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Ebix Inc (NAS:EBIX)
Piotroski F-Score
5 (As of Today)

The zones of discrimination were as such:

Good or high score = 8 or 9
Bad or low score = 0 or 1

Ebix Inc has an F-score of 5 indicating the company's financial situation is typical for a stable company.

EBIX' s 10-Year Piotroski F-Score Range
Min: 1   Max: 8
Current: 5

1
8

During the past 13 years, the highest Piotroski F-Score of Ebix Inc was 8. The lowest was 1. And the median was 5.


Definition

How is the Piotroski F-Score calculated?

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

This Year (Mar14) TTM:Last Year (Mar13) TTM:
Net Income was 15.417 + 15.245 + 13.143 + 13.542 = $57.3 Mil.
Cash Flow from Operations was 10.804 + 19.286 + 12.937 + 10.574 = $53.6 Mil.
Revenue was 51.404 + 50.847 + 50.293 + 51.004 = $203.5 Mil.
Gross Profit was 41.792 + 40.761 + 40.157 + 40.646 = $163.4 Mil.
Total Assets at the begining of this year (Mar13) was $529.8 Mil.
Total Assets was $552.4 Mil.
Long-Term Debt was $40.2 Mil.
Total Current Assets was $105.8 Mil.
Total Current Liabilities was $58.8 Mil.
Net Income was 17.344 + 18.745 + 18.072 + 18.067 = $72.2 Mil.

Revenue was 52.566 + 54.023 + 53.804 + 47.716 = $208.1 Mil.
Gross Profit was 42.675 + 43.576 + 44.304 + 38.559 = $169.1 Mil.
Total Assets at the begining of last year (Mar12) was $429.5 Mil.
Total Assets was $529.8 Mil.
Long-Term Debt was $67.0 Mil.
Total Current Assets was $89.9 Mil.
Total Current Liabilities was $57.8 Mil.

Profitability

Q1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by total assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Ebix Inc's current net income was 57.3. ==> Positive ==> Score 1.

Q2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by total assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Ebix Inc's current cash flow from operations was 53.6. ==> Positive ==> Score 1.

Q3. Change in Return on Assets

Compare this year’s return on assets (1) to last year’s return on assets.

Score 1 if it’s higher, 0 if it’s lower.

ROA (This Year)=Net Income/Total Assets at the beginning of this year (Mar13)
=57.347/529.753
=0.10825234

ROA (Last Year)=Net Income/Total Assets at the beginning of last year (Mar12)
=72.228/429.464
=0.16818173

Ebix Inc's return on assets of this year was 0.10825234. Ebix Inc's return on assets of last year was 0.16818173. ==> Last year is higher ==> Score 0.

Q4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA =< ROA.

Ebix Inc's current net income was 57.3. Ebix Inc's current cash flow from operations was 53.6. ==> 53.6 =< 57.3 ==> CFROA =< ROA ==> Score 0.

Funding

Q5. Change in Gearing or Leverage

Compare this year’s gearing (long-term debt divided by average total assets) to last year’s gearing.

Score 1 if gearing is lower, 0 if it’s higher.

Gearing (This Year)=Long-Term Debt/Total Assets
=40.159/552.362
=0.07270413

Gearing (Last Year)=Long-Term Debt/Total Assets
=66.957/529.753
=0.12639287

Ebix Inc's gearing of this year was 0.07270413. Ebix Inc's gearing of last year was 0.12639287. ==> This year is lower. ==> Score 1.

Q6. Change in Working Capital (Liquidity)

Compare this year’s current ratio (current assets divided by current liabilities) to last year’s current ratio.

Score 1 if this year’s current ratio is higher, 0 if it’s lower

Current Ratio (This Year)=Total Current Assets/Total Current Liabilities
=105.815/58.799
=1.79960544

Current Ratio (Last Year)=Total Current Assets/Total Current Liabilities
=89.895/57.771
=1.55605754

Ebix Inc's current ratio of this year was 1.79960544. Ebix Inc's current ratio of last year was 1.55605754. ==> This year's current ratio is higher. ==> Score 1.

Q7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 1 if there is fewer number of shares in issue this year. Score 0 otherwise.

Ebix Inc's number of shares in issue this year was 38.6. Ebix Inc's number of shares in issue last year was 38.8. ==> There is the same number of shares in issue this year, or fewer. ==> Score 1.

Efficiency

Q8. Change in Gross Margin

Compare this year’s gross margin (gross profit divided by sales) to last year’s.

Score 1 if this year’s gross margin is higher, 0 if it’s lower.

Gross Margin (This Year)=Gross Profit/Revenue
=163.356/203.548
=0.80254289

Gross Margin (Last Year)=Gross Profit/Revenue
=169.114/208.109
=0.81262223

Ebix Inc's gross margin of this year was 0.80254289. Ebix Inc's gross margin of last year was 0.81262223. ==> Last year's gross margin is higher ==> Score 0.

Q9. Change in asset turnover

Compare this year’s asset turnover (total sales divided by total assets at the beginning of the year) to last year’s asset turnover ratio.

Score 1 if this year’s asset turnover ratio is higher, 0 if it’s lower

Asset Turnover (This Year)=Revenue/Total Assets at the beginning of this year (Mar13)
=203.548/529.753
=0.3842319

Asset Turnover (Last Year)=Revenue/Total Assets at the beginning of last year (Mar12)
=208.109/429.464
=0.48457845

Ebix Inc's asset turnover of this year was 0.3842319. Ebix Inc's asset turnover of last year was 0.48457845. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score=Q1+Q2+Q3+Q4+Q5+Q6+Q7+Q8+Q9
=1+1+0+0+1+1+1+0+0
=5

Good or high score = 8 or 9

Bad or low score = 0 or 1

Ebix Inc has an F-score of 5 indicating the company's financial situation is typical for a stable company.


Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Related Terms

Net Income, Cash Flow from Operations, Revenue, Gross Profit, Total Assets, Long-Term Debt, Total Current Assets, Total Current Liabilities


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Ebix Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
Q1 1111111111
Q2 1111111111
Q3 1011010100
Q4 1101000010
Q5 0110110001
Q6 0101011011
Q7 0000000011
Q8 1111000110
Q9 1010010100
F-score 6666363565

Ebix Inc Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
Q1 1111111111
Q2 1111111111
Q3 1000000000
Q4 0111110000
Q5 0000001111
Q6 0001110111
Q7 0011111111
Q8 1111111000
Q9 1000010000
F-score 5456675555
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