MCRS

Ebix Might Be a Value Trap

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Image Source: Ebix Inc – IR Presentation By Callum Turcan Ebix Inc (EBIX) is a leading international provider of on-demand software and e-commerce services to the healthcare, insurance, financial, and e-learning industries. In our latest 16-page stock report covering Ebix, which can be viewed here, the low end of the fair value estimate range stands at $44/share. With shares of Ebix trading well below that at ~$34/share as of this writing, it would appear at first glance that the technology company may be an appealing capital appreciation opportunity. However, please note that the firm’s techincals are terrible and have been getting worse after staging a short-lived recovery in early-2019, indicating the firm may represent a Value Trap. As of this … Read more

Our Reports on Stocks in the Software Industry

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Structure of the Software Industry Firms that serve the mature software markets—or those consisting of basic business applications—have powerful distribution channels, large installed bases, and fortress balance sheets. These entrenched competitors benefit from significant customer switching costs, which make it nearly impossible for new entrants to gain a foothold. Participants generally benefit from high-margin license revenue and generate significant returns on investment. Still, the shift to cloud computing has created both opportunities and challenges, and the enterprise software landscape continues to evolve. We like the group. We’ve optimized our tehnology coverage. To access the reports, please select here.

Valuentum Economic Castleâ„¢ Rating Update

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Read: Keeping the Horse Before the Cart: Valuentum’s Economic Castle™ Rating The Economic Castle Focuses on the Magnitude of Economic Value Creation The Valuentum Economic Castle™ rating is an enhancement of the competitive advantage framework (commonly known as economic moat analysis) that has become widespread and ubiquitous within the investing world. Whereas an economic moat framework evaluates a firm on the basis of the sustainability and durability of its competitive advantages, Valuentum’s Economic Castle™ rating evaluates a firm on the basis of the firm’s future economic profit spread (return on invested capital less its weighted average cost of capital). The companies with the strongest Valuentum Economic Castle™ ratings are poised to generate the most economic value for shareholders in the … Read more

Software: Adobe Keeps Rolling; Oracle Hit by Venezuela Forex Issues

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On Thursday, Adobe (ADBE) put up better-than-expected fiscal first-quarter performance and issued a strong outlook, while Oracle’s (ORCL) fiscal third-quarter results faced currency challenges and its forward guidance came in about as expected. Adobe achieved revenue of $1 billion, at the high end of the targeted range (and above consensus), and exited the fiscal first quarter with an impressive 1.84 million paid Creative Cloud subscriptions, an increase of 405,000 on a sequential basis. Adobe Marketing Cloud quarterly revenue jumped 24% during the period, to $267 million, a nice showing. Diluted earnings per share on a non-GAAP basis came in at $0.30, beating the consensus figure by $0.05. The fiscal first-quarter results were solid, but the company’s outlook was even better. … Read more