"I sure hope the same is true in your neck of the world!!"
Yes, thanks TO, all is, currently, well in this neck of the woods.
And thanks, also, for bringing that EBIX reference to my attention.
Those are pretty good figures in terms of past Sales (3 years) and potential future Earnings growth of 32% and 20% respectively.
I have EBIX on one of my watch lists that I keep at Finviz. After its dramatic fall off in March last year, when it went from about $30 to about $14, it started a fairly steady recovery.
I got back into the stock, with a more modest amount than previously, at about $19 towards the end of November last year. Its price continued to improve to hit about $27 and then tested its support/resistance level of about $21.
After rising to, and meeting resistance at, about $24 it moved sideways for a while.
I decided to take some profit at around $23, so I now have about 50% of what I bought at $19.
Now I’ve had a look at the last 4 Quarterlies of EBIX and the Top Line Revenue for the last 12 months is $169.1mil. The total EBITDA for that period is $76.3mil. which gives an excellent EBITDA Margin of about 45%.
In addition, the total Pre-tax Income for that period is $73.4mil., and the current Capital Employed of the company is $361.4mil. That gives a Pre-tax Inc./Cap. Emp. ratio of 20.3%, which I’d say is pretty good.
One of the “contentious” issues surrounding EBIX has been the relatively small amount of tax that the company pays and reports.
If we take that Pre-tax income figure of $73.4mil. and deduct, say, 35% for tax we are left with $47.7mil. Now that would give EBIX a Net Income Margin of 47.7/169.1 = 28% for the last 12 months. By Buffett’s “standard” that’s a very good number !!
Should be interesting to see where EBIX goes from here. I’ll be keeping my finger on the button as it seems, currently, to be finding support at about $20 !!
Best wishes …. |
