?
The company’s technology vision is to focus on convergence of all insurance channels, processes and entities in a manner that data can seamlessly flow once a data entry has been made. Continually cited for the high quality of its offering, Ebix has built an outstanding reputation among a large, impressive customer base.
Ebix, Inc. was founded in 1976 as Delphi Systems, Inc., a California corporation. In December 2003 the Company changed its name to Ebix, Inc. Ebix’s goal is to be the leading backend powerhouse of insurance transactions in the world. Ebix employs 1100 insurance & technology professionals providing products, support and consultancy to thousands of customers on six continents across 50+ countries. Its vast customer base includes hundreds of carriers and hundreds of thousands of brokers, and in addition to a few hundred corporate clients.
What else is good about EBIX? Try:
Consider:
Ebix delivered the following results for its third quarter, fiscal year 2010:
Revenues: Total Q3 2010 revenue grew to a record $33.3 million, an increase of 43% on a year-over-year basis, as compared to Q3 2009 revenue of $23.3 million. During the nine months ended September 30, 2010 revenue increased $30.7 million or 46%, to $97.1 million compared to $66.4 million during the same period in 2009.
Net Income: Q3 2010 net income was $16.7 million, an increase of 77% on a year-over-year basis, as compared to Q3 2009 net income of $9.4 million.
Earnings per Share: Q3 2010 diluted earnings per share rose 72% year-over-year to $0.43, as compared to $0.25 in the third quarter of 2009. For purposes of the Q3 2010 EPS calculation, there was an average of 39.0 million diluted shares outstanding during the quarter, as compared to 37.8 million diluted shares outstanding in Q3 of 2009.
Sure this is a lot of talk but what does it mean when it comes to coin? Look at the revenue growth in the last 5 years:
2005 - $24 MM
2006 - $29 MM
2007 - $43 MM
2008 - $75 MM
2009 - $98 MM
The 2010 nine month revenue is almost equal to the full year 2009 revenue!
Wow… Each of the last few years has been a record year for Ebix, in terms of beating all its results in the last 34 years. This year was no different from the last few to the extent that the financial results for the year 2009 are record results again – the best ever in their 34 year young history.
If you think this is impressive, look at the profits… Yup..big EPS profits:
2005 - $0.17/share
2006 - $0.21/share
2007 - $0.40 / share
2008 - $0.76 / share
2009 - $1.03 / share
Ebix Chairman, President & CEO Robin Raina said “We are pleased with these results as we are able to deliver these results despite the present economic crisis in the insurance industry, along with our continued investment in future Exchange and On-Demand Based products and services for the insurance and financial services industries. We are presently in the process of building many new products designed to expand the portfolio, and geographical reach of many of our services such as life, health and annuity exchanges along with cloud computing based carrier back end systems. We expect to launch some of these services in the first half of 2011.”
Robin further said, “We remain focused on creating a fundamentally strong Company with recurring revenue streams, 40% operating margins, minimal customer attrition and healthy operating cash flows. We have always believed that a Company with all these attributes has the potential of becoming the largest Insurance software services player worldwide. Accordingly, the Company has not tried to grow its top line aggressively at the cost of its bottom-line. We intend to make efforts to grow both proportionately.”
Robin added, “We feel good about our future prospects both in the United States and abroad especially in the area of Exchanges. Accordingly, we are presently in the process of doubling our sales resources across the Company especially in the Exchange arena.”
“Ebix does not like to give any guidance related to revenues or earnings. We prefer to have our past speak for us. We are quite bullish about our future. Our strong faith in our fundamentals is based on our high percentage of recurring revenues, low customer attrition rate, infrastructure exchanges, and the global nature of our business. There is no competitor who can provide enterprise solutions in insurance like Ebix across the world. All of this should help us grow continuously. We have already conveyed in the past our desire to be at a revenue run rate of $50 million or more in the fourth quarter of 2011. We would like to get there with 40% or more in operating margins. That is the extent to which I could talk about the future.
I don’t think I need to take out much insurance on this guy. I love the numbers. I love the earnings. I think I’m gonna love what’s about to happen to its stock price!
I am HUGE!!
$$$MR. MARKET$$$
Today I bought EBIX at 23.53. I will sell it in 4 – 6 weeks at 27.13. Here is why I like EBIX:
First of all, I love the chart. The stock is up 65% in the last 12 months and its PE is still modestly priced at around 16.7. When you reflect on the fact that this is a software company that grows its revenues year after year after year after year then you have to consider that this PE is really cheap and, as a result, the stock has room to run.
What the heck is an EBIX anyway? Ebix, Inc., together with its subsidiaries, provides software and e-commerce solutions to the insurance industry primarily in North America, Australia, New Zealand, India, and Singapore. The company operates data exchanges, which provide connectivity between consumers, agents, carriers, and third party providers, as well as enables the participants to carry and process data in the areas of life insurance, annuities, employee health benefits, and property and casualty (P&C) insurance.
EBIX is in the Unique position of being the only Insurance software services player
that attempts to address end-to-end needs of the industry globally. Permit me to put heavy emphasis on the word “only”. When someone is the only person that can do something, doesn’t that mean that the person is valuable? For example, if there was only one barber in town, or one dentist in town, or one saloon in town, don’t you think that it would be good to be in one of these businesses? You feelin me bro?
The company’s technology vision is to focus on convergence of all insurance channels, processes and entities in a manner that data can seamlessly flow once a data entry has been made. Continually cited for the high quality of its offering, Ebix has built an outstanding reputation among a large, impressive customer base.
Ebix, Inc. was founded in 1976 as Delphi Systems, Inc., a California corporation. In December 2003 the Company changed its name to Ebix, Inc. Ebix’s goal is to be the leading backend powerhouse of insurance transactions in the world. Ebix employs 1100 insurance & technology professionals providing products, support and consultancy to thousands of customers on six continents across 50+ countries. Its vast customer base includes hundreds of carriers and hundreds of thousands of brokers, and in addition to a few hundred corporate clients.
What else is good about EBIX? Try:
- Industry Leadership Opportunity by Leveraging Ebix’s Strong Market Presence.
- Large, Impressive Client Base for Expansion and Cross-selling.
- One of the Most Successful Software Companies in the United States in terms of its consistency of results.
- High Growth and Profitable Recurring Revenue Model.
- Consistency of Performance over the last many years.
Consider:
- Ebix’s exchanges power transactions between hundreds of thousands of brokers and insurance companies.
- Ebix has a global reach and insurance domain knowledge.
- Ebix provides a multi-national broker or carrier a common code base world-wide, unlike any other software player in the insurance industry that addresses these markets.
- With fully owned offshore facilities in India, Ebix has the ability to reduce the cost structure of acquired companies and increase their efficiency.
- Experienced Executive Management Team with Domain Expertise and Industry Recognition.
- 43% revenue growth in Q3 of 2010 as compared to Q3 of 2009
- 31% annual revenue growth in 2009 as compared to 2008, 128% as compared to 2007 and 234% as compared to 2006.
- Long-term client relationships with 99% retention rates
- Stable, predictable base of recurring revenues
- Approximately 70% recurring revenue streams
- Scaling on-demand model of 50% net margin levels (after taxes) in Q3 of 2010
- 42% annual net income growth in 2009 as compared to 2008, 207% as compared to 2007, 551% as compared to 2005.
- Close to 0% customer attrition rate in 2009
- 90%+ senior employee retention rate worldwide over the last three years
Ebix delivered the following results for its third quarter, fiscal year 2010:
Revenues: Total Q3 2010 revenue grew to a record $33.3 million, an increase of 43% on a year-over-year basis, as compared to Q3 2009 revenue of $23.3 million. During the nine months ended September 30, 2010 revenue increased $30.7 million or 46%, to $97.1 million compared to $66.4 million during the same period in 2009.
Net Income: Q3 2010 net income was $16.7 million, an increase of 77% on a year-over-year basis, as compared to Q3 2009 net income of $9.4 million.
Earnings per Share: Q3 2010 diluted earnings per share rose 72% year-over-year to $0.43, as compared to $0.25 in the third quarter of 2009. For purposes of the Q3 2010 EPS calculation, there was an average of 39.0 million diluted shares outstanding during the quarter, as compared to 37.8 million diluted shares outstanding in Q3 of 2009.
Sure this is a lot of talk but what does it mean when it comes to coin? Look at the revenue growth in the last 5 years:
2005 - $24 MM
2006 - $29 MM
2007 - $43 MM
2008 - $75 MM
2009 - $98 MM
The 2010 nine month revenue is almost equal to the full year 2009 revenue!
Wow… Each of the last few years has been a record year for Ebix, in terms of beating all its results in the last 34 years. This year was no different from the last few to the extent that the financial results for the year 2009 are record results again – the best ever in their 34 year young history.
If you think this is impressive, look at the profits… Yup..big EPS profits:
2005 - $0.17/share
2006 - $0.21/share
2007 - $0.40 / share
2008 - $0.76 / share
2009 - $1.03 / share
- In 2010, Ebix was ranked the 3rd Fastest Growing Company and the 3rd Best Investment by Fortune Magazine
- FORTUNE magazine ranked Ebix in 2009 the 2nd Best Investment
- In 2009, Ebix was ranked the 4th Fastest Growing Company by Fortune Magazine
- Ebix CEO rang the Opening Bell at the NASDAQ on July 20th 2009
- FORTUNE Small Business ranked Ebix as the No.1 Fastest Growing Public Company in the Technology Sector in America
- For 2 years in a row, Atlanta Business Chronicle ranked Ebix CEO Robin Raina 1st on the annual list of top performing CEOs in Georgia
- Atlanta Journal Constitution named Ebix 2nd amongst the TOP 100 Performing Public Companies in Georgia in 2008
- In each of the past 5 years, FORTUNE Small Business has ranked Ebix amongst the 100 fastest growing small public companies in America
- TIE Atlanta recently ranked Ebix CEO Robin Raina as the Entrepreneur of the year for 2009
Ebix Chairman, President & CEO Robin Raina said “We are pleased with these results as we are able to deliver these results despite the present economic crisis in the insurance industry, along with our continued investment in future Exchange and On-Demand Based products and services for the insurance and financial services industries. We are presently in the process of building many new products designed to expand the portfolio, and geographical reach of many of our services such as life, health and annuity exchanges along with cloud computing based carrier back end systems. We expect to launch some of these services in the first half of 2011.”
Robin further said, “We remain focused on creating a fundamentally strong Company with recurring revenue streams, 40% operating margins, minimal customer attrition and healthy operating cash flows. We have always believed that a Company with all these attributes has the potential of becoming the largest Insurance software services player worldwide. Accordingly, the Company has not tried to grow its top line aggressively at the cost of its bottom-line. We intend to make efforts to grow both proportionately.”
Robin added, “We feel good about our future prospects both in the United States and abroad especially in the area of Exchanges. Accordingly, we are presently in the process of doubling our sales resources across the Company especially in the Exchange arena.”
“Ebix does not like to give any guidance related to revenues or earnings. We prefer to have our past speak for us. We are quite bullish about our future. Our strong faith in our fundamentals is based on our high percentage of recurring revenues, low customer attrition rate, infrastructure exchanges, and the global nature of our business. There is no competitor who can provide enterprise solutions in insurance like Ebix across the world. All of this should help us grow continuously. We have already conveyed in the past our desire to be at a revenue run rate of $50 million or more in the fourth quarter of 2011. We would like to get there with 40% or more in operating margins. That is the extent to which I could talk about the future.
I don’t think I need to take out much insurance on this guy. I love the numbers. I love the earnings. I think I’m gonna love what’s about to happen to its stock price!
I am HUGE!!
$$$MR. MARKET$$$
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