EBIX

Ebix Inc

TMT, Finance/Real Estate


Presented:09/13/2018
Price:$80.40
Cap:$2.53B
Current Price:$0.00
Cap:$0.00B

Presented

Date09/13/2018
Price$80.40
Market Cap$2.53B
Ent Value$2.92B
P/E Ratio24x
Book Value$15.87
Div Yield0.37%
Shares O/S31.49M
Ave Daily Vol163,188
Short Int27.11%

Current

Price$0.00
Market Cap$0.00B
Ebix, Inc. engages in the provision of software and e-commerce services to the insurance, finance, and healthcare industries. It operates through the following products and services: Exchanges; Broker P&C Systems; Risk Compliance Solutions; and Carrier P&C systems. The Exchange include data exchanges in the area of finance, travel, life insurance, annuities, employee health benefits, risk management, workers compensation, insurance underwriting, and P&C insurance. The Broker P&C Systems focuses in the design and deplyment of back-end systems for international P&C insurance brokers who are seeking a worldwide system solution. The Risk Complaince Solutions involves in the domain intensive project management, time and material based consulting engagements to clients across the world, the creation and tracking of certificates of insurance issued in the United States and Australian markets, the provision of claims adjudication and settlement, call center, and back office support. The Carrier P&C systems gives back-end systems for P&C insurance companies. The company was founded in 1976 and is headquartered in John Creek, GA.

Publicly traded companies mentioned herein: Ebix Inc (EBIX), Goldman Sachs Group Inc (GS), The Western Union Company (WU)

Highlights

The presenter is short shares of Ebix (EBIX), presently trading at ~$80, due to a belief that shares are overvalued and will ultimately come under pressure as a result of increased awareness of the company's aggressive accounting practices. While timing remains a question/ risk, as the stock has performed well over the past year (+40%), investors could soon lose confidence in “outspoken" Chairman of the Board, President, and CEO Robin Raina, who seems to have an inordinate amount of control. At 18x 2019 Street EPS estimates (15x ‘19 EBITDA), further upside should be limited.

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Idea Discussion

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