Ebix: Tax Reserve May Be Dangerously Low, Low ETR Could Be Unsustainable

Ebix Inc (NASDAQ:EBIX) stock has tanked since Goldman Sachs cancelled its buyout plan, and Gotham City Research issued an extremely negative report. Shares of the company are down close to 60 percent this week. Many have debated back and forth whether the company is a value stock or value trap. Nicholas Wesley Yee, Equity Analyst, Gradient Analytics is of the opinion that EBIX could be in big trouble. Below is the latest commentary from the analyst. Ebix Inc. (EBIX) has benefited from a single-digit effective tax rate (ETR) in eight of the last 10 years. Moreover, during the last 10…