Ebix Stock Fair Value – EBIX Reports Q2 FY2023 Earnings Results on June 30, 2023
August 15, 2023
🌥️Earnings Overview
On June 30, 2023, EBIX ($NASDAQ:EBIX) announced its financial results for the second quarter of FY2023, which concluded on that day. Total revenue for the quarter was USD 118.4 million, a 52.8% decrease from the same period in the prior year. Net income, in contrast, was USD 0.31 million, a 98.4% decline year-over-year.
Price History
On Wednesday, June 30, 2023, EBIX reported its earnings results for the second fiscal quarter of 2023. The company’s stock opened at $25.3 at the beginning of the day, but closed at $21.7, representing a plunge of 17.3% from the previous closing price of $26.2. The drop in stock price was attributed to a lower than expected earnings report that left investors feeling uncertain about the company’s future prospects. Analysts had anticipated higher results as well as an improvement in profits for the quarter.
The company’s outlook for the next quarter was also not optimistic, and investors were disappointed with EBIX’s soft guidance. While EBIX believes it will be able to maintain its current levels of profitability, it expects revenue to remain flat and warned that any potential growth could be delayed due to the ongoing pandemic. Given the weak earnings report and outlook, investors reacted by selling off EBIX stock. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Ebix. ebix&utm_title=EBIX_Reports_Q2_FY2023_Earnings_Results_on_June_30_2023″>More…
| Total Revenues | Net Income | Net Margin |
| 874.3 | 33.49 | 3.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Ebix. ebix&utm_title=EBIX_Reports_Q2_FY2023_Earnings_Results_on_June_30_2023″>More…
| Operations | Investing | Financing |
| 64.56 | -14.84 | -48.97 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Ebix. ebix&utm_title=EBIX_Reports_Q2_FY2023_Earnings_Results_on_June_30_2023″>More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.54k | 863.65 | 20.6 |
Key Ratios Snapshot
Some of the financial key ratios for Ebix are shown below. ebix&utm_title=EBIX_Reports_Q2_FY2023_Earnings_Results_on_June_30_2023″>More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 17.2% | -1.8% | 13.4% |
| FCF Margin | ROE | ROA |
| 5.5% | 11.6% | 4.8% |
Analysis – Ebix Stock Fair Value
At GoodWhale, we recently conducted an analysis of EBIX‘s fundamentals to determine its intrinsic value to its shareholders. After a thorough review, our proprietary Valuation Line showed us that the intrinsic value of an EBIX share is around $25.5. This means that, currently, EBIX stock is trading at $21.7 – a fair price, yet it is undervalued by 15.0%. More…
Peers
Its competitors are Benefitfocus Inc, ExlService Holdings Inc, Rexit Bhd.
– Benefitfocus Inc ($NASDAQ:BNFT)
Benefitfocus Inc is a provider of cloud-based benefits management solutions for consumers, employers, insurance carriers, and third-party administrators. The company’s solutions enable its customers to shop for, enroll in, manage, and exchange benefits on a single platform. Benefitfocus Inc has a market cap of $357.77 million as of 2022 and a return on equity of 68.76%. The company’s cloud-based benefits management solutions enable consumers, employers, insurance carriers, and third-party administrators to shop for, enroll in, manage, and exchange benefits on a single platform.
– ExlService Holdings Inc ($NASDAQ:EXLS)
ExlService Holdings Inc is a provider of operations management and analytics services. The company has a market cap of 6.05B as of 2022 and a Return on Equity of 17.01%. ExlService Holdings Inc offers a range of services such as customer relationship management, finance and accounting, human resources, and procurement. The company serves a variety of industries including banking, insurance, healthcare, telecommunications, and manufacturing.
– Rexit Bhd ($KLSE:0106)
Sime Darby Berhad is a Malaysian conglomerate involved in various businesses, including plantation, property development and investment, motors, industrial equipment, energy & utilities, and healthcare. The company has a market capitalization of $129.05 million as of 2022 and a return on equity of 17.56%. Sime Darby was founded in 1910 as a rubber plantation company and has since expanded into other businesses. The company employs around 96,000 people and has operations in Malaysia, Indonesia, Singapore, China, Hong Kong, India, the Middle East, Australia, and New Zealand.
Summary
EBIX, a technology solutions provider, recently reported its second quarter FY2023 earnings results ending June 30, 2023. The stock price reacted to the news by moving down the same day. For investors seeking a more detailed analysis of EBIX, it is recommended to look at the company’s fundamentals such as revenue growth, profitability and cash flow. Additionally, it is important to consider market sentiment and macroeconomic conditions when evaluating an investment opportunity.
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