Ebix Inc. Stock Downgraded (EBIX)
- The revenue growth came in higher than the industry average of 1.0%. Since the same quarter one year prior, revenues rose by 22.6%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- EBIX's debt-to-equity ratio is very low at 0.22 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.32, which illustrates the ability to avoid short-term cash problems.
- Net operating cash flow has declined marginally to $18.29 million or 5.47% when compared to the same quarter last year. Despite a decrease in cash flow EBIX INC is still fairing well by exceeding its industry average cash flow growth rate of -25.55%.
- EBIX's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 35.20%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
-- Written by a member of TheStreet Ratings Staff
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